Verizon Dodges FCC CableCARD Rules
On July 29 the Federal Communications Commission exempted the telco giant from an "integration ban" mandated in a 1996 federal law. The ban, enacted by Congress and enforced by the FCC, is intended to eliminate dependence on rented cable boxes, moving the security function to other devices.
The waiver will allow Verizon to continue operating its fiber-optic FiOS service without supplying CableCARDs for digital cable ready sets. Verizon will also not be required to let consumers to go to electronics stores and buy their own boxes. Effectively, either you rent a box from Verizon (like the Motorola pictured) or find yourself another TV supplier.
Cable companies have lobbied furiously for the same waiver. With few exceptions, they haven't gotten what they wanted. Systems that are either all digital (like Verizon) or going all digital by February 17, 2009 will get a waiver. The only other operator besides Verizon to get a break is Crosslake Communications of Minnesota, which said it had ordered the equipment but was still waiting for it to arrive. Crosslake will not get a waiver but has been granted a deferment. The FCC denied the demand of the National Cable & Telecommunications Association for a omnibus waiver covering all cable operators.
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