Why Consumers Should Care about CableCARD

By Karen Sum-Ping on November 21, 2006 - 1:53pm

Recently, a number of groups sent out a letter urging the FCC to enforce its own rules on the issue of CableCARD. CableCARD is somewhat of an obscure issue, but as consumers rush to the store to buy the latest gadget this holiday season, they may increasingly be learning more about the intricacies of how to hook-up their HDTV or Series 3 TiVO to their cable service. Consumers should care about CableCARD because it is what allows digital device manufacturers to compete against that digital cable set-top box and provide better features and prices.

Previously, a cable subscriber had little to no choice but to lease a digital set-top box from his particular cable provider. A cheaper box could not be bought from another supplier because only the cable provider’s set-top box (STB) would work and allow access to the cable channels. This is because older and many current STBs are “integrated,” meaning they perform both security (i.e. decryption of the cable signals) and non-security functions.

The main problem is that integrated STBs tie and extend a cable provider’s control over the security functions to the non-security features such as receiving and changing cable channels. While it is understandable why cable providers should control the security aspects of their network—to identify subscribers and allow them to descramble the television signals—they should not be able to extend this control (some might even call it monopoly power) over the non-security components. This is where the FCC and CableCARD come in.

In 1998, the FCC implemented §629 of the Telecommunications Act of 1996 which directed the FCC to “adopt regulations to assure the commercial availability” of devices used by consumers to access cable channels. The decision was to split the security and non-security functionality of the integrated STBs so that each can be performed by competitive devices. The industry solution was CableCARD—essentially a thick, credit-card-sized piece of hardware that can be inserted into a slot in a “host navigation device” such as a non-integrated set-top box, a digital television set, or even the latest TiVO. Since CableCARD performs only the security function, it gives other retailers the opportunity to provide additional and innovative features in a competitive market and at lower costs for consumers.

Okay, so why are we talking about this today—these regulations were effective in 1998, right? True, but some in the cable industry have been delaying and postponing, and most recently asked the FCC for waivers so as not to have to fully comply with the regulations. In our group letter, we called their actions “anti-consumer,” and Gigi called on the FCC to “enforce the rules, and give consumers the benefits of competition and innovation.”

Yes, CableCARD is an obscure issue, but it’s one that consumers should care about. It directly impacts consumers in their pocketbook (for monthly rental cable set-top box fees) and with their choice of the latest innovative products on store shelves.

CableCARD is a sham anyway,

CableCARD is a sham anyway, because independent hardware manufacturers are hamstrung by a license for the specification that forbids them from manufacturing, for example, a TV capture card that supports CableCARD that you can slap into your PC. This would allow people to build their own PVRs (such as the Linux-driven MythTV) that natively support digital cable (i.e., without needing a set-top box from the cable company), and to use their custom PVR legally by using the CableCARD to confirm that they are legitimate cable subscribers. While digital TV capture cards exist, none of them support CableCARD, and are thus primarily useful for broadcast TV, since most digital cable channels are encrypted.

But the content cartel has convinced CableLabs (the organization that holds monopoly over the industry specification) not to provide a license to the technology to anyone who wants to manufacture a device that doesn’t meet certain specifications put in place under the guise of copy prevention. Even if the cable companies finally cave in and meet the FCC requirements, CableCARD is still another way for content companies to gain an increasing stranglehold on consumer-friendly innovation.

Not surprisingly, Microsoft sees an opportunity to capitalize on the one-sided debate by completely acceding to the content cartel’s demands. They’ll be using DRM to give content companies control over users’ Windows-based PVRs in order to gain certification from CableLabs.

The truth is, cablecard

The truth is, cablecard would be perfectly good enough for most consumers and would do for digital TV what cable-ready TV’s did 25 years ago — get rid of the ugly, low-tech box the cable companies forced into your living room. Unfortunately, most of the cable companies, even while “supporting” cable cards make it next to impossible to get them and fight you every step of the way through the process.

The biggest offender is probably Time Warner, who is rolling out SDV (Switched Digital Video) for new digital channels in many markets. What is SDV? It only broadcasts the channels people are watching, and dynamically remaps the channels as required, so guess what, cablecard devices don’t work with it. It requires their box, AGAIN. So even if they’re supporting cablecard, they’re rolling out new channels in an incompatible format, thumbing their nose at the FCC mandate.

Also, it should be noted that the cable company DVR’s ignore some of the DRM related codes that force deletion of DVR data from digital feeds, while cablecard compliant boxes handle them correctly. The cable companies don’t seem to have to play by their own rules.