In the comments to an earlier post on two-way CableCARD technology, Peter Filippone asks:
What is the likelihood that Satellite providers (DirecTV, Dish) will implement CableCard technology or some similar technology?
If and when two-way cablecard technology takes off, do you think that will spur the satellite companies to get on the bandwagon?
I’m really curious to see where the chips will fall when the dust settles. (Will the dust EVER settle?)
Good questions!
In my opinion, the cable companies and satellite providers share the same instinct to lock down their platform and lock in their customers. (In DirecTV’s case we’re talking Rupert Murdoch, who isn’t exactly the king of open media.)
CableCARD technology exists because it is mandated by the FCC. The cable companies fought this initiative for years and finally lost. If it weren’t for the FCC mandate, nothing remotely like CableCARD would exist.
Satellite content providers aren’t currently regulated by the FCC. They’re under no obligation to open up their systems, and in fact DirecTV’s split with TiVo suggests that they want to control the data stream from beginning to end.
So, what are the chances that a CableCARD-like technology will open up satellite providers to third-party hardware? Slim, verging on microscopic.
“Satellite content providers aren’t currently regulated by the FCC.”
Actually Ed, that is not at all true. The 1996 Telecom Act said that all carriers had to provide access to their networks, in the same way that Ma Bell was orderred to allow access to third party manufacturers of handsets.
In the late 90’s small dish satellite companies were just getting established and in keeping with the FCC’s policy of providing waivers to new players providing new technologies, the FCC granted the satellite companies a temporary waiver. The 1996 telecom law stated the waiver is to last only so long as is necessary to establish the new technology. Well, one decade later, I’d say DirecTv and Dish are pretty well established with their 20% viewership share.
The FCC only granted a waiver for the compliance with the third party navigation device (aka what is now known as “cablecard”) access. Satellite companies must comply with other FCC regulations just like everyone else.