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Page 109
Regulatory Issues
As proposed above, we believe that the future infrastructure for
communication to the home will develop in the consumer's best
interests if competing information carriers vie for this business.
Regulatory intervention should have the sole purpose of ensuring
that such competition exists. Only where no competing carrier
exists is rate regulation required. Where a new service to the
consumer is uniquely proposed by a single organization, the
regulatory authorities should act to encourage the entry of a
competing entity offering the same service.
It is further arguable that regulation should work to inhibit or
even prohibit any single entity from owning or controlling both
program production and program delivery operations, if such control
results in the consumer being denied access to any available
program source. Consumer access should be a prime
consideration.
Recommendations
We believe that the services required most by the consumer
include entertainment and local and national news. The consumer
wants the highest technical quality of picture and sound and a wide
range of choices of programming and expects these services to be
available at minimal cost.
The infrastructure necessary to meet these needs should have the
following features:
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1.
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There should be multiple competing delivery
systems entering the home, where it is economically feasible. A
governmental role in ensuring a level playing field may be
appropriate.
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2.
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The delivery systems should be able to carry all
services now provided by broadcast, cable, DBS, and computer data
networks.
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3.
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The delivery systems should be able to carry a
range of digital data rates, including that necessary for the FCC's
initiative for HDTV service.
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4.
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The delivery systems, as an element of the NII,
following a period of innovation and standards development, should
be interoperable with other elements of the NII, enabling access to
nonentertainment and information services.
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5.
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The delivery systems should permit interactive
operation by the consumer, through the use of a simple
interface.
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6.
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The cost of delivering all services to the
consumer should be such that universal access is practicable and
affordable. In particular, the delivery of current terrestrially
broadcast programs should continue to be free to the consumer.
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7.
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The existing cable infrastructure, which is
broadly available to almost all television households, should
continue to offer a cost-effective path to a broadband component of
the NII, which builds on its existing broadband architecture.
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8.
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With the exception of Recommendation 1 above, no
governmental role is foreseen as desirable or necessary.
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