IP: FCC weighs interactive TV rules

[David Farber <dave () farber net>]

FCC weighs interactive TV rules

By PATRICK ROSS, CNET NEWS.COM

WASHINGTON--Consumer groups are pushing federal regulators to write rules 
for interactive television, but the companies that will deliver that 
service argue that it's hard to regulate an industry that barely exists.

The Federal Communications Commission on Monday collected comments from a 
variety of parties on its inquiry into applying regulations to interactive 
television (ITV). The inquiry resulted from the AOL Time Warner merger, 
when concerns arose that the company might use its cable pipes to control 
what interactive services could reach consumers.
However, despite years of promises that couch potatoes could remote-click 
their way through a sea of Internet content right on their TV screens, an 
ITV industry doesn't really exist yet. The question facing regulators, 
then, is whether they must act now to ensure that any future industry is 
open, or whether even the threat of regulations will prevent any industry 
from flourishing.

The ITV market, or what there is of it, has taken a hit recently. Liberate 
Technologies, whose business plan is based on providing set-top boxes 
capable of delivering ITV services, was downgraded last month by Deutsche 
Banc Alex Brown because of delays in interactive TV. Meanwhile, Microsoft 
decided to hold off on retail offerings of its UltimateTV interactive 
service after deciding the market was not yet ready.

<snip>

http://www.nytimes.com/cnet/CNET_0-1004-200-5184551.html



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