FCC eyes forcing cable TV to carry digital, analog

By Rachelle Younglai

WASHINGTON, April 11 (Reuters) - U.S. cable companies like Comcast (CMCSA.O) could be forced to carry both analog and new digital signals by early 2009 if a proposal circulated by the chairman of the Federal Communications Commission goes forward, a source familiar with it told Reuters on Wednesday.

Alternatively, cable operators could ensure customers with older televisions have set-top boxes to convert the digital signals, under the proposal by FCC Chairman Kevin Martin aimed at ensuring viewers are unaffected when U.S. broadcasters are forced to go digital by Feb. 17, 2009.

Currently, cable companies are required to carry only the broadcaster's primary signal.

"A lot of cable customers may not have digital boxes after the transition. Assuming there are still customers with analog equipment, the proposal is asking what should cable operators be required to do," said an FCC official, speaking on condition of anonymity.

Carrying both signals would leave cable operators with less room for additional channels and other services.

The cable industry is unhappy with the proposal. It has already said it will take the necessary steps to ensure that customers who have analog televisions will see clear pictures after the transition.

"We have repeatedly assured Congress and the federal government that we'll continue to deliver broadcast signals to cable's analog customers after the February 2009 transition," said Brian Dietz, spokesman for the National Cable & Telecommunications Association. The group represents the country's biggest cable operators and programmers.

"The right approach to ensuring a seamless digital transition is a collaborative process that doesn't reach premature conclusions that will jeopardize our efforts to assist cable's 65 million customers," he said.

The proposal needs approval from three of the five FCC commissioners for it to move forward. If it gets the go-ahead, the agency would seek comment from the public before crafting an order.

"The two options are: Should they be required to send the digital signal and also a analog signal for people who don't have the equipment yet, or should they be just required to carry the digital signal but then to make sure that the customers have the appropriate boxes so they can see digital," the FCC official said.

In 2001, a proposal requiring cable to carry both analog and digital signals, known in the industry as "dual must-carry," was voted down by FCC commissioners.