American Consumers Have More Ways to Receive Video Programming than Ever Arlington, Va., September 19, 2005 - The Consumer Electronics Association (CEA®) filed comments today in response to the Federal Communication Commission's (FCC) request for information on the status of competition in the market for the delivery of video programming. CEA responded regarding both the country's successful transition from analog to digital broadcasting and also on the state of competition for current participants and new entrants into the video marketplace. "American consumers now have more ways to receive video programming than ever. The vast majority of Americans receive local and network broadcast signals via cable and satellite and soon via telephone, mobile, wireless broadband and power lines," said CEA President and CEO Gary Shapiro. "CEA research shows that currently only 32.7 million of the 285 million television sets in the U.S. are used to view over-the-air television programming." CEA pointed to recent sales figures, showing that the first six months of 2005 had the greatest volume of digital television (DTV) sales ever recorded, with 3.8 million DTV products accounting for $4.6 billion of retailer investment and contribution to the robust U.S. economy, as proof of the country's successful transition to digital. Consumers are overwhelmingly opting for high-definition television (HDTV) with 85-percent of DTV sets sold in 2004 capable of displaying a picture in HDTV resolution. The rapid price declines, typical of the consumer electronics industry, also have helped drive sales. Today, there are numerous DTV options under the $700 mark and even some expected soon for as low as $400. CEA continues to conduct numerous programs to increase public knowledge about the DTV transition and broadcast reception. "Now, broadcasters must do their part to more aggressively promote digital broadcast channels, both during analog broadcasts and in TV program listings," said Shapiro. "Cable operators, also, must make available a sufficient supply of reliable and robust CableCARDS in a fast, simple and consumer-friendly manner." Marketplace competition for video services will bring consumers lower prices and more service choices. CEA supports minimal regulation of new competitive video services. Section 629 of the Communications Act allowed for the ability of manufacturers to build and consumers to purchase devices that attach to their video services. Innovation will only flourish if device manufacturers have certainty that their products can connect to IP networks and IP-enabled services, without undue restrictions imposed by other industry players. Without the reservation of Section 629, many products already on the market will no longer exist and the incentive to create new technologies will be diminished.