CEA Responds To FCC's Annual Request for Information on the Status of Competition in the Market for Delivery of Video Programming; American Consumers Now Have More Ways to Receive Video Programming Than Ever Before.

ARLINGTON, Va. -- The Consumer Electronics Association (CEA) yesterday filed comments in response to the Federal Communication Commission's (FCC) annual Notice of Inquiry (NOI) requesting information on the status of competition in the market for the delivery of video programming. CEA provided information both on the country's 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 before," said CEA President and CEO Gary Shapiro. "Consumer electronics equipment manufacturers, cable operators, terrestrial broadcasters, satellite broadcasters, and home media now are at the center of the market for the delivery of video programming, but consumers soon will have these services available via telephone, mobile, wireless broadband and even power lines," Shapiro said.

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 will be able to 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.

CEA research shows that currently only 32.7 million (or 11.5 percent) of the 285 million television sets used in the U.S. are used to view over-the-air television programming. The phenomenon is driven by the fact that television today is largely a wired (i.e., cable or satellite) service.

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.

About CEA:

The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the consumer technology industry through technology policy, events, research, promotion and the fostering of business and strategic relationships. CEA represents more than 2,000 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, home networking, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, CEA's members account for more than $121 billion in annual sales. CEA's resources are available online at www.CE.org, the definitive source for information about the consumer electronics industry.

CEA also sponsors and manages the International CES - Defining Tomorrow's Technology. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy.

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