On April 21, 2010, the Federal Communications Commission (Commission) released a Notice of Inquiry (NOI) seeking comment on proposals for creating a competitive retail market for smart set-top box devices (smart video devices) that would be compatible with all multichannel video programming distributor (MVPD) services.  Specifically, the NOI seeks to explore the concept of requiring MVPDs to provide subscribers with an adapter that would serve as a gateway allowing all consumer electronics equipment in subscribers' homes to access MVPD services.  According to the NOI, the Commission envisions that the proposals advanced in this proceeding would be the successor to the CableCARD regime.  The NOI, an outgrowth of the National Broadband Plan, states that the goal of this proceeding is to effectuate the intent of Congress as set forth in Section 629 of the Communications Act of 1934.

Comments responding to the NOI are due 60 days after the date of publication in the Federal Register.  Reply comments are due 90 days after the date of publication in the Federal Register.

The NOI posits that there are two fundamental defects in the current navigation device market.  First, "retail navigation devices are unable to provide functionality beyond that available in devices that subscribers can lease from their providers and often are unable to access many of the MVPD services that leased set-top boxes are able to access.  Second, as a general matter, a retail navigation device purchased for use with one MVPD's service cannot be used with the services of a competing MVPD."  The NOI seeks comment on these premises.

As a remedy, the NOI seeks comment on a proposal to require MVPDs to provide a "small, low-cost adapter that would connect to proprietary MVPD networks and would provide a common interface for connection to televisions, DVRs, and other smart video devices."  The NOI also invites comment on alternative proposals that would "remove barriers to the establishment of a retail market for smart video devices compatible with all MVPD services."

A. The AllVid Concept

The NOI describes its proposal as an "all video" or "AllVid" solution, which the Commission envisions as a nationwide interoperability standard, similar to Ethernet and IEEE 802.11.  According to the NOI, "the AllVid solution would be designed to accommodate any delivery technology that an MVPD chooses to use and allow MVPDs to continue unfettered innovation in video delivery" while allowing "consumer electronics manufacturers to design a stable interface and to integrate multiple functions within a retail device."

The NOI states that the AllVid concept would follow the model of standardized Ethernet interfaces, which created a competitive, flexible and innovative market for broadband devices and services.  The NOI states that this approach would "place the network specific functions, such as conditional access, provisioning, reception, and decoding of the signal in one small, inexpensive operator-provided adapter, which could be either (i) a set-back device - which today could be as small as a deck of cards - that attaches to the back of a consumer's television set or set-top box, or (ii) a home gateway device that routes MVPD content throughout a subscriber's home network."  The NOI further notes that MVPDs would be able to participate in the retail market for navigation devices, provided that those devices are separate from the adapter and marketed separately.

B. AllVid Standards

 The NOI states that the AllVid adapter would only perform those functions "necessary to support devices connected to the home network, and should connect to home network devices using a nationally supported standard interface that is common across MVPDs."  The NOI also envisions that the adapter would be "inexpensive and physically small," would be provided by MVPDs (leased, provided for a fee or with the option to purchase), and would "likely" not be portable across carriers.  The NOI specifically seeks comment on the following proposed standards for the AllVid adapter:

• AllVid Equipment:  The NOI proposes two possible physical configurations for the AllVid equipment.  In the first configuration, a small 'set back' device, capable of communicating with one navigation device or TV set and providing at least two simultaneous video streams to allow for picture-in-picture and to allow subscribers to watch a program on one channel while recording a program on another channel.  In the second configuration, the AllVid equipment would act as a whole-home gateway, capable of simultaneously communicating with multiple navigation devices within the home, and providing at least six simultaneous video streams within the home (which would allow picture-in-picture in three different rooms), possibly through a modular system that could accommodate more streams as necessary.
• Physical Connection:  The NOI proposes that the 100-BASE-TX Ethernet could act as the physical layer technology used to connect AllVid adapters with navigation devices.  The NOI posits that this technology could enable compatibility with current and next generation equipment.  The NOI seeks comment on this proposal and any other alternative physical connections.
• Communication Protocol:  The NOI proposes Internet Protocol (IP) as the standard communication protocol between AllVid adapters and navigation devices.  The NOI seeks comment on this proposal and any other alternative protocols.
• Encryption and Authentication:  The NOI suggests that given its approval by the MPAA and CableLabs, digital content protection over Internet Protocol (DTCP-IP) technology would be the best choice for content encryption and device authentication.  Additionally, the NOI seeks comment on whether it would be practical to give each navigation device its own specific key and whether the Commission should select a third party to administer a public key database similar to the manner in which the Commission handled the white spaces database.
• Content Ordering and Billing:  Addressing the issue of verifying subscriber orders, the NOI requests comment on what specific methods the AllVid adapter and navigation device could use to facilitate ordering pay-per-view and other subscription content.
• Service Discovery:  Noting that TiVO has recommended adoption of universal "Plug and Play" protocols as the technology choice for service discovery, the NOI seeks comment on that proposal and any other protocol that would enable a navigation device to discover MVPD content with an AllVid adapter.
• Content Encoding:  The NOI states that "[i]deally, navigation devices should be designed to decode content that has been encoded in a number of specified formats and the AllVid adapter should be designed to transfer content in at least one of those formats."  The NOI seeks comment on whether the Commission would need to "specify the formats, and, if so, on the audio-visual codecs that the Commission should require navigation devices to handle."
• Intellectual Property:  With respect to intellectual property issues associated with the AllVid adapter, the Commission seeks comment on a variety of questions, such as how long it would take to develop standards, costs, non-discriminatory licensing, legal authority, patent pools, and licensing fees.
• Other Issues:  The NOI also seeks comment on a number of additional issues related to standards including, (i) how should the AllVid adapter resolve resource conflicts where there are multiple streams into a subscriber's home, (ii) how can the AllVid adapter handle EAS, closed captioning, and parental controls, (iii) should AllVid adapters include over-the-air ATSC tuners, and (iv) how to address "differences in delivery technology that might require specific MVPD providers to include functionality beyond what is necessary for conditional access, provisioning, reception, and decoding of the signal."

C. AllVid Support Requirements

Referencing the recommendation of the National Broadband Plan, the NOI seeks comment on the proposed December 31, 2012 deadline for MVPDs to offer AllVid equipment and the measures that would be effective in enforcing it.  With respect to CableCARDs, the NOI asks whether, assuming AllVid replaces CableCARD technology, the Commission should eliminate CableCARD rules in their entirety and, if so, the appropriate date for such change.

D. Navigation Device Economics

The NOI seeks comment on whether consumers are interested in owning navigation devices or whether consumers prefer to lease such devices at government regulated "cost-plus" rates.  The NOI also inquires about consumer expectations with respect to navigation devices and their functionality and whether the Commission should dictate minimum functionality requirements for different classes.

E. Legal Authority

The NOI asserts that the D.C. Circuit Court has held that the Commission has broad discretion to adopt regulations to assure a competitive market for navigation devices.  The NOI seeks further comment on the Commission's authority under Section 629.

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