Data revenues may drive re-examination of digital TV standard by U.S. broadcasters

After years of struggling to find a business case for digital TV, broadcasters may have found the answer in ancillary data services. Unfortunately, broadcasters in the United States have doggedly supported a technical standard that isn't ideally suited for data transmissions. This year's National Association of Broadcasters (NAB) convention, held in Las Vegas earlier this month, focused on finding that magical business opportunity for digital television, now that U.S. broadcasters are firmly on that road. Demonstrations of interactive TV and tools for creating interactive programs and ads were plentiful on the show floor, while sessions discussed how advertisers are demanding technology to encourage viewers to click "buy" on their TV screens. But it was the drive for data dollars that excited broadcasters at this year's conference. The Federal Communications Commission (FCC), which has been driving the digital transition, encouraged broadcasters to create new business models based on data. FCC chair Bill Kennard used his annual speech to this end - but there was a catch. He also hinted that the FCC would not help broadcasters by ruling on whether cablecos "must carry" their new digital signals. Later the same day, FCC commissioner Harold Furchgott-Roth told Canadian Communications Reports that he didn't expect Kennard to put digital "must-carry" on the FCC's agenda during his term, which leaves the broadcasters somewhat stranded. While broadcasters may still win "must-carry" rights in the courts, he expected this process to take years to come to a conclusion. In the early days of the digital transition, it was thought that broadcasters might bypass cable and go directly to consumers with crystal clear digital signals and data. That hope is diminishing as evidence mounts that the chosen standard for transmission, 8VSB, is not robust enough to get into many homes without directional rooftop antennas. At the NAB Engineering Conference, Dr. Yiyan Wu of Ottawa's Communications Research Centre (CRC) presented some preliminary findings from his study of 8VSB receivers. While his results showed that recent "second generation" receivers were an improvement on the first models, they still have much room for improvement. Their biggest problem is rejecting unwanted reflected signals from buildings and moving cars. These can cause "ghosts" on an analog set, and a complete failure of digital reception. Problems like these have led many U.S. broadcasters to question the choice of 8VSB. Some U.S. broadcasters, led by Sinclair Broadcasting, have been endorsing the European COFDM standard, which is more robust. It can deliver data to moving vehicles and is the technology of choice for digital radio worldwide, except in the U.S. Meanwhile, Canadian engineers are still urging the U.S. to look closely at COFDM. It now looks as though they may, since the ATSC — the digital standards body — has started a new group to examine this question. Shaun Sheehan of Tribune Broadcasting told CCR that his company was undecided but open-minded. "We've had problems with 8VSB. If COFDM has something to offer, why not use it?" He agreed that if the broadcasters failed to get digital "must-carry" to take them to the 70 per cent of Americans connected to cable, then they might need COFDM to launch a meaningful data business. While he was concerned that any change might slow down the digital transition, he didn't see the cost of changing transmission schemes as deterring broadcasters. In fact, broadcasters who see their future in interactive data favour COFDM for its ability to deliver data to small handheld devices, a possible platform for a whole new business model. Most observers, however, aren't betting on a change in the standard. The FCC's Furchgott-Roth commented that it was unlikely the commission would change unless faced with an almost united industry demanding COFDM. Given the intense politics that surrounds technical standards in the U.S., unity is probably the least likely scenario.

Data revenues may drive re-examination of digital TV standard by U.S. broadcasters

News | 04/27/2000 4:00 am EDT

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