As telcos spend billions to roll out video services as part of triple-play voice/data/TV offerings, they still face regulatory issues as governments and the legal system sort through franchising issues surrounding TV service. Under federal law, cable companies are required to obtain franchises from municipalities before being allowed to offer TV programming. Internet technology, however, doesn’t fall under the same regulations as cable TV. AT&T, for one, has argued that it doesn’t need a franchise to deliver video service. Cable companies are arguing for a level playing field.

Congress took up the franchising issue in March. Lawmakers were scheduled to vote on a proposal that would ease telephone companies’ rollout of TV services, while at the same time trying to meet concerns of the cable industry.

On the end-user side, various industry organizations are addressing the need for guidelines to ensure compatibility among IP-enabled devices. CEA announced with AT&T, Verizon and BellSouth in March a series of principles designed to ensure the commercial availability of devices that attach to IP-enabled video networks. Included in the principles are the need for a retail market for IP-enabled devices, nationwide compatibility, open standards, reasonable licensing terms and testing and certification procedures and reasonable terms of service for consumers.

Several companies have formed the Digital Living Network Alliance (DLNA)with the shared mission to integrate the Internet, mobile and broadcast “islands” through a seamless, interoperable network. DLNA has three primary goals for consumer electronics: 1) products should be easy to install and provide obvious, affordable value to the consumer, 2) devices must interoperate with one another and with existing CE devices including digital TVs and DVD recorders, 3) manufacturers must recognize they have an educational responsibility to consumers.

DLNA has developed an open standards-based interoperability framework based on IP networking and UPnP technology. The 254-member organization has issued guidelines for optional media formats for imaging, audio and video and in September, 2005 launched a testing and certification logo program. Founder companies include IBM, Lenovo, Fujitsu, JVC, Pioneer, Microsoft, Motorola, Kenwood, Intel, HP, NEC, Philips, Panasonic, Samsung, Sharp, Sony, Texas Instruments, Thomson, and Toshiba.