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CEA OPPOSES PETITIONS FOR WAIVER; URGES FCC TO DENY REQUESTS
NCTA and BendBroadband Waiver Requests Would Impede Competition in Navigation Device Market

Arlington, Virginia 11/30/2006

The Consumer Electronics Association (CEA®) today responded to additional cable industry petitions asking the Federal Communications Commission (FCC) again to postpone or limit enforcement of its regulations allowing competitive entry into the navigation device market. CEA opposed a petition by the National Cable and Telecommunications Association (NCTA), which represents the largest cable operators, and a petition by Bend Cable Communications, LLC (BendBroadband).

In its filing, CEA notes that the NCTA petition, which is far more sweeping in its request for relief than prior petitions filed by individual cable operators, would effectively eliminate the requirement first implemented by Congress in 1996, that cable operators permit consumers to choose a competitive provider of set-top box equipment. NCTA asked the FCC to reinstate cable's equipment monopoly on the basis of a future technology that the cable industry refuses to deploy unless the FCC permits cable to retain its monopoly. Moreover, the promised technologies do not yet exist, they are not subject to public disclosure, they are indefinite as to implementation, and their license regime - controlled by the cable industry itself--violates other existing FCC regulations.

"Since Congress first mandated a competitive cable equipment market more than a decade ago, consumers have been waiting for the cable industry to comply with the law and allow competitors to bring cost savings, choice and innovations to consumers," said Gary Shapiro, CEA president and CEO. "But rather than allow consumer choice, the cable monopolies force their customers to pay ever-increasing monthly set-top box rental prices. We applaud the FCC for faithfully implementing the clear congressional mandate to offer consumers increased competitive choices."

As to the BendBroadband petition, CEA points out to the Commission that, although BendBroadband raises legitimate concerns regarding the current lack of consumer choice in the cable equipment market, these concerns would be multiplied, not resolved, by granting the requested waivers. Rather than reward the cable monopolies for their refusal to abide by pro-consumer policies, the Commission should promote competitive entry into the device marketplace by requiring cable operators to follow FCC rules.

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 2,100 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 $125 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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CEA OPPOSES PETITIONS FOR WAIVER; URGES FCC TO DEN