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FCC clears way for HDTV
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April 3, 1997: 9:34 p.m. ET
TV industry may see new revolution in 2 years, but critics blast decision
From Correspondent Steve Young
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NEW YORK (CNNfn) - The Federal Communications Commission Thursday cleared the way for Digital TV in the United States within two years.
It's the biggest TV revolution since the arrival of color in the 1950's. But the decision is under fire, and it leaves a fuzzy picture about when high definition TV will arrive.
All 1,544 stations in the nation are supposed to get a second new digital channel free, and they won't have to give back their old analog frequency until 2,006.
Network affiliates in the top ten markets have two years to go digital. Most are expected to do it within 18 months.
Public interest groups say the government is losing perhaps $70 billion dollars by not selling the channels.
"What you certainly have is a very powerful lobby group using the Washington influence money game to its advantage to gain a huge corporate giveaway, and that's really the story here," Meredith McGehee of Common Cause said.
Critics say broadcasters can use the free new channels to make even more money -- by offering services like cellular phone, for example -- instead of giving the public long promised crystal clear high definition TV.
"When you give an artist a canvas, you shouldn't tell him exactly how much paint to put on it, or exactly how sharp the images should be," FCC Chairman Reed Hundt said. "You should let the artist get going."
The first digital TVs should be on sale by Christmas 1998 for at least $2,000, but only one cable system in the nation is ready for digital.
Many related industries resent spending heavily on upgrading when they feels broadcasters are getting a free ride. Decker Anstrom, president and chief executive of the National Cable TV Association, said the cable and satellite companies, especially, are being hit. (150K WAV) or (150K AIFF)
Up to 230 million standard TV sets are expected to be replaced over the next ten years. Trying to horn in the action, computer companies will make all PCs HDTV-ready starting next year.
But TV set makers are expected to fight back fiercely, because that market could be worth as much as $150 billion dollars.
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