FCC Upholds Market Competition, Declines to Mandate NextGenTV

By Rohan Naval

On September 2, The Federal Communications Commission issued a clarification on the Advanced Television Systems Committee (ATSC) 3.0 transition. The bureau’s actions help uphold free market principles in the digital world, affirming their push to modernize regulations. 

The ATSC 3.0 transition was launched in 2017 to modernize over-the-air broadcasting. Also called “NextGenTV”, these technological upgrades were pivotal in expanding the services that broadcast television can provide, such as on-demand content, video and audio upgrades, and broadband integration. When launched in 2017, the FCC emphasized that a “market-driven” approach would be necessary to ensure a smooth transition between both technologies, and to prevent any additional costs from being imparted onto consumers.  

The National Association of Broadcasters (NAB) asked the FCC to mandate the adoption of NextGenTV, a transparently anti-competitve. With close to 3 in 4 Americans already enjoying access to NextGenTV, asking the FCC to mandate that all markets transition to ATSC 3.0 technology would handicap both competitors and consumers by limiting available broadcast options. NAB’s petition contradicts itself when they point out the widespread adoption of NextGenTV, but then want to use government fiat to force the rest of the market to adopt their standard. The last thing an industry that is already heavily burdened by regulation needs is more regulation that closes off competition. 

The approach of mandating changes in technology has been tried repeatedly, to negative effect for all involved. When the FCC mandated a transition from analog to digital broadcast in 2009, it led to a significant number of households losing cable access for not being adequately prepared for the transition. Furthermore, it also created a cost for consumers to either change their broadcast service, or purchase “analog-to-digital converters.” Mandating technology changes is a lose-lose situation for both industry and consumers and always will be. 

The FCC’s ruling on September 2 reaffirmed these principles and stressed the need for competition in the market. In a statement, FCC Chairman Brendar Carr said “As the broadcast industry continues to evolve, we want to be sure that they can do so while maintaining their core public interest obligations.” He further highlighted the need for uniterrupted service to viewers, as well as the overarching goal of encouraging innovation. 

Digital Liberty applauds FCC Chairman Carr for standing up for markets, innovators, and consumers with this public notice.