Opening the Set-Top Market

Abstract

As the cable television networks transition from a broadcast-only network, to a high-bandwidth two-way network, the importance and functionality of the set-top box increases. However, developments in the set-top box industry have been restrained by the control the cable companies have over their equipment. Currently, a set-top box includes closed, proprietary technology which prohibits its use on other cable systems' networks. This paper explores the possibility of abandoning closed, proprietary set-top box standards in favor of open standards. This "opening" of the set-top box is not a trivial matter since it challenges cable companies' concerns about security, quality, etc. The paper includes a policy analysis of the impact the Cable Act of 1984 and 1992 and the implications it had on the set-top box. To help quantify the benefits of open systems for cable television, economic analysis on set-top box costs is included. Finally, the role of the set-top in the emerging National Information Infrastructure (NII) is explored.