DTV set penetration might reach 75.5% by 2006 if FCC mandated tha...
DTV set penetration might reach 75.5% by 2006 if FCC mandated that all new sets sold after Jan. 1, 2004, have DTV reception capability and that all TV stations complied with current DTV transition schedule, according to report commissioned…
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by NAB and MSTV. Figure falls to 65% if FCC mandates phased implementation of DTV receiver rules, starting with larger sets, according to report, which was submitted to FCC as ex parte filing. If FCC leaves transition to free market forces, report by Arthur D. Little projected that DTV penetration would reach only 8.5% (9.3 million sets) by 2006. Under free market scenario, incremental cost to manufacturer of adding DTV capability would be expected to decline to $21 per set by 2006, from current $100, under phased mandate figure would drop to $9 and under full mandate to $8.40. Report acknowledged initial cost increase of adding DTV capability “could substantially affect purchasing decisions regarding low-end sets,” and consumers weren’t likely to pay more than $60 premium for DTV capability on low-end sets. Study assumed FCC would mandate that DTV reception capability would simply be added to standard-definition set, making it dual-mode.