FCC GIVES RADAR DETECTOR INDUSTRY LIMITED DELAY ON INTERFERENCE

“The record in this proceeding demonstrates the severity of interference caused by radar detectors to VSAT reception,” Commission said, and such interference can disrupt uses such as automatic teller machines and credit card transaction processing. Martin said he agreed with majority decision to not change Aug. 28 deadline for manufacturing or importing radar detectors that didn’t comply with new emission limits and decision to extend retail deadline by 30 days until Oct. 27. However, he dissented from denial of RadioShack’s waiver request, saying decision didn’t fully take into account substantial economic losses for retailer.

Group of 6 radar detector manufacturers, calling themselves Radio Assn. Defending Airwave Rights (RADAR), had petitioned FCC in July for partial reconsideration of order that required devices to meet Part 15 limits. Coalition included Bel-Tronics, BG Tech America, Cobra Electronics, Escort, SK Global America, Whistler Group. Original order had required that radar detectors made in U.S. or imported comply with new technical rules 30 days after publication of notice in Federal Register. All radar detectors marketed in U.S., including those sold at retail, were directed to comply with new rules starting 60 days after that publication. RADAR members wanted FCC instead to require manufacturing compliance by Dec. 31 and to leave distribution pipeline to empty at its own speed. Alternatively, RADAR wanted new retail compliance deadline of July 1, 2003. It said in Feb. its members began responding to interference reports involving VSAT receivers and began to put in place Part 15- based technical standards that ultimately were in order. Industry has said manufacturers would reach full compliance by Jan. 2003. Satellite Industry Assn. (SIA) objected strenuously to RADAR request for more time and to RadioShack petition.

Stressing “serious economic burden” of 60-day marketing deadline, RadioShack asked that FCC allow radar detectors that didn’t comply with new rules to be marketed until March 30. Retailer argued average lead time of 6 months was needed from time of ordering product to stocking shelves, making it impossible to stop distribution of inventory and restock with compliant units under timeline set out by FCC. RadioShack also raised concerns about significant economic losses it would face because it had more than 100,000 units valued at several million dollars it wouldn’t be able to sell. It said it would lose another several million dollars in sales because it wouldn’t have compliant units to sell in 4th quarter. Company had argued it had special circumstances because, as large retailer, it would be disproportionately burdened by new rule because it wouldn’t be able to buy compliant radar detectors from manufacturers. RadioShack also contended its radar detectors emitted less harmful signals than other products tested by FCC in proceeding. Waiving marketing deadline would allow RadioShack to sell most of noncompliant devices in its inventory, it said.

FCC largely rejected those arguments, saying granting waiver of scope sought by RadioShack would allow many noncompliant products to be sold “and undermine the policy that the rule in question is intended to serve.” Marketing cutoff for meeting emission limits in VSAT band is meant to “prevent the serious interference to VSATs demonstrated in the record,” Commission said. “Allowing more than 100,000 additional noncompliant radar detectors to be marketed, and therefore operated indefinitely after the cutoff date undermines the rule’s purpose to prevent harmful interference to an authorized service.” Agency also said it remained unpersuaded by RadioShack argument that radar detectors it sold were less harmful than others. Levels measured by RadioShack are 25-71 times greater than emission limit that FCC concluded was needed to prevent harmful interference to VSATs, agency said. RadioShack will incur financial cost as result of new rules, FCC said, but “radar detectors that do not comply with the new rules will interfere with VSAT reception, resulting in a financial cost to service providers and to businesses that rely on VSATs for communications.”

On RADAR request that FCC stay original decision, which made same arguments as group’s petition for partial reconsideration, Commission said coalition had failed to “make a strong showing” it would prevail on merits in its request. (Its petition for reconsideration centered on deadlines and not technical standards themselves.) While RADAR said FCC had imposed less onerous implementation schedule when it modified technical requirements for CB receivers, PCs and scanning receivers, agency said none of those cases involved interference of magnitude documented for VSATs from radar detectors. Commission said RADAR didn’t show its requested stay wouldn’t cause substantial harm to others: “The degraded reliability of the VSAT service can harm operators’ businesses by causing customers to seek alternative communications services.” It also rejected coalition’s public interest arguments, saying interference could cause harm to businesses that relied on VSATs for communications.

In separate statement, Martin said RadioShack “immediately” halted importation and manufacture of noncompliant radar detectors when FCC adopted emission limits. But he said company still had nearly 85,000 noncompliant devices at its U.S. stores and distribution centers. “It has made clear that it will sell the bulk of this current inventory regardless of when the retail deadline occurs,” he said. “The only question is whether RadioShack must sell these products through fire sales at greatly reduced prices in order to meet an imminent deadline or whether it can sell them in a more orderly fashion over a longer period of time.” Martin said that, either way, number of noncompliant products in market “and therefore the impact on satellite services,” would remain same. “However, the fire sale approach will cause RadioShack significant economic harm and extreme logistical burdens,” he said.

“Thirty days is not nearly enough time to resolve the problems to empty the retail pipeline,” said Mitchell Lazarus, Washington attorney representing RADAR. RADAR had argued that under original marketing deadline cutoff, retailers would return their entire inventory of radar detectors rather than sorting through which units complied. Group said that actually would slow flow of compliant devices to market because it would prevent users from being able to purchase replacement devices that met new standards: “It’s counterproductive to keep the [retail] pipeline open.”

SIA lauded FCC for only extending marketing deadline by 30 days and keeping intact Aug. 28 manufacturing and import deadline. “The FCC struck a careful balance between the satellite and radar detector industries,” said SIA Pres. Richard DalBello. “The Commission granted the radar industry the narrow frequency band and higher permissible power limits that it requested, and granted the satellite industry a compliance schedule critical to precluding more non-compliant radar detector units from being placed on the market.”