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The Top 10 Reasons Why Sinclair's COFDM Petition Should Be Rejected

Report Number: MB00-03DT
Publication Date: January 2000
Number of Pages: 47

This report provides our thoughts on why Sinclair's COFDM petition should be rejected by the FCC. Sinclair, along with all US television broadcasters, received a second 6-MHz TV channel "for free," to help them migrate from analog NTSC television to digital ATSC television. Sinclair has stated that they want to use COFDM to enable them to gain revenues from mobile data services.

This report points out that public auctions are planned to sell frequency spectrum space to cellular and digital PCS companies, who also plan to provide mobile data services. If Sinclair gets their way, the value of upcoming mobile service frequency auctions may be impacted.

In addition, we believe that the market for 8-VSB enabled consumer products is poised to experience dramatic growth.

The report summarizes data we've developed that show that consumers will become confused, and the market for 8-VSB products will be delayed if Sinclair's petition gains strength.

The report also provides historical analysis of the AM Stereo Multiple Modulation Standard Debacle.

Here are the top ten reasons explained in the report:

1. The ATSC 8-VSB system is already working.
2. Consumers can keep their TV sets and still receive 8-VSB.
3. The ATSC 8-VSB is optimized for US broadcast markets.
4. The DVB-T COFDM solution is optimized for Europe.
5. A change to include COFDM puts existing retransmission consent agreements back on the table.
6. Television broadcasting in the US is about delivering entertainment and information to consumer households.
7. Mobile data is already provided by other service providers who paid for their frequency spectrum space.
8. Participants in the US Digital TV market will take risks and try new services that may change the dynamics of the television market. But we'll never know if the markets are delayed by consumer confusion over incompatible modulation systems.
9. The Sinclair demonstrations were orchestrated to obtain maximum exposure in the press. Each concern raised by the Sinclair tests can be solved quickly by letting the electronics and antenna industries innovate on 8-VSB.
10. The Department Of Defense issues do not have anywhere close to the impact that some of the trade press have attributed to them.

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