Last October, the system requested the Federal Communications Commission allow them to purchase and deploy HD-capable all-digital devices, a much less expensive means to provide high-definition programming to customers in small and rural markets. CableOne requested a waiver from the FCC allowing the company to use the devices in its cable system in Dyersburg.
"It just makes sense (to make this change on the Dyersburg system)," said CableOne Director of Communications Melany Stroupe from her office in Phoenix, Ariz. "It is not too large or too small and it has the bandwidth. Dyersburg will be our first all-digital system, which means that (customers there) are going to get a clearer picture."
Last week, the FCC awarded the first waiver of its kind to CableOne for Dyersburg customers, a move some say could benefit other small cable operators seeking ways to deliver a larger menu of HD broadcast TV services without having to pay for the more expensive two-way boxes.
"As a company, CableOne is pleased with the FCC's decision to grant this limited condition waiver, which will permit the inclusion of hi-def functionality in an integrated low-cost limited capability set top," said Dyersburg CableOne General Manager Elvis Brown. "This will permit CableOne to convert the cable system to all digital, which will reclaim over 300 MHz of bandwidth in a 550 MHz system, while simultaneously making every TV outlet in the system hi-def ready. And CableOne will refer to this new device approved by the waiver as the hi-def, all digital device."
"It's the first (waiver) in the nation," said Stroupe. "Basically, the FCC has allowed us to get different boxes to bring in the HD programming. Before (the waiver), our cost was $500 to $600 for each piece of equipment and a rental fee for customers of about $10 per month. Because of the less expensive box, boxes can be offered for free or a minimal charge of maybe a dollar or so."
"This waiver will provide numerous benefits to the CableOne customers," said Brown. "This is a very exciting time for the CableOne customers of Dyersburg. CableOne really appreciates the wisdom of the FCC in providing this waiver to us."
As a condition of the waiver, CableOne must meet several pre-determined conditions, including:
* Converting the Dyersburg system to all-digital service within 12 months.
* provide a minimum of 50 HD channels alongside a tier that carries those same channels in standard definition
* provide one hi-def box to subscribers at no cost, with additional HD boxes available for a monthly fee of no more than $1
"HD is really no longer an advanced feature," said Stroupe, who said many customers purchasing HD televisions are not receiving the benefit of high-definition channels. "What's happening is that many consumers are getting HD TVs and not the boxes, so they are using HD televisions and not getting HD channels. We plan to covert the Dyersburg system over within a year. This really is exciting news for Dyersburg."
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