Washington, D.C. – Citizens Against Government Waste (CAGW) today blasted the Federal Communications Commission (FCC) for denying waivers for the so-called “integration ban” rule for leased set-top video boxes.  The regulation requires certain video providers to implement a costly “security card” technology into their hardware.        

“The FCC’s decision to deny the waivers will impose a tax on cable consumers that benefits no one,” CAGW President Tom Schatz said.     

Complying with the integration ban will require video providers to spend an estimated $600 million per year to re-engineer their set-top boxes and systems.  That will result in a $2 per month increased fee for affected video service subscribers, who receive no benefit from this expense. 

Furthermore, it is widely anticipated that the cards will soon be replaced by less expensive, more efficient, and downloadable security technology.  A number of companies from disparate industries have asked for deferral of the requirement until the new technology is available.  On October 26, 2006, CAGW signed a letter to the FCC with five taxpayer and free market groups in support of the waiver requests. 

“It only seems logical to wait for the new technology to be available rather than enforce a soon-to-be-obsolete regulation that saddles consumers with unnecessary costs.  Instead of adopting forward-looking strategies that promote technological innovation, the FCC is enforcing backward-looking regulations that serve neither producers nor consumers.  This is another example of over-regulation of telecommunication technology that is costly to both consumers and taxpayers,” Schatz concluded.

Citizens Against Government Waste is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, mismanagement and abuse in government.