Page 186 - Communication Commerce and Power The Political Economy of America and the Direct Broadcast Satellite

176 Communication, Commerce and Power

US-based telephone companies - already most advanced in fiber-
cabling efforts and in a strong financial position relative to cable
television operators - have been one of HDTV's most active propon-
ents. They generally consider HDTV to be an important component
of their future participation in developments of the mass market
information highway and have pressed the FCC to adopt a digital
standard (as opposed to established Japanese analogue HDTV
technologies) in order to maximize the prospective compatibility of
the US system with a range of anticipated digital services. Other key
agents promoting a digital standard are US consumer electronics
manufacturers hoping to reclaim a significant share of the domestic
and world industry. 53
In contrast to the Europeans, in 1987 the FCC created an Advisory
Committee on Advanced Television Service (better known publicly as
the 'HDTV Blue Ribbon Committee'), involving representatives from
all large-scale private sector HDTV and related interests. Its mandate
was to develop a general consensus on HDTV standards that the FCC
could use as the basis for its standards decision. Because of the like-
lihood that such deliberations would take a good amount of time, it
was commonly feared that the lead already established by Japanese-
based TNCs (and their acquisition of US film, video and audio
production facilities and 'libraries') would result in a de facto for-
eign-based world HDTV standard. Staggering estimates were placed
on potential economic losses if this were to be allowed to take place.
From 199~2010, for example, cumulative direct and indirect job
losses of 1.5 million and a trade deficit over US $2 trillion were
forecast. On the other hand, the economic impact resulting from the
successful development of a US-based HDTV system was seen to be
extremely positive. 54
In 1993, after twenty-three different HDTV system proposals were
submitted to the FCC, proponents of an all-digital system agreed to
form what has been called a 'grand alliance.' AT&T executives con-
sented to work with other corporate interests to create a single pro-
totype that US officials believe could become the de facto world
HDTV standard. As a result of this collaboration, grand alliance
participants hope to avoid the costs and delays stemming from unco-
ordinated research and development efforts, lengthy FCC hearings
and subsequent court challenges to Commission decisions. The first
digital US HDTV sets now are scheduled for production in 1997 or
1998 at a retail price no more than US $1,000 above comparable
large-screen NTSC sets. In order to facilitate the compatibility of