HDTV/3⚫ In addition to recommendations to restore U.S. competitiveness through fundamental public policy changes, the report specifically makes three recommendations on HDTV: • Policies should promote, not impede, the expeditious adoption of transmission standards; Any public funds for the development of HDTV should be focused on generic technological products which will benefit a large number of industries; how. • Obtain involvement of companies with technological know Any consortia must draw on the best technological resources available and may include as appropriate U.S.-based foreign-owned multinational companies. The complete report is available through EIA's HDTV Information Center at 1722 Eye Street, N.W., Washington, D.C. 20006 or 202/457-4992. The Electronic Industries Association is the oldest and largest full-service national trade organization representing the entire spectrum of companies involved in the manufacture of electronic components, parts, systems and equipment for communications, industrial, government and consumer-end uses. ### EDITORS NOTE: Members of EIA's ATV Committee involved in filing this report include: ADC Telecommunications; ANIXTER; AVX Corp.; AMP, Inc.; AT&T; *Participating in the EIA/ATV Committee are EIA members, including members of EIA's affiliate the Telecommunications Industry Association (TIA) as well as non-EIA members. Consumer Electronics, HDTV and the Competitiveness of the U.S. Economy Submitted by: The Electronic Industries Association's to Congressman Edward Markey (D-MA) Chairman, February 1, 1989 PREFACE This report is submitted by the Electronic Industries Association's Advanced Television Committee (EIA/ATV Committee) in response to a September 7, 1988 request by House Telecommunications and Finance Subcommittee Chairman Edward Markey to EIA/ATV Committee Chairman Sidney Topol. This report addresses many of the questions raised that day by Chairman Markey and his colleagues on the Subcommittee as well as questions raised in Congressman Markey's December 7, 1988 letter to Mr. Topol. The EIA and its ATV Committee believes it is uniquely suited to address these questions. EIA and EIA's ATV Committee include developers, manufacturers, sellers and installers of studio, broadcast, transmission and consumer equipment. EIA is the only association representing all facets of electronics hardware manufacturing and its members sales account for over 85 percent of the dollar volume of electronics manufactured in the United States. Recognizing the importance of advanced of advanced television (“ATV”), EIA has formed a committee which has, for over a year, considered all public policy and technical issues associated with ATV. The EIA/ATV Committee includes representatives from the broad spectrum of the electronics industry.* Participating in the EIA/ATV *The EIA/ATV Committee is chaired by Sidney Topol, Chairman of the Board of Scientific-Atlanta, Inc. Companies participating in the Committee include: ADC Telecommunications; ANIXTER; AVX Corp.; AMP, Inc.; AT&T; AT&T Federal Systems; AT&T Bell Laboratories; Alcatel, NA; Belden Wire & Cable; Bellcore; Cincinnati Electronics Corp.; Cooper Industries; Corning Asahi Video Products Co.; Corning Glass Works; GE Americom Communications, Inc.; Harris Corp.; Hitachi Sales Corp. of America; Hughes Network Systems; Hughes Communications, Inc.; IBM; Imaging & Sensing Technology Corp.; Magnavox-CATV Systems Co.; Matsushita Electric Corp.; Mitsubishi Electric Sales America, Inc.; Motorola, Inc.; NEC Home Electronics (USA), Inc.; North American Philips Corp.; OI-NEG IV Products, Inc.; Panasonic Technologies, Inc.; Philips Consumer Electronics; Quasar Com (i) ii Committee are EIA members, including members of the EIA's affiliate-the Telecommunications Industry Association (TIA)**, as well as non-EIA members. The EIA/ATV Committee approached this task with urgency and seriousness. The Committee believed, and continues to believe, that Chairman Markey's request reflects a growing national concern that HDTV provides our country with both a fundamental challenge and a tremendous opportunity. Unanimously, the EIA/ATV Committee agreed that it should address the issue of HDTV and competitiveness directly, thoughtfully, and comprehensively. This was no easy task. The EIA has previously addressed the issues of competitiveness and HDTV, but not in tandem. While the EIA for several years has spoken, testified and lobbied on several issues affecting U.S. competitiveness, it has only recently addressed issues involving HDTV. Its focus on HDTV has been primarily oriented to developing consensus on technical issues so that a marketable product would be developed in a timely manner. To meet the challenge presented by Chairman Markey, the EIA/ATV Committee has taken three key steps, each involving significant expenditures of resources. First, Committee Chairman Topol appointed a working subcommittee composed of diverse industry sectors and pany; Scientific-Atlanta, Inc.; Siecor Corp.; Sony Corp. of America; TRW, Inc.; Thomas Electronics, Inc.; Thomson Consumer Electronics; Toshiba America, Inc.; Varian Associates, Inc.; U.S. Precision Lens, Inc.; and Zenith Electronics Corp. Although a member of the EIA/ATV Committee, Zenith Electronics Corp. is filing its own response to Congressman Markey's request and does not necessarily share in any or all of the viewpoints contained herein. **The Telecommunications Industry Association (TIA), is a full service national trade organization with nearly 600 members that provides materials, products, systems, distribution services and professional services to the telecommunications industry in the United States and countries around the world. The TIA represents the telecommunications industry in association with the EIA. iii interests to forge an industry-wide consensus on all critical issues. The subcommittee included different product manufacturers with different perspectives but, fortified by real world expertise in the development, manufacturing and selling of electronics hardware, the subcommittee reached a remarkable degree of consensus on almost every major issue. Second, upon receipt of Congressman Markey's request, the EIA redirected the process, focus and timetable of an ongoing study of U.S. television manufacturing by the economic consulting firm of Robert R. Nathan and Associates. Chapter four of the Robert R. Nathan report, which is referred to in this document, was released prior to public release of chapters one through three to provide reliable and usable data for use by policymakers. Finally, but of critical importance to the success of this project, the EIA/ATV Committee reached out to several eminent scholars from the Berkeley Roundtable on the International Economy (BRIE). These professionals uniquely combine expertise, academic objectivity, and the highest reputation with which to address the issues of electronics and competitiveness. Although this report reflects EIA's views, much of the research, prose, ideas and comprehensive analytical approach are attributable to these scholars: Professors Michael Borrus, Steven Cohen, Jeffrey Hart, Laura Tyson and John Zysman. We are grateful for their contribution. SIDNEY TOPOL, Chairman EIA/ATV Committee February 1, 1989 PETER MCCLOSKEY, President ALLEN FRISCHKORN, President |