Originally Posted by fallingwater

A complicated affair indeed, where FCC rules apply completely differently depending whether a cable operator presents its line-up in an analog, digital, or mixed format. In my lay opinion if Comcast continues to offer Limited Basic chs. 2 through 28 in analog it has no obligation to provide unscrambled hi-def digital versions of these channels.

A brief core excerpt from:
http://hraunfoss.fcc.gov/edocs_publi...C-07-170A1.pdf

7. We retain the requirement that HD signals be carried in HD, as well as the comparative approach to determining whether material degradation has occurred. In 2001, the First Report and Order established two requirements to avoid material degradation. First, "a cable operator may not provide a digital broadcast signal in a lesser format or lower resolution than that afforded to any" other signal on the system.12 Second, a cable operator must carry broadcast stations such that, when compared to the broadcast signal, "the difference is not really perceptible to the viewer."13 Thus, "a broadcast signal delivered in HDTV must be carried in HDTV."14 Because we decline to rely on measurement of bits to determine whether degradation has occurred, we do not require carriage of all content bits. Additionally, for the reasons described below, we decline to adopt the proposed negotiation framework.

8. The Act requires that broadcast signals not be “materially degraded.” It also requires the Commission to “adopt carriage standards to ensure that, to the extent technically feasible, the quality of signal processing and carriage provided by a cable system for the carriage of local commercial television stations will be no less than that provided by the system for carriage of any other type of signal.”15 The Commission stated in 2001 that “[f]rom our perspective, the issue of material degradation is about the picture quality the consumer receives and is capable of perceiving.”16 Cable commenters argued that this should remain the focus of the Commission’s decision making, and we agree.17

9. We considered the “all content bits” proposal, the main benefit of which was a clear means of measurement and consequently ease of enforcement.18 Ultimately, we conclude, however, that the all content bits approach is likely to stifle innovation and the very efficiency that digital technology offers, and may be more exacting a standard than necessary to ensure that a given signal will be carried without material degradation. We also conclude that it is unnecessary at this time to impose such a requirement in light of the paucity of material degradation complaints over the 15 years since enactment of the Must Carry statute.19
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13. Commenters requested clarification that downconversion to analog does not constitute material degradation.27 We accordingly clarify that it is not material degradation to downconvert that signal to comply with the “viewability” requirement discussed below.

14....Given the broad based objections to the proposal, we decline to establish a formal procedure by which broadcasters would waive the material degradation requirements.32

B. Availability of Signals – Sections 614(b)(7) and 615(h)
15. In this section, we adopt rules requiring cable systems that are not “all-digital” to provide must-carry signals in analog, while “all-digital” systems may provide them in digital form only.33
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18. We adopt these proposals, and note that they apply to all operators, regardless of their rateregulated status.42 In sum, cable operators must comply with the statutory mandate that must-carry broadcast signals “shall be viewable via cable on all television receivers of a subscriber which are connected to a cable system by a cable operator or for which a cable operator provides a connection,” and they have two options of doing so.43 First, to the extent that such subscribers do not have the capability of viewing digital signals, cable systems must carry the signals of commercial and non-commercial mustcarry stations in analog format to those subscribers, after downconverting the signals from their original digital format at the headend.44 This proposal is in line with the approach already voluntarily planned by many cable operators, as described in testimony by Time Warner CEO Glenn Britt before the House Subcommittee on Telecommunications and the Internet.45 In the alternative, operators may choose to operate “all-digital systems.”46 Under this option, operators will not be required to downconvert the signal to analog, and may provide these stations only in a digital format. In any event, any downconversion costs will be borne by the operator.

19. To fulfill its must-carry obligations in cases where a cable operator uses digital-to-analog converter boxes that do not have analog tuners, the operator can deliver a standard definition digital version of a must-carry broadcaster’s high definition digital signal, in addition to the analog and high definition signal, or use boxes that convert high definition signals for viewing on an analog television set, or use other technical solutions so long as cable subscribers have the ability to view the signals.