These marketplace developments helped facilitate a stable federal regulatory and legislative climate for the industry in Washington, D.C., during 2003, Sachs said.

By the end of 2003, cable operators will have invested more than $84 billion since the 1996 Telecommunications Ave to upgrade networks with fiber optic technology and provide consumers with advanced broadband services, Sachs said. NCTA today released its “2003 Year-End Industry Overview” which highlights industry statistics, service deployments and other business developments of the past year.

The cable industry’s commitment to HDTV, coupled with Federal Communications Commission (FCC) adoption of the “plug and play” agreement reached by the cable and consumer electronics industries in late 2002, positioned cable as a leader in the nation’s digital television transition throughout 2003, according to NCTA.

“At this time last year, cable was just beginning its launch of HDTV. A year later, 70 million American households can receive HDTV from their local cable operator, and a dozen cable networks are airing HD programming on a fulltime or part-time basis,” Sachs said.

As previously reported, the nationwide deployment of HDTV hit full stride in 2003 as consumer availability of the service increased nearly 90 percent since January, and HD is available in 96 of the top 100 markets and a total of 143 markets nationwide.

FCC approval of the cable-consumer electronics “plug and play” agreement in September set the stage for retail availability of Digital Cable Ready TV sets that allow cable subscribers to receive one-way digital and HD cable services without the use of a set-top box. Inter-industry discussions of standards for two-way “Interactive Digital Cable Ready” TV sets are underway.

Sachs also said the cable industry’s growth and utilization of its high-speed Internet service was a significant accomplishment that will have ongoing consumer benefits as cable operators take advantage of their broadband platform to launch innovative new services. Consumer demand for broadband service remained strong in 2003, with more than 15 million subscribers now receiving high-speed Internet service from their local cable operator.

In addition to the higher speeds that cable’s Internet service provides, the technology also allows for the delivery of a new Internet-based phone service – Voice-Over-Internet Protocol (VoIP) – which several cable operators have launched or are testing.

“When we look back at 2003, the most exciting broadband development for the cable industry may be the commercial launch of voice-over-Internet phone service,” Sachs said. “This technology fulfills the promise of the Telecommunications Act of 1996 and will make the prospect of true facilities based phone competition a reality in the near term.”

Looking ahead to 2004, Sachs said primary public policy issues that the cable industry will tackle include an anticipated FCC ruling on digital signal carriage issues, establishing a federal regulatory framework for VoIP phone service, continued deregulation of broadband Internet service, and Congress’ enactment of an extension of the Internet Tax Freedom Act.