"Texas Instruments Move Stirs FCC Debate"
"Consumer Electronics," May 1979


Don't look to Summer CES for a break in the cloud of confusion surrounding the 
personal computer market. It promises to be even more confused in the wake of 
the Texas Instrument petition filed with the Federal Communications Commission 
requesting a change in the rules by which computers are approved and sold. A 
snarling band of personal computer manufacturers-- stirred by the TI petition-- 
is forecasting possible product delays or design changes due to the TI action.

In effect, TI has requested a change in FCC rules so that personal computer 
manufacturers may obtain FCC approval on RF modulators only, rather than on the 
whole system-computer plus modulator.

TI also filed a waiver petition asking that it be allowed to sell its computer 
before the FCC decides on the modulator-only rule. It is this last request that 
has particularly angered many manufacturers.

Changing the Rules

Some manufacturers oppose TI's request, charging that it will result in 
increased RF interference from personal computers. Obviously, the FCC is also 
concerned with possible interference. In a related move, the Commission 
requested samples of personal computers produced by Apple, Atari, Radio Shack, 
Commodore, Heath and Southwest Technical Products to test for interference.

Interact--which has FCC approval-- has charged that interference levels 
proposed by TI will affect TV and radio signals. "This seems to be a move by TI 
to change the rules simply to facilitate their entry into the home computer 
business," the company says.

A Texas Instrument spokesman declined to comment, saying that the company's 
policy was clearly defined in the petitions.

Making Life Easy

Not all companies oppose TI's request for revised rules. "What TI is really 
doing is asking for the creation of a new class of TV devices, which is fine. 
It will really make life easier for everybody," says the president of a 
computer company. But the president considers TI's waiver to sell computers 
before FCC approval is granted as unfair.

He cites the time and engineering required for FCC approval, which adds $20 a 
unit at the manufacturer's level. Most of that figure represents shielding 
needed to meet FCC standards. Many companies, including his own, would not be 
able or afford redesigning and retooling costs if standards are changed, he 
says.

Doubt about future standards for personal computers will delay product 
introductions as well as halt production of units introduced, but not yet in 
production. Bally, for one, will hold off manufacturing its upgraded 
game/computer introduced at Winter CES until a decision is reached.

"We have two units to go with," says national sales manager, Jack Nieman, "the 
one we showed at CES for around $650 and a lower-priced unit for around $350. 
But it could cost us millions of dollars if we make a decision on which unit to 
go with before the FCC makes a decision."