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The radio industry is an empirical industry. Its rapid development has resulted from the vision of its leaders and inventors. New developments cannot be scheduled and therefore, it is extremely difficult, if not impossible, to determine when any piece of radio receiving equipment may become obsolete. We are unable, therefore, to make any recommendation regarding obsolescence of equipment now being manufactured and sold, unless some arbitrary rule is invoked in order to prevent obsolescence. The Commission is of the opinion that no such rule can be drawn which can be applied with equity under all circumstances. It prefers to reach a decision upon the balance of the public interest, convenience and necessity as determined by each situation.
Additional Views of Commissioner Hennock:
Although the Commission believes that the ultimate decision must be made by the consumer and that he must bear the risk of obsolescence in this regard as he does with many other purchases, I firmly believe that his determination should be based on the fullest information possible. As is implicit in your letter, the possibilities of obsolescence of television equipment in a very short time are much greater than for any other type of broadcast equipment. Even with the advent of different methods of aural broadcasting, present standard broadcast receivers will be of considerable value for some time to come since there is little, if any, foreseeable possibility that this system will be discarded. However, in those cities in which a deletion of the present VHF television frequencies may occur with a consequent allocation of UHF, present television receivers may be rendered only as valuable as the converters designed for them are efficient, and their use would, of course, involve an additional expense.
It would seem desirable to make clear to the public the uncertainties inherent in the purchase of any particular television receiver. Any risk taken by the public would then be a calculated one. To that end, a requirement that manufacturers of such equipment indicate plainly of just what components the set is composed, what functions it and they will serve and, based on public notices issued frequently and regularly by the Federal Communications Commission, whether there are under consideration any changes in frequency allocation or Standards for such equipment which would, if adopted, render such equipment less valuable, would be a salutary one. In connection with such statement the manufacturer would also provide the latest information furnished by the Commission with regard to possible adapting equipment which might minimize the possible loss due to obsolescence.
At the present time, the Federal Communications Commission has, as you pointed out in your letter, no authority to compel a disclosure of such information by television receiver manufacturers. However, legislation designed to effect this result, possibly through the jurisdiction of the Federal Trade Commission working in close harmony with the Federal Communications Commission, might prove feasible.
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Members of the Federal Communications Commission are available at any time singly or severally to discuss the problems which you have raised in your letter of February 15 with you or with members of the Senate Committee on Interstate and Foreign Commerce.
By direction of the Commission Wayne Coy,
Chairman.
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