INQUIRY ON ENCRYPTION STANDARD.

SEC. 204. INQUIRY ON ENCRYPTION STANDARD. Section 705 of the Communications Act of 1934 (47 U.S.C. 605) is amended by adding at the end thereof the following: “(f) Within 6 months after the date of enactment of the Satellite Home Viewer Act of 1988, the Federal Communications Commission shall initiate an inquiry concerning the need for a universal encryption standard that permits decryption of satellite cable programming intended for private viewing. In conducting such inquiry, the Commission shall take into account— “(1) consumer costs and benefits of any such standard, including consumer investment in equipment in operation; 102 STAT. 3959 “(2) incorporation of technological enhancements, including advanced television formats; “(3) whether any such standard would effectively prevent present and future unauthorized decryption of satellite cable programming; “(4) the costs and benefits of any such standard on other authorized users of encrypted satellite cable programming, including cable systems and satellite master antenna television systems; “(5) the effect of any such standard on competition in the manufacture of decryption equipment; and “(6) the impact of the time delay associated with the Commission procedures necessary for establishment of such standards. “(g) If the Commission finds, based on the information gathered from the inquiry required by subsection (f), that a universal encryption standard is necessary and in the public interest, the Commission shall initiate a rulemaking to establish such a standard.”.