The July 1, 2007 FCC Mandate that Cable Operators change the way they sell set top boxes is approaching rapidly. Integrated security in the units will be banned, according to Light Reading.com.

Most people now are familiar with the analog TV cutoff date of February 18, 2009. However, another cutoff date that affects the cable TV industry is looming far sooner, July 1, 2007. That’s when the FCC says that Cable Operators may not purchase or deploy any set top cable box that has integrated security [for special services, premium content, etc.]

Most likely, this divesting will be in the form of a Cable Card, a removable digitally coded card that authorizes certain services. The rationale of the FCC decision is to allow more competition in the set top box industry, now dominated by Motorola and Scientific Atlanta.

Predictably, some Cable Operators have asked for a wavier, claiming that this will increase their costs. However, even the waivers expire in July 2008. One way some operators will control costs is to have the Cable Card in stalled and configured at the factory.

Recently, Cable Cards have fallen on hard times because the Cable Operators don’t want to lose the potential revenue of their own set top box and/or DVR. The amount they can charge for a Cable Card is strictly controlled by the FCC. This new FCC rule may force the Cable Operators to better support Cable Cards as well as open up potential competition in the industry. It’s also good news for TiVo Series 3 customers who depend on the Cable Card to bypass the need for a Cable Company’s own DVR.