What did the SEC permit broadband cable operators to do after amendments in October 2012 to reduce service theft?

What did the SEC permit broadband cable operators to do after amendments in October 2012 to reduce service theft?

• A. Encrypt the limited basic tier
• B. Introduce paywalls
• C. Encrypt all channels
• D. Ban encryption

Answer: (A)

The main idea is that encryption of the limited basic tier is a targeted way to curb unauthorized viewing. By scrambling the basic tier, only subscribers who have the proper authorization and a compatible set-top device can decode and watch those channels. This directly reduces service theft because it prevents easy access to the basic offerings without a valid account. Encrypting just the basic tier keeps the approach focused and practical, rather than the broader and more costly step of encrypting everything, and it’s more effective than introducing paywalls or banning encryption.

The main idea is that encryption of the limited basic tier is a targeted way to curb unauthorized viewing. By scrambling the basic tier, only subscribers who have the proper authorization and a compatible set-top device can decode and watch those channels. This directly reduces service theft because it prevents easy access to the basic offerings without a valid account. Encrypting just the basic tier keeps the approach focused and practical, rather than the broader and more costly step of encrypting everything, and it’s more effective than introducing paywalls or banning encryption.