And if there is a problem with the cable service and it turns out to be the consumer's own set-top box, there will be a service call fee from the cable operator. It doesn't take too much thought to realize that this is a poor value proposition. Some argue that the vast efficiencies of the consumer electronics industry will drive prices down. These arguments forget that most of the set-top boxes sold to cable operators come from consumer electronics manufacturers, either directly or as contract manufacturers to more familiar brands. Consumer electronics and set-tops are made of the same basic stuff.
T here is still one other factor to consider.
The cable operator is allowed to charge a rate-regulated fee for the conditional access module based on its cost. Because the demand for these modules is expected to be very low, there will be poor manufacturing efficiencies. They may have to be hand-made in small quantities. It is not inconceivable that the conditional access modules will cost the cable operator more than a complete set-top. That would make the whole thing a non-starter.