Cable operators have been granted permission to use a powerful tool in their battle to prevent illegal access to their content, after the Federal Communications Commission (FCC) voted to allow them to encrypt their basic services.

According to a report by Bloomberg, the FCC voted unanimously (5-0) to allow cable operators to encrypt broadcasts of their basic services, after hearing that it would help prevent theft and reduce the number of service calls they had to make.

Most cable companies already use encryption on their high-end offerings, but such protection was previously prohibited by the FCC, on the grounds that doing so would result in customers having to rent or purchase a set-top box to be able to watch local TV stations that are free-to-air.

According to its most recently available figures from the National Cable & Telecommunications Association (NCTA), cable operators including Comcast, Cablevision Systems Corp., and Time Warner Cable Inc., lost an estimated $5 billion in revenues in 2004, as around 5% of homes near cable lines were able to access their basic services for free. This amounted to some 8% of the industry’s total revenues for that year, according to the NCTA’s complaint with the FCC.

Philadelphia-based Comcast was among the most vocal supporters of allowing encryption on basic services, pointing out that its customers actually preferred things this way, as it would allow them to stop and start services remotely, removing the need to send out a technician.

Michael Powell, President of the NCTA, said that the FCC’s decision to allow encryption was good for both cable operators and consumers alike:

“By permitting cable operators to join their competitors in encrypting the basic service tier, the commission has adopted a sensible, pro-consumer approach that will reduce overall in- home service calls. Encryption of the basic tier also enhances security of the network which reduces service theft that harms honest customers.”