Spotted: If you haven’t been impressed with the set-top box from your TV provider, neither is the U.S. Federal Communications Commission. It issued a report this week calling set-top box innovation “lacking.”

The observation, as noted by Reuters, was just one of many in the FCC’s ongoing effort to develop a national broadband Internet plan.

“The convergence of television and the Internet is hindered by the lack of innovation in the set top box market,” says the government report.

The FCC has about 60 more days before its national broadband plan is due. The reason for calling out set-top box hardware is the FCC feels adding Internet to a box could help the consumers nationwide get Web access.

“Requiring video services providers to supply a small, low-cost, network-interface device whose only function is to bridge proprietary network elements with retail navigation devices,” is one suggestion.

Reuters reports that one option being considered is for cable and broadband providers to supply a device so the box could access the Internet modem.

Coincidentally, I wrote last month that such technology already exists. It’s just not being used. Broadcom Corp., the Irvine chip maker that supplies chips to many set-top box makers, offers such features in its silicon chip. But it’s up to the box maker or the service provider to turn it on. See the story: “11 things a DVR should do.”

TVs and other TV gadgets are also bridging the connection. TV makers like LG and Vizio have either introduced Internet TVs or plan to. Game consoles and TV devices like Roku offer Internet on a TV, allowing users to stream movies and video from Netflix and YouTube.

Other observations of the FCC report:

• Let households that qualify for Lifeline support for telephone service — which discounts phone service for lower incomes — use the funds for Internet.
• Provide consumers details on actual performance of Internet service, plus provide a better map of broadband options.
• Establish nonprofit entity to support broadband adoption efforts.
• Facilitate public-private partnerships to increase adoption of broadband in the home.
• Creating tax benefits for employers who pay for devices and connectivity for low-income non-adopters.
• Promote solutions for people with disabilities and those on tribal lands or in rural areas.

Recent stories on set-top boxes and web TV:

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