[opendtv] Limits Proposed on Digital TV Converter Coupons

http://www.washingtonpost.com/wp-dyn/content/article/2006/07/24/AR2006072400706.html

Limits proposed on digital TV converter coupons

By Jeremy Pelofsky
Reuters
Monday, July 24, 2006; 4:34 PM

WASHINGTON (Reuters) - An estimated 21 million U.S. households, those that 
rely solely on over-the-air television broadcasts, would be eligible to get 
coupons to buy digital converter boxes, according to a Commerce Department 
agency proposal released on Monday.

Coupons would not be offered to a majority of U.S. households because they 
already have an alternative. The Government Accountability Office estimates 
about 85 million households watch television using cable or satellite 
services.

U.S. television stations are required to switch to airing only digital 
broadcasts in February 2009. However, millions of Americans have yet to buy 
new televisions that receive the higher-quality broadcast signals.

Congress last year passed a law that would provide an initial $990 million, 
and as much as $1.5 billion, to help Americans buy converter boxes that 
would keep their old, analog televisions working when the digital transition 
is finished.

"They are the households that would be most directly and manifestly impacted 
by the transition," said John Kneuer, acting assistant secretary of commerce 
and head of the National Telecommunications & Information Administration 
(NTIA).

NTIA sought public comment on the proposal and other ideas such as whether 
to limit the coupons to low-income households, like those families living 
below the poverty level.

"I would expect there would be a lot of comment," Kneuer told Reuters in a 
telephone interview. "I would hope to get something done by the end of the 
year because of the time constraints of the transition itself."

Broadcasters estimate there are 73 million television sets in American homes 
that are not hooked up to cable or satellite. Though, the GAO found a 
smaller number -- around 44 million -- of those sets in homes that rely on 
over-the-air broadcasts.

The industry sells between 28 million and 30 million new digital and analog 
sets annually and by March 2007, all new televisions must be able to get 
digital broadcasts. Consumers have been reluctant to buy the new sets 
because many still cost more than $1,000.

If the entire $1.5 billion was used, the government could offer coupons for 
37.5 million television sets. The law, approved last year, permits eligible 
homes to receive up to two coupons, each worth $40.

Consumers who are eligible for the discounts would have to apply for the 
coupons between January 1, 2008 and March 31, 2009 and would be required to 
certify they qualify for the program, according to the NTIA proposal.

The National Association of Broadcasters said it expected NTIA to focus on 
homes that rely on over-the-air broadcasts.

"However, we would hope that no broadcast-only TV sets are forced to go dark 
during this transition," said NAB spokesman Dennis Wharton.

© 2006 Reuters 


 
 
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