The end of analog TV
Will America�s favorite technology really go dark next year?
By Michael Rogers
Columnist
Special to MSNBC
Updated: 5:16 p.m. ET April 24, 2005

Depending on the outcome of discussions in Congress, television as we know
it may end at exactly midnight Dec. 31, 2006.

That�s the date Congress targeted, a decade ago, for the end of analog
television broadcasting and a full cutover to a digital format. If enforced,
that means that overnight, somewhere around 70 million television sets now
connected to rabbit ears or roof-top antennas will suddenly and forever go
blank, unless their owners purchase a special converter box.  Back when the
legislation was written, New Year�s Eve 2006 probably looked as safely
distant as the dark side of the moon. But now that date is right around the
corner and Congress and the FCC are struggling mightily to figure out what
to do.

Congress, however, left itself a loophole in the 1996 legislation, and could
actually let the cut-off date slide by. But powerful lobbyists now are
pressing legislators to set a �date certain� for the analog lights-out. The
debate over when to throw the switch is a strange brew of big money, high
technology, homeland security and a single, unanswerable question: just how
angry are the couch potatoes going to be?  It�s also a textbook example of
why the future almost never happens as fast as technologists promise.

It all started back in the Eighties, when the Japanese shocked American
consumer electronics companies with trade-show displays of high definition
television sets that delivered razor-sharp images and stunning audio.
Everyone from Congress to the Wall Street Journal raised outcries: America�s
favorite technology was being taken over by the then-fearsome Japan Inc.  As
a result, a group of American companies formed the �Grand Alliance� that
leapfrogged the Japanese technology by inventing digital HDTV. Thus, early
on, HDTV invoked not just pretty pictures, but national pride and economic
development. (Ironically, Zenith, the most all-American commercial
participant in the Grand Alliance, is now South Korean-owned.)

One drawback to the U.S. version of HDTV was that to make it work, all
broadcast television (not just high-definition) would have to convert to
digital, meaning that every American television set manufactured since 1946
would be rendered obsolete. To ease the transition, Congress generously gave
all television broadcasters additional channel space so that they could keep
broadcasting their analog signals while they installed and launched their
digital channels. The deal was that they would give up their old channels
when the transition was done. That part worked: Over 1400 broadcasters now
transmit in digital as well as analog, reaching 99 percent of the U.S.
television market. 

During the same period consumers were supposed to buy digital television
receivers. That part didn't work.

The only digital televisions on sale thus far have been big-screen,
high-priced HDTV sets.  Not until next year will manufacturers start selling
smaller-screen sets with digital tuners � and under current law all sets
won�t have digital tuners until 2007. Thus at present there are only about
30 million televisions with digital tuners in American homes, out of a total
of several hundred million installed sets.

That�s where the Congressional loophole comes in.  Congress can ignore the
end-of-2006 cut-off if fewer than 85 percent of households have digital
television sets.

But Congress needs to do something nonetheless. For starters, there�s the
remarkable fact that Americans are still buying over 20 million analog sets
each year, all of which could be obsolete rather quickly. If Detroit was
selling cars that used a type of gasoline that would soon no longer be
available, consumers would expect to be informed. Thus analog sets clearly
need some kind of warning label, and proponents of a �date certain� say this
will make the labels far more meaningful: i.e., �This television will no
longer receive over-the-air signals after December 31, 2006.�

The really big question: What will happen to all those old-fashioned
television sets we�re still buying when the analog transmitters go off the
air? To continue to receive free broadcast television via antenna, you�ll
have to buy a digital converter box; cost estimates range from $100 or so in
2006 down to $50 by 2008. (Those converters won�t turn older sets into fancy
high-definition sets; they will only restore conventional TV service, in
digital format. The picture quality will be fairly comparable to today�s
analog version, although there will be some improvements for people who use
antennas � no �snow� or �ghosting.� On the other hand, when digital signals
are weak, there is often no picture at all.)

Many analog television owners won�t need a converter: 85 percent of
Americans now get all their television from cable or satellite providers, so
for the most part the change-over won�t affect them.  (A lot of those
households, however, also have second and third sets in basements or
bedrooms that do rely on over-the-air signals.) The real problem is the 15
million or so U.S. households whose only television service comes over the
air. For these people, predominately lower-income and disproportionately
black and Hispanic, the cut-off will be bad news indeed.

Most discussions in Washington contemplate some sort of free or subsidized
converters for low-income households, paid for by the government, perhaps
with the help of broadcasters or consumer electronics manufacturers.
Estimates for the costs of that subsidy range from under one to several
billion dollars � the cost declining as the cut-off date is moved further
into the future. Proponents argue that the cost of the subsidy is small
compared to the economic benefits, although last year the Bush
administration indicated it was not in favor of subsidized converters.

If consumers aren�t ready for the transition, and the government is going to
get stuck buying a billion dollars of converter boxes, why not put it off
indefinitely?  The broadcasters don�t seem to be in any hurry: They have
both their old analog channels plus the opportunity to experiment with
digital broadcasting. But consumer electronics manufacturers are pushing
Congress hard. Switching everyone to digital TV could be the biggest bonanza
the industry has seen since the mid-Eighties, when the advent of audio CDs
fuelled an enormous upgrade market.

In addition, both Silicon Valley and your local police force are lobbying
for an early analog cut-off.  The reason is simple: when the cut-off
happens, TV channels 52 � 69 will no longer be needed, freeing up
broadcasting spectrum for other purposes.  Public safety workers have been
promised four of these channels � a commitment even more pressing in the
wake of the 9/11 Commission�s finding that the nation�s first responder
communications systems need a major upgrade.  And companies like Intel and
Cisco want to use other parts of the newly freed spectrum for very powerful
wireless broadband networks that could offer seamless high-speed Internet
service virtually everywhere in the U.S.  Other advanced uses will
materialize. Already, cell phone pioneer Qualcomm plans to use some of the
spectrum to build an advanced video network for mobile phones. And finally,
there�s a bonus for the U.S. Treasury as well�much of the new spectrum will
be auctioned off to the highest bidders, raising billions of dollars.

So what�s Congress going to do?  The next move belongs to Rep. Joe Barton,
chairman of the House Energy and Commerce committee, who is expected to
introduce a cut-off bill sometime in the next few months.  Barton, R-Texas,
is a firm proponent of setting a �date certain,� though he is not
necessarily wed to the December 31, 2006 deadline. In public comments,
however, he has made it clear that he favors a date sooner rather than later
� as do other key congressional figures, including Sen. John McCain,
R-Ariz., who won an award for �Best DTV Government Leadership� last month
from a major consumer electronics group.  Possible legislative scenarios
range from an aggressive decision to enforce the 2006 cut-off to a more
gradual, region-by-region approach that might even extend to the end of this
decade.  The latter would severely frustrate technologists, but provide
plenty of time to ease consumers into the new world.

How will it turn out? At the moment no one is really knows. Back in 1996,
when the digital television transition was first proposed, media analyst
Gary Arlen observed wryly that �it will be easier for Congress to take away
Social Security than television sets.�  Ironically, now Congress is worrying
about both things at the same time � and neither problem seems to have a
painless solution.
� 2005 MSNBC Interactive

� 2005 MSNBC.com

URL: http://www.msnbc.msn.com/id/7593620/



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