Coupon woes are only part of digital TV concerns

Jan 9, 3:10 PM (ET)

By JOELLE TESSLER
Associated Press

http://apnews.myway.com//article/20090109/D95JR0M80.html


WASHINGTON (AP) - In less than six weeks, the nation's television 
broadcasters are due to shut off their analog signals and begin 
transmitting in digital - potentially blacking out as many as 8 million 
U.S. households that rely on analog TV sets to pick up over-the-air channels.

That reality hit lawmakers and the incoming Obama administration this week 
after the Commerce Department ran out of money for coupons to subsidize 
digital converter boxes. Viewers who don't have cable or satellite service 
or a TV with a digital tuner will need the boxes to keep older analog sets 
working.

The coupon program funding shortfall was a key reason behind the Obama 
transition team's call for Congress to delay the Feb. 17 analog shutoff. 
Yet the problem with the subsidy program is just one of several hurdles 
that appear to be in the way of a smooth digital transition.

One potential pitfall is that many people who think they are prepared for 
the analog shutoff could lose some channels - or possibly even lose 
reception entirely - unless they purchase a new antenna.

That's because many stations will shift their broadcast footprints with the 
switch to digital by changing transmitter locations, antenna patterns or 
power levels.

The Federal Communications Commission has said 18 percent of the nation's 
full-power television stations will have a digital signal that reaches at 
least 2 percent fewer viewers than their current analog broadcasts.

Some viewers could lose signals because of the so-called digital "cliff 
effect." Unlike analog signals, digital broadcasts come in clear or don't 
come in at all, meaning that people on the fringes of analog coverage areas 
who currently get fuzzy reception will lose that reception entirely.

These viewers will likely need more powerful indoor or outdoor antennas - 
in addition to converter boxes - to maintain their existing reception. Yet 
critics say the government has done too little to educate consumers about 
this issue and is not subsidizing the cost of an antenna, which can be 
between $75 and $150.

What's more, consumers figure to discover they need this equipment after 
the transition actually happens. And that will be in the dead of winter for 
much of the country.

"Winter in Vermont is not when you want to be installing a rooftop 
antenna," said Sen. Bernie Sanders, I-Vt., who is sponsoring a bill that 
would, among other things, expand the coupon program to help subsidize 
antenna purchases and installations. "Television is a connection to the 
outside world for many people. But if you're 80 years old and living on 
Social Security, you may not be able to buy an antenna or hire someone to 
install it."

Another thing that consumers may not realize until the transition is upon 
them is that broadcast station channel assignments will move around. 
Viewers will have to make their converter boxes re-scan for the new 
assignments after the changeover.

This issue, too, has received little attention and could lead many 
consumers to incorrectly assume their converter boxes don't work after the 
transition.

That has led to questions about whether there will be adequate call center 
resources to handle what could be an avalanche of requests for help.

The FCC is investing roughly $10 million in in-house and outsourced call 
center operations and has said it expects to be able to handle 2.15 million 
calls during the week of Feb. 15. But the agency acknowledged that it won't 
be able to handle all the expected calls on its own and will rely on 
broadcasters, cable companies, state and local governments and community 
organizations to run their own call centers.

The FCC also has awarded $8.4 million to 12 outside groups, including AARP, 
to staff call centers and help consumers buy and install converter boxes.

Still, skeptics such as FCC Commissioner Michael Copps worry that the 
government remains unprepared should the transition go ahead next month. 
What has been lacking, Copps insists, is urgency throughout the government 
and industry - along the lines of the nation's Y2K preparations - to ensure 
that the transition leaves no one behind.

In 2005, Congress required the digital shift to free up chunks of wireless 
spectrum to be used for emergency-response networks and commercial 
services. The government has raised roughly $19 billion by auctioning off 
this spectrum.

Even with the years of warning, however, analysts at Nielsen Co. estimate 
that as of December, 6.8 percent of the 114 million U.S. households with 
TVs remained completely unready for the digital transition. Another 10 
percent still had at least one TV that was not yet ready.

A key sign that something was amiss came this week when the National 
Telecommunications and Information Administration, an arm of the Commerce 
Department, said it had hit a $1.34 billion funding limit set by Congress 
to pay for converter box coupons.

The coupon program - targeted largely at poor and minority viewers - lets 
consumers request up to two $40 vouchers per household to help pay for the 
boxes, which generally cost between $40 and $80 each. The NTIA started a 
waiting list for coupon requests as of Jan. 4 and is now sending out new 
coupons only as unredeemed ones already in circulation expire. That means 
that consumers who have applied since then are unlikely to receive their 
vouchers before Feb. 17.

Rep. Edward Markey, D-Mass., a key member of the House Energy and Commerce 
Subcommittee on Telecommunications and the Internet, has drafted a bill 
that would loosen the program's accounting rules to enable the NTIA to 
resume sending out new coupons.

But even if lawmakers can resolve the funding issues, the coupon program 
itself is still not user-friendly, said Gene Kimmelman, vice president for 
federal policy at Consumers Union, which has called for the transition date 
to be postponed.

The program was not designed to handle a surge in last-minute requests, he 
said, which is exactly what the NTIA is now seeing as the government and 
industry have ramped up efforts to educate people about the transition.

It can take anywhere from four to six weeks to request a coupon, receive it 
in the mail, purchase a converter box and troubleshoot any technical 
issues. Now many consumers have run out of time.

"They didn't anticipate the level or the last-minute nature of the demand," 
said AARP lobbyist Dean Sagar.

Kimmelman added that the coupon program is inflexible in other ways as 
well. It places a 90-day expiration date on all coupons and prohibits 
consumers from reapplying if they let their coupons expire without 
redeeming them.

Added up, many fear, all these issues could amount to a train wreck on Feb. 17.

"We need to try to minimize the dislocation and chaos," Copps said. "But 
there will be people left behind."


=================================================
George Antunes                    Voice (713) 743-3923
Associate Professor               Fax   (713) 743-3927
Political Science                    Internet: antunes at uh dot edu
University of Houston
Houston, TX 77204-3011         

***********************************
* POST TO [email protected] *
***********************************

Medianews mailing list
[email protected]
http://lists.etskywarn.net/mailman/listinfo/medianews

Reply via email to