Cable Households Won't Get Converter Subsidy

By John Eggerton
Broadcasting & Cable

7/24/2006 3:08:00 PM

http://www.broadcastingcable.com/article/CA6355923.html?display=Breaking+News


Analog-only sets in households that get cable or satellite will not be 
eligible for government subsidized digital-to-analog converter boxes, 
according to the National Telecommunications & Information Administration's 
just-released plan for a converter-box program to ease the switch to digital.

NTIA, which is charged with developing the program, released its plan and 
asked the public to comment on it.

NTIA said the law setting the hard date for the switch to digital 
television "indicate[s] that the coupon program is not intended to cover 
every television in every household in the United States."

Congress set aside up to two, $40 coupons, to help insure that viewers are 
not disenfranchised when analog sets no longer can receive TV signals--the 
switchover is currently set for February 2009.

NTIA proposes to distribute the coupons on a first-come, first-served basis 
until the money allocated for the program runs out--$990,000, with the 
possibility for an additional $510 million if necessary.

Saying this still might not be enough, NTIA asks for comment on whether 
there should be some means test, say coupons only going to households below 
the $19,806 poverty level.

Although NTIA concedes the boxes may cost more than $40, coupons cannot be 
combined.

Applicants must also certify that they only receive analog signals, and 
that, if they are applying for two coupons, they have more than one analog 
set. Applications can be requested via mail, phone, and the Internet.

Coupons will be good for three months, with an expiration date, NTIA 
proposes and will be handed out between Jan. 1, 2008 and March 31, 2009.

By limiting the window and requiring certification, NTIA is trying to limit 
the potential for fraud.

Noting that Congress has only set aside $5 million for a consumer education 
campaign, NTIA said it will need a lot of help from industry. "Any public 
information campaign undertaken by NTIA will only be successful if other 
stakeholders in the digital-to-analog converter box program contribute 
significant effort to the production and distribution of this information," 
NTIA said.

In a speech last month, John Kneuer, Acting assistant secretary of Commerce 
for Communications & information for the National Telecommunications & 
Information Agency, stressed to a Washington media crowd Thursday that the 
transition to digital would be arguably the biggest communications sea 
change ever, bigger than the switch to color TV, he said, "with more 
immediate impact" than anything he had ever experienced in his 
communications career.

He pointed out, in his speech to the Media Institute in Washington, that 
Congress has only given NTIA $5 million for a public-education campaign. He 
told the crowd they knew better than anyone how far that would go, which 
isn't far, and said the industries whose viewers will be affected have to 
pitch in big time. He said he welcomes all the help he can get.

Asked whether he could use some of the $100 million directed to 
administration of the subsidy for that education campaign, he said no, the 
statute was clear that no more than $5 million could go to education.

Kneuer said he had personal experience with viewers whose signals got 
suddenly yanked. He said that in another life he had had to try and 
negotiate a dispute between Disney, who he was working for, and Time Warner 
over cable carriage in New York. After negotiating "furiously" over a 
weekend, the ABC signal was pulled. The New York Post and Daily News 
carried pictures of Mickey Mouse with a line through him, and the New York 
Times had nuns weeping in the streets over missing Michael J.Fox's farewell 
to Spin City. "That was one station and one day," he said, "but it was 
pretty much as if the world had come to an end."

NTIA is the administration's spectrum policy adviser, so one of the 
questions--from former FCC Chairman James Quello--was NTIA's position on 
allowing unlicensed wireless devices in the broadcast band, which is part 
of a massive telecom rewrite bill being marked up Thursday in the Senate 
Commerce Committee.

Kneuer pointed out that the government had allowed such devices in spectrum 
used for sensitive defense applications, so he thought the FCC could find a 
way to make it work in the broadcast band.


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu



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