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March 5, 2009 12:25 PM PST

DTV coupon program back on track

by Stephanie Condon
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WASHINGTON--Federal regulators said Thursday they are going into "search and rescue" mode to help the millions of consumers unprepared for the phased transition to digital television, which culminates with the June 12 transition deadline.

The millions of consumers waiting for coupons for digital converter box coupons will finally receive them within the next two and a half weeks, thanks to emergency funding for the coupon program provided in the stimulus package, said Bernadette McGuire-Rivera, an administrator for the National Telecommunications and Information Administration.

The NTIA is also ratcheting up its outreach to consumers most likely to be unprepared for the transition, McGuire-Rivera said Thursday at a Federal Communications Commission meeting. The FCC commissioners said their agency is also intensifying its outreach, but they acknowledged that while one third of television stations have already dropped their analog signals, the hardest part is yet to come.

Searching for a March Madness analogy, acting FCC Chairman Michael Copps said, "We might have survived the first round game, but the games are only going to get tougher."

In sincerity, though, he said, "there are no analogies--nothing from which to draw parallels. This is why a phased transition is so helpful. It's too bad we had to get to a phased transition so painfully."

The transition has been painful in large part because the NTIA has had to put millions of consumers on a waiting list for the $40 coupons it is distributing for digital converter boxes, after it spent the $1.3 billion initially provided for the coupon program. The stimulus package President Obama signed into law allocated an additional $650 million for the program.

Bernadette McGuire-Rivera, administrator for the National Telecommunications and Information Administration

Bernadette McGuire-Rivera, administrator for the National Telecommunications and Information Administration

(Credit: DTV2009.gov)

Thanks to that extra funding, the NTIA should be able to mail out about 2 million coupons per week, McGuire-Rivera said, getting coupons to the millions on its waiting list in less than three weeks. The agency is also expecting to run its coupon program more efficiently now that it has expanded the number of banks issuing the debit card coupons and enhanced its waste, fraud, and abuse checks.

Additionally, the coupons will now only take an average of nine days to reach consumers, rather than 21 days, now that the NTIA has moved from bulk postage to first-class postage.

The agency is also changing its rules so it will be able to send replacement coupons to people with expired coupons. There are about 16 million people with expired coupons, McGuire-Rivera said, but the agency expects only about half of those people to request new ones.

McGuire-Rivera said the funding will allow for a total of 12 million more coupons to be issued, and it is unlikely there will have to be another waiting list.

The NTIA will be spending $90 million of its stimulus funding on outreach efforts aimed at the approximately 5 million households still unprepared for the transition.

"Our theme for these last days is search and rescue," McGuire-Rivera said.

The FCC is also redoubling its efforts to educate consumers on antenna issues, the need to scan and rescan televisions to pick up changed channels, and how to cope with signal problems.

"It's crucial that we change from our earlier message of awareness to a real plan for assistance," Commissioner Jon Adelstein said. "This is our last chance to get it right, and I'm confident we are doing everything to do so."

More than 600 television stations have already switched to digital signals. The transition went fairly smoothly on February 17, when the majority of those stations made the change. However, only about 15 percent of American households were impacted by the February 17 transition.

FCC Commissioner Robert McDowell warned that there will still be problems, regardless of the agency's outreach efforts.

"We haven't yet had a transition on a large scale in our large cities," he said. "When that transition does come, it will be messy in some places. Extra time will not allow us to make the transition flawless."

All television stations will be expected to notify the FCC by March 17 of the date on which they intend to transition to digital signals.

Stephanie Condon is a staff writer for CNET News focused on the intersection of technology and politics. She is based in Washington, D.C. E-mail Stephanie.
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by saintseminole March 5, 2009 1:58 PM PST
Here in Oklahoma, all our channels switched to digital transmissions on Feb. 17. It was the last day I had TV. No, I didn't forget to buy the converter box. That was all handled correctly, and installed. But the digital signal simply isn't viewable in many rural parts of that state -- it's not powerful enough. Anytime the signal is 60% or less, the TV will drop the picture and sound.

When we had the analog signal, we could watch a fuzzy/snowy show or football game on TV.

So I have a useless converter box that hundreds of news stories urged me to purchase. Fortunately, the TV works just fine for DVDs and VHS movies, and that's all we'll have until we someday move closer to a major city.
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by MickBurke March 5, 2009 2:13 PM PST
"Search and rescue" for people who can't watch TV?!?!
"emergency funding" from my pay check so people can watch TV?!?!

You know, if they didn't take more of my tax money and give it to people who can't afford to go buy a $45 converter for their TV, those people might get bored sitting at home all day and go out and get a job...

It astonishes me that people can write about this ridiculous situation, and wasteful spending as if it is some critical 'rescue mission'. god save us from a world without tv!!

Pathetic.
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by iMac77 March 5, 2009 10:05 PM PST
The sale of the soon-to-be former analog spectrum brought in about $18 billion, the coupon program will spend about $2B, so your tax money (and mine) is not at risk here.

So, why spend any money at all? By mandating a change in the TV standard, the government obsoleted millions of TVs, VCRs, etc. That is effectively a "taking" of private property. Presumably you don't want the government to take people's property without being required to pay some form of compensation. And at about $60 per affected household (admittedly self-reported), that's not outrageous.
by Nyken08 March 8, 2009 12:27 AM PST
I suppose you don't watch TV when you get home from work. Must spend all your time with family and friends and a good book in your off time. Wonder how you would feel without the internet, let alone TV. Know there are a lot of folks out there that would have to go into treatment if the WWW became inaccessible or replaced by a new paradigm requiring a completely new gadget to access, priced in the range they could not afford.

There are a lot of WORKING folks out there who can't afford a new TV. This $40 coupon for a SIXTY dollar (average) converter box makes switching to DTV more financially feasible for these people. The government and everyone else involved in this change should pay to help, even if people can afford a DTV-capable set, since it's an expense put upon them. People griping about the coupons might have done better to have voiced their opposition to the DTV conversion years ago when it was being suggested.

Finally, have you tried getting a job recently? Know a couple of people with master's degrees that aren't doing too good a job of that right now, especially with this economy. PLUS, it must be nice to live so sheltered a life that you can simplistically see that the only problem with the poor is that they obviously do little more than watch TV all day... no one working can POSSIBLY be poor... nope.
by mikeburek March 5, 2009 3:37 PM PST
Bulk postage vs 1st class is about 10-15 cents, unless there is a bigger discount for the government.

So spending an extra 10 cents for 12 million coupons would cost $1 million, just to get the coupon out faster. Well, gaw-lee!
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by themosnar March 6, 2009 8:31 AM PST
Ya know, if the TV Isn't working maybe try reading a book? Now that's a novel Idea!!
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by Nyken08 March 8, 2009 12:31 AM PST
Yeah, good. Cut the poor more off from the mainstream. Perhaps the solution to poverty is becoming amish?
by jemonly March 6, 2009 9:33 AM PST
I ordered my coupons last year. Never got it. I went back to their website to inquire. No response.

Yup, come deadline, I'll just curl up in bed with a netbook and watch online.
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by tophotdeals July 24, 2009 12:52 AM PDT
Sound Good!! coupon is always great resource to low down the price, i also use coupon from http://www.dealshunt.com they also provide nice coupon where i save my money in ton.
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