Don't sign up for your $40 DTV converter box coupon--yet

(Credit: DTV2009.gov)

The DTV transition is less than a year away and as of January 1, 2008, Americans have been eligible to sign up for a $40 coupon to help purchase DTV converter boxes needed to receive new digital TV signals. While your instincts may tell you to sign up as quickly as possible, there's a strong argument to be made to hold off for a little while. Here's why:

1. The coupon expires in three months
If you carefully read you the FAQ on the government's Web site, the program clearly states that the $40 coupons expire three months after they're shipped. That's unfortunate because we're guessing many people don't think much of it, and are just trying to sign up before they forget. Now you're forced into getting whatever DTV boxes that are currently on the market, even though...

2. Better, cheaper boxes are coming
None of the DTV converter boxes we've seen so far are available for $40 yet, which means you'll need to kick in some real American dollars in addition to your coupon. Echostar is planning on releasing a $40 converter box, the TR-40, but it won't come out until this summer--so if you already have your coupon, you probably won't be able to get it. That wouldn't be so bad, except that the Echostar TR-40 looks like it's going to be substantially better than current models, offering a full EPG and program search functoinality. Even if the Echostar device isn't everything it's cracked up to be...

3. Current models will get cheaper
This is just an educated guess, but don't be surprised if all of the current DTV converter boxes currently going for $50 to $60 suddenly drop to $40 once the Echostar TR-40 comes out. It will be near impossible for the other boxes to compete with free, so they'll be forced to sell for $40, which means it essentially free to consumers with a coupon.

The main counterargument against waiting is that if you wait too long, it's possible that the government's coupon program will run out of money. That's definitely something to consider, as there are only 22.25 million coupons available. After those are used up, an additional 11.25 million coupons will become available, but only to households that solely use analog over-the-air TV (no cable, satellite, Fios, and so on). So if you're worried that you're not going to get a coupon at all, you can play it safe and sign up now. But it's probably a pretty safe bet that the current coupon program won't run dry during the next couple months, and you'll get more out of that $40 coupon.

To get a better of idea of how long it takes to get a coupon, check out the government's "Where's My Coupon?" page.

DTV transition resources

CNET's Quick Guide to the DTV transition
DTV Coupon Program
FAQ: What the digital switch actually means
Antenna Web: Find what digital signals you can receive

[xaxain]

I was at walmart this weekend and they had 2 units both of them were $40. One was an RCA unit and I can't remember what the other unit was but, I have seen then for $40.

[Improviz]

Every discussion or story about the DTV conversion should state, in bold letters right at the beginning: IF YOU HAVE CABLE OR SATELLITE THIS DOES NOT CONCERN YOU. YOU WILL NOT NEED A CONVERTER.

This ONLY applies to people who get their TV over the air from an antenna. I don't know anyone who doesn't have at least basic cable. I realize there are parts of the country, like the 9th Ward in New Orleans, that are maybe not wired for cable. And maybe economically disadvantaged people do not have cable. But really, responsible journalism demands that you try to stop a huge wave of people running out and buying these who don't need them and can't use them if they do buy them.

[paulp575]

Comment on Improviz's comment --

Or many folks in the western part of the US.

Have you ever heard of LPTV station? It's called "low power TV". Yes, there is such a thing. And for many folks here in eastern WA, that's the only way they can (afford) to get TV.

They are what's known in the industry as "translators." Many are located in areas where signals from over the air towers can not get into - ever heard of mountains and valleys? So For some folks the only way is for their translators (LPTV) stations to get the signals into their valleys!

You really need to get educated before making such biased statements!

[libertyforall1776]

Umm, how are these coupons funded? This would seem to be legalized theft -- government stealing tax dollars and redistributing it to others.

If you accept the coupons, you are stealing from others.

[big guy]

dishnetwork sells a off the air converter box for 40 dollars.

[msilbey]

More details from the NTIA acting administrator here: http://connectedhome2go.com/2008/03/24/little-known-updates-on-the-dtv-transition/. Including info on when the NTIA may run out of its initial funding for the program.

libertyforall- seriously? No, I mean it. Seriously?

[dwebb5]

Liberty..... The government already has the money from the BIG sale.

http://www.popularmechanics.com/technology/industry/4246037.html

Get a grip, be informed.

[edmicman]

Doh, so what if we already got a couple coupons? Is it limited to so many per person or per household?

I have cable, but until I rerun coax in my house...somehow....I still have rabbit ears in the bedroom. My parents still use rabbit ears, and the inlaws have satellite but have to use an antenna for their local channels. I'm the A/V liason in the family and would like to know what I'm up against.

So, should I just bit the bullet and get one now (I've got 90 days....when's this Echostar one coming out??), or can my wife get another set? Sigh......

Also annoying....these are going to basically act like the cable boxes of olde, right? Meaning you'll have to use the TV remote to control volume, and the DTV box to control channel? It's hardly worth a universal remote for an older TV setup, though, too.

[AnthonyNYC]

well 90 days from shipment of coupon, does anyone know how long a coupon takes once applied for?
Is it 8-12 weeks like a rebate? Or longer like the free DVD offers.
If it takes 3 months just to get the coupon then I wouldn't wait if you can get $40 units around the summer.

[bgrimsle]

Couple of comments on previous posts:

Many people, perhaps most, that have satellite or cable also have 1 or more secondary TV's that are not connected.

Most LPTV stations will continue broadcasting in analog after the deadline, they are not currently required to switch over.

[lfsaum]

I'm curious about the quality of the RF front ends of these converter boxes, as far as their ability to receive weak signals, etc. since if a signal is too weak, the digital nature of the signal means that the channel is lost.
Will you be doing reception comparisons / sensitivity tests?

[dlstone63]

Here's the best strategy:

Since you can apply for 2 coupons, and if you need only one converter box, order one now in order to lock in a coupon. If the coupon expires before you get the box that you want, you can then order the second coupon that you are entitled to, assuming that the coupons are still available. (If you are worried about coupons not being available, then order the second coupon before the first one expires.)

See below for the actual statement from the Gov. website listed above:

If a consumer requests only one coupon and it expires before it is used, then they can apply for a second coupon. Once two coupons have been issued to that household, the consumer will no longer be eligible to request any more coupons. Coupons expire 90 days after they are mailed.

[chris72sax]

How cheap can you be? Pony up the $40, get a satelite dish, or sign up for a library card. Most of you don't even need this coupon. If you can't afford this yourself, maybe you need to be using your extra time working on your job skills and not watching "Desperate Housewives."

[menotbug]

In reply to the post "Every discussion or story about the DTV conversion should state, in bold letters right at the beginning: IF YOU HAVE CABLE OR SATELLITE THIS DOES NOT CONCERN YOU. YOU WILL NOT NEED A CONVERTER." this is not entirely true - it still CAN concern you. Consider this, if you don't have a relatively new tv which already has a digital ATSC tuner built into it then if you're cable goes out, you have NO WAY to get a tv signal. This could be a big deal during an emergency! So, if you're not sure, check your manual to see if any of your tv's have an ATSC tuner built-in. If so, you're good to go if your cable goes out. If not (and if you don't expect to get a new tv soon) you might want to consider getting one of these coupons for a converter box as a backup. But I do agree that not everyone needs to rush out to get these unless you are certain you need it. We really don't need millions of these things getting dumped into landfills in the future.

On another note, I hope Echostar has the sense to go ahead and start accepting orders for their converter box soon. Otherwise, there are going to be a LOT of people who ordered their coupon as soon as they became available and so will have them expire before this new Echostar box is ready. I for one would like to get one but my coupon will be expired by then. And speaking of these paltry 90 day expirations, how is it right that there are all these military people serving their country overseas who are going to get shafted on this??? If you order the coupon and get shipped overseas before you get a chance to use it then you are S.O.L. This 90 day rule smacks of the tactics used by these sleazy rebate companies and others just trying to get one over on the consumer. It's not acceptable that our own government is doing this. These should have longer expirations!!!

[jw55]

A few years ago I was looking at my monthly bills and the only expense that was expendable was cable so I got rid of it and have been happily using rabbit ears ever since. I logged on to the website to order coupons as soon as it was up and running. It didn't inform you about the 90 day limit on the coupons until after you had placed your order for coupons. If I had known ahead of time about the expiration date I would have waited for just the reasons stated in this column. I have bought the Zenith box and it works pretty good. I will need to buy another, but my remaining coupon expires at the end of May so I probably will have to decide to get another Zenith with the coupon or wait and pay full price for a potentially better unit later in the year.

[menotbug]

Apparently the government is considering whether or not to extend the expiration. But this has been going on for at least a couple months and they still haven't actually decided to yet. Obviously they need encouragement. I would suggest everyone email their congressman and do whatever else you can think of to help this effort. I think it is especially bad that many military people ordered these coupons when they first heard about them (because it was being made clear they were first-come-first-serve but NOT being made clear they expired in 90 days) and then some of these guys and gals get deployed overseas to serve their country while in the meantime their coupons come and expire. And this sort of situation must also be happening to other Americans as well. For example, your coupon arrives right as your company is sending you to one of its foreign branches to for a several month project. Or your coupon arrives right as you have some health problem that hospitalizes you for several months. Etc etc etc. Our decision makers need to be strongly encouraged to do the right thing and extend the expirations of these coupons!!!

[cabprint]

You must be a big city person. I live only 3 miles from town and not one person outside of the city limits along my road has cable. There must be millions of people who don't live in a town but are in the country and don't have satallite or cable. I pass at least 150 houses going to any of the citys or towns nearby all in the country and the majority not farming.
New housing in subdivisions outside of cities and don't have cable and many don't have satallite.

[midnightwalker84]

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[enailor]

I have 2 coupons and will wait until the newest and greatest converters come to market. If they expire, who cares? I can have a neighbor or friend that has cable order more for me since they won't use them. And since the ones I have would have expired, the money would go back into the big funds to go to someone else.

No need to stress!

[bugm3n0t]

dang, menotbug -- the government is _giving away money for free_.

The fact that you are getting all up in arms about (really, pretty loose) expiration dates is probably why governments always end up hating their people.