Parties Bicker Over DTV-Box Funding
By Ted Hearn -- Multichannel News, 4/2/2007
Washington— House Democrats and Republicans clashed last Wednesday over whether a $1.5 billion federal fund is enough to ensure that millions of analog TV sets keep working after all broadcasters begin sending TV signals in digits in early 2009.
Key Democrats think consumer backlash is inevitable if the size of the program isn’t at least doubled. For new funding, they are hoping to rely on more of the $10 billion expected from a federal spectrum auction that has to start before early January.
“It’s time to get the job done and get the job done correctly,” said Rep. Edward Markey (D-Mass.), chairman of the House Subcommittee on Telecommunications and the Internet, at a hearing on the digital-TV transition. “There is sufficient [auction revenue] to do this right.”
But Rep. Fred Upton (R-Mich.), who helped design the digital-TV transition law, said current funding was “more than adequate.”
Analog TVs in millions of homes, including cable and satellite homes, are at risk because they can’t translate over-the-air digital signals without a digital-to-analog converter box. About 69 million analog TVs would go dark if the transition deadline were today rather than Feb. 17, 2009, according to the National Association of Broadcasters.
Meanwhile, the Bush Administration, implementing a 2006 law that imposed some strict limitations, has set aside funds that would provide converter-box subsidies for about 33.5 million analog TVs.
The gap between funding and potential demand has House Energy and Commerce Committee chairman Rep. John Dingell (D-Mich.) more than a little concerned.
“I think careful oversight is going to be very much needed because I have great apprehensions that a fine mess lies before us,” Dingell said at the hearing.
Under a program run by the Commerce Department’s National Telecommunications and Information Administration, each household is eligible to receive two $40 coupons to buy converter boxes at retail until the first $890 million is exhausted; only broadcast-only homes may apply for coupons covered by the remaining $450 million. NTIA has allocated $160 million for administrative expenses.
“I think the initial $990 [minus $100 million in administrative costs] will be more than enough to cover the demand for subsidized converter boxes,” Upton said, claiming box demand wouldn’t exceed 21.8 million units. NTIA’s initial $890 million would fund 22.25 million converter boxes.
