History Coupon-eligible_converter_box

1 history

1.1 proposals
1.2 digital transition , public safety act of 2005
1.3 implementing program

history
early proposals

in march 2005, united states house commerce committee chairman joe barton of texas said introduce bill requiring transition digital television sometime in spring , saying wanted analog broadcasting end on december 31, 2006. included in plan $400–$500 million subsidy converter boxes, expected cost $50 each. subsidies intended people not afford pay service such cable or satellite television. each home receive rebate coupon 1 box, mailed united states treasury redemption. barton estimated 8 10 million converters needed.

digital transition , public safety act of 2005

the united states digital transition , public safety act of 2005, part of deficit reduction act of 2005, required federal communications commission (fcc) direct full-power television stations cease analog tv broadcasting before midnight on february 17, 2009. (this deadline later changed june 12, 2009.) recognizing consumers might wish continue receiving broadcast programming over-the-air using analog-only televisions, act authorized ntia create digital-to-analog converter box assistance program. consumer education plans subsidy program targeted low-income, elderly, disabled, inner city, immigrant, , rural americans, because these groups more use antenna instead of cable or satellite television. act established new treasury fund, known digital television transition , public safety fund. directed fcc deposit receipts spectrum auction of returned analog television frequencies fund.

the act directed ntia implement , administer program through eligible households obtain maximum of 2 coupons (actually payment vouchers) of $40 each, applied towards purchase of digital-to-analog converter box. act defines term converter box mean stand-alone device not contain features or functions except necessary enable consumer convert channel broadcast in digital television service format consumer can display on television receivers designed receive , display signals in analog television service, may include remote control device. act, however, did not define eligible household .

as of april 2006, 20 million people (some more 1 set) received over-the-air tv. when number of people subscribing cable or satellite had tvs used antenna, estimated 70 million tvs need upgrading.

implementing program

in 2006, ntia let people see plan distributing coupons , comment on it. plan prohibited people cable or satellite service requesting coupons. in order 2 coupons, consumers had state had 2 television sets. in effort limit misconduct, coupon requests taken between january 1, 2008 , march 31, 2009; each coupon valid 3 months. consumer-education program had budget of $5 million, companies participating in transition have help.

on march 12, 2007, ntia held news conference announce standards converter boxes , requirements receiving coupons. standards established, manufacturing begin , ntia select company send out coupons.

with $1.5 billion in funding, coupons account half of 73 million analog tvs not using pay service, including 18 million in homes having over-the-air tv reception. commerce department had no plans make coupons available poor.

coupons requested phone, mail, or online. @ first, able apply, had 1 or more tvs connected cable or satellite.

the ntia set standards converter box based on manufacturers , broadcasters wanted. lg electronics, thomson, samsung, , jasco first companies announce plans make devices. after june 1, 2007, retailers apply sell converter boxes. each have in ntia s central contractor registration database, , have been in consumer-electronics business @ least year.

an example of ntia converter box $40 subsidy coupon , in form of bank card can used payment converter box purchase.

to implement coupon program, act authorized ntia use $990 million fund, including $100 million program administration. funds supported initial non-contingent program available requesting households. ntia authorized spend $1.5 billion program (including $160 million administration) if initial $990 million insufficient fulfill non-contingent coupon requests. in case, contingent fund available households not serviced cable or satellite. if funds insufficient, committee on energy , commerce of house of representatives , committee on commerce, science, , transportation of senate notified.

an initial funding of $990 million expected allow households opportunity apply coupons, expired 90 days after mailed. after money used up, $510 million in additional funds available households stated did not subscribe cable or satellite television services. neither allotment had means test.

the ntia planned start processing coupon requests year before original transition date of february 17, 2009; 2.4 million people had applied 4.7 million coupons, out of estimated 13 million homes still received television antenna.

by end of 2008, new york times said 40 million coupons have been requested, date 16 million have been redeemed, compared estimated 35 million televisions lose signal. institutions, such retirement homes, excluded program; while partially remedied (to allow 1 coupon per retirement-home resident), prisons, homeless shelters , residential hotels remained disqualified coupon program.

on january 4, 2009, ntia began placing coupon requests on waiting list after program reached maximum allowed funding. after unredeemed coupons expire new requests fulfilled. january 7, ntia s waiting list included under million requested coupons. week later, list had grown 2 million coupons.

on january 7, both consumers union , representative ed markey of massachusetts (who headed u.s. house energy , commerce committee’s telecom subcommittee) advocated february 17, 2009 analog shutoff date postponed, due lack of coupons , ntia s inability handle expected public enquiries. on january 8, president-elect barack obama s transition team contacted key legislators express support delay, largely because of problems funding coupons converters. delay passed in february (see below).