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At the Oklahoma Association of Broadcasters meeting last week, David Donovan, President of the Association for Maximum Service Television, discussed the digital television transition, and the significant issues that face television broadcasters as the February 17, 2009 deadline for the transition to digital television approaches. The theme of David’s message was that, for the transition to go smoothly, television broadcasters need to be actively planning now for that end date. Without planning and coordination now, some broadcasters won’t be ready for the transition deadline, and others may have difficulty operating interference-free because of the actions of others.

David’s presentation, DTV – When the Rubber Meets the Road – can be found on the MSTV website. Among David’s key points was that the Table of Television Allotments as adopted by the FCC, in order to compress all existing stations into the smaller television spectrum that will exist after the transition, relies on re-using channels that are currently being used by one station as the ultimate digital channel of another station in the same or adjacent market. Unless these stations coordinate their transition to digital, interference issues can result and, in some cases, the transition may be delayed. In the simplest example, a station might have both its analog and digital operations outside the “core” channels that will be available for television use after the February 19, 2009 deadline. In the Table of Allotments, that station may have been assigned as its digital channel for post-2009 operations a channel currently being used by another station in the market. If the station currently using that channel does not move to its own digital channel on time, the out-of-core station cannot begin its in-core digital operations. In some cases, as many as five or six stations’ ultimate digital operations may be mutually dependent, and will need to be coordinated, perhaps on the last day of the digital transition. Problems with one station’s transition may prevent the conversion of all of the other related stations. Thus, it will be in each station’s mutual interest to assist all other related stations to make sure that all are ready to meet the transition deadline.Continue Reading Digital TV Transition End Game Issues Loom

On March 12, the National Telecommunications and Information Administration ("NTIA") released its Final Rules for the Digital-to-Analog Converter Box Coupon Program (Coupon Program).  This program is designed to allow consumers to purchase converter boxes which will allow analog televisions to receive over-the-air broadcast signals after the February 17, 2009 transition date when all full-power television broadcasters will be broadcasting only in digital.  This was a long-awaited action that many view as a necessary step before the country can meet the February 2009 digital conversion deadline.  The Order gives details of the implementation of the converter box program, providing guidelines for consumers, retailers and equipment manufacturers.  Details of the program are set out below.

The heart of the program is the coupons to be distributed to consumers.  Starting January 1, 2008, all U.S. households can request up to two $40 coupons than can only be used toward the purchase of two digital-to-analog converter boxes. There is no needs test, i.e. any household that wants coupons can request them, regardless of household income.  Only one coupon can be used for each converter box.  The coupons will be in the form of an “electronic coupon card;” like a gift card, but they will not carry any value that can be used for anything but a converter box.  The coupons will expire three months (90 calendar days) after the coupon is placed in the U.S. mail. In no case may consumers receive any cash value for the coupon so, if the cost of a converter box is less than $40, consumers cannot receive a refund or credit towards the purchase of another item. Consumers are also prohibited from selling their coupons. If a converter box does not work properly, consumers will be permitted an exchange only for another converter box. Applications for coupons will be accepted only between January 1, 2008 and March 31, 2009 and will be able to be requested by mail, by phone, by fax, or through a website.

Only households are eligible for coupons. No business, schools, or similar entities are eligible. Also, multifamily residences (i.e., a residence occupied by more than one family unit) will not be eligible for more than two coupons unless each household has separate living quarters and has a separate U.S. postal address. Because Post Office Boxes are prevalent on Indian Reservations, Alaskan Native Villages and other rural areas, these households may be required to supply additional information to identify the physical location of the household.  An NTIA  fact sheet for consumers summarizing the above information can be found here.Continue Reading NTIA Releases Details of DTV Converter Box Coupon Program

February 17, 2009 – the end of analog television.  When broadcast television stations cease their analog operations, making millions of television sets obsolete, will consumers be ready?  And how will Congress deal with the backlash if consumers are taken by surprise and their television reception disappears?  This week, these questions were being asked in Washington and elsewhere.

 At the NAB Broadcast Leadership meetings in Washington held this week, Congressman John Dingell expressed his concerns that the National Telecommunications and Information Administration (NTIA) is late in releasing guidelines for the government program that they are administering to provide subsidies to the public so that they can buy converter boxes to allow analog television sets to receive digital signals.  An article in Multichannel News gives further details on the Congressman’s comments, and provides a history of the converter box program.  The article states that the $1.5 billion allocated to the program is half what is necessary to convert the 73 million analog sets that are estimated to exist.  However, it makes the point that as digital sets are sold, the need for the converter boxes may decrease, and assumption that "the country will need to deal with a massive analog-equipment-legacy problem could turn out to be incorrect."

While that may be the case, an article in the February 28 Portals column in the Wall Street Journal (subscription required to read the article) makes one wonder how ready the consumer really will be for the transition deadline.  That article cites a study by the Leichtman Research Group which found that half of the 24 million homes with HDTV sets don’t watch HDTV because they haven’t subscribed to the necessary service from a multichannel video provider, or don’t know that they can pick up HDTV signals over the air.  About half the the viewers who are not watching HDTV don’t even know it – thinking that because they bought the set, they should automatically have HDTV pictures.  This same kind of confusion no doubt exists with respect to the DTV transition.   Continue Reading Digital Television Takes Over in Less Than Two Years – Will the Public Be Ready?