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Coupon program to ease digital TV transition by Jordan Raubolt

Jan 15, 2008

Source : Columbia Daily Tribune

Two million coupons were ordered in the first week of the federal digital TV converter box coupon program, an effort aimed at helping consumers make the switch from analog to digital television broadcasting.

On Feb. 17, 2009, all full-power television stations will shut off their analog transmitters and rely solely on digital transmission, meaning people who rely on over-the-air antennas must have a digital TV converter box to receive programming. Viewers who have satellite or cable television service will not need a converter box.

To help consumers make the switch, the U.S. Department of Commerce's National Telecommunications and Information Administration is leading an educational campaign and administering the converter box coupon program, which started taking orders Jan. 2. Each household can apply for up to two coupons worth $40 each to help defray the cost of the converter boxes.

Congress ordered the transition to digital broadcasting to make more efficient use of the publicly owned airwaves and set aside $1.5 billion for the coupon program, which will fund 33.5 million coupons.

Todd Sedmak, spokesman for the National Telecommunications and Information Administration, said 2.8 million coupons had been ordered by Friday. While the first 22 million coupons will go on a first-come, first-served basis, the remaining coupons will be set aside for people who only have over-the-air television sets, he said.

The converter boxes are expected to cost between $50 and $70. Two-hundred fifty retailers are certified to participate in the coupon program, including Best Buy, Circuit City, Kmart, RadioShack, Sam's Club, Sears, Target and Wal-Mart. A list of certified converter boxes and retailers is available at www.ntia.doc.gov.

Jonathan Gregory, operations manager at Circuit City in Columbia, said he has received "plenty of inquiries" about converter boxes. He said they should be available by next month.

Randy Wright, vice president and general manager of KMIZ-TV, said one of the biggest concerns is getting the word out. Although $1.5 billion was allocated for the converter box coupon program, only $5 million was for educational outreach.

"I don't think it's going to be a problem for local stations, but I think the biggest challenge is going to be in consumer awareness," Wright said. "We know that no matter how much we do there will be a segment of the population that for whatever reason won't get the message."

The Nielsen Co. estimates that 14.3 million households, or about 13 percent of the 112.8 million total television households in the nation, rely on over-the-air programming. Sedmak said that number is about 17 percent in the Columbia and Jefferson City area and 19 percent in the St. Louis area.

"There are a lot of over-the-air households in Missouri, so consumer outreach is important to us," Sedmak said. He said in addition to the national ad campaign, they are reaching out to other government and nongovernmental organizations to spread the word.

"If people act on the information, then it will go smoothly for them," he said.

© Columbia Daily Tribune