Aug. 4, 2008 – 11:17 p.m.
Facing an uncertain appropriations picture, lawmakers concerned about the impending digital television transition are eager to ensure the agencies involved in the February 2009 switch have enough money to do their jobs.
The U.S. shutdown of analog broadcasting is now about 200 days away, just weeks into the next president’s administration. Viewers reliant on over-the-air television will face a loss of service without new special converter boxes.
The Federal Communications Commission (FCC) requested $20 million for fiscal 2009 to spend on digital TV consumer education efforts, most of which would be used before February. Meanwhile, the Commerce Department agency in charge of the government’s $1.5 billion program to equip analog TV watchers with subsidized converter boxes could be running out of money.
Critics say the Commerce Department’s National Telecommunications and Information Administration (NTIA) is running short of money because it mismanaged the program and they say the FCC was too slow to ask for sufficient funding.
NTIA officials say they expect to have enough money.
With much of fiscal 2009 appropriations expected to end up in a continuing resolution and the switch quickly approaching, lawmakers are keeping an eye on digital transition requests and say they may have to attach funds to whatever spending vehicle moves at session’s end.
“It’s certainly something we’re looking at,” said an aide to Senate Financial Services and General Government Appropriations Chairman
Lawmakers have already been making tweaks outside the traditional spending process.
In June, appropriators gave the FCC a green light to shift an unspent $12 million in its budget to digital transition education. In early July, the House cleared legislation (
“Funding the FCC’s efforts to spread the word about the transition to digital television is a priority of mine,” said New York’s Jose E. Serrano, chairman of the House Appropriations Financial Services and General Government Subcommittee.
Serrano boosted FCC consumer education spending to $2.5 million in fiscal 2008. The agency had only asked for $1.5 million for its entire nationwide education effort.
“I will continue to look for ways to fund this important effort because Americans need to hear about this impending change,” Serrano said.
Meanwhile, private sector spending on digital transition awareness could total $1 billion, according to the broadcasting, cable and consumer electronics industries. Much of that involves advertising on their own networks.
But consumer groups are concerned that won’t be enough.
Nancy Zirkin, executive vice president of the Leadership Conference on Civil Rights, said ads are only part of the answer. Zirkin’s group wants to see rapid response teams — like those Great Britain is using in its digital transition — to help elderly, poor, non-English speaking consumers, as well as those simply confused as they prepare for the switch. Some may have trouble hooking up digital converter boxes, setting up new digital TVs or figuring out if they need a new roof antenna.
There are no government plans or funding for rapid response efforts. Industry is not setting up teams either.
“At the moment, broadcasters are focused on helping consumers navigate any challenges they may have in getting ready for the actual transition, with a special emphasis on encouraging people to get their boxes, coupons and antennas well before next February,” said Linda Yun, a spokeswoman for the National Association of Broadcasters.
“You can only go so far with TV spots,” Zirkin said. “You need to touch people in person.”
Separately, House Energy and Commerce Committee lawmakers have been probing allegations that NTIA mismanaged a $1.5 billion program to distribute $40 coupons to those who must buy digital-to-analog converter boxes to keep their old TV sets working past February.
In addition to generally getting the word out, the government aims to directly assist the 20 million or so consumers who watch over-the-air analog TV stations — most of them elderly or poor — by providing subsidized converter boxes designed to keep their sets working. Those boxes also are intended for the millions of uncounted consumers who may own an analog set as a secondary TV, perhaps in the kitchen, bathroom or garage.
The $40 coupons expire after 90 days so that unused funds can be recycled, but it is costing contractor IBM more than expected to reprocess them. The current 90-day redemption rate is less than 50-percent, according to July 23 data from NTIA.
NTIA has maintained publicly that it has enough money to reprocess and distribute coupons. Acting Assistant Secretary Meredith Attwell Baker reiterated that in a July 25 letter to Energy and Commerce Chairman
But congressional aides say that discussions have been different at the staff level. Aides say they’ve been told NTIA is running out of administrative funds, and that the agency will need to dip into money designated for coupons to meet the shortfall.
Dingell and Telecommunications and Internet Subcommittee Chairman
“At this point, we presume NTIA is working overtime trying to squeeze out as much administrative funding as they can and pushing IBM to be more flexible on recycling costs as coupons expire,” said an aide.


