As DTV Transition Nears, Government Appears Unprepared for Spike in Demand for Converter Box Coupons
Feature Story by Karen Tanenbaum - 9/22/2008
In a report released on September 16, the Government Accountability Office (GAO) predicted an upsurge in requests for converter box coupons as the February deadline for the digital television (DTV) transition nears.
According to the report, the agency responsible for processing coupon requests for the boxes, the National Telecommunications and Information Administration (NTIA), "has no specific plans to address an increase in demand." And without a plan, the report warns, "consumers…might not receive their coupons before the transition and might lose their television service."
The transition, which is scheduled for February 17, 2009, is the result of a federal law that all full-power analog, or "over-the-air," television stations switch to digital signals in order to free up airways for emergency use. People with analog television sets, generally those more than a few years old that use "rabbit ear" antennas, must purchase a converter box or lose service on February 17. To reduce the cost of the boxes, consumers can request up to two $40 coupons from NTIA.
So far, NTIA has kept coupon delivery wait times down to around 15 days. But, according to the GAO report, the majority of Americans affected by the transition have yet to apply for coupons. As of August, only 13 percent of affected households had applied for coupons. The predicted spike in demand as February nears, then, could drive up wait times and prevent some consumers from receiving their coupons and purchasing converter boxes before the transition.
In addition, the GAO found that households in predominantly Black and Latino or Hispanic zip codes, as well as areas with a high concentration of seniors, had lower rates of coupon redemption than the rest of the country.
The GAO report was released as the House Subcommittee on Telecommunications and the Internet held a hearing on the status of the transition with broadcasters, government officials, and other concerned advocates on September 16. Among those present were Kevin Martin, chairman of the Federal Communications Commission (FCC), Meredith Baker of the Department of Commerce, and Mark Goldstein from the GAO.
Witnesses discussed the challenge of connecting with communities who may disproportionately be affected by the transition, including seniors, rural, minority and non-English speaking households, people on fixed incomes, and people with disabilities. "Soft-tests," where popular television programs are briefly interrupted with a screen informing viewers of the transition, were discussed as one tool to promote awareness.
The lifespan of converter box coupons remains a concern for many advocates of these communities, as the coupons expire after 90 days and are not renewable.
Another problem is that many retail stores are not stocking the least expensive converter boxes. For example, a $40 converter box is available online, but no retail stores are stocking it.
NTIA agreed to submit a plan for handling a surge in converter box requests to the subcommittee within 30 days, as recommended by the GAO.
