NTIA digital TV subsidy program worth $1.5 billion is unnecessary
Can you find a person anywhere in the country who owns a television that cannot scrape together some $40 to buy a converter box sometime between now and 2009? Do you think it’s fair to give subsidy coupon (a tax payer’s money) to analog TV owner despite he already availed cable or satellite TV services? If you find this is unnecessary handout then the National Telecommunications and Information Administration (NTIA) digital TV subsidy program worth $1.5 Billion is just a waste of money.
The U.S. Department of Commerce’s NTIA issued its final rule for a digital-to-analog converter box coupon program that will subsidize the cost of converter box that some consumers may need to continue receiving television broadcasts, once full-power analog TV broadcasts cease.
All broadcasters must switch to digital signals on February 17, 2009. The converter boxes will convert the new digital signals so they can be displayed on old analog TVs. Without the converter boxes, viewers will not be able to watch TV when the switch occurs unless they get a new Digital TV or subscribe to cable or satellite.
Under rules, the NTIA will spend as much as $1.5 billion giving out coupons to any American who asks for them, in order to purchase digital converter boxes for analog television sets. Every household will be eligible to request up to two $40 coupons to use toward purchasing up to two digital-to-analog converter boxes, while the initial $990 million allocated for the program is available.
If the initial funds are used up, the second and final $510 million will be used but only this time, the eligibility for those coupons will be limited exclusively to those who don’t have cable or satellite TV services.
“The transition from analog to digital television is a historic change and brings with it considerable benefits for the American consumer,” said Secretary of Commerce Carlos M. Gutierrez. “The coupon program is designed to help ease the transition to digital TV. Not only will the transition help expand consumer choices, but more importantly, the digital transition will enable more efficient use of the nation’s airwaves providing new advanced wireless services and increased public safety services for all Americans.”
Digital TV rules draw mixed reaction.
DTV Transition Coalition issued the following statement. “The National Telecommunications and Information Administration (NTIA) final rules released today move the nation closer to the all-important transition to digital television. These new rules establish the parameters for a program that will allow consumers to request government-funded coupons for use in obtaining discounted access to digital-to-analog converter boxes. NTIA is helping to ensure that no American is left without access to over-the-air broadcast television when the nation transitions to digital television on February 17, 2009. The DTV Transition Coalition recognizes the importance of a carefully crafted converter box program and will continue to work, consistent with its consumer education mission, with all stakeholders to promote a successful digital television transition.”
On the other hand, House Energy and Commerce Committee chairman John Dingell Dingell was upset because the rules would disqualify cable- and satellite-TV homes from seeking financial assistance if the 15-month program spends more than $990 million. Only homes that rely exclusively on free, over-the-air-television could seek any of the remaining $510 million.
On the final analysis, the transition from analog to digital television will surely brings considerable benefits for the American people but the subsidy program is unnecessary. The State with its’ power and authority can direct the transition without this much spending. Here, average taxpayers are paying for a program that is guaranteed to waste money
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December 23rd, 2007
Congress will be instrumental in subsidizing this? I’m glad I don’t have cable. In the years to come, I hope everyone remembers who was so concerned that the public was properly “programmed”.
Turn off your televisions. Write something. Draw a picture. Go outside and lay on the lawn. Take a picture with your camera. Go surfing. Breath some real air.
January 22nd, 2008
I paid a lot less than $40 for my TV.
Since TV was invented, there has never been a compatibility break. When color TV came out, the government insisted that broadcasters continue to support black and white receivers. The same goes for phones and radios.
I shouldn’t have to replace or pay to upgrade my electronics on someone else’s schedule.
January 7th, 2009
i don’t believe switch to digital was necessary in the first place.
i do believe the switch to digital was a sellout of ‘we the people’ to the broadcast industry or tv manuf undustry by the bush cheney criminal organization.
January 19th, 2011
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