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Free No More: Conversion to Digital TV Carries a Price Tag

Feb. 17, 2009 is DTV Day

By Dawn Carlson
ConsumerAffairs.com

April 2, 2007

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As a nursing student and single mom of two boys, Stephanie Orr doesn't like to pay for TV. The balls of tinfoil clumped around her antenna don't bother her because she gets free reception of her local stations without the expense of cable or satellite.

But on February 17, 2009, tinfoil may become obsolete for receiving local channels as the United States' television system switches to digital-only.

This means all analog TV sets will need a digital converter box (receiver), or a subscription to cable, telephone-company video, or satellite programming.

Although over-the-air television will continue to be free, the changeover won't be free for many consumers.

Those who have analog televisions and don't subscribe to programming services have two options: Buy a digital TV (DTV) and keep using a roof or set-top antenna, or purchase a digital-to-analog converter box, which decodes all digital broadcasts to analog TVs. The U.S. government will defer some of the cost of the converter box with a coupon program starting January 2008.

"The industry hasn't set a price yet, but converter boxes may run between $50 to $70," said Todd Sedmak, communications director for the National Telecommunications and Information Administration's (NTIA).

Between January 1, 2008 and March 31, 2009, consumers can receive up to two $40 coupons toward two converter boxes. Sedmak says consumers can apply for coupons through an NTIA 800-number, website or fax number. Details will be announced later this year.

The U.S. government allocated $990 million for the program, and coupons are given on a first-come, first-served basis. If this amount runs out, Congress may add additional funding, but coupons will be given out one per household. Coupons will be mailed to consumer's homes, are redeemable at select retailers, and can only be applied toward this program.

The out-of-pocket expense for a digital-to-analog converter box may be between $10 and $30, still far less than the cost of a new digital TV. Orr was relieved to find her television is digital and can continue to receive over-the-air channels without an additional expense. She will still need her antenna but hopes to retire the tinfoil.

The Reason for the Change

The digital TV transition is part of a worldwide campaign that began four years ago to free up airwaves to assist emergency first-responders.

In the U.S., Congress enacted the Digital Television Transition and Public Safety Act of 2005. The conversion helps public safety responders, such as police and fire agencies, contact each other faster and more reliably. This is especially critical during widespread emergencies, such as the 9/11 and Hurricane Katrina tragedies, when telecommunication airways overloaded.

All televisions and communication devices, like cell phones and Blackberries work on digital or analog bandwidth airwaves. Analog's magnetic waves were the standard since television entered the marketplace in the 1920s, but analog takes up more airway spectrum than digital.

Once digital broadcasting takes over, higher, more powerful frequencies will be opened up and auctioned off to telecommunications companies and given away to emergency service agencies by the Federal Communications Commission (FCC).

Dave Ebarle, support services manager for San Francisco Department of Emergency Management says the higher frequencies are more powerful and can penetrate walls, which enable police and fire agencies to communicate with, for example, firefighters trapped inside a building. Highway Patrol officers will be able to receive stronger signals for the long distances they travel.

In critical situations, emergency responders need to connect with ambulance services, utility companies, schools, airport security and government offices. Different agencies use different equipment depending on their needs.

"Some of this equipment doesn't work well together," Ebarle said.

Moving from 488 to 800 megahertz will put first-responders on stronger airwaves and will make it possible for them to communicate more readily with each other. One way to look at it is that public agencies will get some of the technology that has made consumer-grade cell phones so powerful and flexible.

Pros and Cons

Unlike Orr's foil-covered antenna, Noelle Tong-Villanueva uses a stereo speaker wire for her TV reception. Most of her local channels come in a little grainy, but the slim wires are more discreet than rabbit ear antennas. Unsure if her 2003 TV is digital, she placed a four-minute phone call to the set manufacturer. The customer service rep informed her it was analog.

If your set is older than 2003, chances are it's analog. Check your user's manual for the type of tuner or receiving system. Analog models are NTSC (TV insiders say this stands for "Never The Same Color"), and Digital/analog models are ATSC. HDTV models have analog, digital and high-definition receivers and are QAM. If you don't have a user's manual call your television's manufacturer customer support with the TV model number.

"If you get a decent analog picture than you should get gorgeous DVD-quality pictures" (with a converter box), said LG Electronics Vice President of Public Affairs, John Taylor.

LG Electronics is one of the converter box manufacturers and Taylor says the goal is to make connecting digital converter boxes "as simple as possible." Plug the box into an electrical outlet, one cord into the existing antenna, and another to the back of the TV. LGE and the NTIA will have toll-free numbers and customer support ready to answer any consumer installation questions.

However, consumers who continue to use an analog television with the converter box won't get the full benefits of digital broadcasting.

Digital TVs are wider, giving the movie-theater screen effect. Digital TVs have better sound and transmit twice as many horizontal resolution lines to give a superior picture, free of static and "ghosts" (or shadowing) that can appear on analog sets. Digital allows stations to broadcast more than one program over a single channel, which could lead to more channel choices.

In Berlin, the number of over-the-air channels increased from 12 to 27 when the switch to digital was made.

Most cable and satellite providers already transmit using digital airwaves; your service provider can confirm this.

Orr can still use the old analog TV in her son's room for video games and movies without change. Digital converter boxes cannot produce digital quality with analog video games, DVDs, camcorders and VCR's because they play to the devices' capabilities. Only a digital TV can produce the better quality and sound with analog devices.

By the February 2009 cutoff, Chris McCarty will need to decide what to do with the old TV set he keeps in his garage to play sports as background noise while he works outside.

Environmental Toll

Many consumers may be tempted to haul their old TVs to the dump. Be aware that your state or county has rules for disposing of electronic or hazardous waste and may charge a fee. Check the Environmental Protection Agency Web site for information.

This conversion may increase the plague of electronic waste worldwide.

Californians not only pay to dispose of electronic waste, but are also charged up to $10 at the time of purchase for most types of TVs, computer monitors and laptops for the "Advance Recovery Tax at Point of Sale." The program "hasn't been successful in achieving the recycling goals it promised," according to the Consumer Electronics Association

"California is the only state to charge this fee for electronic waste," said Jason Linnell, executive director for the National Center for Electronic Recycling. "In other states the manufacturer pays recycling costs."

It's Only $30

Unhappy with the idea of payign $30 to continue getting something that's been free all these years? You may want to consider the plight of German TV fans. They had to pay $200 for their conversion boxes.

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