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Life, Liberty and Digital TV?

Subsidized HDTV In Every Home

September 21, 2004

• FCC Announces Major Publicity Push for DTV Transition • Consumers Slow to React to DTV Transition • Digital TV Transition Threatens Portables • Retailers Giving Bad Advice on Digital TV Transition • Glitches Abound in Digital Television Transition • GAO: Digital TV Switchover Mostly On Track • FCC Loosens Digital TV Rules for Retailers, Manufacturers • Consumers Having Problems with Digital TV Converter Coupons • Millions May Lose TV Service After Digital Switchover • 23 Million TV Sets May Go Dark In DTV Switchover • High-Definition TV Doesn't Have to be Expensive • FCC Wants Consumer Alerts About Analog TVs • Free No More: Conversion to Digital TV Carries a Price Tag • Feds Will Foot Bill for Digital TV Conversion Kits • Consumers Could Benefit from Transition to Digital TV • Life, Liberty and Digital TV --- • More about Home Electronics ...

A battle looms in Congress between U.S. television broadcasters and lawmakers who want to ensure that millions of consumers can still watch television after TV stations begin digital-only broadcasters.

Sen. John McCain (R-AZ), Chairman of the Senate Commerce Committee, is backing a bill requiring broadcasters to air only the new, high-quality digital television signals by 2009. It would subsidize the cost for those consumers who haven't upgraded to digital TV sets.

The bill would provide up to $1 billion for consumers, particularly lower-income households, to either buy a device that would convert the digital signals back into a format that they could watch or to install cable or satellite service.

The television industry thinks the legislation doesn't go far enough. The National Association of Broadcasters, the main lobbyist for TV stations, said the bill should cover all the traditional television sets in American households, estimated at over 70 million. An NAB spokesman said the group opposes McCain's bill because too many Americans could lose access to local TV if it became law.

As of now, U.S. broadcasters face an FCC-imposed deadline of July 2007 for set manufacturers to make all new TV's with 13-inch screens or larger digital-ready. But the Consumer Electronics Association says it doubts Americans would rush out and buy the new sets, noting studies that show Americans tend to replace their TVs only every eight to ten years.

If the government were to get into the business of subsidizing digital TV for American consumers, it would spend anywhere from an estimated $50 to $400 per converter.

Where would the money come from? McCain's bill would use proceeds the government would receive from the spectrum auction, when broadcasters old analog frequencies are sold to wireless phone and data services, a sale that could bring in billions of dollars.

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