Digital TV Conversion

Consumers Union is calling on the National Telecommunications and Information Administration (NTIA) and Congress to address the problem of the 90-day expiration date on the government-issued coupons that help consumers buy digital converter boxes.

Currently, the $40 government coupons expire 90 days after issue, with no option of replacement or reissue.

It's just the latest of a string of problems and missteps in the decade-long attempt to move television broadcasters to a different frequency band.

A report earlier this month warned that television viewers in New York, Los Angeles, Boston and other major metro areas may find reliable television reception to be a thing of the past when the transition occurs.

NTIA has the authority to allow consumers to reapply if their coupons have expired but not been used, or Congress could extend the 90-day deadline. Both options would allow consumers to have greater access to a wider variety of converter boxes, which have been slow to come on the market.

"There are a limited number of coupons and they expire," said Joel Kelsey, a policy analyst for Consumers Union. "Consumers that were proactive and requested coupons early will have fewer choices when they go to buy the boxes," added Kelsey. "We are expecting more converter boxes on the market in a few months, which might be too late for consumers who requested their coupons early," added Kelsey.

Echostar has said it would be releasing a converter this summer that will be about $40, the cost of the coupon.

On February 17, 2009, television broadcasters will end "analog" broadcasts and only send television signals in a "digital" format. The DTV transition will affect millions of consumers who use analog television sets to view free over-the-air programming.

The analog televisions will either need to be connected to a digital converter box, attached to cable or satellite service, or replaced with a digital television in order to function. The government has created a coupon program to offset the cost of purchasing digital converters, $40 a coupon, two per household.

While the conversion is less is than a year away, a quick survey found many retailers have only one or two models of the converter boxes in stock, forcing consumers to choose from pricier converter options to prevent the coupons from expiring.

A brief sample of online retailers Best Buy, Circuit City, Radio Shack, and Wal-Mart found that each had just one or two boxes. Of the boxes listed, all but two cost $60; only Wal-mart had lower-priced models, for $50 and $53.

With these four retailers, the coupons cannot be used if making the purchase online. The government coupons must be redeemed in person at the retail store, or by phone from Radio Shack and Best Buy.

"We are asking Congress to extend the deadline on the coupons so consumers that took the initiative to request coupons early this year wont be penalized for acting quickly," added Kelsey.

Reliable reception?

Meanwhile, a report earlier this month warned that milliosn of television viewers may find reliable television reception to be a thing of the past when the transition occurs.

The report warns that when analog television channels are shut down on February 17, 2009, more than 9 million of the 17 million homes that still rely on over-the-air broadcast signals will encounter spotty service and few channels to select from.

The report, conducted by market research firm Centris, surveyed homes that receive only over-the-air signals and are not subscribed to any cable or satellite service. Of those homes, 54 percent were located in "challenging reception areas," defined as having small rooftop or indoor "rabbit ear" television antennae. Distance transmission towers and local terrain were also factored in.

Centris claimed that 24 percent of consumers in those areas who have insufficient antennae will receive few or no channels, even if they purchase a digital signal set-top converter box, thus requiring them to buy more advanced antennae as well.

"We have completed an analysis of the entire country to identify where in each market the receptivity gaps exist and now have exact figures for the number of at-risk households down to individual census block groups," said Centris' executive vice-president David Klein.

"The statistics suggest that digital TV signal coverage will be significantly more limited than currently anticipated and further reinforce the need for industry and consumer education on this issue."

Centris also identified what it called the most "at-risk markets" for problems with the digital television transition, with New York and Boston topping the list.

Rounding out the top ten were Philadelphia, Los Angeles, Washington, DC, Seattle-Tacoma, the San Francisco Bay Area, Minneapolis-St.Paul, Atlanta, and Cleveland-Akron, Ohio.

The Centris study comes two months after a study conducted by Consumers' Union that found that as many as 23 million households, or 11 percent of the country's population, may have limited service or lose service together after the switchover.

That study found that Western and Midwest states would be the hardest hit by the transition, and that elderly, low-income, and Latino households would be the largest population segments affected.

Covering the bases

The two government agencies most directly in charge of the transition, the Federal Communications Commission (FCC) and the National Telecommunications and Information Administration (NTIA), have been scrambling to educate the public in the wake of findings that Americans are still underinformed about the transition and what they have to do in order to receive television service.

The FCC has also begun levying punishments on electronics retailers that have been taking advantage of the confusion to sell consumers televisions and equipment that do not actually provide digital service.

On April 10, the FCC published enforcement orders against numerous big-box retailers such as Best Buy, Circuit City, Sears, and Wal-Mart, for selling televisions that were not clearly labeled as requiring a set-top converter box to receive digital signals, with orders to forfeit profits of up to $6 million.

"Based on the evidence before us, we find that Circuit City apparently willfully and repeatedly violated [government regulations by] failing to display conspicuously and in close proximity to equipment with an analog-only tuner, in clear and conspicuous print, the required Consumer Alert label," said the Circuit City citation. The forfeiture notice will cost the retailer $712,000.

Both agencies have also been heavily publicizing the government's voucher program that enables consumers to download or order free $40 coupons to go towards the cost of purchasing a new set-top converter box. Commerce Secretary Carlos Guiterrez, whose agency oversees the NTIA, recently announced that 10 million coupons had been requested by consumers to purchase converter boxes.

Missed information

But members of Congress and many consumer rights groups continue to express concern that the FCC and NTIA are not adequately educating consumers about critical aspects of the digital television transition, such as the fact that the converter box coupons will expire three months after they are issued, with no option to replace them or issue more.

At a Senate Commerce Committee hearing held on April 8 to discuss the transition, FCC chair Kevin Martin and acting NTIA head Meredith Baker were grilled on their plans to educate consumers and push for more dissemination of information relating to the transfer.

Committee chairman Daniel Inouye (D-HI) said that "too many Americans remain in the dark about what the digital television transition (DTV) means."

"I have deep reservations about the FCC spending its limited time and resources in media areas unrelated to the transition," Inouye said. "Meanwhile, the NTIA is challenged by the Administration's push for a third leadership change at the agency within the past year. I urge both agencies to keep an eye on what is most pressing, and to proceed cautiously when you choose to spend time on what is not."

Vice-chairman Ted Stevens (R-AK) echoed Inouye's concerns, saying that the FCC was wasting too much time on preferred issues of Martin's such as "a la carte" cable packages.

"The digital transition must be the FCC's number one priority this year. No other issue before the FCC has the same critical countdown as this transition," Stevens said. "It is crucial that government officials, industry, and consumer advocacy groups increase their outreach efforts to senior citizens and rural Americans."

Inouye requested that both agencies begin making monthly reports to the Commerce Committee in order to assess the status of the transition and ongoing related issues.

What to do

The following sites have more information about the analog-to-digital transition:

• Our Dawn Carlson provides a thorough overview of what you need to know.

• Visit the FCC's official DTV site to get more information.

• Apply for a converter box coupon at the NTIA's converter program Web site.

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.

It might sound like a rerun but the federal government says that this time it really, really has figured out how to help taxpayers make the transition to digital over-the-air television.

With the once-postponed June 12 deadline for the nationwide conversion to digital TV approaching, the program has now started to accept replacement requests from eligible households whose coupons expired without being redeemed. The reason for that, in many cases, was that they were mailed out after their expiration date but that little fact wasn't noted in the government's latest self-congratulatorily effusive announcement.

"This is very good news for Americans who were unable to redeem their coupons before they expired," said Anna Gomez, acting administrator of the National Telecommunications and Information Administration (NTIA). "With the backlog of applications now eliminated, consumers can apply for coupons and get assistance right away, allowing them to continue to receive important local television news and emergency information by purchasing a converter box at a reduced cost.

Of course, it's not good news for consumers who have already made the conversion and are finding that they can no longer receive the stations they've come to depend on.

"We live in a remote area on a mountain. We always had great free TV. Only ever needed an indoor antenna, got plenty of channels," said Chris of Cairnbrook, Pa. "So now we have the converter boxes. ... We get only 3 channels and they are either non-viewable with checkerboard appearance and intermittent freezing and no sound, or no signal at all.

"Boy, that surely was worth the money the government made us spend for their bright idea!" Chris said. " We live paycheck to paycheck and don't have money for new TVs or antenna's or satellite. We don't get cable up this mountain. Thanks a lot for taking away another piece of our life. You're on a roll now."

Then there are those for whom the government's belated attempt to get organized simply comes too late.

Jean of Reno, Nev., said her coupon expired before she could find a store that would accept it. "I was refused a replacement coupon and ended up buying a box at full price as one of our stations had already converted and the other two were planning on converting about 10 days later," she told ConsumerAffairs.com.

"The box by the way didn't work, but I am expecting a replacement," she added. "It cost me $40 additional and I still don't have a box."

How to apply

If an eligible household has redeemed one coupon toward the purchase of a TV converter box and the other coupon has expired, then it will be approved for a single replacement coupon, Gomez said.

Consumers may apply for replacement coupons by calling 1-888-DTV-2009 (1-888-388-2009), mailing an application to P.O. Box 2000, Portland, OR 97208 or faxing an application to 1-877-DTV-4ME2 (1-877-388-4632). Deaf or hard of hearing callers may use 1-877-530-2634 (TTY).

NTIA also claims that the coupon program has eliminated its waiting list and is processing all coupon requests as they come in with a maximum nine-business day turnaround time.

On January 4, 2009, the coupon program ran out of money and placed incoming coupon requests on a waiting list, to be fulfilled as previously issued coupons expired. The economic stimulus bill provided NTIA $650 million to issue at least 12.25 million more coupons, to start mailing coupons via first class mail and to ensure vulnerable populations are prepared for the transition from analog to digital television transmission.

Applications are now being processed on a first come, first served basis while supplies last.

I urge all consumers who are still unprepared for the transition to act today to get their converter boxes and resolve any technical issues well ahead of the June 12 deadline, Gomez said, placing the blame for being "unprepared" on citizens whose pleas for help have often been ignored by their government.

Consumers can receive digital television today by purchasing and connecting a TV converter box (with or without a government coupon); buying a digital TV; or subscribing to cable, satellite or another pay service.

Consumers who currently have coupons in hand should use them immediately. The coupons may not be used as a rebate and must be presented to the retailer at the time of purchase.

The DTV Delay Act established June 12, 2009, as the final date by which all full-power television stations in the country will be required to shut down analog broadcasts. However, some stations and entire markets may choose to switch before then. The Federal Communications Commission says that of the nation's nearly 1,800 full-power televisions stations, a total of 641 stations 36 percent-- terminated their analog signals as of February 17, 2009.

The digital television (DTV) transition took center stage at a House Commerce subcommittee hearing yesterday, just as the Government Accountability Office (GAO) released a new report indicating mixed progress in preparing households for the change.

The House Subcommittee on Telecommunications and the Internet used its fifth DTV hearing to focus on the results of the $40 coupon vouchers offered through the Commerce Department's National Telecommunications and Information Administration (NTIA). The coupon program has been criticized for issuing vouchers that expire within 90 days, without opportunity for replacement or renewal.

Subcommittee chairman Ed Markey (D-MA) said that "As more coupons reach the 90-day expiration date we will have more and better data on the rate at which the coupons are being redeemed. This will shed additional light on the potential financial and administrative needs for the program."

Dr. Bernadette McGuire-Rivera, NTIA's assistant administrator, testified that "As of June 3rd, of the 16 million coupons requested, more than 14.6 million have been mailed to consumers. A coupon ordered today can be expected to be issued and mailed within 10 to 15 business days."

Rivera said the postage costs of sending out more coupons require attention.

"Given the statutory 90-day expiration date of each coupon and the resulting importance of timely delivery, NTIA is reaching out to the U.S. Postal Service to request that coupon mailings be given priority attention," Rivera said.

Rivera also noted that recent requested changes to the program, such as allowing coupons to be sent to P.O. boxes and senior care facilities, might require the NTIA to "access more funding" to cover the increased costs.

But the NTIA issued a statement after the hearing saying it "has no plans to ask Congress for any additional funds."

Lack of awareness

The level of consumer awareness -- or lack of it -- about what the DTV transition entails was also a hot topic, thanks to a new report from the Government Accountability Office (GAO) detailing various issues relating to the switchover. The GAO conducted a survey of American households to determine their level of information regarding the transition. Among the GAO's findings:

• 84 percent of respondents polled had heard of the transition, but a smaller percentage of people have more specific knowledge of the transition. date and why the transition is taking place. Households which were directly affected by the transition had more specific and direct knowledge than those that were not.

• Over 50 percent of the households polled had heard of the coupon subsidy program for converter boxes, but less than a third of the respondents knew where and how to obtain coupons.

• 30 percent of respondents who would be unaffected by the transition still indicated they would make plans for it, a symptom of misinformation and confusion among the public, the GAO said.

"35 percent of over-the-air only homes and 52 percent of homes with at least one unconnected analog television set are unprepared for the transition," said House Commerce Committee chairman John Dingell (D-MA). "Those numbers suggest that much work remains to educate consumers, including seniors, non-English-speaking households, and other vulnerable populations."

Federal Communications Commission (FCC) chairman Kevin Martin testified that while there was still room for improvement, "Numerous reports indicate that consumer awareness of the upcoming transition has risen significantly." Martin cited statistics from the Consumer Electronics Association reporting that the percentage of consumers surveyed who were aware of the DTV transition jumped from 41 percent in August 2006 to 74 percent in January 2008.

"That more and more viewers are aware of the transition is a step in the right direction," Martin said. The next phase of the consumer education campaign emphasizes the actions that consumers need to take to be prepared."

Catching the converters

Availability of set-top converter boxes to process the digital signals was also cited as a concern. Critics charge that even though many retailers have signed up to sell converter boxes, consumers were having difficult times finding and purchasing them before the coupons expired.

John Ripperton, Radio Shack's vice president for supply chain management, testified that "the demand for converter boxes is higher at this time than was anticipated," and that Radio Shack was implementing special programs such as direct orders from its shipping centers to cope with the growing interest from customers.

Ripperton also asked the NTIA to continue providing detailed coupon redemption data.

"This is particularly important right now so that retailers can appropriately target shipment of their inventory to the areas that have the most active coupons," Ripperton said.

Although several retailers have enabled the converter box coupons to be used online, the larger retail chains require them to be redeemed in person. Big-box retailers such as Best Buy, Circuit City, and Radio Shack itself were recentlyfined by the FCC for selling televisions without warning labels notifying consumers that the set would require a converter box to receive digital signals.

What to do

The following sites have more information about the analog-to-digital transition:

• Our Dawn Carlson provides a thorough overview of what you need to know.

• Visit the FCC's official DTV site to get more information.

• Apply for a converter box coupon at the NTIA's converter program Web site.

A little-noticed order published by the Federal Communications Commission (FCC) last week could have long-range effects for the upcoming transition to digital television (DTV).

After heavy lobbying by the electronics and retail industries, the FCC agreed to limit the number of devices that would require stickers notifying customers that they would need converter set-top boxes to ensure that they could continue to receive television signals over the air, and that the devices would not work properly without them.

The FCC's new order also exempted manufacturers from setting up toll-free numbers to address customer questions about their equipment, preferring instead to direct all public inquiries to the FCC's own number, and delays the deadline for adding stickers and sending out warnings to customers informing them of the upcoming transition.

"The devices related to televisions and television use are many and varied, and, upon reconsideration, we are convinced that requiring that notices be included with every such device will create a greater burden on consumer electronics manufacturers and importers than is justified by the incremental gains in consumer awareness," the commission wrote.

In considering which devices should bear a warning notification about their continued usability after the DTV transition without a converter box, the FCC agreed to limit the specific "related devices "to television broadcast receivers...TV interface devices... devices that record and/or display signals received from television broadcast receivers...and set-top boxes available for sale at retail that receive video programming provided by multi-channel video programming distributors."

The FCC also advised that cable and satellite manufacturers send out notifications informing customers that their set-top boxes would not need to be replaced after the DTV transition, and they would continue to receive programming normally.

Consumer 'confusion'

Another part of the FCC's initial DTV transition order called for manufacturers to employ multiple points of contact for answering questions about the transition, including phone numbers.

But the FCC amended its order to exempt manufacturers from adding phone numbers, instead directing them to the FCC's 1-888-CALL-FCC toll-free number, as well as the government's various DTV-related Web sites.

Why? To ease confusion, of course.

"In many cases a manufacturer does not maintain an appropriate telephone number, so this requirement could result in consumer confusion," the FCC said.

More time

The FCC had originally set a deadline of March 31, 2008 for manufacturers to start notifying customers of the DTV transition and the possible need for equipment upgrades, but -- although the industry has known about the upcoming transition for years -- the Consumer Electronics Association (CEA) and electronics manufacturers argued for a longer "lead time" to change their product packaging and print up notices.

"We are persuaded that they need additional time to come into compliance, and the approval and publication process associated with implementation of the amended rules will give manufacturers sufficient time to fully comply," the Commission wrote. "To further assist the manufacturers in ensuring their readiness for compliance, we are establishing a date certain, May 30, 2008, as the effective date for these rules."

Moving The goalposts

The FCC's revised rules for manufacturers are the latest example of problems encountered as the country prepares for the shift to digital TV broadcasts. Consumer groups, telecommunications experts, and members of Congress have criticized the FCC and the National Telecommunications Information Administration (NTIA) for not providing enough information on the transition to Americans, and for not requesting enough funds to manage related problems.

The NTIA was responsible for the $40 vouchers that could be used towards purchase of a new set-top converter box. But the coupons expire 90 days from issue, with no option for reissue or replacement, and many electronics companies have not begun selling converter boxes yet. The coupons also cannot be used online, forcing users to visit retailers in person to buy converter boxes.

The NTIA announced on April 24 that it would consider enabling nursing home residents and owners of P.O. boxes to receive the coupons, but has not addressed the expiration date problem yet.

Reports vary as to how many households could be in danger of limited or lost television service without converter boxes. Consumers' Union reported in February that 11 percent of American households, or 23 million households, would "go dark" after the transition, with Midwestern and Western states being the hardest-hit.

Another report from market research firm Centris found that even major urban areas such as New York, Boston, and Washington, D.C. would have areas of "challenged reception," where over-the-air television viewers would not be able to pick up digital signals even with converter boxes, unless they bought better antennae as well.

Many consumer activists have charged that retailers were failing to inform consumers about what to do to prepare for the transition, or were themselves uninformed as to what equipment they could sell.

The FCC recently levied fines totaling $6 million on numerous big-box retailers, including Circuit City, Best Buy, and Wal-Mart, for selling televisions that did not have warning labels informing buyers that they would require a converter box to receive digital signals after the transition.

What to do

The following sites have more information about the analog-to-digital transition:

• Our Dawn Carlson provides a thorough overview of what you need to know.

• Visit the FCC's official DTV site to get more information.

• Apply for a converter box coupon at the NTIA's converter program Web site.

If the government and electronics industry don't work harder to educate consumers about the impending switchover from analog television signals to digital on February 17, 2009, 11 percent of American households, or 23 million people, may not have any television service at all after the transition.

That's the conclusion of a new report by Consumers' Union, which studied the different regions that will be affected by the DTV transition, as well as the results of efforts to educate consumers about the switch.

According to the consumer group, Western and Midwest states such as Texas and California will be hit especially hard by the switchover, as they have large population groups that are reliant on over-the-air television signals via "rabbit ear" antennae.

"Over 20 percent of homes with televisions in both Dallas and Houston rely solely on free over-the-air broadcasts," said Joel Kelsey of Consumers Union."The programming that people rely on everyday to stay informed or for entertainment may not be there for nearly 1.5 million Texas households after February 2009."

The greater Los Angeles area had 958,030 households with access to over-the-air service only, the largest single concentration in the country. Salt Lake City, Utah, had the largest percentage of consumers with over-the-air access in major cities, with 23 percent of all of its TV households, or 203,290 homes, using broadcast signals only.

The report also detailed the lack of comprehensive knowledge about the transition. "33 percent of Americans in households that will have no functioning television after February 17th 2009 were completely unaware the transition is coming," the report said.

Although the government has scrambled to build awareness of the DTV transition and has publicized its offering of vouchers to buy converter boxes for digital signals, 73 percent of Americans are unaware of the program at present.

Consumers' Union charged electronics retailers with taking advantage of the lack of information surrounding the DTV transition in order to market expensive equipment that consumers may not need.

"A combination of low consumer awareness, technological complexity, and financial incentives to sell more television and related services create a fertile environment for confusion," the report authors said. "For vulnerable populationssuch as the elderly or lowincome householdsthe potential for being misled,intentionally or unintentionally, is significant."

What to do

The following sites have more information about the analog-to-digital transition: * Our Dawn Carlson provides a thorough overview of what you need to know. * Visit the FCC's official DTV site to get more information. * Apply for a converter box coupon at the NTIA's converter program Web site.

Would you buy a new television set that will become obsolete in a little more than a year?

That's just what you'll be doing if you buy an analog TV, which will be practically useless once TV broadcasters go digital on February 17, 2009.

The Federal Communications Commission may take steps to ensure that consumers are made aware about the impending change.

FCC Chairman Kevin Martin has told Congress that he thinks TV broadcasters should be required to air announcements several times a day, making consumers aware that they may have to take additional steps in order to watch TV.

Consumers with analog TVs will have to get a converter box to receive over-the-air signals once TV stations start broadcasting digitally. Those with a satellite TV service or digital cable will not need a converter box.

In this age of flat-screen digital sets, does anyone still buy analog TVs?

Apparently so. In fact, this week retailer Best Buy announced it would immediately stop selling analog sets. In a statement, the retailer said it was pulling analog sets from its shelves as the analog broadcast era draws to an end.

An estimated 60 million U.S. homes still rely on over-the-air reception or analog cable systems. Cable systems currently relying on the old technology have until 2012 to switch over to digital.

Beginning in 2008, the U.S. government says it will provide coupons to each household that can be used to purchase up to two converter boxes. The converter boxes will be available from retailers that currently sell TVs and other electronics.

Meanwhile, consumers could soon begin seeing public service announcements telling them what they have to do in order to receive digital TV. Martin told a House subcommittee that he thinks other FCC commissioners will go along with his proposal.

With the pull of a symbolic 7-foot-tall switch, Wilmington, North Carolina today became the first region of the country to pull the plug on analog over-the-air television signals and switch to an all-digital format. The city with a population just under 100,000 volunteered to be the first test market for the digital television (DTV) transition, scheduled to take place across the country on February 17, 2009.

Wilmington mayor Bill Saffo and Federal Communications Commission (FCC) chairman Kevin Martin flipped the switch at noon, as part of a ceremony attended by heads of the local television stations affected by the transition, as well as other officials involved in managing the switchover and watching for potential glitches.

The FCC had aggressively deployed staff and resources in Wilmington to help answer questions and provide information about the DTV transition, as well as supplementing campaigns by local television stations. The agency has been stung by criticism that it has not done enough to facilitate awareness of the change and get consumers the assistance they need.

The Wilmington test market launch came in the middle of a nationwide tour by FCC commissioners and staff to potential "trouble areas" that are largely served by over-the-air television signals, and may experience problems when the switch to digital television occurs.

Television viewers who rely on "rabbit ear" antennae for signals will require a set-top converter box for the new digital signals. Cable and satellite subscribers will be unaffected, but lack of consumer awareness and unscrupulous practices by some retailers have led consumers into buying equipment they don't need, or upgrading to expensive new television sets for no reason.

Reports have claimed that as many as 23 million households may lose television service in the DTV switchover, a disproportionate share of those being elderly, minority, or low-income families. Nielsen estimated there were more than 13 million households in the U.S. with television sets that can only receive analog broadcasts. The greater Wilmington area has about 180,000 television-ready households, approximately 8 percent of which can receive analog-only transmissions.

FCC Commissioner Michael Copps said that Wilmington's flat terrain, coupled with high consumer awareness and the publicity of the test, would not necessarily serve as an accurate test of potential glitches in the transition. He wanted a larger selection of volunteer markets in different regions to determine what might go wrong as the switchover occurs.

Local news reports claimed that sales of the digital television converter boxes had been brisk in the days leading up to the switch, owing to the massive publicity blitz. The government has sponsored a voucher program to subsidize the boxes, offering free $40 coupons through a Web site run by the National Telecommunications and Information Administration (NTIA), the other government agency most responsible for overseeing the DTV transition.

The NTIA's coupon program has been criticized for offering no option to renew or replace coupons after they expire, 90 days after they are received. Congress and consumer advocates wanted the deadlines extended, while NTIA said that it would require more money from Congress to beef up the program beyond its current limits.

If you're in Wilmington

The FCC today announced that organizations in each of the five counties have volunteered to assist consumers who have had difficulty obtaining or installing a converter box. The following organizations may be contacted for help:

• Bladen County, call: Bladen County Fire Department/EMS: (910) 862-6760 OR Bladen Family Support Services: 910-647-0743

• Brunswick County, call: Brunswick Senior Resources, (910) 253-2199

• Columbus County, call: Melody Prevatte, Southeastern Community College, (910) 642-7141 ext. 294 OR Kipling Godwin Associates 1-888-514-7775

• New Hanover County, call: In the City of Wilmington: Andrea Good, Fire and Life Safety Educator, City of Wilmington (910)772-4131; The rest of the County: Union Missionary Baptist Church (910) 763-9541 OR New Hanover County Fire Department 910-798-4DTV

• Pender County, call: Donna Pridgen, Administrative Assistant, Town of Burgaw Police Department (910) 663-3463

• For more information call: 1-877-DTV-0908 or TTY: 1-866-644-0908

The big switch to all-digital signals for over-the-air television is still four months away, but many viewers are already experiencing technical difficulties, particularly with the government's voucher program to subsidize buying converter boxes to receive the new transmissions.

ConsumerAffairs.com is already receiving complaints from frustrated readers who cannot redeem or replace their coupons, or who can't find available converter boxes to purchase before the coupons expire. The program currently allows households to download or order two coupons per household, good for 90 days from the date of purchase, with no ability to receive more or replace them if lost.

That was news to Jacqueline of Warrington, PA, who "received Expired and unused DTV coupons and they won't replace them. We are entitled to 2 usable coupons and were refused replacement when I appealed. This program is not for the people, it's extremely stingy and merely a facade of a helping hand."

Robert of Salt Lake City, Utah "ordered my dtv converter box coupons in May 2008 and have not received them yet. Further investigation/attempts to re-order has resulting in a denial of a new application and denial of an appeal. I have tried calling to get an explanation, but keep getting disconnected. I've emailed them, requesting a proof of delivery (my mail goes to a PO box) and they have not responded."

And Cathi of Coleman, Texas "requested my DTV Convertor Box Coupons....they never arrived, I went online to check on status and was told they were sent, when I emailed and questioned where they were and asked for a replacement I was told they could not repalce the coupons that I never received. This coupon program is a joke!"

The DTV program has been beset with numerous glitches since its inception, from the coupon program's flaws, to lack of consumer awareness of the transition, to retailers providing inaccurate information about what equipment customers may need to upgrade.

The two agencies in charge of the transition are the Federal Communications Commission (FCC) and the National Telecommunications and Information Administration (NTIA), an arm of the Commerce Department. At a special FCC meeting on Tuesday, Commissioner Robert McDowell warned the transition could get "messy...but we'll get through it."

McDowell said that local television networks should be flexible in advertising the transition, according to specific needs of their communities. Some residents may need additional equipment to view digital television, such as new "rabbit ear" antennae, he said.

The FCC has been spearheading a major publicity push for the DTV transition, including the highly publicized switchover test program in Wilmington, North Carolina.

The NTIA has sparred with Congress over funding the coupon program on several occasions. At a House Telecommunications Subcommittee hearing in September, acting NTIA head Meredith Baker Atwell reiterated that the agency would not renew coupons after they expired, saying it would cause problems and costly delays.

Also in September, the Government Accountability Office (GAO) issued a report stating that the NTIA did not have a plan in place to address funding shortfalls for the coupon program. NTIA has said that it would fall under the purview of Congress t o authorize more funds for the program.

From the beginning, observers of the transition have said that certain parts of the country would be disproportionately affected, including minority, low-income, and elderly households. The latest Nielsen research poll shows that as many as 9.6 million households would immediately lose television service if the DTV switchover happened today.

But now, with economic times as tough as they are, households across the board are cutting back on expenses--including cable and satellite television service. This may mean even more households will need coupons and equipment to receive over-the-air digital signals.

As Jacqueline told ConsumerAffairs.com, "with cable price increases beyond affordability and the economy's severe downturn, we'd like to keep our working older tv's and need converters to keep them out of the landfill."

What you can do

The following sites have more information about the analog-to-digital transition:

• Our Dawn Carlson provides a thorough overview of what you need to know.
• Visit the FCC's official DTV site to get more information.
• Apply for a converter box coupon at the NTIA's converter program Web site.

After more than a year of planning, the Senate has concluded the public still isn't ready for U.S. TV stations to switch to digital broadcasting. Lawmakers have approved a measure that would delay the switch until June 12.

Leaders in the House say they have the votes to approve the delay and President Obama says he will sign it.

The switch to digital broadcasting is currently scheduled to take place February 17, but the entire process has been mired in confusion and controversy. After the switch, consumers receiving TV over the airwaves not by cable or satellite will not be able to receive a signal unless they are using a digital TV.

Congress appropriated money to compensate consumers for the purchase of up to two digital converter boxes for their analog TVs, but many consumers were confused about whether they needed one or not. And it now turns out that even with a converter box, some of these consumers still won't be able to receive digital signals. Lawmakers say the delay will give engineers time to work out a solution.

Problems in the program began popping up early last year. The process has spawned a constant stream of consumer complaints.

Some consumers might wonder why the switch has to take place at all. The answer is money. The U.S. Government has already sold the old broadcast frequencies, which AT&T;, Verizon Wireless and other carriers will use to expand their mobile networks. Public safety agencies will also use some of the vacated spectrum space.

At the time, government officials concluded moving broadcasters to digital frequencies would be easy and painless. After all, weren't most consumers getting their TV from either cable or satellite?

Many, it turns out, aren't. Millions of consumers still get their TV directly over the air, on VHF and UHF channels, along the 700-MHz spectrum. Though some may prefer this form of reception, it is not hard to conclude that many others are of limited income, who cannot afford cable or satellite delivery.

The government's program to help consumers make the switch to digital TV recently ran out of money. That stopped the flow of vouchers consumers could use to purchase digital converter boxes.

Angry consumers

The most often-heard complaint among the hundreds received by ConsumerAffairs.com is that the government is sending out converter box coupons that either have already expired or are so close to their expiration date that the consumer can't use them — and can't get a replacement.

"We received our DTV Converter Box Coupons after the expiration date. When we called to get new one with correct expire dates, they sent us a letter stating that we received cards and there would be no others issued," said Charles of St. Louis. "This program has been mismanaged the way our economy has been mismanaged."

"It really is an eye opener as to where the government is heading. It should have been as simple as using a coded debit card specifically for the converter boxes. Simple program could have fixed this, but they inconvenience the consumers they want to support this major change in viewing. Pretty lame actually," Charles concluded.

R.L. of Lake Dallas, Texas, had a similar experience.

"I applied for a coupon for a converter box on 9-19-08. It NEVER arrived. When I checked the website (dtv2009.gov) for a status on the coupon, it said it was expired. I applied online for another coupon on 1-5-09 (we're supposedly entitled to two), it said that because program funding is not currently available, you will not receive coupons unless more funding becomes available," R.L. said.

"I thought the government was supposed to be helping us with this DTV transition.....what a SCAM!"