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DTV Shift Coupons To Hit Mail In April

By David Hatch

(Monday, October 2) Consumers might have to wait until April 1 for the federal government to begin mailing vouchers toward the purchase of digital-to-analog converter boxes -- equipment considered essential to guaranteeing the transition to digital television in early 2009.

Lawmakers overseeing the program say they thought the coupons would be mailed earlier and are worried the transition period is shorter than they expected. The voucher program begins Jan. 1.

But in a bureaucratic quirk, federal law requires only that its overseer, the Commerce Department's National Telecommunications and Information Administration, accept applications as of that date.

As a result, consumers requesting vouchers in early January might have to wait three or four months to receive them, the agency confirmed. An NTIA spokesman emphasized that the agency's agreement with its contractor, IBM, states that the company must be ready to begin "full operational activities" before April 1 if directed,.

The coupons are considered critical to prevent vulnerable groups -- including low-income families, minorities, rural residents and seniors -- from losing over-the-air signals.

The April 1 timeframe surfaced during a digital TV oversight hearing last week by the Senate Commerce Committee. Sen. Claire McCaskill, D-Mo., noted that NTIA's contract with IBM states, "Per NTIA's guidance, we do not currently plan to begin coupon distribution and redemption until April 1, 2008."

Complained McCaskill, "I think we should have been told that's in the contract."

NTIA Administrator John Kneuer responded that retailers and manufacturers have indicated that the boxes could be ready in "very early 2008," though he noted that factors outside the agency's control, such as supply-chain disruptions, could prompt delays.

Congress last year authorized up to $1.5 billion for vouchers, to be redeemed toward the purchase of low-cost devices that will enable older analog televisions not connected to pay services to function after Feb. 17, 2009.

The law requires coupons to be mailed when the devices hit store shelves, but the agency is not sure when that will be, saying only "early 2008." Some retailers have been noncommittal about their level of participation and have indicated that the boxes might not be available in all stores.

Best Buy last week said it would honor the coupons and has pulled all remaining analog sets from its inventory. Radio Shack is on board as well. The contract says NTIA has "the flexibility to respond to public opinion or other pressures to begin distributing and processing the coupons early," a goal the NTIA spokesman said the agency is working toward.

"We have not done doublespeak on it," the spokesman said. "Like we've always said -- early 2008." In a worst-case scenario, the spokesman emphasized, consumers still would have 10 months to acquire converter boxes before the transition, which he characterized as a sufficient timeframe.


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