TV Schedule

Lawmakers assail digital TV effort due to "lack of planning"

  2. aswift1
  3. related topics
A billion-dollar program to help consumers prepare for the upcoming switch to digital television has been mismanaged and is running out of money, key lawmakers said, prompting concerns that millions of TV viewers could be left in the dark.

The National Telecommunications and Information Administration, an agency within the Commerce Department, is in charge of a $1.5 billion program to distribute $40 coupons to help consumers pay for the converter boxes they will need to continue watching on analog TVs. The boxes typically cost $50 to $80.

Last year, the NTIA awarded IBM a $120 million contract to perform administrative duties for the program, including taking coupon orders and mailing them to consumers. But IBM's contract does not include enough funds to process and mail the recycled coupons to consumers, according to a letter sent to the NTIA yesterday by Democratic Reps. John D. Dingell (Mich.), chairman of the House Commerce Committee, and Edward J. Markey (Mass.), chairman that committee's telecommunications and Internet panel.

The letter asked pointed questions about how the error occurred and how much it will cost to fix.

"The NTIA's apparent lack of planning is a serious oversight, one that they must correct promptly and without dipping into the funds marked to help consumers purchase converter boxes," Markey said.

On Feb. 17, broadcasters will stop airing traditional analog signals as they upgrade to all-digital programming. So consumers who rely on antennas to receive over-the-air broadcasts will need a converter box for every analog TV. Each household can order two coupons for converter boxes.

The coupons expire after 90 days. Unredeemed coupons are supposed to be redistributed to other households.

IBM's contract calls for the distribution of 33.5 million coupons, according to the contract's requirements found on NTIA's Web site. The contract does not account for the costs associated with recycling unredeemed coupons but does cover administrative expenses.
aswift1

4 responses // Lawmakers assail digital TV effort due to "lack of planning"

  • Don't I wish I could say it's surprising. Yet another example of this administration's ineptitude. Calling this administration an administration is so wrong on so many different levels. We are slowly counting the days.
    bluestranger
  • I don't want to believe that this is a concerted effort to force people into purchasing new digital tv sets, but I do.
    huntre
  • This is for the "greater good." Less than 10% (30 million if you think about it) would be left in the dark, but they've been running these commercials non-stop. The ones most affected are the elderly and the heavily impoverished, but the converter boxes are going to be overproduced and relatively cheap with the government's voucher.
    handshakeheartbreak
  • A billion-dollar government program mismanaged. Imagine that.
    sonnydenbow

Add your response

Login/Registration is required to add a response.