FOR IMMEDIATE RELEASE
Washington, DC— Consumers Union calls 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 to purchase digital converter boxes.
Currently, the $40 government coupons expire 90 days after issue, with no option of replacement or reissue. Federal Communications Commission Chairman Kevin Martin is expected to testify today before the Senate Commerce Committee about the transition.
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 they 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 won’t be penalized for acting quickly," added Kelsey.
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Contact: Jennifer Fuson, 202-462-6262
