Digital television is a new technology that uses the airwaves more efficiently, improves picture quality, and provides advanced sound quality. The government is set to require a firm date – possibility by December 31, 2008 – when all broadcast signals will have to be sent digitally. It is important that the consumer voice be heard and that consumer needs across the country are taken into account.
Consumers Union supports a hard deadline for the digital transition provided that consumers don’t bear the financial burden of the transition and the transition helps make the market more competitive, rather than more consolidated.
An Up Hill Battle
On May 26, 2005, Gene Kimmelman of Consumers Union testified (PDF) in front of the House of Representatives Subcommittee on Telecommunications and the Internet on possible solutions to prevent the transition from burdening consumers.
Specifically, Consumers Union is asking for the legislation to include:
- A full consumer subsidy for TVs that will go blank after the transition
- Spectrum set aside for unlicensed uses
- Provisions that address the issue of media ownership
- Conditions detailing how the spectrum auction should support new entrants and small market players to bring competition to the market
Get Active
Congress is getting ready to take up legislation that would set a firm date for all television signals to switch from the signal you receive now to an all-digital one. Yet, millions of Americans do not have a TV capable of getting this new digital signal. Some consumers could wind up having to buy a brand new TV or a set-top converter box (estimated cost of at least $50 each).
Congress has to decide who should pay for the switch - consumers or the government. The government will auction off the channels that are currently used for local TV broadcasting potentially earning billions of dollars which could be used to pay for consumers’ set-top converter boxes.
You can take action; go to Consumers Union and tell Congress to limit broadcaster control of local media, and to make sure that consumers don’t bear the financial burden for this digital switch.
DTV in the News
In a May 26, 2005 USA Today article "TV Changes are Signal for Debate" details what legislation could look like.
"A House hearing today in Washington will kick off a contentious debate about how to steer the nation's bumpy transition to digital TV. A central question: Should the government subsidize converter boxes so analog TV owners won't be left in the dark?
So far, digital TV has emerged slowly. About 15 million Americans have bought digital TV screens, though many use them only to watch DVDs. Just 5 million people either have bought digital tuners that can receive digital shows via regular antennas or have digital cable-TV boxes that can display those programs.
Meanwhile, 1,500 of the nation's 1,700 TV stations are airing at least some shows digitally. Many prime-time shows and sporting events are beamed in crystal-clear high-definition TV. Others use a standard-definition format that still surpasses today's analog TV.
By federal law, broadcasters must return their analog channels to the government by Dec. 31, 2006 — but only in those markets where 85% of homes can receive the digital signals. It could take decades to reach that threshold in many markets. Leading House Republicans are pushing for rules that would set a definite date for broadcasters to turn over the analog channels.
Lawmakers are champing at the bit to reclaim those airwaves so they can auction them to wireless companies for high-speed Internet services. Such an auction is expected to raise $10 billion to $30 billion for federal coffers."
The article goes on to say, "[a]n additional 60 million sets would not be covered by the subsidy. Those include TVs in more affluent antenna-only homes, second or third sets in lower-income antenna homes and in pay-TV homes with extra sets that use antennas. Republicans see little reason to buy boxes for higher-income consumers.
'What we're trying to do is cap the costs,' Upton says. Consumers simply 'have to salt away 80 cents a month for the next three years' to pay for a converter box.
But Democrats argue that anyone who must buy the box is entitled to a subsidy.
'All over America, people are buying analog television sets that will be made obsolete by this legislation,' says Rep. Ed Markey, D-Mass. 'I believe that not just the poorest Americans, but every American is entitled to a plan to restore pictures to that TV screen.'
Rowena Saunders, 35, of San Francisco says she can afford a box, but adds: 'It's a bad thing. Why not have (the government) pay for it?'
Democrats say that accommodating everyone who seeks a subsidy likely would cost about $2 billion. Rep. John Dingell, D-Mich., says auction proceeds would be "more than enough" to cover the bill. Republicans estimate the tab at up to $4 billion.
Subsidizing only lower-income, non-cable households would be a 'nightmare,' Markey adds. Program coordinators would have to check with pay-TV companies, food-stamp administrators and others to verify that applicants qualify, thereby raising the program's costs. Republicans downplay the hassle."
Consumer Tips: Transitioning to Digital TV
Find out what you should know about the transition to digital TV. Read consumer tips from HearUsNow.org and Consumer Reports.
Or visit the Federal Communication Commission’s a new consumer education website to learn about the digital transition.