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Martin Fears Coupon Program Lacks Funds
Submitted by Benton Foundation on October 7, 2008 - 7:41pm
Last updated: October 7, 2008 - 7:42pm
Last updated: October 7, 2008 - 7:42pm
Source: Multichannel News
Author: Ted Hearn
MARTIN FEARS COUPON PROGRAM LACKS FUNDS
Federal Communications Commission Chairman Kevin Martin is concerned that a $1.5 billion digital TV converter box program run by the US Commerce Department could exhaust its funding, leaving consumers in the lurch next February 17 when analog TV signals are shut off. "While I do not have access to NTIA's projections and detailed analyses, I am concerned that the total funding required to satisfy demand may prove to be insufficient," Chairman Martin said in letters to Commerce Committee Chairman John Dingell (D-MI) and House Telecommunications and the Internet Subcommittee chairman Rep Edward Markey (D-MA). Martin's letter clashes with recent congressional testimony by Assisting Commerce Secretary and NTIA director Meredith Attwell Baker. The program, she testified, won't run out of money; in fact, she said it will likely return more than $300 million to the US Treasury, based on coupon redemption rates.
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Mr. Martin has good reason
Mr. Martin has good reason to be concerned. DTV is about to blow up in his face
As more data about Wilmington continues to surface, it now appears that the original estimate of 13,700 over-the-air Wilmington households is actually 19,100. The FCC original estimate of 14 million over-the-air households was low balled and now that the FCC is revising its estimate to 19.5 million is indeed cause for real concern about the digital TV meltdown that will occur next February.
The time has come for the FCC and NTIA to come clean with the American public. Millions of over-the-air TV's in rural fringe areas across the country like Hunterdon County, NJ will go dark next February. It is outrageous that the FCC has always known about the problems with fringe areas but ignored it.
The FCC must also come clean about the antenna issues and weak signal coverage. How is it possible that the cable industry knew about these issues and expects that 20-30% of over-the-air TV's will lose their signal and have to subscribe to cable or satellite.
Mr. Martin should explain why he thinks that only 1% will go dark while the cable industry anticipates a DTV windfall.
If NTIA has an expected surplus of $300 million, this money should go back to the millions of consumers who have paid additional money out of pocket for converters, antennas and upgrading their coaxial cable from RG59 to RG6. Expired coupons should be reissued.
As of 9/30, consumers hav lost over $354 million because of expired coupons. It seems ridiculous that NTIA would take this money away from millions of over-the-air consumers.
Lack of money for DTV coupons is the least of Mr. Martin's problems.
The continuation of false and misleading PSA's claiming that all you need is a digital converter must stop immediately. With only a few months to go, the FCC and NTIA need to tell us the truth.
Tom Allibone
Director of Audits, Teletruth
Past member FCC Consumer Advisory Committee