The Real Cost of Delaying Digital TV

Analysts say a prolonged delay to digital-only television broadcasting could also be bad news for the wireless service providers who plan to use the airwaves that will be freed up as a result of the change. It may also put a damper on plans by broadcasters to air popular programming once TV signals have gone digital and viewers have done away with outmoded TVs that only pick up analog signals. Mobile-phone service providers have a lot riding on the transition. Industry leaders including AT&T and Verizon Wireless have spent billions of dollars on the airwaves that will be freed up when the transition happens and intend to use that spectrum to provide advanced services, including Web surfing and mobile video. While the services aren't scheduled to go live immediately after the transition, an extended delay could prove problematic. "Every day they can't roll out the system affects when they can bring [new products] to market," says Tim Bajarin, president of industry researcher Creative Strategies. However long the delay, if it comes, Congress will have to pick a new changeover date that will cause the least disruption for viewers—for example, after the NCAA basketball tournament, which airs in March. The government also needs to do a better job educating consumers about the converter-box coupons and the changeover in general, analysts say. Many consumers are unaware of the boxes, and believe they need to buy a new TV. "There's still a lot of confusion," says Creative Strategies' Bajarin. "The real solution for this is for the government to be much more aggressive in getting the message out."