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Up to $1.5 Billion Possible for Digital-to-Analog Converter Box Coupon Program

"The digital transition will enable more efficient use of the nation's airwaves providing new advanced wireless services and increased public safety services for all Americans."

The Department of Commerce's National Telecommunications and Information Administration (NTIA) announced Monday the final rule for the Digital-to-Analog Converter Box Coupon Program designed to help consumers continue receiving free, over-the-air television when full-power television stations cease analog broadcasting after February 17, 2009, as authorized in the Digital Television Transition and Public Safety Act of 2005 (Act). Digital television will provide consumers with a clearer picture, more programming and will free up much needed spectrum for advanced wireless broadband services and interoperable communications among emergency first responders.

"The transition from analog to digital television is a historic change and brings with it considerable benefits for the American consumer," said Secretary of Commerce Carlos M. Gutierrez. "The coupon program is designed to help ease the transition to digital TV. Not only will the transition help expand consumer choices, but more importantly, the digital transition will enable more efficient use of the nation's airwaves providing new advanced wireless services and increased public safety services for all Americans."

Just last month, a Memorandum of Understanding between the Department of Commerce and the Department of Homeland Security was signed to create and administer a $1 billion Public Safety Interoperable Communications Grant Program to help state, local and federal first responders better communicate during emergencies.

"With the Coupon Program and a successful analog-to-digital transition involving the public, industry and government, the switch from analog to digital television will be completed as planned," said Assistant Secretary for Communication and Information John Kneuer.

Starting Jan. 1, 2008, all U.S. households will be eligible to request up to two $40 coupons to be used toward the purchase of up to two, digital-to-analog converter boxes, while the initial $990 million allocated for the program is available.

If the initial funds are used up, the Act permits funding to increase by $510 million, upon certification to Congress that the initial allocated amount is insufficient to fulfill coupon requests. If the additional funds are needed, eligibility for those coupons will be limited exclusively to over-the-air-only television households. Consumers requesting coupons from these contingent funds must self-certify to NTIA that they do not subscribe to cable, satellite or other pay television services. This program is structured to monitor demand to help ensure that over-the-air reliant households will not lose total access to television broadcasts after the Feb. 17, 2009, transition date.

Households using analog televisions will not be able to receive digital broadcasts after February 17, 2009, unless the analog television is connected to a box that converts the digital signal to an analog format, or the analog television is connected to cable or satellite service. While converters may be important to connect some TVs, other viewers may not need or want converters, such as those who have digital televisions or pay TV service.