**Written Statement**

**Of**

**The Honorable Kevin J. Martin**

**Chairman**

**Federal Communications Commission**

**Before the**

**Committee on Energy and Commerce,**

**Subcommittee on Telecommunications and the Internet**

**U.S. House of Representatives**

**June 10, 2008**

Good morning Chairman Dingell, Chairman Markey, Ranking Member Barton,
Ranking Member Stearns, and Members of the Committee. Thank you for
inviting me here today to update you on the status of the digital
transition.

> []{.mark}

On February 17, 2009, all full power television stations in this country
will stop broadcasting in analog, and broadcast exclusively in digital,
as mandated by Congress in the Digital Television and Public Safety Act
of 2005. A successful digital transition will depend upon minimizing the
burdens placed on consumers and maximizing their ability to benefit from
it.

The DTV transition will be a historic moment in the evolution of TV.
Television viewers will be able to enjoy movie quality picture and sound
and potentially new programming choices. It also will allow us to
significantly improve public safety communications and usher in a new
era of advanced wireless services such as the widespread deployment of
wireless broadband.

With a little less than nine months to go until the digital television
transition nationally the industry and the Commission are actively
reaching out to consumers to alert them of the coming transition and
inform them about the steps they will need to be prepared for the
transition. I recently announced that on September 8, 2008, Wilmington,
North Carolina will be the first market in the country to make the
transition to digital television (DTV).

The first phase of the consumer education campaign is alerting consumers
that the transition will occur on Feb. 17, 2009. Numerous reports
indicate that consumer awareness of the upcoming transition has risen
significantly. Last February, CEA reported that the percentage of
consumers surveyed who were aware of the DTV transition jumped from 41%
in August 2006 to 74% in January 2008. Similarly, NAB reported consumer
awareness of the DTV transition more than doubled from 38% in Jan. 2007
to 79% in Jan. 2008, and that 83% of respondents in exclusively
over-the-air households reported that they were aware of the transition.
In addition, a survey published by the Consumers Union in January 2008
found that 64% of consumers were aware of the transition.

Similarly, the Association of Public Television Stations (APTS) issued
the findings of a survey indicating that consumer awareness of the
transition increased from 51% to 76% in just three months (from November
2007 to February 2008). In addition APTS finds that: "Roughly 62 percent
of \... over-the-air consuming households who are aware of the
transition indicated that they would buy a converter box or digital TV
set between now and when the transition takes effect\..." which is up
dramatically since November 2006, when only "28 percent of over-the-air
households said they would take those options."

That more and more viewers are aware of the transition is a step in the
right direction. The next phase of the consumer education campaign
emphasizes the actions that consumers need to take to be prepared.
Specifically, the Consumers Union also found that 74% of consumers had
"major misconceptions" about the impact of the transition on them. In
other words, too many Americans remain confused about what they need to
do to prepare for it. And APTS found that "17.5 percent of over-the-air
consumers who are aware of the transition 'don't know' what they will do
and roughly 10 percent said they would 'do nothing.'" Taken together,
these surveys are valuable research tools to better guide our education
and outreach efforts over the next nine months.

This released data also demonstrates that facilitating a successful DTV
transition is an enormous undertaking. And it is one which no single
entity, public or private, can achieve alone. Rather it requires the
commitment and cooperation of government, industry and consumer groups.
We have made that commitment and are actively working with these
important stakeholders.

Today's hearing is a welcome opportunity to discuss our work with all of
our DTV partners both in terms of outreach and education and necessary
regulatory steps to ensure all Americans can share the benefits of this
historic digital transition**.**

**UPDATE ON BROADCASTERS TRANSITION TO DIGITAL**

Last August, the Commission adopted the final DTV table of allotments
based on the channel elections made by the full power broadcast
stations. This order provided virtually all (over 99%) of the television
stations across the country with their final channel assignments for
broadcasting in digital following the DTV transition. By finalizing
broadcasters' channel allotments, the Commission helped ensure that
broadcasters could begin making final preparations for their own
conversion.

Nearly two-thirds of full power stations (1172) will remain on the same
channel they are currently using for digital service. Most of these
stations, over 989, have completed construction and are already
providing full service to their viewers. The remainder, roughly 150, are
working on completing construction of their full service facilities.
One-third of full power stations, (roughly 640), are changing channels
for their operation after the transition and are currently filing
construction permit applications, ordering equipment, and scheduling
tower crews.

[]{.mark}

In December of 2007, we also concluded the Third DTV Periodic Review.
This Order adopted the procedures and rules to guide broadcasters
through the end of the transition. Among other important decisions, this
order adopted the interference standard for post-transition
applications. The measures the Commission put in place to expedite the
processing of post-transition construction permits have enabled us to
moved forward by twelve weeks the beginning date for the filing of
applications to expand service areas. Since the end of May, full power
broadcasters have been able to file requests to maximize DTV facilities.

[]{.mark}

In the Third DTV Periodic Review, the Commission recognized that
stations will need flexibility to complete the transition. Consequently
we adopted procedures that will allow broadcasters to adjust their
buildout according to their needs and the needs of their viewers. For
example, we will consider requests from broadcasters that find it
necessary to reduce analog service before the transition date, but they
will be required to inform their viewers well in advance of any
reductions.

In addition to getting the proper rules in place, it is important that
broadcasters' progress be carefully monitored. Accordingly, to enable
the Commission to closely track broadcasters' progress toward completing
their transition, we required each station to file a report on the
status of the construction of its post transition facility. All stations
have submitted the first such report, and nearly 1,000 indicated that
they were completely finished with their DTV transition. Broadcasters
are required to update the Commission with any changes to their status
as events warrant. In the Third Periodic, the Commission committed to
send Congress a full report on broadcasters' DTV build-out in August.
Broadcasters that have not completed their transition must report again
by October 20, 2008**.**

[]{.mark}

**CARRIAGE OF DIGITAL SIGNALS**

Much of the focus of our consumer education efforts has been on the
approximately 15% of the homes who rely on over-the-air broadcast
signals. These efforts have presumed that subscribers to cable and
satellite will continue to be able to receive digital broadcast signals
just as they do analog broadcast signals today. It is critical to note,
however, that our rules needed to be modified to clarify that cable and
satellite companies were required to carry digital broadcast signals to
their customers just as they do the analog broadcast signals today. Our
goal with both of these Orders was not to expand carriage but rather to
ensure that the broadcasters' switch from analog to digital was not used
as an excuse to stop carrying the broadcasters' signal in a format that
could be viewed by all subscribers, including analog cable subscribers.

Last fall, the Commission adopted an order that guarantees that analog
cable subscribers will not be left in the cold once broadcasters ceased
broadcasting in analog. Specifically, the Commission took action to
ensure that after the transition, cable operators will continue to make
every broadcast station's signal viewable, as the statute requires. As a
result, we significantly reduced the number of Americans potentially
needing a converter box to watch broadcast stations post-transition.
Making sure the almost 35 million households that subscribe to analog
cable will be able to continue to watch broadcast television after the
transition just as they did before allows us to focus our energies on
assisting the nearly 15 million households that rely exclusively on
over-the-air signals.

The Commission recently adopted an order that will enable satellite
subscribers to receive digital broadcast signals, as well. The law
requires that when a satellite operator chooses to carry any local
broadcast signals, it must carry all full power local broadcast signals
in that market. The item recently adopted clarifies that, in such a
"local-into-local" market, where a full power television station is
broadcasting only in digital, the satellite operator must carry that
digital signal upon request. This clarification is critical to ensuring
that satellite customers, like cable customers, will continue to receive
the same broadcast stations they saw the day before the transition on
the day after the transition.

**ENFORCEMENT**

The Commission's DTV-related enforcement efforts have focused on
protecting consumers from unknowingly buying televisions that won't
receive broadcast stations following the transition. Specifically, we
are enforcing three rules: 1) the requirement to label any remaining
televisions with analog-only tuners; 2) the prohibition on the
importation and shipment of television receivers without integrated
digital tuners; and 3) the requirement that the V-Chip functions with
the digital technology. In addition, we have begun conducting
informational interviews of store managers to assess the employee
training and consumer education efforts of retailers participating in
the NTIA converter box coupon program.

With respect to the Commission's labeling requirement, the Commission
has, as of June 9, 2008, inspected 3992 retail stores and 37 websites
and issued 361 citations notifying retailers of violations for failing
to comply with our rules. Because retailers generally are not licensees,
we must give them a citation prior to proposing a monetary penalty via
Notice of Apparent Liability (NAL). On April 10, 2008, we released NALs
against seven large retailers totaling nearly \$4 million. On May 9,
2008, we released another two NALs, totaling \$465,000. Five additional
NALs totaling over \$500,000 remain on circulation, as of June 9, 2008.
In addition to these NALs, the Enforcement Bureau has issued another
seven NALs worth an additional \$96,000. It is my hope that through our
vigorous enforcement actions, retailers will take concrete actions to
avoid consumer confusion as the digital transition draws near.

In addition to our labeling investigations, we are continuing to ensure
that no manufacturers are importing and shipping analog-only television
receivers and equipment. We have issued NALs against three companies -
Precor; Syntax Brillian Corp. and Regent USA, Inc. - for apparent
violation of our rules in this area. Two of the companies have already
paid \$421,550 combined; the other will be referred to the Department of
Justice for collection.

We also continue our efforts to ensure that the digital tuners comply
with the V-Chip regulations. As you know, the Commission's rules require
digital television manufacturers to include the V-Chip in their
equipment and to ensure that their devices can adjust to changes in the
content advisory system. We began investigating allegations that some
manufacturers were not complying with our rules. We have released three
NALs and seven consent decrees with manufacturers to resolve our
investigations. The voluntary contributions from these orders totaled
over \$3.4 million and payment has already been made to the U.S.
Treasury. In addition, the manufacturers agreeing to consent decrees
have undertaken significant compliance measures to remedy their past
violations and prevent future ones.

Finally, as part of our follow-up on the requirements of the recent *DTV
Consumer Education Order*, field agents across the country have been
interviewing store managers at retail establishments offering
digital-to-analog converter boxes. As of June 9, 2008, Enforcement
Bureau field agents have visited 935 stores and conducted 842 interviews
in 34 states and the Commonwealth of Puerto Rico. Until the Office of
Management and Budget (OMB) has approved this information collection
under the Paperwork Reduction Act (PRA), the field agents will confine
their interviews to nine retailers with among the largest number of
stores participating in the NTIA converter box program. Once the
information collection has received PRA approval, the Bureau will expand
its interviews to include all participating retailers. To date, the
Bureau has found that the majority of store managers are well-informed
of the digital transition and the NTIA converter box program. Some
managers, however, appear to need additional training in certain areas,
e.g., the need of some customers for new antenna equipment, the fact
that many low-power television stations will not convert to digital
broadcasting on February 17, 2009. Where such training issues arise, our
field agents are providing information tip sheets and conducting
supplemental training sessions**.**

Swift enforcement of all our DTV-related rules is critical to protecting
consumers and reducing potential confusion. Our activities in this area
will continue to be a priority during the next 9 months.

**CONSUMER EDUCATION AND OUTREACH**

In order to educate consumers properly, all parties involved in the
transition - - the FCC, NTIA, the broadcasters, the cable industry,
satellite, manufacturers, retailers, consumer groups - -need to work
together to educate consumers.

I commend the industry for the consumer education campaigns that they
have initiated. Specifically, last fall the National Association of
Broadcasters (NAB) launched a \$700 million campaign that includes,
among other things, television spots, 30 minute education programs about
DTV and a 100-day countdown to the February 17, 2009 deadline. In
addition, the National Cable and Telecommunications Association (NCTA)
launched a \$200 million campaign last fall that includes, among other
things, sending customer communication "tool kits" to all their cable
systems nationwide, and distributing brochures about the transition at
community and public events.

In February, the Commission adopted an Order that requires commercial
full power broadcasters to provide on-air information to their viewers
about the DTV transition. Commercial broadcasters may choose one of two
options for compliance, including one option that is based on a proposal
from NAB for a safe harbor approach. and comply with our specific
requirement or a safe-harbor plan proposed by the NAB. Although the sets
of requirements are distinct, all require PSAs and the Commission found
that they each entail a similar level of commitment and engagement on
the part of broadcasters. For example, where the first option, initially
proposed by the FCC calls for more frequent PSAs, the second option,
based on the NAB plan, calls for longer ones. All plans require
quarterly reporting of both mandatory and voluntary outreach and
education efforts. This will allow the Commission not only to monitor
compliance, but also to stay informed of the creative approaches being
taken by disparate broadcasters all over the country, and continue to
coordinate transition education efforts.

The item also requires MVPDs to provide monthly inserts about the DTV
transition in their customer billing statements. In addition, we require
the partners listed on the Commission's dtv.gov website such as NAB,
NCTA, CEA and CERC, as well as the winners of the 700 MHZ auction, to
provide the Commission with quarterly updates on their consumer
education efforts. We will also work with the National
Telecommunications and Information Agency (NTIA) to ensure that the
retailers participating in the converter box program are appropriately
training their employees and informing consumers.

The item also required phone companies participating in the Low Income
Federal Universal Service Program to provide notice of the transition to
their low income Lifeline or Link-up customers and potential customers,
and manufacturers of some television-related devices to provide notice
to consumers of the transition's impact on that equipment. Both of these
requirements were modified by an Order on Reconsideration issued by the
Commission in April. That Order gave phone companies greater flexibility
in complying with our rules by allowing providers to give notice of the
transition via monthly postcards in lieu of including transition
information in customer bills. Also, the Order established May 30 as the
start date of the manufacture notice requirement in order to provide
time to reconfigure electronics packaging. The Order also included a
Further Notice which asked whether MVPDs should have on-air education
requirements, and whether phone companies should be required to provide
notice to all of their customers, rather than limiting the requirements
to low-income customers.

In addition to our DTV Consumer Education item, the Commission is
actively and directly promoting consumer awareness of the upcoming
transition through its own education and outreach efforts.

The FCC\'s consumer outreach effort recognizes that some consumers will
be disproportionately impacted by the transition, or are harder to reach
than the general population. As an example, in a February 20008 survey
APTS finds that awareness varies by demographic groups. They found that
33.2% of African-American respondents to their survey said that they had
"no idea that transition was taking place." Similarly, APTS found that
28.2% of respondents living in rural areas were unaware of the
transition, and 18.6% of Hispanics said that they had no idea that the
transition was taking place.

Thus, the Commission's outreach effort places an emphasis on consumers
who receive their television signals \"over-the-air\" and on those who
are hard to reach and may be unaware of the upcoming transition. The
Commission has engaged in targeted measures to reach these groups, which
include senior citizens; non-English speaking and minority communities;
people with disabilities; low-income individuals; and people living in
rural and tribal areas.

We have been forging partnerships, participating in media events, and
attending conferences, to get the word out.

Thus far, over 3.9 million pages of our DTV publications have been
distributed to individual consumers and to consumer agencies and
organizations. In addition, we have also distributed over 7700 posters
nationwide.

As a result of feedback we received through our workshops and attending
conferences and events around the country, we recently created several
new publications. We recently released a consumer advisory titled "The
DTV Transition and Over-the-Air Viewers Along US Borders." In addition,
we also created a basic guide (with diagrams & text) on how to set up a
digital-to-analog converter box. We also recently created a consumer
advisory to clarify that the "DTV Transition Does Not Require Cable
Systems to Switch to Digital." These publications are all available in
English & Spanish on our [www.dtv.gov](http://www.dtv.gov/) website.

In addition, based on consumer feedback, on Thursday, June 19, 2008, the
FCC will hold a Digital Television (DTV) Consumer Education Workshop on
converter boxes. The Workshop will address issues related to DTV
converter boxes for analog television sets that receive signals
over-the-air. Specifically, the Workshop will explain how to connect DTV
converter boxes to analog television sets and will discuss the converter
boxes' features, including closed captioning and parental controls.
Several manufacturers and vendors will display their DTV converter boxes
and be available to answer questions about them.

Also, next month DTV education posters will be displayed in all 34,000
post offices across the nation. The United States Postal Service
estimates that an average of 9 million people pass through their post
office lobbies each day.

We have also secured commitments from 36 states, the District of
Columbia and Puerto Rico to display DTV materials in 1100 Department of
Motor Vehicle locations. Specifically, we have secured commitments with
Alaska, Arizona, Arkansas, California, Colorado, the District of
Columbia, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Kentucky,
Louisiana, Maine, Massachusetts, Minnesota, Mississippi, Missouri,
Montana, Nebraska, Nevada, New Hampshire, North Carolina, North Dakota,
Ohio, Oklahoma, Puerto Rico, Rhode Island, South Carolina, South Dakota,
Tennessee, Texas, Washington, West Virginia, Wisconsin and Wyoming.

The FCC also distributed DTV transition awareness information that is
being provided to all federal government employees. We estimate that
this message will reach over 2.5 million federal employees throughout
the country. Since February, we have held Brown Bags for 34 agencies in
the Washington DC metropolitan area. In the coming weeks, we will be
holding brown bags for 11 more agencies in the area.

[]{.mark}

We have also identified and contacted 184 mayoral offices in areas of
the country with high concentrations of over-the-air households, to help
them educate consumers in their communities. These efforts have thus far
resulted in 46 cities making specific commitments ranging from posting
and distributing DTV information in public locations and at events and
conferences, to including information in newsletters and other
publications, and establishing links to our dtv.gov website, and other
efforts unique to their communities. For example, the Mayor's Office in
Great Falls, Montana has been sent 21,000 DTV flyers from us to place in
their utility bills this Fall. We also received a commitment from the
Office of the Mayor of Fairbanks, AK to distribute DTV consumer
education materials. Similarly, the Office of the Mayor of South Bend,
IN will be including an article about the DTV Transition in the May
issue of the city newsletter included in the waterworks bills. This will
reach 46,000 customers. This particular Mayor's office also plans to
follow up with DTV reminders and tips in later monthly newsletters.

In addition, the California Governor's Office is working with its
Emergency Operations Centers and Emergency Management Offices statewide
to disseminate DTV Transition information. Similarly, the North Carolina
State Public Health Office has committed to distribute DTV consumer
education materials. In addition, we have commitments from the Austin
and Fort Worth Police and Fire Departments in Texas to display DTV
Transition Awareness posters.

We also reached out to the country's major professional sports leagues
and have received offers to help promote the transition. The National
Football League (NFL), the National Basketball Association (NBA), the
National Hockey League (NHL), Major League Baseball (MLB) and NASCAR all
agreed to help raise awareness of the transition among their fans. For
example, the NHL has agreed to run ten 30 second PSAs per day until the
transition date on their cable channel the NHL Network.

In February, a contract was awarded to Ketchum to support a broad range
of consumer education services, including media services, publications,
and distribution, that will assist and complement the FCC\'s ongoing
work on educating all American consumers about the digital television
transition. Ketchum arranged a Satellite Media Tour in February on local
television news around the country in states such as Hawaii, Missouri,
Texas and Florida to spread the message about the transition. From those
seventeen interviews, which were aired between February 22 and March 2,
Ketchum reported more than one million audience impressions. Ketchum is
planning similar interviews for the month of July, on both radio and
television, along with magazine interviews that will be published
throughout the transition to continue our consumer education efforts.
Ketchum helped us unify our messaging and make our outreach, including
our fact sheets and DTV.gov, more consumer-friendly and cohesive.
Building on the DTV.gov brand, Ketchum has produced and rolled out
highway billboards on outdoor advertising space in several markets,
including Philadelphia, Tampa, and San Francisco. Contracts have been
finalized in 26 markets and are in progress in 19 others. Ketchum has
produced 18 different radio public service announcements, of varying
lengths, featuring myself and my fellow Commissioners. They are
currently available on DTV.gov as broadcast-quality downloads, and
Ketchum will be distributing them to full-power radio stations
nationwide. Ketchum will also be producing and distributing television
PSAs and a longer-form educational video, all of which will be available
both online and from the Commission.

As I mentioned, we also know that some consumers will be
disproportionately impacted by the transition or are harder to reach
than the population at large. Therefore we have been taking specific
steps to reach these groups. I would like to take a few minutes to
describe our efforts targeted at each of these five communities.

[Senior Citizens:]{.underline}

The Nielsen Company estimates that of the 286million television viewers
nationwide, and about 10%, are seniors aged 65 years and over. Of the
almost 35 million viewers who rely exclusively on over-the-air
broadcasting, 11.2% or almost 4 million are seniors aged 65 and over.
Many seniors also face particular challenges gaining access to current,
reliable information.

Senior citizens are more likely to have analog television sets and rely
exclusively on over- the-air broadcasting.

Commission staff located in field offices throughout the country are
also working on DTV transition education and outreach. Starting last
year, FCC field agents have held DTV Awareness Sessions and distributed
information to senior centers, libraries and other local venues
frequented by older Americans. Through the work of our field agents, we
have been able to reach these consumers in a total of 50 states --
ranging from Alaska to Florida and two U.S. territories. We have already
distributed information to over 4009 senior centers, and 1698 community
centers, which frequently include large numbers of seniors, and given
nearly 892 presentations with 167 more scheduled in the days ahead.

We have also partnered with organizations that specifically serve this
harder to reach population. Last September, we presented two DTV
education sessions at the national AARP convention in Boston, and we
have plans to make similar presentations at this year's convention in
Washington, DC. In addition, late last fall, I was interviewed about the
transition on AARP radio which is broadcast on 170 outlets nationwide
reaching more than 1,000,000 people. I was also interviewed for, and
quoted in the early 2008 issue of AARP's widely circulated Magazine,
which has a circulation of 23.5 million**.** AARP is also regularly
including stories on the DTV Transition in their Monthly Bulletins.
Further, AARP will be distributing DTV information at a series of eight
"road show" events they will hold around the country from June to
September of this year.

In addition to working with AARP, we have also been working with other
senior organizations as well. For example, I taped a PSA for Retirement
Living TV which reaches nearly 30 million homes nationwide. Also I
participated in a story about the transition for the Erickson Tribune,
which is distributed to residents in their retirement communities and is
read by more than 6 million people. In addition, the Commission authored
an article that was published in the October 2007 edition of Baltimore's
*Senior Digest*.

We are also pleased to be partnering with The National Association of
Area Agencies on Aging (N4A) to cosponsor DTV awareness sessions during
the coming year in conjunction with their 655 area offices throughout
the nation. For example, we will be making a presentation in conjunction
with the N4A to 100 seniors in Orangeburg, SC on June 24. We are also
setting up additional presentations in conjunction with the N4A
throughout the year. This is a useful opportunity to educate caregivers,
social workers and others who care for the elderly in their communities.
In addition, this July, we will be exhibiting and presenting at the
N4A's Annual Conference in Nashville.

We are also working with the Corporation for National and Community
Service: Through their Senior Corps, they have agreed to utilize their
network of over 500,000 volunteers to get the word out on the digital
transition through its 741 projects. They will educate consumers and
offer assistance in hooking up digital to analog converter boxes.

In addition to working with these organizations, we have and continue to
set up partnerships with many State Aging Offices. As a result of our
efforts, 33 states, the District of Columbia, and Puerto Rico have made
commitments to disseminate our DTV transition materials through their
Aging Offices.

The FCC also held a DTV Workshop focusing on seniors at FCC Headquarters
on November 8, 2007. It consisted of two panels discussing the
transition's effect on seniors plus exhibits hosted by other government
and industry organizations. Based on the discussions and the
relationships formed at that Workshop, we reached out to faith-based
organizations, provided them with consumer education materials on the
transition, and continue to follow up with them to answer questions on
the transition.

On May 28, 2008, Congresswoman Eleanor Holmes Norton, hosted a DTV Town
Hall Meeting for seniors in DC at the FCC. Congresswoman Norton
addressed the audience and WUSA, Channel 9, anchorwoman J.C. Hayward was
the Mistress of Ceremonies.

This session was held in conjunction with AARP, the DC Office of Aging,
the NAB, and the National Caucus and Center for the Black Aged. Over 300
seniors attended this event which included presentations by NAB and
NTIA. I am also pleased that all of the FCC Commissioners were able to
speak to this enthusiastic group. The program included a converter box
demonstration and the attendees received materials which included
applications for converter box coupons.

In addition, on May 16, the FCC staff conducted a DTV Awareness session
as a part of Congresswoman Laura Richardson's "Annual Senior Legislative
Luncheon" for over 500 seniors from the Carson, Compton and Long Beach
areas. FCC staff also distributed large font DTV one pagers, answered
questions and conducted a converter box demonstration at the event. They
also assisted the seniors in filling out converter box coupon
applications.

[Non-English Speakers and Minorities:]{.underline}

People living in minority communities are prominent among the groups
being targeted in our DTV outreach activities. These communities
disproportionately rely on over-the-air television reception. For
broadcast-only households, about 16.5% are headed by persons of Hispanic
origin, 15% are headed by an African-American, and 5% are headed by
someone of Asian descent, according to data from the Nielsen Company.

So far this year, the FCC has participated in a number of conferences
and events reaching the Hispanic Community. In May, we participated in
Cinco de Mayo festivals in Milwaukee, WI and Los Angeles, CA. In April
FCC staff exhibited at the Hispanic Business and Consumer Expo in
Orlando, FL and conducted several DTV transition awareness sessions in
Puerto Rico. In addition, the staff was also interviewed by two major
local newspapers, participated in a Telemundo television program,
participated in a live radio broadcast, and a program on an educational
televisions station.

As I mentioned previously, The Hispanic Chamber of Commerce has agreed
to join the Commission in conducting DTV awareness sessions at member
chambers in the 15 U.S cities with the largest number of Hispanic TV
homes. On May 28, a member of the FCC field staff spoke to the Fresno
area Hispanic Chamber of Commerce about the DTV transition. In addition,
on July 11, FCC staff will address the Hispanic Chamber of Commerce of
Kansas City at their \"Buenos Dias Breakfast\" event. In addition, the
Hispanic chamber of Commerce of Wisconsin has been making our one-page
flyers available for distribution in their office.

We have also partnered with Univision to hold DTV awareness sessions at
Town Hall meetings designed to educate members of its Spanish speaking
audience. FCC staff recently participated in a Univision Town Hall
Meeting in San Francisco on May 17. The FCC will also participate in
another Univision Town Hall in Brooklyn later this month. Also, on April
30, FCC staff participated in Univision's DTV Road Show in Atlanta, GA.
Univision also distributed our DTV publications at their December 2007
DTV town hall meeting in Chicago. Univision also plans to distribute our
materials at additional town hall meetings around the country throughout
the year. Through these partnerships, we will reach cities that are home
to over 80% of Hispanic communities.

In addition, the FCC had a booth at the Annual Calle Ocho Carnaval (8th
Street Carnival) in Miami, FL in March 2008. FCC staff also exhibited at
the annual meeting of the US Hispanic Leadership Institute in Chicago,
IL in February 2008. Hundreds of Spanish language DTV publications were
distributed.

Additionally, we have taped several on-air interviews regarding the
digital transition for Univision's news and public affairs programs
airing both in local markets and nationally. These interviews were done
by Keyla Hernandez-Ulloa the Commission staffer hired to spearhead
outreach to the Hispanic community and Carmen Scanlon, an attorney in
our Consumer and Governmental Affairs Bureau. We have been discussing
the switch to digital on other Hispanic media outlets as well. For
example, I did an interview with the Hispanic Communications Network,
which produces material for radio, television, print and Internet that
will be distributed to its 230 member radio network in the United States
and Puerto Rico.

We have also been working with other foreign language media outlets as
well. In May 2008, we exhibited at the National Coalition for Asian
Pacific American Community Development (CAPACD) Annual Conference in
Anaheim, CA. Materials were provided in Hmong, Vietnamese, Japanese,
Chinese, Cambodian and Laotian as well as English. We also provided a
train-the-trainer session for 15 case workers at the Little Tokyo
Service Center, in Los Angeles, CA. This is a nonprofit organization
that serves elderly, fixed-income Japanese-Americans serving over 2,000
clients. Also, in May 2008, we partnered with the California Public
Utilities Commission and KTSF, a major Asian TV station in San
Francisco, to present an awareness session to over 100 Asian leaders in
San Francisco, CA. KTSF also handed out 5,000 English/Chinese fact
sheets during the 2008 Chinese New Year celebrations. Previously, in
March 2008, we participated in the Hmong National Development Annual
Conference in Denver, Colorado.

The FCC held a DTV Workshop focusing on non-English speakers and
minorities on December 4, 2007. As a result of that Workshop, we will be
working with the American Libraries Association to conduct a nationally
available Internet seminar or "webinar" about the DTV transition today
for librarians in the Webjunction Spanish Outreach Program. These
librarians provide library services to Spanish speakers. Also, as a
result of input received at the workshop, we translated our DTV one-page
flyer into additional languages. The one-page flyer ins now available in
the following languages:
[Amharic](http://www.dtv.gov/DTVOne-Pager_amharic.pdf),
[Arabic](http://www.dtv.gov/DTVOne-Pager_arabic.pdf),
[Cambodian](http://www.dtv.gov/DTVOne-Pager_cambodian.pdf),
[Chinese](http://www.dtv.gov/DTVOne-Pager_chinese.pdf),
[French](http://www.dtv.gov/DTVOne-Pager_french.pdf),
[Hmong](http://www.dtv.gov/DTVOne-Pager_hmong.pdf),
[Japanese](http://www.dtv.gov/DTVOne-Pager_japanese.pdf),
[Korean](http://www.dtv.gov/DTVOne-Pager_korean.pdf),
[Laotian](http://www.dtv.gov/DTVOne-Pager_laotian.pdf),
[Navajo](http://www.dtv.gov/DTVOne-Pager_navajo.pdf),
[Portuguese](http://www.dtv.gov/DTVOne-Pager_portuguese.pdf), Russian,
[Tagalog](http://www.dtv.gov/DTVOne-Pager_tagalog.pdf) and
[Vietnamese](http://www.dtv.gov/DTVOne-Pager_vietnamese.pdf).

In addition, we plan to participate in a number of national conventions
representing non-English speaking and minority consumers in 2008. They
include the 78^th^ Annual Conference for League of United Latin American
Citizens, U.S. Hispanic Chamber of Commerce Annual Expo, the National
Council of La Raza Conference, the NAACP Convention, the National Urban
League Conference, the Japanese-American Citizen's League Conference,
the Indiana Black Expo, the Black Expo in Oakland, California, the
Organization of Chinese Americans National Conference, and the National
Congress of Vietnamese Americans National Convention.

[People with Disabilities:]{.underline}

The Commission is continuing a multi-faceted approach in informing
people with disabilities about the DTV transition. On February 28, 2008,
we hosted a DTV Workshop dedicated to issues facing people with
disabilities. The program featured panelists from numerous organizations
whose missions are to work directly with, and advocate on behalf of,
individuals with hearing, vision, speech, physical, and intellectual
disabilities. It elicited several concrete suggestions that we have
implemented.

For instance, in response to the panelists' suggestion that we develop
"how to" information related to the transition, we have drafted a
step-by-step guide on how to install a digital-to-analog converter box,
and posted it on the Commission's DTV Web site,
[www.DTV.gov](http://www.DTV.gov/). Similarly, in response to general
questions at the Workshop concerning the availability of video
description (descriptions for people who are blind or have other vision
disabilities about the setting and/or action in a program when
information about these visual elements is not contained in the audio
portion of the program), we have also recently posted a consumer
advisory entitled "Video Descriptions and the Digital Television
Transition", specifically addressing that issue.

Another suggestion from panelists was that we utilize national service
organizations to inform consumers about the transition. Indeed, we have
initiated a partnership with the Corporation for National and Community
Service, and with the United States Department of Agriculture's 4-H
office. Finally, we will build upon our workshop by speaking directly to
organizations that work with and on behalf of people with disabilities,
at their meetings and conferences.

I am also pleased to report that [www.DTV.gov](http://www.DTV.gov/) now
features a DTV educational video in American Sign Language for the deaf
and hard of hearing community. Our most commonly utilized publications
are available in Braille and audio format and all of our fact sheets and
advisories are available in large print. In addition, we have two
specific publications addressing DTV and closed captioning, "Closed
Captioning for Digital Television," and Closed Captioning and
Digital-to-Analog Converter Boxes for Viewing Free Over-the-Air
Programming on Analog Televisions." The Commission also has a dedicated
email box for closed captioning questions at <closedcaptioning@fcc.gov>.

Commission staff continues to attend conferences to distribute DTV
educational materials to people with disabilities. For example, the FCC
has attended and provided DTV materials at the National Black Deaf
Advocates Conference, the Vocational and Educational Services for
Individuals with Disabilities Conference and the Emergency Planning and
Response for Special Needs and Disabilities Conference.

In addition, in May an FCC staffer presented at the California Public
Utilities Commission's Deaf and Disabled Telecommunications Program
Joint Committees Meeting.

In 2008, FCC staff will continue to participate in a number of
disability conferences and events around the country. This week, we will
be presenting at the Hearing Loss Association of America ("HLAA")
convention. Also this year, we will be participating in the following
conferences, the American Council for the Blind's Annual Convention, the
National Association of the Deaf's Annual Convention, the World Congress
On Disabilities, the Summer Quarterly Meeting of the National Council on
Disabilities, and Deaf Awareness Month events with the New York State
Department of Education.

In all, we are collaborating broadly with disability advocacy groups and
outreach organizations. For instance, the Hearing Loss Association of
America ("HLAA") is already linking to our DTV informational materials
on its website, which receives approximately one million hits per month.
In addition, HLAA has committed to publish later this spring an article
on DTV and closed captioning in *Hearing Loss Magazine,* which is
estimated to reach a readership of 200,000 people. Likewise, later this
spring the article will be published in the "Blue Book" Resource Guide
of Telecommunications for the Deaf, Inc. ("TDI"), with a readership of
up to an estimated 100,000 people, and eventually posted online at TDI's
website, which receives approximately 88,000 hits per month.

Furthermore, HLAA has 200 local and regional chapters around the
country, and we will conduct DTV Awareness Sessions at their monthly
meetings throughout the course of the year. Since March 11, with the
assistance of our Enforcement Bureau\'s Field Agents, FCC staff has made
presentations at 11 HLAA meetings around the country. We have seven more
meetings scheduled as a result of this partnership through the fall. We
also are utilizing our Enforcement Bureau\'s Field Office staff and CGB
staff to distribute DTV informational and educational materials at
HLAA\'s \"Walk4Hearing\" events across the country taking place this
spring through the fall. Thus far, the FCC has distributed DTV
informational and educational materials at HLAA\'s \"Walk4Hearing\"
events at Safety Harbor (Tampa), FL (April 12), Atlanta, GA (April 19),
Greater St. Louis, MO (April 26), Longmont, CO (May 3),
Westchester/Mid-Hudson, NY (May 3), SE Michigan (May 3), and Rochester,
NY (May 4), Columbus Ohio (June 7). EB Field Office and CGB staff will
continue to distribute such materials at "Walk4Hearing" events across
the country taking place later this Summer through the Fall.

[Low Income Consumers:]{.underline}

Low-income households generally rely more on over-the-air television
signals due to the high costs of paid subscription services. Television
households earning less than \$20,000 are more than twice as likely to
rely exclusively on broadcast television as an average U.S. household.
Also, low-income households are likely to have low literacy rates and
otherwise may have limited access to information resources such as the
Internet. The critical components of our outreach to low-income
consumers include our collaborative efforts with the leadership of
consumer organizations and federal, state and local agencies
representing consumers with low incomes, and our participation in events
and conferences through which we distribute educational materials
directly to consumers.

The Commission is also taking specific steps to inform low-income
consumers about the transition to all digital broadcasting. We have
forged a partnership with the Department of Health and Human Services to
assist the FCC in disseminating DTV material to target populations,
including low-income consumers**.** HRSA (Health Resources and Services
Administration) has forwarded FCC DTV information to approximately 4,000
grantee organizations, and the message also went out to groups like the
state Primary Care Offices and Primary Care Associations and the
National Association for Community Health Centers - organizations which
represent many more non-Federally funded health centers and clinics
nationwide. HRSA asked these organizations to post and distribute our
DTV flyer in their clinics and to distribute information to patients.
ACF (Administration for Children and Families) is distributing
information through their 1,600 Head Start grantees, covering more than
18,000 centers around the country. The Substance Abuse and Mental Health
Services Administration (SAMHSA) is distributing DTV flyers to
approximately 50,000 individuals each month who call requesting
information. Other HHS agencies are also distributing our flyers,
displaying our posters and linking to our dtv.gov Web page.

We have contacted social worker associations in each of the 50 states,
plus the District of Columbia and Puerto Rico, and thus far have
received commitments from 22 of them to assist us in getting the word
out about the DTV transition. These include publishing DTV information
in their monthly newsletters, and distributing DTV materials at events
and conferences, so that visitors to their web pages can obtain more
detailed information about the DTV transition and the steps they may
need to take to prepare for it.

We have also reached out to representatives of the state health
departments in each of the 50 states and U.S. territories, and thus far
have received commitments from 33 of them to assist in distributing DTV
awareness materials to the consumers they interact with on a regular
basis. These include, for example, posting DTV materials in their
service and waiting areas, distributing our fact sheets and other
publications at events attended by consumers, and inserting DTV
information in mailings to consumers, so that visitors to their web
pages can obtain more detailed information about the DTV transition and
the steps they may need to take to prepare for it.

As a result of this outreach, we recently exhibited at the Puerto Rico
(March 2008), Maryland (March 2008), West Virginia (April 2008), and New
Jersey (May 2008) state/territory chapter meetings of the National
Social Worker Association.

In late February, we posted a simplified DTV one-page flyer on our Web
site, and have offered it for distribution to all our partners. This was
developed in response to requests for a more streamlined, non technical,
and easy to read DTV informational flyer.

In addition, on April 1, 2008, the FCC sponsored a DTV Consumer
Education Workshop focusing on reaching low-income consumers. As a
result of our panel discussions, we received several positive
suggestions and offers of assistance from our panelists on how best to
reach members of their constituencies with information on the DTV
transition. We will be providing the organizations represented with DTV
informational materials such as our posters, flyers, and fact sheets
that can be displayed at their events and facilities throughout the
country. The National Energy Assistance Directors Association offered to
provide DTV information to low income consumers who sign up for their
program. We also received a suggestion to submit translated DTV articles
to local foreign language publications in cities that have high
concentrations of foreign language speakers. Often, these publications
are the primary source of news and public interest information for these
consumers. In addition, as noted earlier, all eligible
telecommunications carriers ("ETCs") that receive federal universal
service funds are now required to provide DTV transition information in
the monthly bills of their Lifeline/Link-Up customers.

[Rural and Tribal Consumers:]{.underline}

Within rural counties, 15% of television households rely exclusively on
over-the-air reception. According to a survey commissioned by APTS in
February, rural households are also less likely to be aware of the
digital transition. Of survey respondents living in rural areas, 28.2%
stated that they had no idea that the transition to digital television
would take place, vs. 18.2% of respondents living within urban areas. We
have focused our efforts on collaborative efforts with the leadership of
consumer organizations and tribal and government agencies serving people
in rural areas, and participation in events and conferences.

The Commission is also taking specific steps to inform people living in
rural areas and on tribal lands about the transition to all digital
broadcasting. For example, the Commission recently established a
partnership with the United States Department of Agriculture's 4-H
office. On April 1, 2008, the FCC, with NTIA and USDA, participated in
the annual 4-H Youth leadership conference and presented two "Train the
Trainer" seminars to approximately 100 youth members of 4-H chapters
from the various states. FCC staff provided information which these
youth representatives and their colleagues back home can use to conduct
awareness sessions in their communities. In addition, each participating
representative will receive a "DTV Outreach Tool Kit" containing more
extensive materials for conducting their outreach sessions. We
understand that the DTV outreach that will be performed by these young
community leaders will assist them in meeting the community service
requirements of their 4-H membership. 4-H youth throughout the country
have been particularly responsive to our offers to work with them to
educate consumers in their local communities. We have currently received
requests from 4-H representatives in 25 states for over 1.4 million
copies of our one page flyer to distribute in their local communities.
These include 58,000 Spanish language copies and 143,000 large print
copies. In addition, they have requested 1,000 copies of our DTV
transition posters to display.

Another important component of our partnership with USDA is the
placement of DTV transition educational materials at state and county
fairs throughout the country via sponsoring 4-H chapters and local
extension service professionals. Our DTV transition materials will be
disseminated to 188 state and county fairs in 25 states.

Also, FCC officials presented DTV information at a series of events in
Anchorage, Alaska in May 2008. The FCC addressed the Alaska Telephone
Association Convention in Anchorage. In addition, the outreach events
included a Congressional Awareness Session attended by Senator Ted
Stevens. Examples of other events include presentations to the Alaska
Chapter of the Hearing Loss Association of America, the Anchorage Rotary
Club, and the Mananushka Amateur Radio Association. As a result of our
outreach in Alaska, we are working to translate our one-page flyer into
the Alaskan Native language of Yupik by the end of the month.

While in Alaska, FCC officials also conducted broadcast interviews with
station KTUU, KIMO and KTVA in Anchorage. In addition, the FCC conducted
an interview with the *Anchorage Daily News*.

We also have forged a partnership with the Bureau of Indian Affairs.
This collaboration has resulted in the distribution of DTV materials
throughout Indian Country, utilizing all 50 of their nationwide area
offices. Commission staff has attended and provided DTV materials at the
National Conference of American Indians, and the Rural TeleCon
Conference, with many additional events planned for this year such as
participation in the National Association of Development Organizations
in Alaska Conference and the Affiliated Tribes of Northwest Indians
Annual Conference.

So far this year, we have presented at a number of tribal conferences.
In May 2008, we exhibited and presented at the National American Indian
Housing Conference in Seattle, WA. In March, we distributed DTV
materials at NCAI's Executive Council Meeting, in Washington, DC. In
addition, in February we presented at United South and Eastern Tribes
(USET) Annual Impact Week, in Arlington, VA . In November 2007, FCC
staff presented DTV sessions at the National Conference of American
Indians (NCAI) in Denver, CO. In support of our partnership, NCAI passed
a resolution recognizing the importance of the DTV transition and the
impact on consumers, and committing their organization to working with
us on DTV consumer education. The FCC will also be sponsoring an Indian
Telecommunications Initiative (ITI) in Salt Lake City, UT in July 2008.
The event will include DTV outreach to numerous tribal communities.

In addition, The FCC partnered with the Appalachian Regional Commission
(ARC) and the National Association of Development Organizations (NADO)
to have an exhibit booth at a joint ARC/NADO legislative event in
Washington in February 2008, and to work on other outreach opportunities
with both organizations. The FCC also exhibited in May at the Iowa
Medicare Rural Hospital Flex Program Conference in Des Moines, Iowa.

Finally, on January 31, 2008, we held a workshop at Commission
headquarters focused on reaching rural consumers and consumers living on
tribal lands. We received many useful suggestions at this workshop on
how to better reach these communities. For instance, our DTV one page
informational flyer is now available in Navajo, one of the most-spoken
Native American languages in the United States.

**THE EARLY TRANSITION IN WILMINGTON, NORTH CAROLINA**

On March 3, 2008, my colleague, Commissioner Michael Copps, suggested
that the Commission engage in real-world experience readying
broadcasters and consumers in advance of the upcoming digital
transition.

On May 8, 2008, I announced that Wilmington, North Carolina will be the
first market in the country to make the transition to digital television
(DTV). I commend the Wilmington broadcasters for their pioneer spirit to
go first to help the entire country prepare for the final transition to
digital.

The commercial broadcasters serving the Wilmington television market
have agreed to step up to the challenges of premiering the nation's DTV
transition. They will all turn off their analog signals at noon on
September 8, 2008. Beginning at 12:00pm on September 8, 2008, these
local stations, WWAY (ABC), WSFX-TV (FOX), WECT (NBC),WILM-LP (CBS) and
W51CW (Trinity Broadcasting), will broadcast only digital signals to
their viewers in the five North Carolina counties that comprise this
television market.

This test market will be an early transition that will give broadcasters
and consumers a chance to experience in advance the upcoming DTV
transition. The early transition in this area will provide the FCC,
NTIA, and other key stakeholders an opportunity to assess the
effectiveness of their outreach and education efforts, and provide ample
time to modify these efforts based on lessons learned, to help prepare
the rest of the nation for the DTV transition.

The Commission is coordinating with local officials and community groups
to accelerate and broaden consumer education outreach efforts. The
outreach will focus on the special transition date for Wilmington and
the steps viewers may need to take to be ready by September.

The Commission will use the test market as an opportunity to work very
closely in advance with broadcasters, viewers, cable companies and
others who will be affected to anticipate and address any problems. The
Commission is also coordinating with NTIA and local retailers to be sure
that digital-to-analog converter boxes are readily available in local
stores for consumers who rely on over-the-air service and have analog
televisions.

The Wilmington PBS station, WUNJ, will continue broadcasting in both
analog and digital. One other low power station that has its digital
channel assignment will continue broadcasting an analog signal.

I'd like to take a few moments to summarize our efforts and results to
date:

We are working closely with three key industry stakeholders in
Wilmington, the broadcasters to ensure that they are technically ready
to transition early, the cable and satellite providers, and the
electronics retailers who are certified to sell digital-to-analog
converter boxes.

A Wilmington team, comprised of FCC staffers, is on the ground and has
already met with, presented to, or exhibited at over 100 events**.**
Their initial outreach focus was to contact, educate, and engage local
government officials in all 5 of the impacted counties. On May 27, we
culminated the initial outreach phase with a government officials "Town
Hall" that was hosted by the University of North Carolina, Wilmington.
At this session we also invited and had in attendance our key industry
stakeholders so that we could ensure regional coordination on our
outreach efforts.

To date, partnerships have been formed with 70 organizations. These
organizations have agreed to distribute our materials through their
contact channels and we have trained staff at organizations to recognize
the need of their clients with respect to the DTV transition and help
their clients successfully complete the transition. These partnerships
are key in reaching our "at risk" consumers.

To date, over 32,000 publications have been distributed. This total
includes the disbursement of our Wilmington specific one-pagers in
English and Spanish, NTIA coupon applications, and posters which will be
displayed in hundreds of locations throughout the DMA.

Ketchum, our outside PR consultant created radio PSAs, and outside
billboard advertising, specific to the Wilmington market, highlighting
the early transition. Specifically, four billboards will go up this
month in the following high traffic areas: by the USS Carolina Memorial,
on I-40 on the Pender/New Hanover County border, on the east side of
Highway 421 in the Carolina Beach area, and on Highway 421 near the
I-140 interchange. In addition, Ketchum created six radio PSA's produced
and distributed to all full power radio stations in the DMA.

To date, twenty local newspaper articles and television stories have ran
on the transition in the Wilmington DMA. Initial coverage focused on
Wilmington as the test market. Coverage is now moving to stories on
outreach activities. Media outlets and county newsletter editors are
requesting regular press releases highlighting outreach efforts in their
specific locales.

USPS has agreed to showcase Wilmington specific DTV transition posters
in all post offices throughout the DMA. They will be in place from early
July through October 31.

We have created a dedicated website, have tailored posters and FCC
publications for the Wilmington, NC market that we have and will
continue to distribute to local county officials and city government
officials, library systems, schools, faith-based organizations,
hospitals, sports leagues, senior centers, and other local grass roots
and community-based organizations.

I would also note that since the FCC made its announcement of the
Wilmington test market on May 8, household coupon demand has increased
by 78 percent in the DMA. This compares to 22 percent for the country as
a whole.

**CONCLUSION**

The Commission is devoting significant resources to facilitate a smooth
transition. Nearly every Bureau and Office at the Commission has been
involved in this effort including our field offices throughout the
country.

We intend to take whatever actions are necessary to minimize the
potential burden the digital transition could impose on consumers and
maximize their ability to benefit from it. The next 3 months for
Wilmington, North Carolina and 9 months for the rest of the country will
undoubtedly be challenging. Nevertheless, it is my hope that through the
combined efforts of government, industry and advocacy groups American
consumers will reap the rewards that the digital transition has to
offer.