**DA 04-1497**

**May 27, 2004**

**MB Docket No. 04-210**

**MEDIA BUREAU SEEKS COMMENT ON OVER-THE-AIR BROADCAST TELEVISION
VIEWERS**

**Comment Date: July 12, 2004**

**Reply Comment Date: August 5, 2004**

Section 309(j)(14) of the Communications Act sets forth the conditions
under which analog television broadcasting will end in the United
States. Those conditions could be met as early as December 31, 2006,
although the statute provides for extensions of that date if certain
marketplace criteria have not been satisfied. As contemplated by Section
309(j)(14), up to 15 percent of television households in a given market
could lose television service altogether if they rely exclusively on
over-the-air broadcasting and have analog-only sets when the transition
ends. In the remaining households, analog sets that are not connected to
a pay television service could lose service as well.

In this Public Notice, we seek comment on options for minimizing the
disruption to consumers when the switch-over to digital broadcasting
occurs. We are primarily concerned with those households that rely
exclusively on over-the-air broadcasting for their television service,
but we seek comment more broadly on minimizing the impact on all
consumers. First, we seek comment on the identity of those consumers
that rely on over-the-air television broadcasting and why they do not
subscribe to a pay television service. Second, we seek comment on
potential options for minimizing the impact on these and other consumers
when broadcasters are operating solely in digital.

Given the statutory directives and the nature of the potential
solutions, we anticipate that the data submitted will be used primarily
to help formulate possible recommendations to Congress. The Commission
may, however, take other steps as appropriate.

**[Over-the-Air Television Viewers]{.underline}**

We seek quantitative data on consumers who watch over-the-air broadcast
television, including:

\(1\) The number of households that rely solely on over-the-air
broadcasting ("over-the-air households") for their television service;

\(2\) The number of households that subscribe to a multi-channel video
service provider ("MVPD") and have one or more television sets that rely
on over-the-air broadcast service;

\(3\) The number of analog-only television sets in use by the households
identified in (1) and (2), above;

\(4\) The number of digital television receivers in use in the
households identified in (1) and (2), above, that are capable of
receiving over-the-air digital broadcast television signals;

\(5\) The demographic characteristics of over-the-air households,
including age, race or ethnicity, and education and income levels;

\(6\) The geographic characteristics of over-the-air households,
including urban/rural and regional disparities;

\(7\) Data on why over-the-air households do not subscribe to an MVPD
service, including specific data on: (a) the number of over-the-air
households that would like to subscribe but cannot afford it, (b) the
number of over-the-air households that could afford to subscribe to an
MVPD service but choose not to, and (c) the number of over-the-air
households that would like to subscribe and could afford it but their
MVPD service of choice is not available in their community (e.g., no
cable system or no satellite provider with local-into-local service).

**[Options for Addressing Analog-Only Television Sets]{.underline}**

We also seek comment on options for addressing the potential disruption
to consumers with analog-only television sets when the transition is
complete. As an initial matter, we seek comment on the extent to which
market forces can be expected to deal with this problem -- e.g.,
consumers voluntarily buying digital-to-analog converter boxes before
the end of the transition, cable or satellite providers that carry all
of the local digital broadcast stations connecting additional sets in
subscribers' homes to their networks, and broadcasters, wireless auction
winners or others voluntarily subsidizing or deploying converter boxes
in order to accelerate the transition. If marketplace forces alone
cannot be counted on to address this issue, can and should the affected
industries be required to take steps to minimize the potential for
consumer disruption?

If government action is warranted, we seek comment on the nature and
scope of such involvement. Should the government subsidize consumers'
purchase of digital-to-analog converter boxes, or should it procure and
distribute the equipment itself? In either event, what minimum technical
capabilities should the converter boxes have? What do converter boxes
cost today and what are they expected to cost in the future?

If a subsidy is appropriate, we seek comment on the type and amount of
subsidy that should be considered. For instance, we seek comment on
whether the subsidy should be in the form of a tax credit, a refundable
tax credit, or a voucher. We also seek comment on whether the subsidy
should be available for consumers who wish to purchase a digital
television set in lieu of a digital-to-analog converter, or for those
who wish to purchase a multi-channel video service from providers that
carry all the local digital broadcast signals.

We seek comment on the scope of any potential government action. Who
would qualify for the government subsidy or other program? If the
subsidy or other program is means-tested, what test should be used? We
also seek comment on the number of devices that the government should
subsidize. For instance, is one digital-to-analog converter box per
household sufficient, or should the government subsidize the conversion
of additional analog-only sets in consumers' homes? Should the
government subsidize conversion equipment for over-the-air households
that have at least one digital receiver and one or more analog-only
sets? Should the government subsidize conversion equipment for MVPD
subscribers who receive all the local digital broadcast signals on the
television(s) hooked up to the pay service, but who have one or more
analog-only sets not hooked up to the pay service?

Finally, we seek comment on how a government program would be financed
and administered. For instance, in bands where we intend to auction new
licenses for spectrum freed up by the digital conversion, we seek
comment on whether, under Section 309 and our precedent, we could
require as a condition of the license that auction winners pay for
conversion of analog-only equipment as part of a mandatory band-clearing
mechanism. We note that in other auctioned bands, we have required new
entrants to bear the costs to retune existing equipment to new bands or
replace such equipment. We also seek comment on whether a government
subsidy program could be financed directly through auction revenues,
spectrum license fees, or other funding mechanisms, although we note
that some of these options would require legislation.

**[Procedural Matters]{.underline}**

Comments should be filed on or before July 12, 2004 and reply comments
should be filed by August 5, 2004. Comments and reply comments may be
filed using the Commission's Electronic Filing System ("ECFS") or by
filing paper copies. *See* *Electronic Filing of Documents in Rulemaking
Proceedings*, 63 Fed. Reg 24121 (1998). All comments should reference MB
Docket No. 04-210.

Comments filed through the ECFS can be sent as an electronic file via
the Internet to \<http://www.fcc.gov/e-file/ecfs.html\>. Generally, only
one copy of an electronic submission must be filed. In completing the
transmittal screen, commenters should include their full name, U.S.
Postal Service mailing address, and the applicable docket or rulemaking
number. Parties may also submit an electronic comment by Internet
e-mail. To get filing instructions for e-mail comments, commenters
should send an e-mail to ecfs@fcc.gov, and should include the following
words in the body of the message, "get form." Parties who choose to file
by paper must file an original and four copies of each filing. Filings
can be sent by hand or messenger delivery, by commercial overnight
courier, or by first-class or overnight U.S. Postal Service mail. The
Commission's contractor, Natek, Inc., will receive hand-delivered or
messenger-delivered paper filings for the Commission's Secretary at 236
Massachusetts Avenue, N.E., Suite 110, Washington, D.C. 20002. The
filing hours at this location are 8:00 a.m. to 7:00 p.m. All hand
deliveries must be held together with rubber bands or fasteners. Any
envelopes must be disposed of before entering the building. Commercial
overnight mail (other than U.S. Postal Service Express Mail and Priority
Mail) must be sent to 9300 East Hampton Drive, Capitol Heights, MD
20743. U.S. Postal Service first-class mail, Express Mail, and Priority
Mail should be addressed to 445 12th Street, SW, Washington, D.C. 20554.
All filings must be addressed to the Commission's Secretary, Office of
the Secretary, Federal Communications Commission. In addition parties
should serve a copy of each filing via e-mail or one paper copy to John
Berresford, Suite 3-A662, Media Bureau, FCC, 445 12^th^ St., S.W.,
Washington, D.C. 20554.

Comments, reply comments, and other submissions will be available for
public inspection during regular business hours in the FCC Reference
Center, Federal Communications Commission, 445 12th Street, S.W.,
CY-A257, Washington, D.C. 20554. These documents also will be available
electronically from the Commission's Electronic Comment Filing System.
Documents are available electronically in ASCII text, Word 97, and Adobe
Acrobat. Copies of filings in this proceeding may be obtained from
Qualex International, Portals II, 445 12^th^ Street, S.W., Room,
CY-B402, Washington, D.C., 20554, telephone (202) 863-2893, facsimile
(202) 863-2898, or via e-mail at qualexint@aol.com. To request materials
in accessible formats for people with disabilities (Braille, large
print, electronic files, audio format), send an e-mail to fcc504@fcc.gov
or call the Consumer and Governmental Affairs Bureau at 202-418-0531
(voice), 202-418-7365 (TTY).

For further information contact Rick Chessen, Media Bureau at (202)
418-7200.

> By the Chief, Media Bureau

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**- FCC -**