**CHAIRMAN KEVIN J. MARTIN STATEMENT**

**Wilmington, North Carolina**

**Early Transition to Digital**

**Thalian Hall**

**310 Chestnut Street**

**Historic Downtown**

**Monday, September 8, 2008**

***(As Prepared for Delivery)***

Good morning everyone and thank you for being here on this historic day.
At 12 noon today, Wilmington will lead the country in the transition
from analog to digital television. This switch is the biggest change in
television since it went from black-and-white to color in the 1950s.

And the switch to digital TV is going to be even more exciting. Viewers
here in Wilmington are going to be the first ones in the country to take
full advantage of the benefits of digital TV --

\- Clearer richer pictures;

\- High definition DVD-like quality

\- Better sound

-And more free channels

The DTV transition for the rest of the country will not take place until
February 17, 2009. That is when the rest of the television stations must
turn off their analog signals and broadcast only in digital. But the
first step towards that transition is going to be taken right here in
Wilmington today.

It is an exciting day for Wilmington, but one that would not have been
possible without the help of so many people that are here today.

First, let me start by thanking Commissioner Copps, for challenging me
and the industry to find a community that would be willing to help the
rest of the country lead this transition. Commissioner Copps deserves a
lot of credit for today \-\-- urging the Commission to engage in
real-world experience that would help ready the broadcasters, viewers
and us for the upcoming transition. While we do not always agree on
every issue, Commissioner Copps' thoughtfulness and dedication serve the
Commission very well.

Next, let me thank the community of Wilmington. You know Mayor Saffo,
when I first raised this possibility with you and the broadcasters, many
of you were hesitant and raised legitimate concerns:

> How will we inform our viewers about a different date?
>
> Won't our community be at a disadvantage since many of the education
> efforts will be taking place after the transition?

What if a hurricane hits?

Why do we have to do this at all?

You didn't have to do it. But once you all were in, you fully embraced
the challenge. Your willingness to volunteer for the transition \-- and
ultimately your dedication to making it a success -- was astounding.

The Wilmington broadcasters, with Paul McTear, Dean Hinson and Jim
Goodman's support from the very first announcement, have led the way.

Here on the ground, Andy Combs of WWAY (ABC), Tom Postema of WSFX-TV
(FOX), Gary McNair of WECT (NBC), Connie Knox of WILM-LP (CBS) and W51CW
(Trinity Broadcasting),all stepped up to the challenges of premiering
the nation's DTV transition. I commend the Wilmington broadcasters for
their pioneer spirit to go first to help the entire country prepare for
the final transition to digital. This experience has and will continue
to help us identify issues that we need to address elsewhere in the
country before next February.

Mayor Saffo, let me thank you and the entire community that you
represent. You have personally provided such great support and
leadership in this effort. We would not be here today without your
commitment and dedication to the Wilmington community.

One of the invaluable lessons that we have learned from here in
Wilmington is that DTV outreach success depends on the commitment of
local community. Including local industry, governmental and
nongovernmental organizations. Community stakeholders must take a
leadership role for such large-scale messaging to take effect, which is
why I am so impressed with the Wilmington-area effort.

The Commission has tried to help. Since we made the announcement on May
8, that Wilmington, North Carolina would be the first market in the
country to make the transition to digital television (DTV) we have tried
to work closely with many of you here to help get the word out. ....

-   We have had FCC staff here on the ground in every county to help
    educate consumers about this early transition.

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-   We have attended over 400 outreach events, including Town Hall
    meetings, presentations, exhibits at local events, ask the FCC
    Sessions, and train the trainer sessions.

-   We have distributed over 85,000 publications.

-   Partnerships have been formed with over 100 organizations.

-   Four billboards were put up in high traffic areas throughout the
    town.

-   The US Post Office displayed Wilmington specific DTV transition
    posters in all the post offices throughout the area and

-   We provided the local radio and TV stations with PSAs.

And we all have made good progress. Notably, a recent survey conducted
by NAB found that 97% of Wilmington residents were aware that
broadcasters in Wilmington were transitioning to digital. And according
to NTIA, today more than 36,000 Wilmington households have requested
67,000 coupons, and have redeemed 25,000 so far. And more than 17,000 of
those homes rely on televisions with antennas.

Ultimately this test in Wilmington has been about gaining a better
understanding about two things. (1) what the implications are from a
technical perspective on the broadcasters in making this transition and
(2) what consumer outreach efforts are the most effective in making sure
consumers are taking the right steps to be prepared.

I have been asked by many how the FCC will measure the success of what
happens here in Wilmington.

Now and next February, a successful digital transition depends upon
minimizing the burdens placed on consumers and maximizing their ability
to benefit from it.

While we are hopeful that the transition today is going to be as smooth
as possible, the success of Wilmington is not what happens at 12 noon
today when we flip the "switch." The measure of success in Wilmington is
what is going to happen next February, and what we are able to learn
from what occurs in Wilmington so we can take those lessons and move
this process through the entire country.

And I can already say we have been able to learn some important lessons
that will affect how we proceed through the rest of the country.

First, the FCC learned how important it is to work with grassroots
organizations, like local fire and police departments and churches to
assist us in reaching hard to reach groups like seniors. To that end, in
Wilmington the FCC has engaged one or two of these groups in each county
to assist individuals through the installation and/or coupon application
process. These are the community leaders that we will strive to
cultivate in other areas throughout the country.

Second, the FCC learned the importance of emergency preparedness during
hurricanes. At the time we began outreach in Wilmington four months ago
there were no battery operated converter boxes available. So the
broadcasters and some folks down in Wilmington were able to work with
one converter box manufacturer, Winegard, who recently introduced a DTV
converter box battery pack specifically designed to allow its converter
boxes to work in power outages.

Finally, we learned that the use of soft tests or temporary turnoffs of
analog signals to determine whether consumers are ready for the
transition can be useful if the test is for a longer period of time. In
Wilmington, the broadcasters conducted a one minute and 5 minute test,
and determined that the longer test was necessary for consumers to write
down the phone number and information listed on the screen and (b) check
all the televisions in their home to see if they are prepared.

Because we have been able to learn these lessons, regardless of what
happens today, this test in Wilmington has been a success.

Finally, I would be remiss if I did not thank a few other folks that
have been so instrumental.

We also appreciate the work of Consumer Electronics Association and
CERC, as well as local retailers, Radio Shack, Circuit City, Best Buy,
Sears, K-Mart, and Wal-Mart for making sure that their stores were
stocked with converters boxes.

Meredith Baker, NTIA Acting Administrator, who expedited the processing
of Wilmington coupon applications and gave us weekly updates on how the
coupon converter box program was going here.

The pay TV operators including cable operators Time Warner, Atlantic
Telephone, Falcon Cable, and Starvision and Dish Network and DIRECTV for
their participation.

And last but not least, our FCC staff, led by Louis Sigalos, and
including Maureen McCarthy, Jessica Przybyla, Jill Pender, Lauren
Kravetz, Dan Rumelt, Yvette Barrett, and Beau Finley. The FCC team's
constant presence in the five counties was invaluable in many ways. The
FCC Wilmington team on-the-ground's presence at numerous events and
awareness sessions, from coupon sign-ups at churches and l libraries to
booths at the local farmers markets was invaluable.

The FCC is committed to ensuring that no American in Wilmington, North
Carolina is left in the dark. I trust that other parts of the nation
will look to this market as an example. Each of us here today wants to
be sure that the American public continues to receive programming today
in Wilmington and for the rest of the country on February 17, 2009. The
next 5 months will undoubtedly be challenging. Nevertheless, it is my
hope that through the combined efforts of government, industry and
grassroots organizations, American consumers will reap the rewards that
the digital transition has to offer.