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S. HRG. 110–1168 

PREPARING CONSUMERS FOR THE DIGITAL 

TELEVISION TRANSITION 

HEARING 

BEFORE THE

COMMITTEE ON COMMERCE, 

SCIENCE, AND TRANSPORTATION 

UNITED STATES SENATE 

ONE HUNDRED TENTH CONGRESS 

FIRST SESSION 

JULY 26, 2007 

Printed for the use of the Committee on Commerce, Science, and Transportation 

( 

(II) 

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED TENTH CONGRESS 

FIRST SESSION 

DANIEL K. INOUYE, Hawaii, Chairman 

JOHN D. ROCKEFELLER IV, West Virginia 

JOHN F. KERRY, Massachusetts 

BYRON L. DORGAN, North Dakota 

BARBARA BOXER, California 

BILL NELSON, Florida 

MARIA CANTWELL, Washington 

FRANK R. LAUTENBERG, New Jersey 

MARK PRYOR, Arkansas 

THOMAS R. CARPER, Delaware 

CLAIRE MCCASKILL, Missouri 

AMY KLOBUCHAR, Minnesota 

TED STEVENS, Alaska, Vice Chairman 

JOHN MCCAIN, Arizona 

TRENT LOTT, Mississippi 

KAY BAILEY HUTCHISON, Texas 

OLYMPIA J. SNOWE, Maine 

GORDON H. SMITH, Oregon 

JOHN ENSIGN, Nevada 

JOHN E. SUNUNU, New Hampshire 

JIM DEMINT, South Carolina 

DAVID VITTER, Louisiana 

JOHN THUNE, South Dakota 

MARGARET L. CUMMISKY, Democratic Staff Director and Chief Counsel 

LILA HARPER HELMS, Democratic Deputy Staff Director and Policy Director 

CHRISTINE D. KURTH, Republican Staff Director and General Counsel 

KENNETH R. NAHIGIAN, Republican Deputy Staff Director and Chief Counsel 

(III) 

C O N T E N T S 

Page 

Hearing held on July 26, 2007 ............................................................................... 1 

Statement of Senator Cantwell .............................................................................. 28 

Statement of Senator Inouye .................................................................................. 1 

Statement of Senator Klobuchar ............................................................................ 21 

Statement of Senator McCaskill ............................................................................. 23 

Statement of Senator Smith ................................................................................... 31 

Statement of Senator Snowe ................................................................................... 26 

Statement of Senator Stevens ................................................................................ 15 

Prepared statement .......................................................................................... 7 

Statement of Senator Sununu ................................................................................ 18 

Statement of Senator Thune ................................................................................... 33 

WITNESSES

Barnett, Nelda, Member, Board of Directors, AARP ............................................ 37 

Prepared statement .......................................................................................... 38 

Kneuer, Hon. John M.R., Kneuer, Assistant Secretary for Communications 

and Information, National Telecommunications and Information Administration, U.S. Department of Commerce .............................................................. 2 

Prepared statement .......................................................................................... 4 

Nogales, Alex, President and CEO, National Hispanic Media Coalition ............ 41 

Prepared statement .......................................................................................... 43 

Seidel, Catherine W., Chief, Consumer and Governmental Affairs Bureau, 

Federal Communications Commission ............................................................... 7 

Prepared statement .......................................................................................... 11 

Zirkin, Nancy M., Vice President, Director of Public Policy, Leadership Conference on Civil Rights (LCCR) ........................................................................... 45 

Prepared statement .......................................................................................... 46 

APPENDIX

Lautenberg, Hon. Frank R., U.S. Senator from New Jersey, prepared statement ...................................................................................................................... 51 

Letter, dated July 26, 2007 to Hon. Daniel K. Inouye and Hon. Ted Stevens, 

from Gary Shapiro, President and CEO, Consumer Electronics Association . 55 

Letter, dated August 30, 2007 to Hon. Claire McCaskill from John M.R. 

Kneuer, Assistant Secretary for Communications and Information, National 

Telecommunications and Information Administration, U.S. Department of 

Commerce ............................................................................................................. 51 

Response to written questions submitted by Hon. Frank R. Lautenberg to: 

Hon. John M.R. Kneuer ................................................................................... 56 

Catherine W. Seidel .......................................................................................... 57 

(1) 

PREPARING CONSUMERS FOR THE DIGITAL 

TELEVISION TRANSITION 

THURSDAY, JULY 26, 2007 

U.S. SENATE, COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION, Washington, DC. 

The Committee met, pursuant to notice, at 10 a.m. in room SR– 

253, Russell Senate Office Building, Hon. Daniel K. Inouye, Chairman of the Committee, presiding. 

OPENING STATEMENT OF HON. DANIEL K. INOUYE, 

U.S. SENATOR FROM HAWAII 

The CHAIRMAN. Between 15 and 21 million households rely exclusively on over-the-air television. Many more have second and third 

over-the-air sets in their homes. 

In February 2009, these Americans could see their TVs go dark, 

disconnecting them from the news, public safety announcements 

and their community, unless they get a converter box and attach 

it to their television. Yet, far too few of these consumers know that 

the transition from current analog TV technology to digital TV is 

underway. 

An article in the—last month’s National Journal stated that only 

10 percent of our citizens know that DTV transition is slated for 

2009. Many stakeholders in industry, in government, and in our 

communities are engaged in well-intended efforts to publicize and 

promote the upcoming transition. To date, however, their efforts 

have yielded too few results. We need to get the digital transition 

right. 

Consumers stand to benefit mightily from the DTV transition. 

They can expect sharper pictures, served up with CD-quality sound 

that provides a dramatically improved viewing experience. DTV 

also makes possible multicasting. This could mean whole new 

channels devoted to local news, weather, children’s fare, and nonEnglish-language programming. Along with these improvements, 

public safety will receive unbroken slices of our airwaves to enable 

interoperable communications and improve information-sharing. 

Managing the transition is, by no means, easy. We are now nearly 18 months away. We have seen working groups, conferences, tip 

sheets, and a converter box coupon plan. What we do not have yet 

is a public that is aware that digital TV and—transition is taking 

place. 

The time to act is now, before the digital transition devolves into 

a digital disaster. We must work together to ensure that no citizen 

is left behind in the transition to digital television. 

2 

Today, we have a panel of very knowledgeable and distinguished 

men and women. Our first panel is the Assistant Secretary of Commerce, for Communications and Information of the National Telecommunications Information Administration of the Department of 

Commerce, the Honorable John Kneuer; and the Chief of the Consumer and Governmental Affairs Bureau of the Federal Communications Commission, Ms. Cathy Seidel. 

Secretary Kneuer, welcome, sir. 

STATEMENT OF HON. JOHN M.R. KNEUER, ASSISTANT 

SECRETARY FOR COMMUNICATIONS AND INFORMATION 

NATIONAL TELECOMMUNICATIONS AND INFORMATION 

ADMINISTRATION, U.S. DEPARTMENT OF COMMERCE 

Mr. KNEUER. Thank you, Mr. Chairman. Thanks for having me, 

and for this opportunity to testify before you. 

As you know, NTIA’s traditional responsibilities have expanded 

considerably with the enactment of the Deficit Reduction Act of 

2005. Specifically, the Act charged NTIA to administer a number 

of new one-time programs to be funded from the anticipated spectrum auction proceeds associated with the transition to digital television. These programs include our recently announced Public Safety Interoperable Communications Program, as well as two important initiatives that are directly germane to the digital TV transition. 

First, Congress directed NTIA to implement a Digital-to-Analog 

Converter Box Program, provide financial assistance to those consumers that wish to continue to receive broadcast programming 

over-the-air, using existing analog-only televisions. 

Second, to ensure that viewers in primarily rural and remote 

areas who rely on LPTV or television translator stations are able 

to continue to receive these services, Congress authorized NTIA to 

provide funding to assist licensees of those stations with the transition. 

Under the Digital-to-Analog Converter Box Program, eligible U.S. households may obtain up to two coupons of $40 each to be 

applied toward the purchase of a digital-to-analog converter box. 

The Act authorizes NTIA to use up to $990 million to carry out this 

program, including up to $100 million for program administration, 

$5 million of which will be used for consumer education. It authorizes an additional $510 million in contingent funding, to be available upon 60 days notice to the Congress. 

To meet the mandated deadlines to start and complete this coupon program, we published a request for proposals in March to procure end-to-end services to implement and administer the coupon 

program, including the consumer education and communications 

component. I’m happy to report, this procurement process is well 

underway. We expect to make an award by the middle of this 

month. 

To make the most effective use of the $5 million available for 

consumer education, NTIA has focused its consumer education resources on population groups most likely to lose television service 

as a result of the transition. We’ll obtain optimum leverage from 

those dollars by maximizing our engagement with the diverse 

range of stakeholders through partnerships. Indeed, we received 

3 

support from many partners in the private sector who are working 

to help inform consumers of the digital transition. 

Over 120 business, trade, and industry groups, as well as grassroots and membership organizations that share an interest in the 

transition, came together earlier this year to charter the Digital 

Television Transition Coalition. NTIA has been working with the 

coalition since its inception. To reach those most likely to be affected by the digital transition, NTIA has identified five target 

groups for its consumer education efforts: seniors, the economically 

disadvantaged, rural residents, people with disabilities, and minorities. 

With respect to seniors, NTIA is working closely with the AARP 

to ensure that the coupon program is highlighted in their publications and online newsletters. We’re also reaching out to establish 

partnerships with the Administration on Aging, the National Council on Aging, SeniorNet, and other organizations, to ensure that 

seniors are not caught by surprise by the digital transition. 

We’re expanding our outreach efforts into minority and rural 

communities. We’ll work with the U.S. Hispanic Chamber of Commerce, the U.S. Black Chamber of Commerce. NTIA is also 

partnering with the Southeast Asian Resource Action Center to 

translate and distribute coupon program information in Chinese, 

Korean, Vietnamese, and Filipino communities. We’re pursuing 

partnerships with the Koahnic Broadcast Corporation for the dissemination of coupon information to Alaskan native villages, as 

well as Native Voice One to reach tribal reservations through radio 

communications. 

We’ve printed our brochures in both English and Spanish to explain the digital transition and the options available to households, 

depending on the type of television service. We’ve distributed copies 

of those brochures to every member of the House and Senate, community organizations, constituency groups, industry stakeholders. 

We’ve established a toll-free number, 1–888–DTV–2009. This is 

currently in English, Spanish, and with TTY capability for people 

who are hearing-impaired. In addition to the toll-free number, 

we’re working with the American Association of People with Disabilities, we maintain our website, Consumer Information Accessible Form, to ensure disabled Americans are made aware of the 

transition. 

In addition to the private sector partnerships I’ve discussed, we 

are also leveraging our relationships with other governmental 

agencies to extend the reach of our message. In particular, we will 

work with agencies that target economically disadvantaged Americans. We’re currently in discussions with the IRS, the U.S. Department of Agriculture Food Stamp Program, Social Security Administration, Department of Veterans Affairs, GSA, and others. 

As I mentioned at the outset, Title III also directed NTIA to implement and administer programs related to the digital television 

transition with regard to eligible low-power television and television translator stations, to obtain equipment to enable them to 

convert the incoming digital signals into broadcast format, and to 

ultimately convert to the digital signals. We’ve been working aggressively to effectuate the statute’s requirements to begin the proVerDate Nov 24 2008 09:36 Sep 05, 2012 Jkt 075679 PO 00000 Frm 00007 Fmt 6633 Sfmt 6633 S:\GPO\DOCS\75739.TXT JACKIE
4 

gram authorized under the statute, and recently posted information about these programs on our website. 

Thank you, again, for the opportunity to testify, and I’ll certainly 

look forward to your questions. 

[The prepared statement of Mr. Kneuer follows:] 

PREPARED STATEMENT OF HON. JOHN M.R. KNEUER, ASSISTANT SECRETARY FOR

COMMUNICATIONS AND INFORMATION, NATIONAL TELECOMMUNICATIONS AND

INFORMATION ADMINISTRATION, U.S. DEPARTMENT OF COMMERCE

Mr. Chairman and Members of the Committee, thank you for this opportunity to 

testify before you today. As you know, NTIA is responsible for the development and 

implementation of United States national policies related to domestic and international telecommunications and for the effective use of Federal radio spectrum and 

state-of-art telecommunications research, engineering, and planning. NTIA also administers the provision of grants in support of the equipment needs of public broadcasting stations. 

NTIA’s responsibilities have expanded considerably with the enactment of the 

Deficit Reduction Act of 2005. Specifically, the Act charged NTIA to administer a 

number of new one-time programs to be funded from anticipated spectrum auction 

proceeds associated with the transition to digital television broadcasts through the 

Digital Television Transition and Public Safety Fund. These programs include our 

recently announced Public Safety Interoperable Communications (PSIC) Grant Program and two other important initiatives that are directly germane to the digital 

television transition that is the subject of today’s hearing: (1) the Digital-to-Analog 

Converter Box Coupon Program, and (2) the Low-Power Television (LPTV) and 

translator digital conversion and upgrade programs. My testimony today will focus 

chiefly on our activities with respect to the Converter Box Coupon Program, which 

will most immediately help to prepare consumers for the transition. However, before 

closing, I would also like briefly to discuss our work in the LPTV and translator 

areas. 

NTIA’s Role in the Digital-to-Analog Transition 

Title III of the Deficit Reduction Act of 2005 (the Act) directed the Federal Communications Commission (FCC) to require full-power television stations to cease 

analog broadcasting on February 17, 2009. To avoid any unnecessary service disruptions for American television viewers during the conversion from analog to digital 

television broadcasting, the Act established, and directed NTIA to administer, two 

sets of programs. As I will explain, these programs are intended to bridge the gaps 

between the analog and digital platforms that will continue to exist for some period 

of time. 

First, Congress directed NTIA to implement a Digital-to-Analog Converter Box 

Coupon Program to provide financial assistance to those consumers that wish to 

continue receiving broadcast programming over-the-air using analog-only televisions 

not connected to cable or satellite service. Second, to ensure that viewers in primarily rural and remote areas who rely on LPTV or television translator stations 

are able to continue to receive these services, Congress authorized NTIA to provide 

funding to assist licensees of these stations with obtaining equipment to (A) enable 

them to convert the incoming digital signal of their corresponding full-power station 

to analog format for rebroadcast; and (B) to ultimately convert the LPTV and translator facilities themselves to broadcast in digital format. 

The Digital-to-Analog Converter Box Coupon Program 

Under the Digital-to-Analog Converter Box Coupon Program, eligible U.S. households may obtain up to two coupons of $40 each to be applied toward the purchase 

of digital-to-analog converter boxes that will convert digital signals for display on 

analog television sets. The Act authorizes NTIA to use up to $990 million to carry 

out the program, including up to $100 million for program administration, $5 million of this for consumer education. It also authorizes an additional $510 million in 

contingent funding to be available upon 60 days advance notice to Congress. 

Activities to Date 

NTIA has made substantial progress in fulfilling its requirements under the law 

to ensure that coupons for converter boxes will be available to U.S. households upon 

request beginning January 1, 2008. Because the auction receipts that fund this program are not anticipated to be available until after this date, NTIA entered into a 

Borrowing Agreement in May 2006 with the Department of Treasury to borrow 

5 

funds necessary to implement the Coupon Program. NTIA then initiated a rulemaking seeking comments from interested parties on the most efficient and effective 

way to administer the program. In March of this year, NTIA published regulations 

that set forth the framework for the Coupon Program and provide guidance to consumers, converter box manufacturers, and retailers. The regulations outline requirements related to household eligibility, converter box technical specifications, and retailer certification. Shortly after releasing the rules, NTIA held its first public meeting to discuss various aspects of the Coupon Program. 

To meet the mandated deadlines to start and complete the Coupon Program, 

NTIA published a Request for Proposals (RFP) in March of this year to procure endto-end services to implement and administer the Coupon Program. The procurement 

covers three broad, functional areas: (1) consumer education and communications; 

(2) systems processing (e.g., determining consumer eligibility, distributing and activating coupons, certifying retailers, and providing training materials); and (3) financial processing (e.g., administering the processes to authorize coupons for redemption and ensure payment to retailers, and performing independent auditing). I am 

pleased to report that this procurement process is well underway, and we expect to 

make an award by mid-August. 

NTIA also continues to collaborate with the FCC to ensure that the converter 

boxes offered to consumers under this program meet our technical specifications. In 

that regard, NTIA and the FCC entered into a Memorandum of Understanding pursuant to which the Commission will provide verification and testing services for the 

converter boxes. Moreover, in May of this year, NTIA issued a Notice that provides 

guidance to converter box manufacturers regarding the submission of test results 

and sample equipment. To accommodate the numerous inquiries that the agency receives daily from consumers, manufacturers and retailers, NTIA maintains and continuously updates a ‘‘Frequently Asked Questions’’ section on our website. 

Consumer Education Initiatives 

As the title of this hearing reflects, it is essential that consumers be prepared for 

the digital television transition. The success of the transition will be judged by how 

smoothly and efficiently it occurs, and this will depend to a critical extent on effective outreach to consumers. Consumers will need to know the options available to 

them to participate in the transition. For example, consumers who receive cable, 

satellite or other pay-television services to view television will not need converter 

boxes. Likewise, consumers that have televisions equipped with digital receivers will 

not need a converter box. Neither of these groups will need to apply for a coupon 

as part of NTIA’s program. Likewise, consumers may choose to effect the transition 

on their own, by subscribing to cable or satellite, buying a digital television, or buying a converter box with additional functionality, such as a DVD. 

As I mentioned earlier, the Act allotted NTIA $5 million for consumer education. 

To make most effective use of these funds, NTIA will focus its consumer education 

resources on population groups most likely to lose all television service as a result 

of the transition, and we will obtain optimum leverage from those dollars by maximizing the engagement of a diverse range of stakeholders through partnerships. In 

this regard, I would like to acknowledge the support we have received from our 

many partners in the private-sector who have stepped up to the plate to help inform 

consumers of the digital transition. 

Over 120 business, trade and industry groups, as well as grass roots and membership organizations that share an interest in a smooth transition, came together earlier this year to charter the Digital Television Transition Coalition to ensure that 

no consumer is left without broadcast television due to a lack of information about 

the transition. The Coalition will use marketing and public education strategies including paid and earned media placements to distribute consistent, unified, and accurate information about the transition. NTIA will work with the Coalition to coordinate our messages. In particular, we encourage the industry to get the message 

out about the benefits of the digital transition. For example, consumers should be 

made aware that digital transmission is a more efficient technology that will allow 

broadcasters to provide a better viewing experience and give consumers more 

choices while using less radio spectrum. 

We also understand that consumer education must be made at an optimal time 

to afford consumers sufficient time to prepare for the transition. To reach those 

most likely to be affected by the digital transition, NTIA has identified five target 

groups for its consumer education efforts: (1) seniors: (2) the economically disadvantaged; (3) rural residents; (4) people with disabilities; and (5) minorities. 

With respect to seniors, NTIA is working closely with the AARP to ensure that 

the Coupon Program is highlighted in their publications and online newsletters. 

AARP The Magazine reaches 22.5 million of the organization’s members and AARP 

6 

Segunda Jeventud reaches another 400,000 members. NTIA is also working with the 

American Library Association to distribute posters and coupon applications to participating libraries, and to train librarians to help seniors fill out coupon applications. NTIA has also reached out to establish partnerships with the Administration 

on Aging, the National Council on Aging, SeniorNet, and other organizations to ensure that seniors are not caught by surprise by the digital transition. During the 

recent National Cable and Telecommunications Association convention, I participated on a panel hosted by Retirement Living TV, available via cable to 24 million 

households, for the purpose of raising awareness among seniors of the upcoming digital transition. 

NTIA is also expanding its outreach efforts into minority and rural communities. 

We will work with the U.S. Hispanic Chamber of Commerce and the U.S. Black 

Chamber of Commerce to disseminate coupon application information nationwide 

through retailers in predominantly Hispanic and African-American neighborhoods. 

NTIA is also partnering with Southeast Asia Resource Action Center to translate 

and distribute coupon program information in Chinese, Korean, Vietnamese and Filipino communities. We are pursuing partnership opportunities with Koahnic Broadcast Corporation for dissemination of coupon information to Alaskan Native villages 

as well as Native Voice One to reach tribal reservations through radio communications. In addition, NTIA will collaborate with the Appalachian Regional Commission 

to distribute information packets about the transition to 70 councils of government 

and local development districts representing 23 million people in 410 counties (42 

percent rural). 

Moreover, we have printed brochures in both English and Spanish to explain the 

digital transition and the options available to households depending on the type of 

television service, and we have distributed copies of these brochures to every member of the House and Senate, community organizations, constituency groups, and industry stakeholders. We have also established a toll free number, 1–888–DTV–2009, 

to assist consumers who do not have Internet access, are hearing impaired, or who 

simply prefer to receive information about the Coupon Program over the telephone. 

In addition to this toll-free number, NTIA is working with the American Association 

of People with Disabilities (AAPD), and we maintain our website and consumer information in accessible form to ensure disabled Americans are made aware of the 

transition. 

The NTIA staff will also continue to participate in meetings and conferences over 

the next 2 years to spread the word about the transition as well as the Coupon Program through events such as the upcoming White House Faith-Based and Community Initiatives Conference in August and the AARP convention in September. We 

will be hosting a public meeting on September 25, 2007, to discuss progress in educating the public about the Coupon Program. This public meeting will focus on our 

partnerships in the digital transition and will feature two CEO-level panels from 

the impacted industries. The public meeting will also include an expo in the Department of Commerce lobby which will include displays form over a dozen companies 

and organizations featuring products and services to enable consumers to make a 

smooth digital transition. We invite you to attend that meeting and welcome any 

suggestions or concerns you have about the Coupon Program. 

Government Partnerships 

In addition to the private sector partnerships discussed above, NTIA will also leverage our relationships with other governmental agencies to extend the reach of 

our message. In particular, we will work with agencies that target economically disadvantaged Americans. We are currently in discussions with the Internal Revenue 

Service, the U.S. Department of Agriculture Food Stamp Program; the Social Security Administration; the Department of Veterans Affairs; the White House Office of 

Faith-Based and Community Initiatives; the General Services Administration; and 

the Department of Health and Human Services’ Administration for Children & 

Families, Administration on Aging, and Centers for Medicare & Medicaid Services. 

Separately, as I noted above, we are also working in cooperation with the FCC 

to implement significant measures to increase awareness among the general public 

about the DTV transition and the Coupon Program. Both the www.DTV.gov 

webpage and NTIA’s website, www.ntia.doc.gov/otiahome/dtv/index.html, provide 

significant information about all aspects of the transition. I encourage the Members 

of this Committee, and all of Congress, to help us in this important effort by linking 

your own websites to these consumer education materials. 

The Low-Power Television and Translator Upgrade Program 

As I mentioned at the outset, Title III of the Deficit Reduction Act of 2005 also 

directed NTIA to implement and administer other programs related to the digital 

7 

television transition. Specifically, it mandates that we provide funding to assist licensees of eligible Low-Power Television and television translator stations to obtain 

equipment to enable them to convert the incoming digital signal of their corresponding full-power station to analog format for rebroadcast; and to ultimately 

convert the LPTV and translator facilities themselves to broadcast in digital format. 

We have been working aggressively to effectuate the statute’s requirements to begin 

the program authorized under Section 3008 of the Act in Fiscal Year 2008 and recently posted information about these programs on our website (www.ntia.doc.gov/ 

otiahome/dtv/lptv.html). 

With respect to the LPTV and translator upgrade program under Section 3009 of 

the Act, however, NTIA has discovered an inconsistency in the statute that we believe must be corrected in order to enable us to implement Congress’ intent. Specifically, as presently drafted, Section 3009 requires the Assistant Secretary to ‘‘make 

payments . . . during Fiscal Year 2009 from the Digital Television Transition and 

Public Safety Fund . . . to implement and administer [the] program’’; however, the 

same provision later states that ‘‘[s]uch reimbursements shall be issued to eligible 

stations no earlier than October 1, 2010’’ (i.e., the beginning of Fiscal Year 2011). 

These conflicting payment obligations cannot be resolved without a technical correction to the dates contained in Section 3009 of the Act. The Department of Commerce has raised this issue with appropriate Congressional authorizers and appropriators to suggest a legislative remedy. 

In conclusion, I want to thank the Committee for the opportunity to testify before 

you today. I will be happy to answer your questions. 

The CHAIRMAN. Thank you very much, Mr. Secretary. 

Ms. Seidel, before I call upon you, I’ll call upon the Vice Chairman for his opening remarks. 

Senator STEVENS. Well, thank you very much, Mr. Chairman. I’m 

sorry to be late, but I would like to put my statement in the record, 

as though read, to begin with. 

The CHAIRMAN. Without objection, so ordered. 

[The prepared statement of Senator Stevens follows:] 

PREPARED STATEMENT OF HON. TED STEVENS, U.S. SENATOR FROM ALASKA

Thank you, Mr. Chairman, for holding this important hearing. One of the most 

important steps this Committee took last year, on a bipartisan basis, was to set a 

hard date for the digital television transition. This transition will reap important 

benefits for all Americans, but especially with respect to public safety because they 

will receive much needed spectrum. Additionally, the auction will fund vital programs like the $1 billion for interoperability grants, $1.5 billion for the convertor 

box program, more than $7.3 billion for deficit reduction and $43.5 million for E– 

911. 

As such, Congress cannot afford to let the transition delay or fail. I am concerned 

that some of the proposals currently coming out of the FCC regarding the auction 

may threaten the overall value and affect the American taxpayer by potentially costing them billions of dollars. 

With respect to the TV side of the transition, I am pleased by the progress made 

to date. We all know that some elements will require special attention. I look forward to hearing from our witnesses as to how the transition will address rural areas 

of the country, like Alaska. We have our fair share of residents in Alaska who rely 

solely on broadcast TV for their news and entertainment. I am also concerned that 

no demographic is overlooked as the transition moves forward. Thank you, Mr. 

Chairman. 

The CHAIRMAN. And now, Ms. Seidel? 

STATEMENT OF CATHERINE W. SEIDEL, CHIEF, 

CONSUMER AND GOVERNMENTAL AFFAIRS BUREAU, 

FEDERAL COMMUNICATIONS COMMISSION 

Ms. SEIDEL. Good morning, Chairman Inouye, Vice Chairman 

Stevens, and members of the Committee. Thank you for the opportunity to speak about the ongoing efforts of the Federal CommuVerDate Nov 24 2008 09:36 Sep 05, 2012 Jkt 075679 PO 00000 Frm 00011 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\75739.TXT JACKIE
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nications Commission to facilitate and promote consumer education 

and awareness about the upcoming digital television transition. 

The Commission is working, consistent with its statutory authority and budgetary capacity, to ensure that no American is left behind in this important part of the digital revolution. For some time 

now, we have been working, both on our own and in cooperation 

with industry, other government agencies, and consumer groups, to 

advance the transition and promote consumer awareness. 

Our efforts to date have been threefold. First, we have been 

working to get the right rules in place to facilitate a smooth transition. Second, we have been actively enforcing our rules to protect 

consumers. And, third, we have been promoting awareness of the 

transition through our consumer education and outreach efforts. 

Through all of our activities, the Commission has been dedicated 

to minimizing the negative impact of the digital transition on consumers, while maximizing the benefits to them. 

The Commission has initiated several rulemaking proceedings 

designed to facilitate the upcoming transition. In one recent proceeding, the Commission proposed to ensure that cable subscribers 

do not lose access to broadcast signals because of the digital transition. About 50 percent of cable subscribers today, at least 32 million people, subscribe to analog, not digital, cable. These consumers 

are at risk of losing their ability to watch broadcast television after 

the digital transition, unless the Commission acts. According to the 

1992 Cable Act, cable operators must ensure that all local broadcast stations carried pursuant to the Act are viewable by all cable 

subscribers. The Commission is currently considering a rulemaking 

that would require cable operators to ensure their analog customers don’t lose their broadcast signals. Cable operators can either continue to carry signals in analog format to the millions of 

analog cable subscribers, or, alternatively, cable operators who 

have chosen to go all-digital can provide their subscribers with the 

necessary equipment to view broadcast and other channels. 

One of the most important actions we have taken to facilitate a 

smooth transition is to ensure that electronics retailers fully inform 

consumers at the point of sale about the DTV transition date and 

the equipment necessary to continue to be able to receive over-theair television signals. Consumers have certain expectations, and 

one of which is that the television that they purchase today will 

also work 2 years from now. As of March 1st, all television receivers shipped in interstate commerce or imported into the United 

States must have an integrated digital tuner. 

Despite this prohibition on shipment, retailers may continue to 

sell analog-only devices from their existing inventory. In April of 

this year, the Commission released an order requiring retailers to 

disclose to consumers that a television with only an analog tuner 

will not receive over-the-air broadcast signals after February 17, 

2009. Such notice should ensure that consumers are making a fully 

informed decision about the television that they seek to purchase 

before bringing it home. It will also help educate consumers about 

the upcoming digital transition. 

Just last week, the Commission adopted a Notice of Proposed 

Rulemaking on several DTV education initiatives. This NPRM 

seeks comment on proposals that would require broadcasters, mulVerDate Nov 24 2008 09:36 Sep 05, 2012 Jkt 075679 PO 00000 Frm 00012 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\75739.TXT JACKIE
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tichannel video programming distributors, retailers, and manufacturers to take certain actions to publicize the digital transition. The 

Chairman intends for the Commission to complete this proceeding 

expeditiously. 

In addition to our policymaking efforts, we have also been vigorously enforcing our digital transition-related rules. As I described 

earlier, in April the Commission adopted labeling requirements to 

ensure that consumers are protected from the unknowing purchase 

of television equipment without integrated digital tuners. As of 

July 24, 2007, Commission staff had inspected about 1,089 retail 

stores around the country, as well as retailers’ websites, to monitor 

compliance with the labeling rules. As a result of these inspections, 

the Commission issued over 262 citations notifying retailers of violations. As an outgrowth of these investigations, the Chairman recently presented his colleagues with Notices of Apparent Liability 

against seven large retailers for apparently violating the Commission’s television labeling requirements. These fines, in aggregate, 

total over $3 million. 

The Commission has actively pursued entities violating the DTV 

tuner requirement by acting on complaints and staff review of U.S. 

Customs data. On May 30, 2007, the Commission issued Notices of 

Apparent Liability against two companies, Syntax-Brillian Corporation and Regent USA, Incorporated. 

Swift enforcement of all of our DTV-related rules is critical to 

protecting consumers from purchasing television sets that may be 

rendered useless in 18 months. Enforcement activities in this area 

will continue to be a priority for the Commission. 

In addition to our policymaking and enforcement efforts, we have 

devoted resources to promoting consumer awareness of the upcoming transition through education and outreach. Specifically, the 

Commission has prepared and disseminated numerous consumer 

publications to alert and inform consumers about the transition. 

For example, we have issued a consumer advisory on what consumers should know about buying TVs as the analog cutoff date 

approaches. We have also issued a consumer advisory on closed 

captioning for digital television, which will help inform and advise 

people who are deaf and hard of hearing. And we recently revised 

one of our DTV fact sheets, ‘‘DTV is Coming, (And Sooner Than 

You Think),’’ to add a section focused on helping consumers determine whether their current TV set contains a digital tuner. 

Moreover, we are reaching out to consumers through many different venues, including forming partnerships with government 

and other organizations. For example, we are working together 

with government agencies, including the NTIA and the United 

States Administration on Aging to enhance the Commission’s consumer education and outreach efforts. In addition, we are working 

with the Digital Television Transition Coalition, of which we are 

now a member, to coordinate consumer education and outreach efforts. 

We have also partnered with several organizations, including the 

Consumer Electronics Retailers Council, the NACAA—and the 

NACAA—to help us disseminate DTV education information. In addition, we are continually developing working relationships with 

state and local entities and educational institutions. For example, 

10 

we have been in contact with representatives of the Council of 

Great City Schools, which is a coalition of 66 of the Nation’s largest 

urban public school systems, about ways that we can work with 

them to inform and educate school-aged children about the transition. We have also reached out to state and local entities to enlist 

their participation in consumer education and outreach efforts. 

Some of the organizations we have reached out to include the State 

Chambers of Commerce, the National Association of Regulatory 

Utility Commissioners, the National Association of Telecommunications Officers and Advisors, the National Council of State Legislators, the National Congress of American Indians, and other tribal 

organizations, as well as the United States Hispanic Chamber of 

Commerce. 

Our consumer outreach and education activities are geared, in 

part, toward reaching consumers who are likely to be unaware of 

the upcoming digital transition, including senior citizens, nonEnglish-speaking consumers, minority communities, people with 

disabilities, low-income individuals, and people living in rural and 

tribal areas. For example, earlier this month we held an Indian 

Telecommunications Initiative Regional Workshop in Albuquerque, 

New Mexico. The workshop focused on the DTV transition, with 

the goal of assisting Indian tribes in preparing, organizing, and 

conducting DTV outreach campaigns. While there, we organized 

and conducted DTV panels, exhibited equipment, and distributed 

DTV education materials. 

In addition, we have coordinated with the National Council of 

Aging, as well as the Umbrella Leadership Council of Aging Organizations, to find ways that we can work together to educate seniors about the upcoming transition. 

We have also taken a number of measures to ensure that we are 

communicating with the large Spanish-speaking community 

throughout the country. For example, all of our DTV consumer 

publications are available in Spanish versions, and our dedicated 

DTV.gov webpage has an entire section in Spanish. 

Furthermore, consumers who call our toll-free number, 1–888– 

CALL–FCC, may receive assistance, including DTV-related information, in English or Spanish. 

Another important way we have been disseminating information 

is through our participation in events and conferences. For example, we have worked with AARP to arrange a speaking role for 

Commission staff on the DTV transition at AARP’s Annual Convention this fall in Boston on one of the convention’s presentation 

stages. We are also working with AARP to obtain prime exhibit 

space on their convention floor that will further enable us to spotlight the DTV transition and its implication for seniors. 

We recently announced that we will host a DTV Consumer Education Workshop on September the 26th. The Commission’s workshop will consist of officials from organizations who represent a 

broad range of DTV stakeholder groups, including government 

agencies, industry, tribal organizations, disabilities, community 

groups, non-English-speaking groups, senior citizen organizations, 

low-income consumers, and other public interest organizations that 

may represent underserved communities or those living in rural 

areas. The purpose of this workshop will be to provide an opporVerDate Nov 24 2008 09:36 Sep 05, 2012 Jkt 075679 PO 00000 Frm 00014 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\75739.TXT JACKIE
11 

tunity for all interested parties to jointly discuss the challenges associated with the upcoming transition, and explore ways in which 

these organizations can work together and with us to develop coordinated consumer outreach initiatives. 

In addition to furthering the activities already discussed, the additional funding we have requested from Congress will allow us to 

undertake several new initiatives that will greatly enhance our efforts to reach these consumers, those who currently rely on overthe-air service. For example, in order to reach consumers more directly, additional funding would allow us to expand our dissemination of published materials through targeted direct mailings of 

DTV-related information to hundreds of thousands of households, 

with a focus on underserved communities and senior citizens, and 

we could translate our DTV consumer education materials into languages other than Spanish, possibly including French and Mandarin, and distribute these materials through government and community organizations serving immigrants and non-English-speaking consumers. 

In conclusion, the Commission is committed to ensuring that 

Americans are not left in the dark after the DTV transition. 

Through all of our activities, policy enforcement, and consumer outreach, the Commission is dedicated to minimizing the negative impact of the upcoming transition. We look forward to working closely 

with Congress, other agencies, and industry and consumer groups 

during the next 18 months to minimize the burden on consumers 

and ensure that all consumers reap the benefits of the digital transition. 

As the deadline approaches, we plan to continue our close coordination with NTIA and the DTV Transition Coalition, and to accelerate our consumer education and outreach initiatives, as funding 

permits, to ensure that all Americans are aware of the transition 

and understand what steps they need to take in order to continue 

watching TV when analog broadcasting ends. 

Thank you. 

[The prepared statement of Ms. Seidel follows:] 

PREPARED STATEMENT OF CATHERINE W. SEIDEL, CHIEF, CONSUMER AND

GOVERNMENTAL AFFAIRS BUREAU, FEDERAL COMMUNICATIONS COMMISSION

Good morning, Chairman Inouye, Vice Chairman Stevens, and members of the 

Committee. Thank you for the opportunity to speak about the ongoing efforts of the 

Federal Communications Commission (Commission) to facilitate and promote consumer education and awareness about the upcoming digital television (DTV) transition. The Commission is working, consistent with its statutory authority and budgetary capacity to ensure that no American is left behind in this part of the digital 

revolution. 

For some time now, we have been working both on our own and in cooperation 

with industry, other government agencies, and consumer groups to advance the 

transition and promote consumer awareness. Our efforts to date have been threefold. First, we have been working to get the right rules in place to facilitate a 

smooth transition. Second, we have been actively enforcing our rules to protect consumers. And, third, we have been promoting awareness of the transition through 

our consumer education and outreach efforts. Through all of our activities, the Commission has been dedicated to minimizing the negative impact of the digital transition on consumers while maximizing the benefits to them. 

Policy and Rulemaking Activities 

The Commission has initiated several rulemaking proceedings designed to facilitate the upcoming transition. 

12 

Viewability NPRM. In one recent proceeding, the Commission proposed to ensure 

that cable subscribers do not lose access to broadcast signals because of the digital 

transition. About 50 percent of cable subscribers today—at least 32 million people— 

subscribe to analog not digital cable. These consumers are at risk of losing their 

ability to watch broadcast television after the digital transition unless the Commission acts. According to the 1992 Cable Act, cable operators must ensure that all 

local broadcast stations carried pursuant to this Act are ‘‘viewable’’ by ‘‘all’’ cable 

subscribers. The Commission is currently considering a rulemaking that would require cable operators to ensure their analog customers don’t lose their broadcast signals. Cable operators can either continue to carry signals in analog format to the 

millions of analog cable subscribers or alternatively, cable operators who have chosen to go all-digital can provide their subscribers with the necessary equipment to 

view broadcast and other channels. 

Consumer Information and Labeling. One of the most important actions we have 

taken to facilitate a smooth transition is to ensure that electronics retailers fully 

inform consumers at the point of sale about the DTV transition date and the equipment necessary to continue to be able to receive over-the-air television signals. 

Consumers have certain expectations and one of their expectations is that the television that they purchase today will also work 2 years from now. As of March 1, 

2007, all television receivers shipped in interstate commerce or imported into the 

United States must have an integrated digital tuner. Despite this prohibition on 

shipment, retailers may continue to sell analog-only devices from existing inventory. 

In April, the Commission released an order requiring retailers to disclose to consumers that a television with only an analog tuner will not receive over-the-air 

broadcast signals after February 17, 2009. Such notice should ensure that consumers are making a fully informed decision about the television that they seek to 

purchase before bringing it home. It will also help educate consumers about the upcoming digital transition. 

DTV Education NPRM. Just last week, the Commission adopted a Notice of Proposed Rulemaking on several DTV education initiatives. This NPRM seeks comment 

on proposals that would require broadcasters, multichannel video programming distributors, retailers and manufacturers to take certain actions to publicize the digital 

transition. The Chairman intends for the Commission to complete this proceeding 

expeditiously. 

Enforcement Activities 

In addition to our policymaking activities, we have also been vigorously enforcing 

our digital transition-related rules. 

Labeling Requirement. As I described earlier, in April we adopted labeling requirements to ensure that consumers are protected from the unknowing purchase 

of television equipment without integrated digital tuners. As of July 24, 2007, Commission staff had inspected about 1,089 retail stores around the country, as well as 

retailers’ websites, to monitor compliance with our rules. As a result of these inspections, we issued over 262 citations notifying retailers of violations. As an outgrowth 

of our investigations, the Chairman recently presented his colleagues with Notices 

of Apparent Liability against seven large retailers for apparently violating the Commission’s television labeling requirements. These fines, in the aggregate, total over 

$3 million. 

DTV Tuner Requirement. The Commission has actively pursued entities violating 

the DTV tuner requirement by acting on complaints and staff review of U.S. Customs data. On May 30, 2007, the Commission issued Notices of Apparent Liability 

against two companies—Syntax Brillian Corp. and Regent USA, Inc. 

Swift enforcement of all of our DTV-related rules is critical to protecting consumers from purchasing television sets that may be rendered useless in 18 months. 

Enforcement activities in this area will continue to be a priority for the Commission 

in the coming year. 

Consumer Education and Outreach 

In addition to our policymaking and enforcement activities, we have devoted resources to promoting consumer awareness of the upcoming transition through education and outreach efforts. 

Consumer Publications. Specifically, the Commission has prepared and disseminated numerous consumer publications to alert and inform consumers about the 

transition. For example, we have issued a consumer advisory on what consumers 

should know about buying TVs as the analog cutoff date approaches. We have also 

issued a consumer advisory on closed captioning for digital television which will 

help inform and advise people who are deaf and hard of hearing. And, we recently 

revised one of our DTV fact sheets—‘‘DTV is Coming (And Sooner Than You 

13 

Think)’’—to add a section focused on helping consumers determine whether their 

current TV set contains a digital tuner or whether they will need to purchase a new 

one. Collaborative Partnerships. Moreover, we are reaching out to consumers through 

many different venues, including forming partnerships with government and other 

organizations. For example, we are working together with government agencies including the National Telecommunications and Information Administration (NTIA) 

and the U.S. Administration on Aging to enhance the Commission’s consumer education and outreach efforts. In addition, we are working with the DTV Transition 

Coalition, of which we are a member, to coordinate consumer education and outreach efforts. 

We have also partnered with several consumer organizations, such as CERC and 

NACAA, to help us disseminate DTV education information. In addition, we are continually developing working relationships with state and local entities and educational institutions. For example, we have been in contact with representatives of 

the Council of Great City Schools, a coalition of 66 of the Nation’s largest urban 

public school systems, about ways we can work together to inform and educate 

school age children about the transition. 

We have also reached out to state and local entities to enlist their participation 

in consumer education efforts. Some of the organizations we have reached out to include State Chambers of Commerce, the National Association of Regulatory Utility 

Commissions, the National Association of Telecommunications Officers and Advisors, the National Council of State Legislatures, the National Congress of American 

Indians, other Tribal organizations, and the U.S. Hispanic Chamber of Commerce. 

Targeted Outreach. Our consumer outreach and education activities are geared in 

part toward reaching consumers who are likely to be unaware of the upcoming digital transition, including senior citizens, non-English speaking consumers, minority 

communities, people with disabilities, low-income individuals, and people living in 

rural and tribal areas. 

For example, earlier this month we held an Indian Telecommunications Initiative 

Regional Workshop in Albuquerque, NM. This workshop focused on the DTV transition with the goal of assisting Indian Tribes in preparing, organizing and conducting 

their own DTV awareness programs and initiatives. While there, we organized and 

conducted DTV panels, exhibited equipment, and distributed DTV education materials. 

In addition, we have coordinated with the National Council of Aging, as well as 

the Umbrella Leadership Council of Aging Organizations (LCAO), to find ways we 

can work together to educate seniors about the upcoming transition. 

We have also taken a number of measures to ensure that we are communicating 

with the large Spanish-speaking community throughout the country. For example, 

all of our DTV consumer publications are available in Spanish versions and our 

dedicated DTV.gov webpage has an entire section in Spanish. Furthermore, consumers who call our toll-free number, 1–888–CALL–FCC, may receive assistance, 

including DTV-related information, in either English or Spanish. 

Events and Conferences. Another important way we have been disseminating information is through our participation in events and conferences. For example, we 

have worked with AARP to arrange a speaking role for Commission staff on the 

DTV transition at AARP’s annual convention this fall in Boston, MA, on one of the 

convention’s ‘‘Presentation’’ stages. We are also working with AARP to obtain prime 

exhibit space on their convention floor that will further enable us to spotlight the 

DTV transition and its implications for seniors. 

We recently announced that we will host a DTV Consumer Education Workshop 

on September 26. The Commission’s workshop will consist of officials from organizations who represent a broad range of DTV stakeholders, including government agencies, industry, tribal organizations, disability community groups, non-English speaking groups, senior citizen organizations, low-income consumer representatives and 

other public interest organizations that may represent underserved customers or 

those living in rural areas. The purpose of this workshop will be to provide an opportunity for all interested parties to jointly discuss the challenges associated with 

the upcoming transition and explore ways in which these organizations can work 

together, in conjunction with the Commission, to develop coordinated consumer education activities. 

In addition to furthering the activities already discussed, the additional funding 

we have requested from Congress will allow us to undertake several new initiatives 

that will greatly enhance our efforts to reach those consumers who currently rely 

upon over-the-air service. For example, in order to reach consumers more directly, 

additional funds would allow us to expand our dissemination of published materials 

through targeted direct mailings of DTV-related information to hundreds of thouVerDate Nov 24 2008 09:36 Sep 05, 2012 Jkt 075679 PO 00000 Frm 00017 Fmt 6633 Sfmt 6621 S:\GPO\DOCS\75739.TXT JACKIE
14 

sands of households, with a focus on underserved communities and senior citizens. 

And, we could translate our DTV consumer education materials into languages 

other than Spanish, possibly including French and Mandarin, and distribute these 

materials through government and community organizations serving immigrants 

and non-English speaking consumers. 

Conclusion 

In conclusion, the Commission is committed to ensuring that Americans are not 

left in the dark after the DTV transition. Through all of our activities—policy, enforcement, and consumer outreach—the Commission is dedicated to minimizing the 

negative impact of the upcoming transition. We look forward to working closely with 

Congress, other agencies, and industry and consumer groups during the next 18 

months to minimize the burden on consumers and ensure that all consumers reap 

the benefits of the digital transition. As the deadline approaches, we plan to continue our close coordination with the NTIA and the DTV Transition Coalition and 

to accelerate our consumer education and outreach initiatives, as funding permits, 

to ensure that all Americans are aware of the transition and understand what steps 

they need to take in order to continue watching TV when analog broadcasting ends. 

The CHAIRMAN. I thank you very much. 

Mr. Secretary, Ms. Seidel, your testimony suggests that much is 

being done. However, recent polls taken in the United States suggest that anywhere from 60 to 90 percent of our fellow Americans 

are not aware of this transition. Yet, on the other hand, we have 

been told that, in the British Isles in the United Kingdom, about 

80 percent of their citizens are aware of the transition. Is there 

something they’re doing right, and we’re not doing? 

Mr. Secretary? 

Mr. KNEUER. Well, I think, if you’re looking at whether or not 

consumers are aware of the actual date that this transition concludes, in February of 2009, I’m not surprised that there is less 

awareness of that. I expect, as our public education campaigns 

ramp up, and as the broadcasters’ campaigns ramp up, awareness 

of the conclusion of this transition will improve. But I think there 

are tens of millions of American households that are currently 

aware of digital television and high-definition television. By the 

end of this year, the reports are, there will be 85 million DTVs sold 

and in households across America. So, I think Americans are getting very broadly aware of, and accepting of, DTV, but we certainly 

have more work to do over the next 18 months to make sure that 

they are aware that this transition will come to a conclusion in 

February of 2009. 

The CHAIRMAN. Ms. Seidel, do you have any suggestions? 

Ms. SEIDEL. I agree with Mr. Kneuer, in that, certainly as we 

ramp up and accelerate our educational programs and our consumer outreach, we think that the awareness will increase. We 

think that the efforts we have undertaken so far have increased 

awareness, but recognize there is still much to do. 

We are hoping, for example—the Chairman just announced the 

new membership of our Consumer Advisory Committee, and he 

tasked it with its primary focus being on the DTV transition and 

helping us help to ensure that all consumers are made aware. And 

we have a broad array of organizations that are represented there 

on the membership, including AARP, including organizations representing people who are disabled, and including organizations representing people from rural communities and other consumer 

groups. So, we think that we will receive input that will help us 

15 

find and develop partnerships with others, to help us get the word 

out and increase awareness as the transition nears. 

The CHAIRMAN. We have provided $5 million for the education 

program on the transition. On the other hand, the British have 

provided $400 million for similar education, with a smaller population. Do you think $5 million is adequate, Mr. Secretary? 

Mr. KNEUER. Five million dollars is certainly a limited pool of 

money to do a broad nationwide education campaign, but I think 

it was at least implicitly understood by setting that amount that 

the vast majority of the public education would be performed by 

those industries that have an interest in this transition: the broadcasters, the cable industry, and the consumer electronics industries. And they have committed to conducting a very active and 

broad consumer education campaign. We’re focusing our $5 million on making people aware of the existence of our coupon program, that there is, in fact, financial assistance for those consumers who need assistance with the transition and haven’t effected the transition in some other way on their 

own. We’re going to be issuing a contract, middle of next month, 

where, included in that, will be the funding of that $5 million for 

that broad consumer education campaign. 

The CHAIRMAN. I thank you very much. 

Senator Stevens? 

STATEMENT OF HON. TED STEVENS, 

U.S. SENATOR FROM ALASKA 

Senator STEVENS. Well, thank you very much. 

One of the things I pointed out in the statement I put in the 

record is that we have tied this coming auction to the whole subject 

of the changeover in DTV. We have provided that, as the money 

comes in from the auction, it’s automatically available from the 

Treasury; a billion dollars for interoperability grants, $11⁄2 billion 

for a converter box program, $7.3 billion for deficit reduction. And 

then we go into a cascade of funds, thereafter, from the auction. 

Now, Secretary Kneuer, it was our estimate that the auction would raise in excess of $10 billion. And—based on that estimate, 

we made these allocations. There is money for public safety programs, as well as wireless alerts, and E–911. The whole concept related to DTV conversion and the availability of funds in order to 

go into the emergency side is tied to this auction. 

Now, let me ask you this. Do you think the current auction rules 

proposed by the FCC are going to undermine that value? Should 

we look forward to having less money come from the auction because of the change of the rules proposed by the FCC now? 

Mr. KNEUER. I think we’ve had the highest degree of success in 

auctions where we provided maximum flexibility, from a technology 

standpoint, from service-providing standpoint. You know, the auction that we concluded last year, for the AWS auction, raised $14 

billion. And I think maximum flexibility does tend to lead to maximum revenues. 

Senator STEVENS. Well, should we be thinking—I’m sure the 

Chairman has mentioned, already—should we be thinking about 

finding ways to finance a part of the public information program 

because of the reduction in funds available from this auction? 

16 

Mr. KNEUER. I would hesitate to make a guess of what the actual 

auction revenues would be. You know, I would look to OMB and 

CBO and others to come up with actual scores. I am very mindful 

of the fact that the money that we’re currently spending, we’ve borrowed from the Treasury. This is in anticipation of those revenues 

coming in, when—like you said, our first obligation when the auction revenues come in is to provide $7.2 billion to the Treasury for 

deficit reduction. Then we can pay back the money that we’ve already borrowed, and, to a large degree, already spent. So, I’m very 

focused on making sure that we do have auction receipts that will 

cover all these expenditures under the statute. 

Senator STEVENS. In that legislation, we gave several entities the 

right to borrow against the money that would be in the Treasury 

once this auction took place. I’m a little worried about it. Not just 

a little. Senator Inouye and I started the auction concept. The first 

time we had an auction, it was estimated that we’d bring in somewhere less than a billion dollars; I think it was a little over half 

a billion dollars. That brought in $17 billion, as I recall. And now 

we have an estimate that it is at least $10 billion. Based upon that 

conservative side of $10 billion, Congress, at our request, made 

these allocation of funds in advance, and gave people—gave entities—the right to borrow against those funds based upon the timing of this auction. Now, I’m sort of worried about the fact that 

there is an undercurrent here now that, maybe, because the public 

isn’t ready for this auction—this transition, we should delay the 

auction, or we should delay the transition date. That either one is 

going to cost the taxpayers money, in my opinion, in the long run. 

Because if we don’t get the money from the auction, we’re going to 

have to pay back the money you’ve borrowed from the Treasury. 

And that’s going to be a real battle up here, I think. 

What about the converter box program? As I said, that is basically going to be financed by the auction. What are you doing now 

to reach out to places in rural Alaska or rural America, to make 

sure people understand about the necessity to have those boxes? 

Mr. KNEUER. Absolutely. We’re going to be issuing the contract 

for the vendor who will perform the management of the coupon 

program, including the consumer education efforts. When we put 

out our Request for Proposals for that contract, the things we focused on, and asked the vendors to focus on, were their proposals 

to reach out to rural America, to reach out to retailers to participate in this program, not just big-box retailers and large nationwide chains, but also give us proposals on how they intend to reach 

out to rural retailers and smaller businesses. We’ve been working 

with the Alaskan Native Broadcast Corporation and Native Voice 

One to reach out to tribal communities. We clearly have a focus, 

given the limited amount of resources that we have in this program 

for consumer education, to make sure that those monies are focused, to the extent possible, on rural, hard-to-reach, hard-to-serve 

communities. 

Senator STEVENS. Ms. Seidel, I don’t know what your responsibilities are, vis-a`-vis the Commission itself, to talk to them about the 

relationship between these proposed changes and the responsibility 

of the FCC, as far as the transition is concerned. Tell me, do you 

17 

advise the Commission on the impact of some of the proposed 

changes and what they might do to consumers? 

Ms. SEIDEL. In terms of—if you’re talking about the specifics of 

the particulars of the 700 MHz auction, that is a proceeding that 

is handled by our Wireless Bureau, which Fred Campbell heads up. 

Based on the discussion and the exchange a few minutes ago, I will 

certainly take your suggestions and your concerns back to the Bureau. If you had particular questions about consumer outreach and 

how we are undertaking to reach rural communities and communities in Alaska and other places, I’m happy to provide you with 

some suggestions of things that we have been doing in that regard. 

Senator STEVENS. Well, my feeling is that maximum flexibility 

leads to the maximum amount of funds coming in from the auction, 

and if the maximum amount of funds are there, we’re going to have 

all this cascade of funds that Congress has already provided to the 

transition. Now, again, I can’t get involved in some of your in-house 

conversations, but do you believe the Commission’s aware of the 

connection between flexibility and the amount of funds that come 

in? 

Ms. SEIDEL. Oh, certainly. Consumer awareness and making sure 

that we promote the digital television transition and reach all consumers, especially those that are hard to reach, is a priority for the 

Chairman, and certainly the 700 MHz auction is a priority for the 

Chairman. So, certainly I think the interrelationship between those 

two is something that is, you know, constantly discussed. 

Senator STEVENS. Well, I’ve got to confess, I’m sorry, now, we 

agreed to the concept of 7.3 billion for deficit reduction before some 

of these other matters are dealt with, including paying back some 

of the money that has already been borrowed from the allocations 

of funds that are below that, in terms of looking at the total 

amount that’s brought in. 

I hope people are aware of the connection between this auction 

and the transition. The—— 

Please, I’ve got enough already. Thank you. 

[Laughter.] 

Senator STEVENS. I do think that we have—the greatest problem 

right now is the distribution of these converter boxes to rural 

America. If there is anyplace rural in America, it is Alaska, 241 

small villages out there, and a whole series of small communities 

that are not villages, they’re not tribes and tribal villages. It just 

seems to me that we’ve got to have a greater awareness of the 

problems. 

Senator Inouye’s Hawaii, most people don’t realize that the ring 

of islands around there—actually, if you put a circle around Hawaii, it’s larger than Alaska. But there is a lot of water in between. 

[Laughter.] 

Senator STEVENS. But the problems of distribution are the same. 

Their communications are different, their means of transportation—70 percent of our villages can be reached only by air, year 

round, and we’ve got a problem of dealing with them, in terms of 

converter boxes. So, I just don’t think that the people that are suggesting a delay understand what the impact of that delay is going 

to be on places like Alaska. And I don’t think the FCC understands 

that this rattling the cage over this, what’s going to happen at the 

18 

auction is doing anything other than reducing the amount of money 

we’re going to get in. Now, I hope that people settle down and we 

keep the schedule, and the schedule works. I think it will work, 

and I think we’ll bring in more money than we expect if we don’t 

rattle this cage any longer. 

Thank you, Mr. Chairman. 

The CHAIRMAN. Thank you. 

Senator Sununu? 

STATEMENT OF HON. JOHN E. SUNUNU, 

U.S. SENATOR FROM NEW HAMPSHIRE 

Senator SUNUNU. Thank you, Mr. Chairman. 

First, just a couple of observations, as we didn’t all have opening 

statements, and I know more formal comments will be placed in 

the record. 

But I, first, want to make the observation that there is a little 

bit of good news here, in that we seem to have moved past the idea 

of delaying the transition date. And that’s really only in the last 

few months that I think we really nailed that down with the finalization of the regulations. And I think everyone feels confident that 

we’ll be able to get this transition done. And, as an advocate of 

doing it even earlier, I think the fact that there is so much confidence in holding that date, at this point, is an indication that we 

could have done it even earlier, which would have been good for 

consumers, and good for the economy. But I am pleased to know, 

or to make the observation that we’re beyond a discussion of delay. 

Second, I think we need to remember that, among the greatest 

beneficiaries of this process will be public safety. We’ve got 24 MHz 

that’s going to be put into the hands of public safety. That’s important. It’s something I think the members on this committee strongly support. But it is also important that, at the end of the day, that 

24 MHz is used in—as efficiently as possible, and that we not burden the public safety spectrum with regulations, or with mandates, 

with regard to the technologies that can be used in providing that 

spectrum for public safety. 

There’s a lot of skepticism about the intelligence of the American 

consumer, every time we talk about digital transition, and I want 

to stand up for the general intelligence, the ability, and the flexibility of American consumers. We want to make sure we have good 

ad campaigns, good communication, but, at the end of the day, I 

remain confident that the video/television-watching public is going 

to be able to understand what’s available to them, in the way of 

technology, to help with this transition, what’s available to them in 

the way of products and services, whether it’s satellite or cable or 

fiber to the home. All of these are going to be able to deal with the 

digital transition in a very effective way. 

Finally, I think it’s important to emphasize that if we want this 

to go smoothly, we’ve got to end the debate about other regulations 

in the digital transition. Discussion about down conversion, discussion about multicarriage or must-carry, I don’t think that’s helpful. 

I think those are the kinds of 11th-hour regulations that will cause 

problems for consumers, not because they’re not capable or understanding of the process, but because imposing those regulations at 

19 

a late date will change the dynamics of delivering the products, 

will change the dynamics of the communications campaign. 

So, I think we’re on the right track, and I think consumers are 

going to be able to handle this well, but I do want to hear our panelists address a couple of issues. One was touched on briefly, and 

that is the ad campaign, the publicity campaign. The point was 

made that $5 million is a relatively small budget, in the way of 

communications and advertising it and for Mr. Kneuer. But, as you 

mentioned, the private sector is going to play a role here, and it 

is a little disappointing that we don’t have anyone representing the 

private sector on either of these panels, to talk about what they are 

or aren’t doing. How much are they spending? How do they feel 

about the consumers that they serve? Because they’re the ones that 

are going to be on the front line in dealing with consumers if this 

transition isn’t handled well. As politicians, we’re going to bear 

some of the burden and the blame if the process doesn’t go well, 

but that’s different than dealing with 5 million or 10 million or 20 

million subscribers or viewers that might not be happy with the 

process. 

So, I would like you to address the issue of private-sector support. What do you see out there now? And have you made any effort to estimate how much will be spent by distributors, content 

providers, and broadcasters in their effort? 

Mr. KNEUER. Sure. The people who are going to be most affected 

by this, these are the broadcasters’ customers. There are massive 

market incentives for the broadcasters to reach out to their customers and continue to have contact with their customers after the 

transition. So, there is absolutely going to be a large, concerted 

campaign, not just by the broadcasters, but also by the cable industry, the consumer electronics industry. I talked a little bit in my 

testimony about this DTV Coalition, that started with those three, 

and now includes over 120 members. It’s not just the market participants in these industries that are taking part in this coalition 

now, but also those organizations that have special missions to 

serve special constituencies and identify groups that may be difficult to reach. 

I think the good news is that the easiest way, and the best way, 

to inform people about a change in television is through television. 

So, the broadcasters, by putting on campaigns, those who rely most 

on television, watch the most television, are likely to get the most 

information about this and accelerate the transition on their own. 

So, I don’t have a sense—and I don’t know that they have provided, sort of, a dollar figure, ‘‘We’re committing X number of dollars in PSA announcements,’’ and the rest. But they have been 

working together, and have made a commitment to an accelerated 

broad campaign that will get much larger and much more intense 

as we get closer to the transition—get closer to the conclusion of 

the transition. 

Senator SUNUNU. The money that’s been allocated for converter boxes, $1.5 billion, was based, in part, on CBO estimates, and, in 

part, on the estimates of the number of households that receive 

over-the-air signals—over-the-air-only signals. In our committee 

memo, it’s noted that, according to the FCC, as of June 2004, less 

than 15 percent of households relied exclusively on over-the-air 

20 

transmission. I can’t help but notice that that number is 3 years 

old, and it would seem to me to be quite helpful to have a number 

that’s a little bit more current. Do either of you have more current 

figures? 

Ms. Seidel? 

Ms. SEIDEL. I would have to check with my colleagues in the 

Media Bureau on that, but I certainly can check and get back to 

you. 

Senator SUNUNU. Mr. Kneuer? 

Mr. KNEUER. We have been looking at numbers from lots of different sources. There are the FCC numbers. Different industries 

come up with different numbers. I’ve been hesitant to pick an industry number and say, ‘‘This is absolutely the right one.’’ But the 

clear trend is that that number is shrinking, if by nothing else, by 

the virtue of the tens of millions of digital sets that are being sold 

year after year. So, clearly that number is going down. And, I 

think, as people get more aware of the transition, millions of Americans are effecting the transition on their own, either by buying 

DTV sets or subscribing to cable to satellite. 

Senator SUNUNU. Yes, I agree with that answer, but I can’t help 

be a little bit disappointed that it seems neither the Senate Commerce Committee, nor the FCC, nor any of the other sources that 

we rely on can give us a more updated number than that June 

2004 number. Clearly, it’s going down. I think that’s a good thing. 

And I think, on the whole, the estimates of the cost of this converter program were probably higher than will ultimately be the 

case. 

A final point. On the proceeds of the auction that Senator Stevens raised concerns about, I’m concerned about the proceeds of the 

auction. Mr. Kneuer, as you emphasize, the more regulations, the 

more encumbrances, the more requirements you place on those 

that purchase or win in the auction for spectrum, the less you’re 

going to get from that auction. That’s an economic fact of life. And 

it does place some of these programs at risk. There could ultimately be less in proceeds, because of the regulations and encumbrances the FCC is considering on the upcoming auction. That is 

a reason not to change the allocations, but not to place the encumbrances on the auction in the first place. If the goal for the taxpayers, for the country, for competitive reasons, is to make spectrum available so that it can be used in innovative and dynamic 

ways, then we need to avoid coming up with new ways to regulate 

and devalue the spectrum just prior to its auction. That’s certainly 

something—I feel very strongly—but I’d like to give you both an 

opportunity to respond. 

Mr. Kneuer, has the administration raised concerns or voiced opposition to limitations on the 700 MHz spectrum? 

Mr. KNEUER. You know, I am, likewise, with regards to the auction proceeds and the revenues, I think, as Senator Stevens was 

saying, we’ve already borrowed large amounts of money. It’s my 

signature that’s on the promissory note, so getting the auction revenue in to pay back those notes is of keen importance to me. I 

think you’re right, that the more flexibility we put on spectrum in 

the past—you know, we’ve had maximum revenues and lots of innovation—that being said, I think the situation around 700 reVerDate Nov 24 2008 09:36 Sep 05, 2012 Jkt 075679 PO 00000 Frm 00024 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\75739.TXT JACKIE
21 

mains pretty fluid. There are still people out there pushing for even 

more regulation than the things that have been proposed, whether 

it be wholesale, which sounds a lot like regulated resale rather 

than wholesale. I think there are people who are expressing concerns about, if there are constraints on the big block of spectrum, 

maybe the incumbents will be forced into, and dominate, the smaller geographic areas and the smaller blocks. So, I think there is lots 

of movement. You’re seeing people in the industry still putting in 

proposals, so there is lots of movement around this, as of now. 

At the end of the day, I would certainly hope that they would 

adopt policies that maximize innovation and maximize investment 

and bring in enough revenue that we’re going to be able to cover 

all these programs and have the $7.2 billion for deficit reduction. 

Senator SUNUNU. Thank you. 

Thank you, Mr. Chairman. 

The CHAIRMAN. Thank you very much. 

Senator Klobuchar? 

STATEMENT OF HON. AMY KLOBUCHAR, 

U.S. SENATOR FROM MINNESOTA 

Senator KLOBUCHAR. Thank you, Mr. Chair. 

And thank you for being here. I would share what Senator 

Sununu is saying, that this is an exciting opportunity, with digital 

television, but, at the same time, we’re only 19 months away, as 

you know—I assume you have the calendar marked on your wall— 

from the February 17, 2009, transition date; and I was thinking 

back to Y2K. I was county attorney at the time, and everyone was 

hooked up with cell phones that night. It was New Year’s Eve, and 

I think I talked to our sheriff and our police chief, and I remember 

us just waiting for something to happen, and everything went quite 

well. And I think part of that was the planning. 

I’m concerned about this, because of the fact that we have 

457,000 households—this is according to Nielsen, that are over-theair analog TV in Minnesota, and that’s just in my state. And, of 

course, most of them are rural customers, and many of them are 

elderly. 

My question, just to follow up on some of the Chairman’s questions, with Great Britain, 80 percent of them know—and I think 

our stats show 60 percent of American consumers don’t know, or 

even higher—and in Great Britain, you have 80 percent of them 

aware of the transition. So, what exactly are they doing differently? 

Just concisely, what are they doing differently in Great Britain? 

Mr. KNEUER. Well, they’ve got a very different relationship with 

their TVs in Great Britain. They’ve got a annual tax that the government reaches out to consumers every year and says, ‘‘This is the 

amount of money you owe for your television.’’ So, the government 

already has a built-in relationship with every TV customer. So, 

that may be one aspect of it. 

But, like I said, I’m not surprised that the awareness of the conclusion of this transition is not extraordinarily high right now, but 

I think there is a broad awareness and a broad acceptance of the 

DTV transition, and American consumers are availing themselves, 

and effecting the transition on their own, in huge numbers. As we 

get closer, I think, if the ad campaigns by the broadcasters and 

22 

others focus on, as we get closer, ramping up, making people 

aware, that, you know, the end is, in fact, coming. 

Senator KLOBUCHAR. So, is there a commitment that the broadcasters are going to be making these—doing these ads and commercials? 

Mr. KNEUER. Well, they’ve made public announcements and commitments. I don’t have regulatory authority. I think the Commission is introducing rulemakings on specific commitments on the 

amount of public awareness that they’ll be required to do. But certainly it is not only their responsibility, but it’s in their own best 

interest to make sure that their customers are aware of this and 

that they retain access to those customers after the transition. 

Senator KLOBUCHAR. Maybe this is for Ms. Seidel. This might be 

a naive question, but is there a way to target the advertising to the 

analog TV customers? 

Ms. SEIDEL. I think, in talking with the Digital Television Transition Coalition, and in talking to NAB in that respect, as well, my 

understanding is that there is a fair amount of research underway 

to try to target in more detail exactly where those over-the-air 

households are. And I’ve received or, I’ve seen some statistics, thus 

far, that are by state, and percentages of the population within 

each state that are over-the-air viewers. And my understanding is 

that members of the coalition are trying to get that down to a more 

granular level, and getting it down by county, and that they feel 

confident they’ll be able to get that figure by county. And then, you 

know, we would target—certainly, the Commission would be looking to target our outreach in those counties and in those areas 

where that percentage is relatively high, and starting there. 

Senator KLOBUCHAR. OK. And then—— 

Ms. SEIDEL. But—— 

Senator KLOBUCHAR.—you know, I’m—go ahead. 

Ms. SEIDEL. Oh, excuse me. 

Back to what Mr. Kneuer said, though, the item, that I mentioned earlier in my remarks, that the Commission is considering, 

does ask questions about whether the broadcasters should be required to report on their outreach efforts to date, and whether 

there should be other types of industry-required reporting or actions to help further outreach on the private sector. 

Senator KLOBUCHAR. And when will the Commission complete 

this consideration? 

Ms. SEIDEL. My understanding is that the Commission has 

adopted the item and is endeavoring to get it released as quickly 

as possible, so that will be in the very near term. 

Senator KLOBUCHAR. Then my last group of questions are about 

the rural customers. And, as we know, they disproportionately rely 

on this. It’s my understanding that they will most likely have to 

rely on a coupon program to get a converter box. I’m trying to 

imagine how this will work, in practice. You know, what’s going to 

happen to those that are not near an electronics retailer? We have 

some counties in Minnesota that it can take hours to get to a electronics retailer. So, how are they going to get the converter box? 

Is there going to be a mail-order system? Or what’s going on to 

help them to get these boxes? 

23 

Mr. KNEUER. The coupon program is designed to reach all of 

those kinds of consumers. With regards to retailers, we want to 

make sure that we have an outreach to retailers that goes beyond 

just the big nationwide chains and the large consumer electronics. 

So, we’ve allowed for retailer participation from mail-order, over 

the Internet, as well as traditional brick-and-mortar, and we’ve 

also required that the vendor who’s going to fulfill the coupon program for us has a plan to reach out to some of those nontraditional 

retailers to make sure that the same sorts of retailers that your 

constituents rely on for all of their day-to-day needs will also be 

able to participate in the coupon program. 

Senator KLOBUCHAR. Thank you very much. 

The CHAIRMAN. Thank you very much. 

Senator McCaskill? 

STATEMENT OF HON. CLAIRE MCCASKILL, 

U.S. SENATOR FROM MISSOURI 

Senator MCCASKILL. Thank you, Mr. Chairman. 

I’m concerned that, as of fairly recent data from Nielsen and the 

broadcasters, one in five Missourians is getting over-the-air signal 

right now. I mean, frankly, this scares me, politically. I mean, 

there is no anger that comes close to the anger of an American who 

can’t get television. 

[Laughter.] 

Senator MCCASKILL. And I know who they’re going to blame. 

They’re not going to call you, Mr. Kneuer. And they’re not going 

to call you, Ms. Seidel. But you know who they’re going to call? 

They’re going to call me, and they’re going to be mad. So, I am very 

discouraged that we don’t have more finite answers this morning. 

I mean, we’re talking about something—I mean, this is like tomorrow, if we’re talking about government time. 

[Laughter.] 

Senator MCCASKILL. I mean, the idea that this rule hasn’t been 

finalized yet as to what we can even expect, in terms of PSAs and 

bill inserts, really worries me. Can you tell us what the Commission—are they going to require the broadcasters to begin PSAs at 

a certain date? Are they going to require bill inserts anywhere, in 

terms of that? I mean, do we know what they’re going to require, 

the Commission? 

Ms. SEIDEL. Because that proceeding—the item has not been released, and the text of it will be released soon—I think it would 

be premature for me, and because I was not part of the staff that 

worked on that proceeding, I can’t really tell you the specifics, but 

it would seek comment on issues such as those. But, in addition, 

I can talk to you a little bit about the concerns you raised about 

outreach and how people are going to be made aware. 

I think your point’s well taken, that it will be very challenging 

to directly touch every single American about the transition and 

make sure—or make sure the ones we’re touching are the ones that 

are the consumers who rely exclusively on over-the-air. That’s why 

part of the Commission’s approach to this has been, not only just 

developing the materials and making sure that we distribute them 

to consumers who call, or consumers who write us, or e-mail us, 

but making sure that we establish partnerships with groups all 

24 

around the country that serve and/or have members who are part 

of the group—the communities we think will be most difficult to 

reach, including people in rural areas and senior citizens, people in 

tribal areas. We had a very productive Indian telecommunications 

initiative earlier in the month, where we had over 78 different— 

I believe it was 78 different tribes there representing over 30 tribal 

nations, and we had radio stations—tribal radio stations and tribal 

broadcast stations who agreed to work with us to make sure the 

word got out to those hard-to-reach—— 

Senator MCCASKILL. I think that’s fine. But let me disagree with 

you. And I don’t have a lot of time, and I’ve got several questions. 

You know, it’s not hard to educate the United States of America. 

It’s called—you do it over television. You know, look around this 

room, and you’ll see people that spent a great deal of their lives 

raising money in order to communicate over television. We know 

how to reach people through television. And what I’m frustrated 

about is that these PSAs and this education—I mean, you all are 

supposed to be the experts on educating consumers on this transition, but yet, no one can give us definite answers when broadcast 

education is going to begin with public service announcements. I 

would appreciate, just as soon as either one of you know—when 

there is any kind of requirement that these broadcast announcements are going to begin so that people will understand. 

Let me move to the boxes. Has NTIA field tested any of these 

boxes yet? 

Mr. KNEUER. We’ve received—under our regs, manufacturers 

that wanted to submit a box have to submit an expression of interest in detail saying that, ‘‘We intend to build the boxes, and we intend to participate in the program,’’ 60 days prior to submitting a 

box to us. We’ve received a large volume of those expressions. We 

have some boxes already in. We’ve got an MOU with the FCC that 

we will be using their labs, in coordination with us, to verify the 

boxes, to make sure that the boxes that enter the marketplace actually meet our specs and are functional. 

Senator MCCASKILL. I take it—— 

Mr. KNEUER. But we’ve had—— 

Senator MCCASKILL.—that is no. 

Mr. KNEUER. We have—we do have boxes that are—have been 

submitted. We have not—— 

Senator MCCASKILL. Have they—— 

Mr. KNEUER. We have not—— 

Senator MCCASKILL.—been field tested yet? 

Mr. KNEUER. I don’t know the status of the actual testing, but 

all that is ongoing. 

Senator MCCASKILL. OK. I would love to know if any of the boxes 

have, in fact, been field tested and what the results of those field 

tests were. The only thing that’s going to make people madder is 

if they get these coupons, and they get the boxes, and then their 

signal is degraded and they don’t get a good signal. And so, I would 

like to know what the specific plans are for field testing, and what 

the results of those field tests are. 

It’s my understanding these coupons are going to be available 

January 1. 

Mr. KNEUER. Yes. 

25 

Senator MCCASKILL. So, we’re talking literally 6 months from 

now. 

Mr. KNEUER. Yes. 

Senator MCCASKILL. It’s also my understanding that we couldn’t 

get Best Buy’s CEO, in the House, to even commit that he would 

put coupon-eligible boxes in all of his stores. Do we have any commitment from the retailers of America as to the availability of 

these boxes? And the second part of my question is, do we have any 

plans underway to protect seniors? Because this is going to be an 

area that will be very easy for the elderly to be preyed upon with 

people handing out coupons that aren’t real, providing boxes that 

don’t work. So, I’m concerned that since we’re going to start handing these coupons out in 6 months, and we don’t even have a rule 

we can talk about in public yet as to how we’re going to tell people 

about the coupons, but yet, we’re going to have the coupons available in 6 months. I mean, I am really worried about this. 

Mr. KNEUER. To the point on the boxes, the details on what the 

field tests are, what the requirements of—all of those were published in our rule. They’re transparent. We’ll get you the information on that. 

And, as we conclude testing, and we approve boxes, that information will be made public. So, all that information will come out on 

a rolling basis as they enter the market. Multiple manufacturers 

are on the record saying they intend to have these boxes in the 

marketplace, so I’m confident, given the resources that we’ve put 

into the program, there is a billion-dollar marketplace for this. 

There have been very broad expressions of interest by the manufacturers that there will be boxes in the marketplace. 

As far as the retailers, as I said, we’re going to be issuing our 

contract with the vendor in the middle of next month. Part of our 

agreement—part of the request that we put in to the vendors that 

would fulfill that contract is outreach to the retailers to make sure 

that they are getting as many retailers as possible to get into—participate in the program. 

Getting to your point on seniors and fraud, one of the challenges, 

and one of the reasons you don’t want to allow any retailer, without any constraints, to participate in the program, is, you want to 

have some constraints, to make sure that these retailers have systems in place to prevent waste, fraud, and abuse, that they are not 

coming up with phantom coupons and defrauding the government. 

So, all of those things are, sort of, balanced together in our rule. 

But, no, I absolutely agree, it’s very important that we have as 

broad a cross-section of retailer participation as possible, that these 

devices are out there, as widely distributed as we can get them. 

That’s why we didn’t rely simply on brick-and-mortar, but we’re allowing for online retailers and catalogs. So, I think there will be 

a broad distribution of these across, essentially, all communities. 

Senator MCCASKILL. I thank you very much. I appreciate—Mr. 

Chairman—I will warn you that, when people start calling in, I’m 

giving them your numbers. 

[Laughter.] 

Senator MCCASKILL. Thank you. 

The CHAIRMAN. Thank you very much. 

Senator Snowe? 

26 

STATEMENT OF HON. OLYMPIA J. SNOWE, 

U.S. SENATOR FROM MAINE 

Senator SNOWE. Thank you, Mr. Chairman. 

Well, I know, from the outset, when we considered this whole 

transition, almost, I guess, 10 years ago, could be more than that, 

that this was one of the driving concerns, the fact that, you know, 

we’re going to get ahead of the consumer in this process. And now 

that we have a definitive time, in terms of the deadline, and being, 

you know in 2009, in February 2009, and you still have 40 million 

households and, you know, 60 to 70 million television sets that will 

require this conversion, I mean, that’s a monumental undertaking. 

Now, I know that both of your agencies have websites. I’d be interested in knowing, Mr. Kneuer, if you could explain to the Committee as to how many people have been visiting your website. 

What type of information or feedback are you getting from consumers? Does it engage the consumer? I know, we have looked at 

it, and it seems to be, probably, you know not user-friendly, in 

terms of engaging the consumer in how this is all going to work, 

more practical information. So, can you describe what kind of feedback and traffic that you’re getting from this website? Because 

that’s going to be crucial. That can’t be the only thing. That’s just 

one dimension to this enormous problem. But it’s going to be public 

education, without question. 

The Horowitz Associates found that approximately 60 percent of 

consumers weren’t even familiar with the DDT—DTV transition 

that’ll affect them in this digital transition, and only 25 percent 

could even discuss it in any detail. So, we really do have a long 

ways to go in this process. 

Mr. KNEUER. I’m happy to get you the numbers on the number 

of web hits we’ve had at our webpage, and DTV.gov. What I can tell you is—based on the most recent meeting of the 

broad DTV Transition Coalition that includes the broadcasters and 

the industry participants they’ve got their own webpages. 

Currently, the vast majority of the traffic to their webpages is 

being driven by ours. So, consumers are starting out coming to the 

Government, looking at DTV.gov. We’ve got links to the other commercial sites. My expectation and anticipation is, as the education 

campaign ramps up, and the broadcasters and others engage in 

their activity, that ratio will shift dramatically, so consumers will 

be made aware of the transition by this broad industry campaign. 

We intend to slipstream behind that, making sure that, as they are 

notifying people about the broader transition, they are also directing them to us so they can find out about this program we have 

that will give financial assistance to those consumers who need it. 

Senator SNOWE. Do you have an agency that’s designing your 

websites? I mean, do you have any—I think, certainly, that you 

would want to, you know, probably reexamine it from that standpoint. 

OK. Ms. Seidel? 

Ms. SEIDEL. We have the DTV.gov website, and I can get you the 

number of hits and what feedback we have been receiving on those. 

I don’t have it with me. 

But the number of hits to the website have increased significantly, even from October of this past year. And, in terms of feedVerDate Nov 24 2008 09:36 Sep 05, 2012 Jkt 075679 PO 00000 Frm 00030 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\75739.TXT JACKIE
27 

back once people visit it, we do get e-mails from people about DTV 

questions. And I don’t recall—and we’ll check—but I don’t recall 

input about how to modify the site itself. But, then again, as I 

think I mentioned earlier, we are working with a number of community organizations and organizations representing the people 

that you all have talked about, and one of the things we do ask 

them is whether there are ways that we can make our website 

more friendly. But then, also, we recognize that not everyone uses 

the Internet. How else can we reach the consumers and the constituencies that you serve? 

But we do have, on the DTV.gov website, one of the pieces to 

that is a DTV Deputy Program Quiz. We’ve received very positive 

feedback on that piece of it, in particular, because it is geared toward students, who we know, in many cases, may be more technologically savvy than their parents and grandparents, and we go 

through, What is DTV? And what is the difference between the different types of DTV? When is the DTV transition occurring? And 

what might it mean for you? And what might you need to do, or 

your families and your friends and other ones—other people you 

know—need to do, to be sure that you’re ready, come February 17, 

2009? So, that is one piece of the website that I know we have gotten very favorable feedback. But we constantly look for ways to improve it. So, to the extent you all have suggestions, we would welcome them. 

Senator SNOWE. Well, do you think $5 million is sufficient for a 

national campaign to educate the public? 

Ms. SEIDEL. You know, I would refer to what the Chairman has 

said, and I think what we have been endeavoring to do is to maximize, with the resources that we have, our ability to reach people. 

Certainly, to the extent additional resources were made available, 

we could enhance the campaign. I think the Chairman has spoken 

about some of the things he would do with the additional 2008 

funds, like making sure that we have brochures and information 

about the transition in grocery stories in communities where we 

know there may be a high percentage of over-the-air users, and 

being able to run some print—you know, doing some PSAs ourselves, and certainly direct mail. 

Senator SNOWE. Well, you know, given, you know, this monumental task, and the number of TV sets and households remaining 

to make this transition to digital, you know, I would suggest having some kind of measurement, in terms of deadlines, to accomplish 

this goal. Can you measure it by the converter box purchases? 

What can you measure it by? And you should have timelines, 

frankly, so that it can go through this process through 2008. Otherwise, you’re going to converge, in 2009, and we’re going to have a 

disaster on our hands. 

Mr. KNEUER. We’re going to be able to measure the take rate of 

the coupons, and then, as the coupons are actually redeemed— 

under the statute, the coupons expire after 3 months, and I think 

we can expect that a lot of consumers will request these coupons, 

go into a retailer, and then decide to take some other path, either 

buy a set-top box with more functionality, buy a television, do 

something else. That coupon, then, would not be redeemed. We’ll 

be able to track the coupons going out, as they’re redeemed, and 

28 

those coupons that aren’t redeemed and expire after 3 months. So, 

we’ll have very real time tracking of how consumers are taking advantage of our program, where our resources are, and the amount 

of money that we have left. 

Senator SNOWE. Well, you should have a timeline for all that— 

I mean, certainly to know how many are outstanding, and having 

measurement along the way, so it doesn’t all converge in 2009. I 

mean, you really should have that calendar and measurement and 

standards, so that further outreach or other efforts have to be undertaken in order to accomplish this goal. 

One other question. You know, I come from a small rural state, 

and the National Association of Broadcasters estimates that 90 percent of the full-power stations will already be transmitting both 

digital and analog, and the conversion will be fairly seamless, but 

there are 10 percent or so—and there are certainly some stations 

in my state—that will have to have an immediate flash cut. So, is 

there a procedure in place to address that, to make sure that that’s 

seamless, as well? 

Mr. KNEUER. On the full-power stations? 

Senator SNOWE. The smaller stations. 

Mr. KNEUER. The low-power stations, we’ve got additional programs, under our responsibility, where we will provide translators 

for the low-power stations, so that, immediately upon the transition 

in 2009, where the high-power stations drop off, the LPTV stations 

will be able to have translators to continue transmitting to their 

communities. A second program will give them additional resources, to actually upgrade their translators to go to all-digital. 

Senator SNOWE. Thank you. 

Thank you, Mr. Chairman. 

The CHAIRMAN. Thank you very much. 

Senator Cantwell? 

STATEMENT OF HON. MARIA CANTWELL, 

U.S. SENATOR FROM WASHINGTON 

Senator CANTWELL. Thank you, Mr. Chairman. 

Mr. Kneuer, I’m glad you brought up the coupons, because my 

understanding is they are for 90 days, and obviously they’ll be 

available at the beginning of 2008. So, do you think that all the 

set-top boxes will be available for purchase, at that point in time? 

Mr. KNEUER. Certainly we expect there will be set-top boxes in 

the marketplace in January of 2008. If, for whatever reason, we got 

information there were not boxes available, and consumers were requesting coupons—the statute requires us to be able to process coupons as of January 1, 2008—if there was a disconnect between the 

availability of boxes, we wouldn’t want consumers to get those coupons, have them expire in 90 days, and not have boxes. So, we 

would hold, and not deliver, the coupons to consumers if there was, 

for some reason, a disconnect in the supply chain of the boxes. 

Senator CANTWELL. How are you going to do that? 

Mr. KNEUER. We will have information from the retailers, from 

the manufacturers, we’ll know how many boxes are out there. If we 

get an influx of coupon requests, but we have information that 

there aren’t, in fact, boxes—— 

29 

Senator CANTWELL. Are you going to look up every ZIP Code and 

then find a retailer in that neighborhood, and then see, and, if it 

is, then you’ll send out the coupon, and, if not—— 

Mr. KNEUER. I wouldn’t expect that the supply issues, to the extent there were any, would be small-market specific. There would 

either be a problem that they didn’t get the manufacturing completed, or there was only a few manufacturers that had gotten 

boxes done. Like I said, we’ve had a huge expression of interest 

from manufacturers, so I would expect there to be—— 

Senator CANTWELL. So, you’re thinking Wenatchee and 

Ellensburg and the Tri-Cities and Walla Walla, and all these 

places, they’re going to, on January 1, 2008, have available set-top 

boxes for purchase. 

Mr. KNEUER. That’s everything that we’ve seen in the response, 

that there would be boxes in place. 

Senator CANTWELL. And if they’re not, somehow are you going to 

look up that ZIP Code, and you’re not going to send out the coupon. 

Mr. KNEUER. Those are issues—like I said, if we received information that there were geographic problems on the distribution of 

boxes, we would have to go back to our vendor and make sure they 

have systems in place to deal with that. 

Senator CANTWELL. But there are no inventory requirements, is 

that right? 

Mr. KNEUER. That’s right. 

Senator CANTWELL. So, what happens if they run out of stock? 

Mr. KNEUER. Like I said, I think our intention, in designing this 

program, was to create it, to make it as easy as possible for manufacturers and retailers to participate, while doing what’s responsible to guard against waste, fraud, and abuse. So, we have adopted a standard for the boxes that was the broad industry-suggested 

standard. We adopted criteria for retailers that represented a broad 

consensus among the retail industry. So, we have, to the extent 

possible, wanted to encourage as much marketplace participation 

as possible, but, no, we don’t have regulatory authority to reach out 

to every retailer in American and say, ‘‘Here are the number of 

boxes you need to carry. You know, make sure you have this,’’ 

that’s not the way the program is currently set up. 

Senator CANTWELL. Well, I think you’re hearing a lot of frustration from members. It’s one of the reasons I’ve been concerned 

about the dates that we had set for this transition, is just how long 

it takes. Just because technology exists doesn’t mean that you can 

deploy it that quickly. And so, how we’re setting these mandates 

up, and, if you ask me, there is a high potential for a train wreck 

here. You’re basically, as we ask these questions, telling us, ‘‘Well, 

we’ve not optimized the program for that. We optimized the program for the retailers.’’ Well, it’s the consumers we’re asking to do 

something. We’re asking them to make a big transition. We’re 

using resources to try to help that, but a plan that basically has 

coupons available, and maybe not products available, and then the 

coupon expires, all of this. 

So, I think there is a great deal of confusion that could go on in 

this plan, and I suggest, Mr. Chairman, that we, certainly, look at 

upping the education process of the American consumer about this. 

I think the notion that this many people can transition over to an 

30 

adoption of new technology without significant problems is being 

shortsighted. 

But, let me turn to Ms. Seidel for a second, because one of the 

other issues is about—you know, I think in our state we have four 

different television markets, 36 different television stations, and 

over 2,000 translator stations. Some of those translators are in suburban communities, some of them are in small rural communities. 

I’m trying to understand, if you’re a consumer sitting at home and 

getting a signal from Seattle, but through a translator station 

that’s saying that you need to make this switch. Isn’t that process 

going to be confusing for some people? Because they might actually 

have a signal that they never have to switch, or at least there is 

no deadline in the legislation that says that they have to switch. 

Ms. SEIDEL. I think the point you raise about that issue and the 

potential for confusion is one we’ve talked about, as well, and we 

do envision putting together consumer materials to help answer 

questions before they arise, and to build awareness, and to try to 

help address questions that the consumer may have, if that’s the 

situation. 

Senator CANTWELL. What’s the answer you’re going to give to 

that consumer, who’s getting the signal from a Seattle station 

that’s emphasizing the digital transition and so, they listen to that, 

and they go out and make a set-top box purchase; then they find 

out from their neighbor, ‘‘Guess what? You never had to do that. 

We didn’t have to do that, because we have a translator station 

here. You didn’t have to go make that purchase.’’ So, now they’ve 

signed up for digital broadcast, the extra dollars that it takes to get 

the digital broadcast, they went out and made the purchase for the 

set-top box, and they find out from their neighbor they didn’t have 

to. How are you going to deal with that? 

Ms. SEIDEL. Well, I think part of it is an education and awareness issue. But I do think you’re right, that it will be fact-specific 

in many cases, so it’s hard to do, like, an across-the-board outreach 

on an issue that will vary from one area to another, but those 

issues—I think they are important ones, and I think they’re ones 

that will, you know, have the potential for raising questions for 

consumers, and certainly it’s one I’ll take back and see what more 

we could do on our side. 

Senator CANTWELL. Is there a hard date after which the television broadcasters—after February 2009, will we still have analog 

broadcasts? 

Ms. SEIDEL. On February 17, 2009, analog broadcasting would 

cease. 

Senator CANTWELL. But—— 

Ms. SEIDEL. But the low-power—I think, in terms of the lowpower stations, the analog translators, that would be a different 

issue, and, I think, related to the question you just posed. 

Senator CANTWELL. Again, I’m asking, because, obviously, these 

low-powered stations—this notion and the uses of ‘‘white space’’ 

and where we’re going with that. I think having a plan as it relates 

to the percentage of, you know, class A and low-power stations, and 

what you’re really going to do with them—— 

31 

Ms. SEIDEL. Well, I think probably the best thing for me to do 

is to take your questions back to the Media Bureau, who’s looking 

at those issues, and make sure that we get back to you. 

Senator CANTWELL. Thank you. 

Thank you, Mr. Chairman. 

The CHAIRMAN. Thank you very much. 

Senator Smith? 

STATEMENT OF HON. GORDON H. SMITH, 

U.S. SENATOR FROM OREGON 

Senator SMITH. Thank you, Mr. Chairman. 

For the record, I would note that some of the concerns being expressed—and, I think, specifically by Senator McCaskill, we included, in last year’s bill, a requirement for broadcasters to inform 

the public through public service announcements. And I guess my 

question is—you know, obviously they have an incentive to do this, 

do you know of a date, a plan of theirs—have they shared it with 

you—as to when they begin to meet this requirement to make public service announcements? 

Mr. KNEUER. Not with the level of granularity that would say, 

‘‘On this date, we will commence PSAs at the following volume, and 

then we will ramp up to a higher volume, and that, by the end, we 

are going to do an explicit number of PSAs and commit X number 

of resources.’’ They have committed that they will be conducting a 

broad campaign that will be based on polling on awareness, focused 

on pockets of population, based on what, the level of penetration, 

what their awareness is, and ramping it up as we get closer to the 

date. 

Senator SMITH. Well, I—obviously, they understand their own interests in this, do they not? 

Mr. KNEUER. I would think so. 

Senator SMITH. OK, you’ve got that—you’ve gotten that sense 

from them. 

You know, my own experience, as a dad, is that my kids—and 

I suspect all of yours—are really up on this, and they’ve already 

made the transition, and they’re already with high definition, and 

they’re demanding mom and dad get new TVs. And I know that 

has happened in our household. But I suspect that the AARP is 

correct in their concern about, specifically, the elderly. I know we’re 

sort of beating a dead horse here, because we’ve mentioned this 

over and over again, but obviously we mention it because of the obvious concern that many who are not part of the high-tech age are 

intimidated by it, don’t know what to do or where to go, and are, 

frankly, subject to exploitation through fraudsters and others. And 

I really think that needs to be the focus of your efforts. 

To that end, Senator Pryor and I sent a letter to Secretary 

Gutierrez and to FCC Commissioner Martin—it was to them jointly—and we asked them to do a number of specific things: to jointly 

prepare a program that has an explanation of the DTV transition, 

including its effective date and who is affected; second, instructions 

to determine whether a television’s—a television will receive a digital signal, and, if not, the options to ensure reception of a digital 

signal, and the related cost; to, third, inform related—information 

related to the National Telecommunications and Information AdVerDate Nov 24 2008 09:36 Sep 05, 2012 Jkt 075679 PO 00000 Frm 00035 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\75739.TXT JACKIE
32 

ministration Digital-to-Analog Converter Box Coupon Program; 

and, fourth, tips on how to avoid potential fraudulent schemes related to the DTV transition that may target the elderly. 

Do you know whether the commissioner or the Secretary have responded to that, have you gotten directions to this—— 

Mr. KNEUER. Well, we’ve got the letter, and we’re preparing a response for you. Each of the things, that I think you called out in 

your letter, are things that we’ve been looking at and working on, 

either directly, through our relationship with seeking a vendor to 

fulfill this coupon program for us, or through our collaboration with 

other Federal agencies that have, as a responsibility, reaching out 

to elderly communities, our partnership with AARP. So, we’ll certainly be getting back to you with more detail on each of those 

points. But all of those things are things that we’re focused on. 

I think—— 

Senator SMITH. But—— 

Mr. KNEUER.—one thing—sorry. 

Senator SMITH. No, go ahead. 

Mr. KNEUER. One thing, with regard to seniors and the elderly, 

is that relative to other age groups, they actually watch a little bit 

more television. And so, to the extent that most of this campaign—— 

Senator SMITH. I’m not sure that’s possible, when I think about 

my sons watching. 

[Laughter.] 

Senator SMITH. But you—you’re probably—— 

Mr. KNEUER. It’s high-school kids, and—— 

Senator SMITH.—right. 

Mr. KNEUER.—then it ramps up. But it’s—for 55–64, it’s an average of 2.6 hours a day. By the time you get above 75, it’s more than 

4 hours a day. So, they’re going to be recipients of a lot of this 

broadcast information about that. That being said, we need to 

make sure that, as they respond to this, that they’re not taken advantage of, as you said, by people who may seek to do that. 

Senator SMITH. Do you have any other comments, Ms. Seidel? 

Ms. SEIDEL. If I might. I do think the—I think the first couple 

of points that you mentioned, about having information available 

to the elderly that would explain to them how to find out whether 

or not what they have is a digital television, or what they would 

need to do, and making sure to explain what the transition is and 

when the transition date is, and providing information for them 

about what options are available for them to continue viewing 

broadcast television, come the completion of the transition—we do 

have a DTV fact sheet that includes all of those elements, and it 

also links to the NTIA website and information about the coupon— 

about converter boxes and the coupon program. 

In addition to that, we are definitely emphasizing our efforts to 

reach out to organizations that represent the elderly. And the 

Leadership Council on Aging, as I understand it, is an umbrella organization that represents something more than—close to 60 organizations that help people who are elderly. 

And then, finally, I would say that the Commission is definitely 

committed to addressing and investigating any information that it 

gets about potential scams that may be targeting the elderly, and 

33 

is definitely committed to taking enforcement action in this regard, 

just as it has done with respect to the labeling requirements and 

violations of the labeling requirements. So, certainly we understand your concern. 

Senator SMITH. Well, thank you for that. I look forward to a response to the letter and appreciate anything and everything you do 

in regards to these very obvious, but very important, steps that we 

need to take, as a government, to do our part of this. I think the 

number of Senators that have been here this morning are an indication that we understand, firsthand, that, while we get lots of 

calls in our offices about Medicare or Social Security or veterans 

issues, ranking right among those concerns is trouble with their TV 

sets, and so, that’s why we know the flood that’s going to come, and 

if we can make sure it’s not a tsunami, that would be great. 

Thanks. 

Mr. KNEUER. If I could put—— 

The CHAIRMAN. Thank you very much. 

Mr. KNEUER.—in a plug for our—— 

The CHAIRMAN. Senator Thune? 

Mr. KNEUER. As I say, we’ve supplied our pamphlets, in both 

Spanish and English, to every member of the Senate and of the 

House of Representatives, supplied a PDF link. So, to the extent 

you are getting constituent concerns about this, we’ve got information that I think can be helpful. 

Ms. SEIDEL. As do we. 

The CHAIRMAN. Thank you. 

Senator Thune? 

STATEMENT OF HON. JOHN THUNE, 

U.S. SENATOR FROM SOUTH DAKOTA 

Senator THUNE. And they’re all watching C–SPAN, so they’re 

going to make sure that they’re following all this that has happened. So—— 

[Laughter.] 

Senator THUNE. Thank you, Mr. Chairman and Vice Chairman 

Stevens, for holding this hearing. I also want to thank our witnesses for their testimony. 

And the digital transition is coming. It’s going to be here in 18 

months, and I think it’s important for this committee, as well as 

the agencies and groups that are represented on our witness panels, to do their part in highlighting the coming transition. There 

are a lot of other groups—industry groups that will also be required to play an important role. But, as we all know, change 

comes easier for some than others, and our younger generations 

are going to be more able to easily adapt to the digital transition. 

My daughters seem to intuitively know how to operate their iPods 

without reading the instructions, but our older generations, myself 

included, I think will probably find a lot of these changes a little 

harder to deal with. And I know the clock on my parents’ VCR is 

still blinking 12 o’clock, so I think that’s probably an indication of 

what we may be dealing with. 

But, in South Dakota we have 12.2 percent of our households 

who rely on free over-the-air broadcast television, which represents 

about 36—almost 37,000 households. And I’m sure a lot of those 

34 

households are older or lower-income families. And so, what we’re 

hearing from our witnesses this morning, I think, reinforces the 

fact that it’s these households that are going to be most impacted 

by the digital transition. And it’s my hope that, through efforts like 

what we’re doing here today, we can highlight the coming transition, help get people prepared for the change. 

I’ve got a couple of questions. This one, I’ll direct to either of Ms. 

Seidel or Mr.—do you say it ‘‘Kneuer’’? 

Mr. KNEUER. Kneuer. 

Senator THUNE. Kneuer. 

Ms. Seidel mentioned, in her testimony, that, as of March 1, 

2007, all television receivers shipped in interstate commerce or imported into the United States must have digital capabilities. Retailers are obviously still allowed to sell current inventory. But when 

do you believe there will be no more analog televisions for sale? 

Ms. SEIDEL. At this point, I wouldn’t speculate but I can certainly take your question back and see if some of my other colleagues in the agency have a good estimate for you. But I’m not 

sure I would have a good answer for you. 

Mr. KNEUER. I’m not sure we have good market data on that. I 

think the important thing—and I think the Commission’s been 

doing good work in this regard—is making sure that the retailers 

have clear labeling in the stores. There are consumers who actually 

may want one of those old analog TVs that are cheap, so they can 

hook it up to a video game or cable set-top box or whatever it may 

be. So, there are consumers who are going in, who, you know, may 

very well want to make an informed choice to purchase one of those 

sets. The critical thing is that it’s an informed choice and that 

there isn’t confusion in the marketplace as those last sets do move 

through. 

Senator THUNE. In your testimony, Ms. Seidel, you mentioned 

that the FCC staff had inspected 1,089 retail stores around the 

country to see how well retailers are informing consumers about 

the impending transition and complying with the new labeling requirements, and you mentioned 262 citations that were issued during those inspections. That’s about a 76 percent score for those retail outlets, those stores. As far as grades go, that’s not quite an 

F, but it’s a long ways from an A or a B. What do you think needs 

to be done to improve that labeling compliance at retail stores? 

Ms. SEIDEL. A couple of things. One thing, I think, which seems 

to always occur is, once there are enforcement actions taken, it 

does seem to get attention from others, from other companies 

around the country. So, I think the fact that enforcement action 

has been swift, and has been consistent, will help. 

Second, we have been working with the Consumer Electronics 

Retailers Council, who has, in conjunction with the FCC, put out 

a joint advisory to the retailers, reminding them of the labeling obligation and the requirement. And I think that, too, will help, because we do have the commitment of that organization to help us 

in this regard, and I think that, the consistent and continuous enforcement action, when it’s appropriate, will be helpful. 

Senator THUNE. What happens when you issue a citation? I 

mean, is there some sort of consequence associated with that for a 

retailer? 

35 

Ms. SEIDEL. And, again, this is probably a better question for my 

colleagues in the Enforcement Bureau, but I used to work there. 

The citation indicates that it appears that this violation has occurred, and warns them that, if it is occurs a second time, a Notice 

of Apparent Liability could be issued, and actual monetary forfeiture issued. So, they have a very clear incentive, after that citation, to fix the problem. And, historically, you know, that is generally the case. 

Senator THUNE. Citation will get their attention—— 

Ms. SEIDEL. Yes. 

Senator THUNE.—in other words. OK. And when you choose are 

you selective about how you audit, or is that sort of random retail 

stores around the country? And—— 

Ms. SEIDEL. That question, I will have to take back to my colleagues in the Enforcement Bureau and let you know. But I can 

tell you that enforcement of these issues is, indeed, a high priority 

for the Chairman and the Commission. And so, I will get the answer to your specific question, but it will be one that will be ongoing effort. 

Senator THUNE. We’ve got a billion and a half allocated for the 

Digital Conversion Box Program, and my understanding is that 

NTIA is going to use the first $990 million to distribute $40 coupons to—for converter boxes, on a first-come first-serve basis. 

There’s no means test and no requirement for a household to certify that they solely rely on the over-the-air broadcasts for television viewing. And I guess my question would be, What was 

NTIA’s rationale for that decision? And, you know, you’ve got the 

other $550-million contingency fund, and have indicated that that’s 

going to be used differently. My question, I guess, if you could give 

us a little bit background into what your thought process was—— 

Mr. KNEUER. Sure. I think the—— 

Senator THUNE.—with regard to that. 

Mr. KNEUER [continuing]. The legislative history made it clear 

that this was intended to be a broad program, that the transition 

is essentially going to affect all television households, so the program should be as broadly applicable as possible. So, that’s why, 

for the first $990 million, we’ve said, essentially, any U.S. household, without any restrictions of any kind, can participate in the 

program. 

The second pool of money, we had a different criteria for that, 

where we have limited access to those dollars to households that 

self-certify that they’re exclusively over-the-air, that they don’t receive cable or satellite on some set in the house. Our thinking on 

that was that to maximize the possibility—the likelihood that no 

household—household that would otherwise lose television service—doesn’t have access to some financial assistance, if they need 

it. So, if we go through the first billion dollars, and the money is 

now limited to an additional $500 million, make sure that 500 million goes as far as possible to make sure that no household would 

actually lose television service, absent that resource. So, households that are ineligible for the second $500 million still have access to television, either through cable or satellite. 

36 

Senator THUNE. And do you have pretty firm estimates about 

whether that’s going to be enough money and, in those two pools, 

is going to be sufficient to deal with the—— 

Mr. KNEUER. Given the take-up of digital televisions—as I said, 

the numbers I’ve seen are that by the end of this year it’ll be more 

than 85 million digital set-tops in American households—given the 

penetration of cable and satellite, given some of the polling that 

we’ve seen with regards to, what do consumers intend to do at the 

end of this transition? You know, you take a focus group, and you 

educate them, say, ‘‘It’s coming in February, your options are: subscribe to cable, subscribe to satellite, buy a digital television, buy 

your own set-top box that has some degree of functionality beyond 

what is eligible under the rule, or participate in this government 

program.’’ Lots of consumers indicate that they are going to effectuate this transition on their own. Aside from the program, even 

exclusively over-the-air households I think a lot of consumers are 

going to take these coupons and go into a store and say, ‘‘You know 

what? That digital TV is actually what I want,’’ and the coupon 

won’t be redeemed. So, given the consumer acceptance of DTV in 

the marketplace, as we’re currently seeing it, given the options consumers have to effect the transition on their own, I’m confident 

that the—with the full $1.5 billion, we’ll have enough money. 

Senator THUNE. Well, I appreciate your answers to the questions, 

and I would just, again, say that this is going to be—getting this 

right is going to be important for a lot of—particularly, seniors, in 

my state at least—the television is a kind of a lifeline and—in 

those—particularly in those cold winter months, it is especially important. And I think that making sure that this transition occurs 

smoothly is going to be critical. So, I hope that, as it moves forward 

and—we’ll continue to have, I think—all of us, probably, on this 

committee—an ongoing interest in that process, and what we can 

do to be helpful. 

So, thank you for your testimony. 

Mr. KNEUER. Thank you. 

Senator THUNE. Thank you, Mr. Chairman. 

The CHAIRMAN. I thank you very much. 

Mr. Secretary and Ms. Seidel, I thank you very much for your 

testimony, it’s been very helpful. Thank you. 

Ms. SEIDEL. Thank you. 

Mr. KNEUER. Thank you. 

The CHAIRMAN. We will be submitting more questions, if we may. 

Our next panel consists of a member of the AARP Board of Directors, Ms. Nelda Barnett; the President and CEO of the National 

Hispanic Media Coalition, Mr. Alex Nogales; the Vice President/Director of Public Policy of Leadership Conference on Civil Rights, 

Ms. Nancy Zirkin. 

While they’re assembling, I’d like to announce that this committee will be conducting another hearing in September, and at 

that time we will have industry witnesses, including electronic 

manufacturers, retailers, broadcasters, and cable. 

I’m certain you’ve been waiting a long time, and I know that you 

want to go ahead, so may I call upon Ms. Nelda Barnett. 

37 

STATEMENT OF NELDA BARNETT, MEMBER, 

BOARD OF DIRECTORS, AARP 

Ms. BARNETT. Thank you very much, and good morning. There 

it is. I’m sorry. 

Good morning, Mr. Chairman and members of the Committee. 

Thank you for this opportunity to testify on behalf of AARP. 

AARP has been actively engaged in addressing DTV transition 

issues before Congress and Federal agencies; in particular, with the 

FCC and NTIA. AARP has urged policymakers to lighten the burden of this transition for all consumers, particularly older Americans. 

Based on data provided by the National Association of Broadcasters, 38 percent know that there is going to be a transition, and 

only 10 percent know what the date is on it. 

AARP’s testimony centers on five different points and the impact 

it will have on the transition for older Americans: 

Number one, a large percentage of analog-only households are 

older Americans, who will be disproportionately affected by the 

DTV transition, and who are not prepared. The approximately 20 

million analog-only households should be the primary focus of education and outreach campaigns. Some 40 percent of these households include at least one person 50 years of age or older. 

A recent study conducted by CENTRIS reports that older Americans are more likely to be found in over-the-air households, and 

are, therefore, more vulnerable to the consequences of the digital 

television transition. In the most recent quarter of 2007, the study 

found that 24 percent of households with Americans 65 and older 

receive their TV programming over the air, compared with 19 percent of the younger population. 

The CENTRIS study revealed that 41 percent of older Americans, as compared to 55 percent of those younger, have purchased 

a TV set in the past 3 years. This suggests older Americans are not 

likely to be as exposed to DTV transition messages from electronic 

retailers. 

The second point: Older Americans confront additional challenges 

related to obtaining and redeeming converter box coupons and installing the converter boxes. For older persons, there are additional 

challenges involved in the DTV transition that should be addressed 

over the next several months. Among these are mobility issues, infirmity, isolation from other family members, and distance from retail centers to purchase the box. It may be difficult, if not impossible, for many older people to leave their homes to purchase a converter box. Another hurdle would be the installation process. Moving the TV to get to the back of the set and connect the box will 

be difficult for frail and disabled persons, including many elderly 

individuals living on their own. 

Number three, coupons should not be distributed until sufficient 

numbers of converter boxes are available for purchase in retail 

stores. A mechanism should be implemented to inform consumers 

about local stores that have the coupon-qualified boxes in stock. 

Number four, older Americans are particularly vulnerable to potential coupon fraud and abuse, and could be subjected to retailers’ 

up-selling efforts. It is also critical that steps be taken to protect 

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38 

sumers counterfeit or illegally duplicated converter box coupons. 

There may also be efforts to sell legitimate free converter box coupons. Further, consumers will need clear information to prepare for 

the possibility of retailers up-selling. 

The fifth one, a coordinated outreach and education campaign 

should include Federal, State, and local agencies, and programs 

serving consumers who have the greatest risk of losing their broadcast television service, particularly vulnerable population groups, 

such as the low-income and the older people. 

In conclusion, on the morning of February 18, 2009, consumers 

in households around the country could discover that they are unable to view their regular morning TV programs. These consumers 

will be confused, frustrated, and angry that this important information and entertainment source in their home is no longer operational, through no fault of their own. We all have an important 

role to play in keeping consumers connected. AARP is committed 

to doing their part to educate the nearly 39 million AARP members 

around the country about the DTV transition and Converter Box 

Coupon Program. AARP and the older Americans we represent are 

also counting on policymakers to take the necessary steps to ensure 

that all consumers, regardless of age, income, native language, and 

other factors, stay connected. 

Thank you, sir. 

[The prepared statement of Ms. Barnett follows:] 

PREPARED STATEMENT OF NELDA BARNETT, MEMBER, BOARD OF DIRECTORS, AARP 

Good morning. Mr. Chairman and members of the Committee, thank you for this 

opportunity to testify today on behalf of AARP regarding consumer issues related 

to the digital television transition. My name is Nelda Barnett. I’m from Owensboro, 

Kentucky, and I am a member of AARP’s Board of Directors. 

AARP has been actively engaged in addressing DTV transition issues before Congress and Federal Government agencies. We have worked closely with the Federal 

Communications Commission (FCC) and the National Telecommunications and Information Administration (NTIA), holding numerous meetings with senior officials 

to discuss AARP’s concerns regarding the DTV transition. AARP has urged policymakers to mitigate the burden of this transition for all consumers, particularly older 

Americans. We supported the establishment of the converter box coupon program 

and we continue to call attention to the importance of comprehensive consumer education and outreach to inform all affected individuals about the DTV transition and 

converter box coupon program. 

My remarks this morning will focus on the following issues concerning the transition’s impact on older Americans. 

1. A large percentage of analog-only households are older Americans who will 

be disproportionately impacted by the DTV transition and who are not prepared 

for the transition; 

2. Older Americans confront additional challenges related to obtaining and redeeming converter box coupons, and installing the converter boxes; 

3. Coupons should not be distributed until sufficient numbers of converter boxes 

are available for purchase at retail stores. There should be a mechanism implemented to inform consumers about local stores that have the coupon-qualified 

converter boxes in stock. 

4. Older Americans are particularly vulnerable to potential coupon fraud and 

abuse and could be subjected to retailers’ ‘‘upselling’’ efforts. 

5. A coordinated outreach and education campaign should include Federal and 

state agencies and programs serving consumers who are at the greatest risking 

of losing their broadcast television service, particularly vulnerable population 

groups such as older Americans. 

39 

1 Nielsen Media Research, 2005. 

2Knowledge Networks/SRI, Home Technology Monitor Ownership Survey, Spring 2004. 3 Nielsen Media Research TV Household Estimates, 2003–2004. 

4 CENTRIS, Analysis of Older Americans and the Digital TV Transition, July 2007. 

Background 

Older Americans have had a growing reliance on television technology. TV offers 

more than just entertainment. For older Americans, television can be a primary connection to the outside world—providing life-saving weather forecasts, public safety 

announcements, information on government and politics, and community news. In 

fact, Americans aged 50 and above watch the greatest average number of hours of 

television a day, almost 5.5 hours.1

The transition to digital television will offer consumers real benefits: better-quality transmission and a wider range of programming options. However, as Congress 

has recognized, there are significant costs associated with this transition. Consumers with analog sets will need to purchase a new set with an integrated digital 

component, connect the set to a cable or satellite service, or purchase a converter 

box. These costs are not inconsequential. But for older Americans additional, nonmonetary costs may be especially challenging: the inconvenience of searching for an 

available converter box, potential difficulties in attaching the converter box to the 

back of their set, and confusion regarding the transition itself. 

1. A large percentage of analog-only households are older Americans who will be 

disproportionately impacted by the DTV transition and who are not prepared for the 

transition. 

According to a 2004 survey,2 about 21 million households rely on over-the-air 

(OTA) broadcast-only television. A more recent Nielsen Media Research report estimates that the current number of OTA households is approximately 20 million. 

These are the consumers who will be without television service at the point of the 

transition, and they should be the primary focus of any education and outreach campaign, and the priority households for receipt of the converter box coupons. The 

GAO reported that of these OTA households, about 48 percent have incomes under 

$30,000. Moreover, approximately 8 million—or 40 percent—of these households include at least one person over the age of 50.3

Recently, CENTRIS released data from a survey 4 conducted to assess the probability that older Americans are more likely to be found in over-the-air households 

and are therefore more vulnerable to the consequences of the digital TV transition. 

The survey’s findings revealed that older Americans: 

1. Over age 65 are more likely to be found in OTA households; 

2. As a group, are less likely to have purchased a new TV in the past 3 years; 

3. Are less likely to have HDTV capabilities in their households; and 

4. Are less likely to own a digital TV. 

The survey analysis conducted by CENTRIS concluded: 

• Older Americans over 65 are a more vulnerable group with respect to maintaining television services as the digital transition is completed; 

• Older Americans will not be as exposed to DTV transition messages from electronic retailers as will younger members of the population; and 

• The population of older Americans will need special focus in efforts to educate 

the public with respect to the end of the DTV transition. 

2. Older Americans confront additional challenges related to obtaining and redeeming converter box coupons, and in installing the converter boxes. 

There are additional challenges involved with the transition to DTV that confront 

older Americans, and they should be addressed over the course of the next several 

months. Among these may be mobility issues, infirmity, isolation from other family 

members, and distance from retail centers in rural communities. It may be difficult, 

if not impossible, for many older Americans to leave their home to purchase a converter box. Although it may be possible to purchase the converter box online, there 

are a number of older Americans who do not have Internet access in their home. 

Another potential barrier for all consumers will be the converter box installation 

process. Assuming the consumer is able to request coupons and purchase the converter box, the next hurdle will be the installation. The process could require moving the television to get to the back of the set and connect the box, which could be 

difficult for frail or disabled persons, including many older Americans living on their 

own. Of course, there is also the possibility that the actual connection process required will be difficult for some to master. 

40 

AARP urges Congress to work with the appropriate Federal agencies to address 

these issues in the next several months, to assist older Americans and other vulnerable individuals with these challenges. 

3. Coupons should not be distributed until sufficient numbers of converter boxes 

are available for purchase at retail stores. A mechanism should be implemented to 

inform consumers about local stores that have the coupon-qualified converter boxes 

in stock. 

The success of the converter box coupon program involves some uncertain timing 

elements. There are some consumers who will act expeditiously, perhaps in response 

to initial consumer outreach and education campaigns, and request converter box 

coupons when they first become available in January 2008. According to NTIA’s 

rules, the coupons will expire 90 days after they are mailed to the requesting households. AARP has heard from a variety of sources that the converter boxes may not 

actually be available in electronic retail establishments until April of 2008. If a consumer receives the coupon in early January, it could actually expire prior to the 

availability of converter boxes in stores. It is critical that NTIA coordinate the distribution of the coupons with the availability of the converter boxes for purchase in 

stores. 

AARP is also concerned that older Americans, particularly those with limited mobility, may have to travel to several retail establishments before locating a store 

that has coupon-qualified converter boxes on the shelves. In any one community, 

there could be a limited number of electronics stores that would stock the boxes for 

sale, and some stores may carry only a limited number of boxes. The NTIA will need 

to work with the selected coupon vendor to design a mechanism to track the locations of stores that have stocked the coupon-qualified boxes for purchase, and update this information on a regular basis. Consumers should be able to access this 

information and locate the store in their area with boxes in stock, by calling a tollfree number as well as by going to an Internet website. 

4. Older Americans are particularly vulnerable to potential coupon fraud and 

abuse and could be subjected to retailers’ ‘‘upselling’’ efforts. 

As recent consumer protection history has shown, whenever there is an opportunity for scam artists to take advantage of the consumer, it will happen. The converter box coupon program provides such an opportunity. It is critical that the necessary steps be taken to protect consumers against scam artists who could sell 

unsuspecting consumers counterfeit or illegally duplicated converter box coupons. 

Assuming such steps are taken, there will still be an opportunity for legitimate free 

converter box coupons to be offered for sale. Assisting consumers to avoid this unnecessary extra cost will require educational materials to inform consumers as to 

how they can receive a valid coupon, and to offer tips on how to avoid scam artists. 

Consumers will need to be savvy shoppers to understand, and perhaps reject, anticipated efforts by retailers to sell enhanced converter boxes that do not qualify for 

the coupon discount, or encourage consumers to purchase new, digital sets. The 

process of ‘‘upselling’’ can be avoided by providing consumers with clear information 

on the types of converter boxes qualifying for use of the coupon, and for tips on what 

they need in their home to continue television reception. 

5. A coordinated outreach and education campaign should include Federal and 

state agencies and programs serving consumers who have the greatest risking of losing their broadcast television service, particularly vulnerable population groups such 

as low income and older Americans. 

Congress should work with the NTIA and FCC to construct a coordinated effort 

to educate the public about the transition with other Federal, state and local government agencies that serve vulnerable population groups, including older Americans and low-income households. 

There are a number of Federal assistance programs, such as those administered 

by the U.S. Department of Health and Human Services, that could be tapped to 

help. For example, the aging network represents a great resource. The Administration on Aging, State Units, and Area Agencies on Aging (AAA’s), along with the 

wide range of service providers they fund, such as Meals on Wheels and local senior 

centers, could play critical roles in education and outreach. 

Low income assistance programs, such as Supplemental Security Income (SSI), 

the Low Income Home Energy Assistance Program (LIHEAP) and the Commodity 

Supplemental Food Program, should also be engaged in distributing information to 

the low income population most vulnerable in this transition. Congress should request a specific plan that addresses the coordination of efforts among these, and 

other government agencies. 

AARP recognizes that the task of educating the general public about the DTV is 

enormous—and the $5 million designated by Congress for consumer outreach and 

education related to the converter box coupon program is inconsequential, given the 

41 

task at hand. However, these are the resources that are available and many organizations will need to step up to inform their own members. AARP is committed to 

doing our part to educate the 38 million AARP members around the country about 

the DTV transition and the converter box coupon program. 

AARP has several publications, including the AARP Magazine and Bulletin that 

reach over 24 million households. In addition, the AARP Spanish language magazine, Segunda Juventud, is distributed to over 1 million Spanish-speaking older 

Americans. AARP is also planning other media activities and an outreach campaign 

to inform and educate mid-life and older American members. Materials will be prepared and distributed to AARP state offices and volunteer chapters, to implement 

a coordinated outreach plan to extend AARP’s reach into the community at-large. 

Conclusion 

On the morning of February 18, 2009, just a little over eighteen months from 

today, consumers in households around the country could discover that they are unable to view their regular morning television programs. These consumers will be 

confused, frustrated, and angry that this important information and entertainment 

source in their household is no longer operational, through no fault of their own. 

Thousands of telephones will ring in communities around the country as well as 

right here in hundreds of Congressional offices. Constituents will call their elected 

officials to complain and ask: ‘‘What has happened to my television set?’’ 

We all have an important role to play in keeping consumers connected. AARP is 

committed to doing its part. AARP, and the older Americans we represent, are also 

counting on policymakers to take the necessary steps that will ensure all consumers, 

regardless of age, income, native language, or other factors, stay connected. 

The CHAIRMAN. I thank you very much. 

May I call upon Mr. Nogales. 

STATEMENT OF ALEX NOGALES, PRESIDENT AND CEO, 

NATIONAL HISPANIC MEDIA COALITION 

Mr. NOGALES. Thank you, Senator. 

Mr. Chairman and members of the Committee, thank you for giving me the opportunity to speak to you, on behalf of the National 

Hispanic Media Coalition, on preparing consumers for the digital 

television transition. NHMC has 13 chapters across the Nation, 

and is also secretariat for the National Latino Media Council, 

which consists of 17 of the largest Latino civil rights and advocacy 

organizations across the Nation. 

We joined the DTV Transition Coalition, and have been working 

with Consumer Electronics Retailers Coalition on their Spanishlanguage translations as part of their outreach, as well as on the 

outreach itself. 

You have my complete statement on record, but allow me to 

highlight the following points: 

The DTV transition consumer educational program is grossly underfunded, and needs to be supplemented. The $5 million allocated 

to NTIA, and the $2 million that the FCC has for consumer education, translates to 2 and half cents per person for 300 million 

people here in the United States. When Berlin, Germany, made the 

transition with less than 1 million people, it spent 33 cents per person. What a difference! 

Consumers need to be informed on the basics, such as: 

How to figure out if they have an analog or digital television set. 

I don’t know. And I know very few people that know the difference. 

Two, that their analog TV sets will go dark in less than 2 years 

without a converter box, if they are not connected to cable or satellite services. 

42 

Three, they need to know that they don’t need to purchase a new 

television set, that over-the-air television will continue to be free, 

will offer them many more channels, and will give them a better 

picture, even on an older set. 

Four, consumers need to be able to access user-friendly instructions on how to connect the converter boxes to their television sets, 

and be able to contact a live person to help them with the connections if they have difficulties. 

Since a predominantly high number of Spanish speakers will be 

impacted by this transition, bilingual and bicultural staff is essential. We have the number of 21 million households that have rabbit 

ears, at this point. A full third of those, 7 million, are Latinos. For 

any educational campaign to be effective, it’s not only relevant that 

the person be able to speak the language, but also understand the 

culture. English-written materials should not be translated to 

Spanish, as they are seldom culturally effective. Materials to the 

Spanish-speaker should be original, and the appropriate place to 

advertise to Latinos should be fully considered. For example, 

Latinos, more than anyone else, consume a great deal of radio programming because of the fact that many of our jobs are outdoors. 

Already, we have seen coordination problems that can come up 

in major national campaigns that involve translation. Specifically, 

‘‘converter boxes’’ was translated in four different ways by the 

NAB, the DTV Transition Coalition, the National Telecommunication and Information Administration, NTIA, and the Federal 

Communications Commission. In fact, the FCC was using two different terms for the boxes. It is imperative that we avoid confusing 

the consumer by using different terms for key terms. Let’s agree 

on a translation, and remain consistent. We prefer ‘‘caja 

convertidora,’’ because it is a precise translation of ‘‘converter 

boxes’’ and easy for the Spanish consumer to understand. 

I wish, Mr. Chairman, that I was as optimistic as some of the 

other witnesses have been, in terms of this being a smooth transition. I am not. I just came from a meeting of the National Latino 

Media Council membership, and, I have to tell you, out of the eight 

people that were there—they’re all very sophisticated, very smart 

individuals in the entertainment and also in the newspaper business—and not one of them really knew very much about the digital 

transition. They knew the term, but they don’t know the mechanics. 

As to the advertising, we can’t really leave it to cable, and we 

can’t really leave it to the broadcasters. As you have heard, there 

is no firm date as to when they are going to start with their PSAs. 

I don’t doubt their intentions. I don’t doubt their intentions at all, 

but the fact of the matter remains that they still cannot give us 

a date when they’re going to start their advertising campaign, their 

PSAs, and everything else. So, that being the case, there are no 

firm dates, and we’re all kind of in the air that this is going to 

occur. 

Now, I have it not only from the NAB that this is the case, but 

also from the presidents of several of the organizations involved, 

both the Spanish-language and English-language networks. They’re 

going so fast with their business, and they live and die, as you 

know, by the overnight ratings, and they have their hands full. So, 

43 

this is a priority, but a priority that they keep thinking, that is 

way down in the future, not realizing that it’s happening in 18 

months. So, until we have timeframes that tell us specifically when 

this is going to begin, I can tell you that I’m not optimistic at all 

that we’re going to reach the American public. 

Thank you. 

[The prepared statement of Mr. Nogales follows:] 

PREPARED STATEMENT OF ALEX NOGALES, PRESIDENT AND CEO, 

NATIONAL HISPANIC MEDIA COALITION

Mr. Chairman and members of the Committee, thank you for giving me the opportunity to speak to you today on behalf of the National Hispanic Media Coalition’s 

(NHMC) regarding preparing consumers for the Digital Television Transition. 

My name is Alex Nogales; I am the President and CEO of NHMC. NHMC is a 

21-year-old non-profit Latino civil rights, media advocacy organization based in Los 

Angeles, California. We have 13 chapters nationwide and our mission is to: (1) improve the image of American Latinos as portrayed by the media; (2) increase the 

number of American Latinos employed in all facets of media; and (3) advocate for 

media and telecommunications policies that benefit the Latino community. NHMC 

is also the Secretariat for the National Latino Media Council, a national coalition 

comprised of 15 of the largest Latino Civil Rights Advocacy groups in the Nation. 

Additionally, NHMC is an Executive Committee Member of the Media and Democracy Coalition, a national coalition comprised of many of the largest mainstream 

media advocacy groups in the Nation. Recently, NHMC joined the DTV Transition 

Coalition membership. 

As you know, the transition from analog to digital television brings great opportunities but also great challenges. In 2005, the Government Accountability Office 

(GAO) reported that 21 million U.S. households rely solely on over-the-air television. 

Of these households, about 48 percent earn less than $30,000 per year per household. These 21 million households include a disproportionate number of Spanish 

language speakers: one-third or 7 million people who will be impacted by the digital 

transition are Spanish language speakers. It is also estimated that one-third of the 

21 million households include residents over the age of fifty, many of whom live on 

fixed-incomes; millions of these households will be in rural areas or will include persons with disabilities. Further, according to the National Association of Broadcasters (NAB), African-American households are 22 percent more likely to rely exclusively on over-the-air reception. In summary, households impacted by the digital 

transition will be minorities, low-income families, living on a fixed-income, and requiring a well-defined and more specific educational outreach campaign then the 

overall population requires. I will refer to the groups that I just mentioned as our 

target groups or target population. 

A more specific educational outreach campaign to these target populations must 

be pro-active, consumer-friendly and culturally, linguistically sensitive. Appropriate 

outreach to disabled, minority, rural, low-income and senior citizens is essential. For 

example, the public service announcements promoting this initiative must include 

closed captioning for the hearing impaired and should be available in Spanish as 

well as other relevant languages. The call-in centers handling the voucher questions 

must include live-operators that include Spanish-speakers, wait time should not go 

over 10 minutes and must accommodate telecom relay services that make it easier 

for the deaf to communicate by phone. And it is not sufficient to translate the 

English materials to Spanish. Those doing the outreach must communicate with 

Spanish speakers in a manner where their message will be understood. Cultural 

awareness here is fundamental for the outreach campaign to be successful. Already, 

we have seen coordination problems that can come up in major national campaigns 

that involve translation. ‘‘Converter boxes’’ was translated in four different ways by 

the NAB, the DTV Transition Coalition, the National Telecommunications and Information Administration (NTIA), and the Federal Communications Commission 

(FCC). The FCC was actually using two different terms for the boxes. It is imperative that we avoid confusing the consumer by using different words for key terms. 

Let’s agree on a translation and remain consistent. We prefer ‘‘caja convertidora’’ 

because it is a precise translation of converter boxes and easy for the Spanish consumer to understand. 

Congress allocated $5 million to NTIA to educate consumers about the DTV coupon program. The FCC has only requested $1.5 million for consumer education effort in its 2008 budget request. That’s a total of $6.5 million to educate 300 million 

44 

people, about 2 cents per person. This is a seriously under-funded consumer education program. When Berlin, Germany transitioned to DTV, it spent $984,000 to 

educate about three million people, or 33 cents per person. Why is the City of Berlin 

willing to make this expenditure on its citizens, but our Nation is not? Furthermore, 

the FCC does not plan to begin its public education campaign until 2008, when the 

converter box coupons and the boxes are expected to be available on January 1, 

2008. In our opinion, the FCC campaign is starting a year late. Consumers need 

to know about the DTV transition generally, and the coupon program specifically, 

as soon as possible, but certainly well before NTIA makes the coupons available to 

the public. We need to start seeing Y2K-level consumer education efforts soon or you 

will have a big problem on your hands. Consumers need to be aware of how the 

transition will impact them. They need to know (1) how to figure out if they have 

an analog or digital TV; (2) that their analog TV sets will go dark in less than 2 

years without a converter box if they are not connected to cable or satellite service; 

(3) they need to know that they don’t need to purchase a new TV set, that overthe-air television will continue to be free, will offer them many more channels and 

will give them a better picture even on an older set; (4) consumers need to be able 

to access user-friendly instructions on how to connect the converter boxes to their 

TV sets and be able to contact a live person to help them with the connection if 

they have difficulties . 

We strongly encourage the NTIA to bring in community based organizations 

(CBOs) that represent the disabled, minority, rural and senior advocates that will 

help develop a thorough outreach plan to ensure that the outreach and educational 

component of this program is solid and has no holes. We can’t afford to make mistakes on a program that is a first-come, first-serve program where the populations 

that are in most need of these coupons run the risk of being the last to hear about 

the program. 

NAB estimates that about 5 percent of the population knows that the digital transition is taking place. I suspect the NAB is being optimistic. Not many people outside the Beltway have heard about the digital transition and its possible impact on 

their households. Not enough has been done so far to educate our target groups that 

this historic change is taking place and that their over-the-air televisions will go 

dark after February 17, 2009 without a converter box. The outreach program needs 

to start today and more effort needs to be made by the NTIA, FCC and the DTV 

Transition Coalition to reach community-based organizations that focus on the target groups. We need more people outside of D.C. to know about the transition and 

be able to communicate in a clear and understandable manner to those that will 

be impacted. 

Finally, NHMC objects to the two-phase plan that NTIA is proposing for the distribution of the coupons. In the first phase, where $990,000,000 is allocated, all U.S. 

households will be able to apply for up to two $40 coupons per household to purchase converter boxes. The second phase is only open to households that certify in 

writing that they rely on over-the-air reception. Once the $990,000,000 is spent, 

those that apply late or do not find out about the coupon program in time will be 

burdened by an added certification that may deter them from applying. Changing 

eligibility mid-course will result in needless customer confusion. Indeed, the certification will be a deterrent to low-income families, especially those that do not predominantly speak the English language. Ladies and gentleman, I have no doubt 

that the disenfranchised population that will be the most impacted by the digital 

transition will be the last to apply for the coupons. This being the case, having to 

certify in writing that they rely on over-the-air reception is just adding an additional burden that will discourage many of them from applying for the converter 

boxes. A two phase-plan with an added burden for those that are hardest to reach 

doesn’t make a lot of sense. If the reason for this two-phase system is because NTIA 

thinks there is a likelihood that the program will run out of funds before all the 

impacted households have obtained their coupons, then NTIA should go back to 

Congress and ask for additional funding. 

Summary 

• The DTV Transition consumer educational program is grossly under-funded and 

needs to be supplemented. 

• We need to start seeing Y2K-level efforts for the DTV Transition. Efforts must 

be pro-active, consumer-friendly and culturally sensitive and they need to begin 

now. Efforts should include a well-coordinated campaign that includes CBOs 

working closely with the NTIA. 

• Since a predominantly high number of Spanish-speakers will be impacted by 

this transition, bilingual and bi-cultural staff is essential. For any educational 

45 

campaign to be effective it’s not only relevant that the person be able to speak 

the language but also understand the culture. 

• English-written materials should not be translated to Spanish as they are seldom culturally effective. Materials to the Spanish-speaking should be original 

and the appropriate place to advertise to Latinos should be carefully considered. 

For example, Latinos more then anyone else consume a great deal of radio programming. 

• We oppose a two-phase program that adds a burdensome requirement for those 

that apply later. The second-phase certification requirement is in effect a detractor. 

The CHAIRMAN. I thank you very much, Mr. Nogales. 

Ms. Zirkin? 

STATEMENT OF NANCY M. ZIRKIN, VICE PRESIDENT, DIRECTOR OF PUBLIC POLICY, LEADERSHIP CONFERENCE ON 

CIVIL RIGHTS (LCCR) 

Ms. ZIRKIN. Thank you, Chairman Inouye. And thank you, Senator Stevens. 

I am Nancy Zirkin, and I’m Vice President—— 

Senator STEVENS. Pull the mike up toward you, Ms. Zirkin. 

Ms. ZIRKIN. Is it on? 

Senator STEVENS. Yes. 

Ms. ZIRKIN. OK. Thank you. 

I’m Nancy Zirkin, Vice President and Director of Public Policy 

with the Leadership Conference on Civil Rights. Thank you very 

much for the opportunity to testify. It’s a very important issue for 

the Leadership Conference. 

LCCR, as many of you know, is our Nation’s oldest, largest, and 

most diverse coalition of nearly 200 national civil rights and 

human rights organizations. LCCR is also a founding member of 

the DTV Transition Coalition. 

The huge switch from analog into digital TV will have a profound 

impact on millions of Americans, as we have heard throughout this 

morning, especially seniors, the poor, the minority communities, 

people with disabilities, and those for whom English is not their 

first language. 

And the reality today, as Senator Thune said, is that everybody 

needs TV, not just for entertainment, but for news, both local, national, and worldwide. Imagine 9/11 without TV coverage and you’ll 

understand how important a working television is to the 21 million 

American households who now rely solely on free analog TV. 

LCCR believes that access to communications in the 21st century 

is not a luxury, but a fundamental right of every American. The 

challenges involved in preparing Americans for the digital TV transition are of such magnitude that a strong Congressional response 

is required. I think Senator McCaskill had it right; in the end, voters will look to Congress if their TVs go dark. 

LCCR applauds Congress, and both of you, for your leadership in 

this transition, and for recognizing the need for government support to help consumers know about the coupon program, and about 

covering the cost for the transition for the converter boxes. But we 

are troubled. The $5 million allotted by Congress to educate consumers about the coupon program is not nearly enough to support 

the kind of public education campaign that we all know is required. 

Public education campaigns are not unlike State election camVerDate Nov 24 2008 09:36 Sep 05, 2012 Jkt 075679 PO 00000 Frm 00049 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\75739.TXT JACKIE
46 

paigns, where people running for office try to educate, across the 

board. The actual cost of Senate campaigns last year in California, 

Ohio, Pennsylvania, three states whose combined population is 

about 21 million households, was $39 million, way more than the 

$5 million allocated for the transition. 

Our fear is that the people who will be most affected by the 

change won’t hear about it and, therefore, won’t have access to the 

coupons. We are also concerned that our most vulnerable populations will be the least likely to receive the first-come, first-serve 

limited number of coupons for the converter boxes. That is, unless 

Congress ensures that a comprehensive, coordinated, national consumer education effort focuses on both the transition and the coupon program to be administered by NTIA. 

We heard Mr. Kneuer’s assertion on monitoring the program, but 

we believe Congress must determine that the coupons are going to 

those who need them most. Sufficient independent research is required to determine, early on, who is taking advantage of the coupon program, so that NTIA knows how to respond, or whether and 

where to deploy additional funds for the program. We believe that 

the government can play an important role in conducting this research through the GAO, with Congress tracking the whole process. 

NTIA and FCC have stated their commitment to educating all 

consumers about the transition and the coupon program, but a 

public education effort must be done by all agencies. Each agency 

should serve as a site where the coupons could be distributed. 

These efforts should be replicated at the State and local level. 

Unless the very people in underserved communities who rely on 

free TV are reached early, they will be left with only unaffordable 

actions. It is a complete luxury for them to have a set-top box or 

to have to afford even a converter box. It is equivalent to 1 week’s 

food for a poor family. Congress can make sure that that does not 

happen. 

Finally, let me say that LCCR, through our member organizations representing over 60 million Americans, will do our part to 

educate consumers, but we and the DTV Transition Coalition cannot do it without additional help and oversight from the Congress 

and NTIA. 

Thank you very much. 

[The prepared statement of Ms. Zirkin follows:] 

PREPARED STATEMENT OF NANCY M. ZIRKIN, VICE PRESIDENT, DIRECTOR OF PUBLIC

POLICY, LEADERSHIP CONFERENCE ON CIVIL RIGHTS (LCCR) 

Chairman Inouye, Ranking Member Stevens, and members of the Committee: I 

am Nancy Zirkin, vice president and director of public policy of the Leadership Conference on Civil Rights (LCCR). Thank you for the opportunity to testify in today’s 

hearing on preparing consumers for the digital television transition. 

LCCR is the Nation’s oldest and most diverse coalition of civil rights organizations. Founded in 1950 by Arnold Aronson, A. Philip Randolph, and Roy Wilkins, 

the Leadership Conference seeks to further the goal of equality under law through 

legislative advocacy and public education. LCCR consists of approximately 200 national organizations representing persons of color, women, children, organized labor, 

persons with disabilities, the elderly, gays and lesbians, and major religious groups. 

Additionally, LCCR is a founding member of the DTV Transition Coalition, a large 

coalition that includes as members the Federal Communications Commission, the 

U.S. Department of Commerce, industry groups, grassroots and membership organizations, manufacturers, retailers, trade associations, civil rights organizations, and 

47 

community groups. I am privileged to represent the civil and human rights community in submitting testimony for the record to the Committee. 

Today, I would like to discuss what the government-mandated transition to digital 

television means for the communities LCCR represents, and what needs to be done 

to ensure than no community is left in the dark. Will all Americans be sufficiently 

educated about the transition, so that they will be able to make it relatively easy 

and without undue economic burden? Moreover, will all Americans actually receive 

the benefits of digital television, including High Definition Television and multicasting, or will they be deprived of these remarkable technological advances? 

While a wide range of private stakeholders in the broadcasting, cable, retail, and 

manufacturing industries are already working hard to address the impact of the 

transition, LCCR believes that the challenges involved in preparing Americans for 

the digital television transition are of such magnitude that a strong Congressional 

response is required. 

What’s at Stake 

Making the transition to digital is not simply a matter of being able to watch 

wrestling, or American Idol, or reruns of Friends. At stake in the transition to digital television is the ability of the Nation’s most vulnerable populations to maintain 

uninterrupted access to their key source of news and information and emergency 

warnings: free, over-the-air television. It would be a great tragedy if the millions 

of Americans who rely on free TV wake up after February 17, 2009 and find that 

their TVs simply don’t work. 

A successful digital television transition will require well-informed consumers who 

can access what, for many, will be brand new technology. This cannot occur without 

a comprehensive, coordinated national consumer education effort focusing on not 

only the transition itself, but also on the coupon program to be administered 

through the U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA). 

The need for such an effort is particularly important for the communities that 

LCCR member organizations represent. In 2005, the GAO found that up to 19 percent, or roughly 21 million American households, rely exclusively on over-the-air, 

free television. According to the GAO, 48 percent of households that rely solely on 

over-the-air television have incomes under $30,000. 

These consumers will face an expensive choice to continue to receive a television 

signal: subscribe to cable or satellite, buy a digital television set, or purchase a digital-to-analog converter box without assistance from the government through its 

coupon program. All of these options cost money. Even an inexpensive converter box 

can cost more than a week’s food budget for many low-income families and for many 

elderly persons living alone and on Social Security. 

We are especially concerned because minority and aging households are disproportionately affected by the transition. 

• According to the GAO, non-white and Hispanic households are more likely to 

rely on over-the-air television than are white and non-Hispanic households. 

• Of the 21 million over-the-air households, one-third (or seven million people) are 

Spanish-language speakers, according to the testimony of Alex Nogales, President and CEO of the National Hispanic Media Coalition, before the House Subcommittee on Telecommunications and the Internet in March 2007. 

• Eight million of the 21 million over-the-air households include at least one person over 50 years of age, according to the March 2005 testimony of Lavada 

DeSalles on behalf of AARP, before the House Subcommittee on Telecommunications and the Internet. 

• One-third or more of over-the-air television viewers have disabilities, according 

to the American Association of People with Disabilities. 

• African Americans make up 23 percent of over-the-air households, according to 

the National Association of Broadcasters. 

LCCR believes that access to communications is a fundamental right of every 

American. Given the impact the transition will have on all our most vulnerable communities, LCCR applauds Congress for recognizing the need for a government compensation program to be administered by NTIA to assist with the transition. But 

the process that has been created raises a number of troubling concerns. 

Funding 

First and foremost, we are deeply concerned that the $5 million that Congress has 

allocated to NTIA to educate consumers about the coupon program will be woefully 

inadequate to support the kind of public education effort that the transition reVerDate Nov 24 2008 09:36 Sep 05, 2012 Jkt 075679 PO 00000 Frm 00051 Fmt 6633 Sfmt 6621 S:\GPO\DOCS\75739.TXT JACKIE
48 

quires. Public education campaigns are not unlike state election campaigns in terms 

of scope. Therefore, consider California, Pennsylvania, and Ohio, whose combined 

population is approximately 21 million households—comparable to the number of 

households that will likely need to be educated on the digital television transition. 

The cost of a Senate campaign in Ohio in 2006 was nearly $9 million; for all three, 

it was approximately $39 million. 

The lack of sufficient resources within the digital television transition consumer 

education effort for support of nonprofit, social justice, or community-based organizations further limits the scope of public education efforts that will be possible. 

LCCR is committed to working with our community-based organizations to make 

sure their members know about the transition and the coupon program. However, 

we are skeptical about the success of these efforts without additional resources. We 

believe that the costs of the digital transition to the 21 million over-the-air households should be paid for by the ample proceeds generated by the auctions of reclaimed spectrum. 

If Congress wants the digital television transition and coupon program to succeed, 

it must adequately invest in an educational program that truly leaves no community 

behind. We strongly urge Congress to supplement the amount of funding for consumer education efforts. In the end, voters will look to Congress if their televisions 

go dark. 

Research and Oversight 

In addition to our concerns that those populations most in need will be least likely 

to know about the coupon program, LCCR is concerned that low-income and minority communities, seniors, and people with disabilities will be least likely to receive 

the first-come, first-served limited number of coupons. 

NTIA’s Digital-to-Analog Converter Box Coupon Program currently contemplates what is essentially a two-phase process. Under the first phase, while the initial $990 

million allocated for the program is available, all U.S. households—including cable 

and satellite customers—will be eligible to request up to two $40 coupons to purchase up to two, digital-to-analog converter boxes. Under the second phase, if NTIA 

requests the additional $510 million already authorized by Congress, then households that certify in writing they rely on over-the-air reception will be eligible for 

coupons. 

LCCR urges Congress to ensure that the transition to digital television serves to 

benefit all Americans. In order to do so, there must be a way for Congress to determine that coupons are going to those who most need them. 

• It is too early to comment on the oversight of government-funded consumer outreach, since the Request for Proposals (RFP) award to provide services in support of the Digital-to-Analog Converter Box Coupon Program has not yet been 

made. 

• However, it is clear now that we will need sufficient independent research to 

determine who is taking advantage of the coupon program during the first 

phase of the process, so that NTIA knows how to respond or whether and where 

to deploy additional funds. 

• The government can play an important role in conducting this research through 

the General Accounting Office, with Congress tracking the progress. 

Additional Governmental Outreach 

While both NTIA and the Federal Communications Commission are committed to 

educating consumers about the transition and the coupon program, a public education effort of this magnitude should not be limited to only a few agencies. 

• Ensuring a successful transition will require public education at the national, 

state, and local level. 

• At a minimum, every Federal agency should be required to participate in educational outreach, and if possible, serve as a site where coupons can be distributed. 

• These efforts should also be replicated at the state and local level. 

Conclusion 

I want to acknowledge that despite the great challenges in making sure that all 

Americans know about the digital television transition and the coupon program, the 

transition presents great opportunities. Industry, broadcasters, manufacturers, interest groups, and Federal officials agree that digital TV offers viewers better quality transmission and a wider range of programming options. Because the digital signal has the ability to provide so much more information, it has the ability to provide 

49 

more services to those who speak languages other than English and people with disabilities (such as enhanced closed captioning and video description services). We do 

not know if the broadcasters are going to provide such services, but we do know that 

there is the potential to do so. Thus, the transition has the potential to open the 

door for more Americans to participate fully in the digital age. This will only be 

true, however, if all families will be able to access digital television programming. 

Thank you for both the opportunity to speak today and for your leadership as we 

move forward in addressing the digital television transition. I look forward to answering any questions you may have. 

The CHAIRMAN. I thank you very much. 

The population of the United States is about five times the size of the United Kingdom. the United States will spend $5 million for 

education. The British Isles are spending $400 million. They will 

be sending out individuals to vulnerable households, such as the elderly, to provide them with individual service for installation and 

explanation. Their program of transition will begin in 2008 and end 

in 2012. Ours will begin in 2009. They’ve already started their education program; in fact, a year ago. So, I can assure you that Congress has heard your message, and we will do something about it. 

Thank you very much. We have to rush off; a vote is on, and 

they’re holding it up for us. 

Thank you. 

[Whereupon, at 11:55 a.m., the hearing was adjourned.] 

(51) 

A P P E N D I X 

PREPARED STATEMENT OF HON. FRANK R. LAUTENBERG, 

U.S. SENATOR FROM NEW JERSEY

Thank you, Mr. Chairman, for holding this hearing on the transition to digital television. We are on the cusp of a revolution in television. 

On February 17, 2009, just a little more than a year and a half from today, we 

will make the transition to digital television. 

The DTV transition will be the biggest development in television since color TV. 

Consumers will enjoy more programming, a clearer picture, a wider screen, and improved sound quality. And the transition will free up valuable spectrum that can 

be used to improve public safety and to provide wireless broadband service. 

But for some consumers, the DTV transition will not mean improved television 

service. Instead, it will mean no television service at all. 

Those viewers who rely on free over-the-air broadcast television could see their 

TV sets go black on February 17, 2009 unless they are prepared for the transition. 

Nearly 110,000 New Jersey households rely on over-the-air television. 

We know that these viewers are disproportionately poor and elderly. These are 

households that need television for their news and to learn about everything from 

local storms to national emergencies. We can’t leave them in the dark. 

The National Telecommunications and Information Administration (NTIA) has a 

coupon program to help consumers who rely on over-the-air TV buy converter boxes 

for their television sets. But that program will only work if consumers know about 

it. We need education programs so that all consumers are ready for the DTV transition. 

I am also concerned that, even with the DTV transition 18 months away, there 

are analog-only television sets still on the market. I want to know what is being 

done to ensure that consumers are fully informed before they purchase TVs that 

may not work in the very near future. 

The DTV transition presents tremendous opportunities. But we must make sure 

that everyone can benefit from it. 

Thank you Mr. Chairman. 

NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION

Washington, DC, August 30, 2007 

Hon. CLAIRE MCCASKILL, 

U.S. Senate, 

Washington, DC. 

Dear Senator McCaskill: 

Thank you for your letter following up on my testimony before the Senate Commerce, Science, and Transportation Committee hearing held on July 26, 2007, regarding ‘‘Consumers and the Digital Television Transition.’’ I am pleased to respond 

to your letter. 

NTIA’s goals with respect to certifying digital-to-analog converter boxes that will 

be eligible for purchase with coupons are twofold: (1) to ensure that the converter 

boxes meet the required performance standards set forth in NTIA’s Final Rule (47 

C.F.R. § 301 Technical Appendix 1); and (2) to adopt a certification process that will 

not add significant costs or delay to the development and production of coupon-eligible converter boxes. The core technical performance requirements are based on the 

Advanced Television Systems Committee (ATSC) Recommended Practice: Receiver 

Performance Guidelines ATSC A/74; Federal Communications Commission (FCC) 

Rules; and industry standards, such as those issued by the Consumer Electronics 

Association (CEA). NTIA received public comments on its proposed certification 

process and carefully considered the suggestions that we adopt the well-established 

procedures used by the FCC in certifying certain types of new products. Field testVerDate Nov 24 2008 09:36 Sep 05, 2012 Jkt 075679 PO 00000 Frm 00055 Fmt 6601 Sfmt 6621 S:\GPO\DOCS\75739.TXT JACKIE
52 

ing was not suggested and is not required in NTIA’s Final Rule. Further, NTIA and 

FCC engineering specialists have determined that laboratory tests performed according to the A/74 Guidelines will reliably predict performance in the field. 

Once prototypes are ready, participating manufacturers must conduct tests or 

have independent laboratories conduct tests to demonstrate that each converter 

model meets the features and performance specifications set forth in our regulations. The manufacturers are required to submit detailed certified test results, along 

with a sample of the tested equipment, to NTIA and the FCC laboratories. Working 

closely with the FCC to review the performance of each converter box while in the 

laboratory, NTIA will certify those converter boxes that meet the requirements. 

Manufacturers will then be notified as soon as possible whether or not each model 

has been certified. 

In addition, NTIA plans to purchase and randomly test certified coupon-eligible 

converter boxes to ensure that—as manufactured and marketed—they conform to 

the certified specifications. If a converter box is found not to meet NTIA’s requirements, that model will no longer be eligible for the Coupon Program. 

NTIA has responded to several technical inquiries and has posted responses to 

Frequently Asked Questions on its website to help manufacturers understand the 

requirements in order to help them to comply. Those responses can be found at: 

http://www.ntia.doc/gov/dtvcoupon/manufacturerFAQ.html. With regard to your second inquiry, concerning manufacturers’ prototypes and 

testing activities, NTIA’s Final Rule indicates that the notices of intent received 

from manufacturers shall be treated as business confidential and proprietary information, and states that NTIA will not release this information unless otherwise required by law. NTIA has accepted notices of intent, test results, and prototypes from 

manufacturers who have relied on NTIA’s assurance of confidential protection for 

their highly proprietary information. The Coupon Program relies on the voluntary 

participation of manufacturers. NTIA has not requested commitments from any 

companies to manufacture converter boxes by a certain date. NTIA is aware, however, that manufacturers are in the process of negotiating distribution and marketing contracts with retailers and others. This activity is consistent with our expectation that converter boxes will be available for purchase by consumers in early 

2008. 

NTIA will be very active in the coming months publicizing the Coupon Program 

and the coupon-eligible converter boxes. On August 15, 2007, NTIA awarded a contract to IBM to support the Coupon Program. Among its responsibilities, IBM will 

work to achieve NTIA’s consumer education objectives with the assistance of an experienced public relations and communications firm. IBM has hired Ketchum, a 

global public relations firm with proven ability to drive consumers to action, as demonstrated by their leadership in educating more than 40 million seniors about Medicare’s Prescription Drug Coverage. 

NTIA’s strategic plan includes two objectives that are especially relevant to 

achieving a successful digital transition for all Americans. First, our consumer education resources will focus on households that rely on over-the-air television. Our 

research indicates these households are on average more likely to consist of rural 

residents, minorities, the economically disadvantaged, seniors, and people with disabilities. Therefore, our consumer education activities will target these groups. Second, our efforts will leverage resources through partnerships to maximize engagement among diverse stakeholders. I have enclosed a summary of NTIA’s outreach 

activities to date, which illustrates some of our partnership activities. 

With regard to your request that NTIA secure commitments from the broadcast 

community to begin running Public Service Announcements, NTIA has no statutory 

or regulatory authority to secure such commitments. As commercial licensees, 

broadcasters are regulated by the Federal Communications Commission. However, 

NTIA has been working closely with the DTV Transition Coalition. In a July letter 

to Senate Commerce Committee Chairman Inouye, the National Association of 

Broadcasters (NAB) addressed your question about the commitment of commercial 

broadcasting to produce and air PSAs informing the public about the digital transition. I would refer you to this letter for the NAB’s specific consumer education plan. 

In particular, the NAB has committed to producing four to six on-air announcements on the transition and is exploring how to best use ‘‘crawls’’—that is, DTVrelated messages that scroll across television screens during programming—to alert 

consumers to the transition. Based on discussions with the NAB, it is my understanding that these announcements will begin airing this fall, before NTIA begins 

to accept consumers’ coupon requests on January 1, 2008. 

NTIA has produced and made available on its website a brochure about the Coupon Program, which we distributed to every member of the Senate and House. I 

would welcome Senators and other Members of Congress linking to this information 

53 

on their websites. This brochure is available in English and Spanish at http:// 

www.ntia.doc.gov/dtvcoupon. I would also invite you and your staff to attend and 

participate in NTIA’s September 25, 2007, DTV Transition Public Meeting, Expo 

and Networking Event, to be held at the U.S. Department of Commerce. This event 

will be an important opportunity to hear from industry CEOs and key constituency 

groups about their specific plans to inform consumers about the transition. 

I look forward to continuing to work with you and all the Members of the Committee, and the U.S. Congress, on efforts to ensure a smooth digital television transition. If you have any questions, please contact me at (202) 482–1840. 

Sincerely, 

JOHN M.R. KNEUER, 

Assistant Secretary for Communications and Information. 

cc: The Hon. Daniel K. Inouye, Chairman, Committee on Commerce, Science and 

Transportation, U.S. Senate 

The Hon. Ted Stevens, Vice Chairman, Committee on Commerce, Science and 

Transportation, U.S. Senate 

The Hon. Kevin J. Martin, Chairman, Federal Communications Commission 

ATTACHMENT

FACT SHEET ON NTIA’S OUTREACH ACTIVITIES DIGITAL-TO-ANALOG CONVERTER BOX

COUPON PROGRAM

As of August 23, 2007, NTIA is actively seeking partnerships with over 145 

groups and organizations—including 14 Federal Government departments and agencies and 5 local and state organizations—to work with us to raise consumer awareness about the Coupon Program and to prepare our citizens for the transition. NTIA 

is focusing its consumer education activities on over-the-air-reliant households who, 

on average, are more likely to be (1) elderly; (2) economically disadvantaged; (3) 

rural residents; (4) minorities; and (5) people with disabilities. Some examples of our 

outreach include: 

Senior Outreach 

• NTIA is working closely with AARP to ensure that the Coupon Program will 

be highlighted in their publications and online newsletters, both in English and 

Spanish. AARP The Magazine reaches 22.5 million members and AARP 

Segunda Jeventud reaches 400,000 members. 

• NTIA will partner with SeniorNet, an organization that supports about 200 senior learning centers across the country, to provide information about the Coupon 

Program to seniors through those centers. 

• During the recent National Cable and Telecommunications Association convention, Assistant Secretary Kneuer participated on a panel hosted by Retirement 

Living TV designed to raise awareness among seniors of the upcoming digital 

transition. 

Economically Disadvantaged Outreach 

• NTIA is working with the American Library Association to distribute posters 

and coupon applications to participating libraries, and to train librarians to help 

its patrons apply for coupons. For consumers without home Internet access, 

NTIA will provide a link to be placed on library terminals that will enable consumers to quickly go to the coupon application page and apply online. 

• Other groups NTIA is actively recruiting include the Salvation Army, United 

Way, YMCA, America’s Second Harvest, and Catholic Charities. 

• NTIA will work with the Community Action Partnership, the national organization representing the interests of the 1,000 Community Action Agencies (CAAs) 

working to fight poverty at the local level. 

Minority Outreach 

• NTIA has reached out to the National Congress of American Indians, the PanAsian Council on Aging, Native American Council on Aging, The National Caucus and Center on Black Aging, National Council on Aging, and the National 

Hispanic Council on Aging. 

• NTIA is exploring with Univision (with reach into 99 percent of Hispanic households) the development of Public Service Announcements and a ‘‘how to’’ video 

aimed at Hispanic consumers. 

54 

• NTIA is partnering with the Southeast Asia Resource Action Center and 

Panasonic to produce and distribute brochures in the most commonly spoken 

Asian languages, including Chinese, Vietnamese, Tagalog, and Korean. 

Disabled Outreach 

• NTIA will meet the needs of citizens with special needs to enable them to take 

advantage of the Coupon Program. For example, NTIA’s Final Rule requires 

that manufacturers pass through Closed Captioning so that this service will be 

uninterrupted with the installation of the converter box and the transition to 

all-digital broadcasting. NTIA will work with disability groups to allay concerns 

that coupon-eligible converters will not pass through Closed Captioning to display on existing analog televisions. 

• NTIA will continue to reach out to private and public organizations serving the 

home-bound and people with special needs. Organizations that provide home 

health care, meals on wheels, senior day care, and other elder care services will 

be a particular target of our efforts. 

• NTIA has actively sought the input of disability groups in the development of 

its program, including the American Association of People with Disabilities, the 

Northern Virginia Resource Center for Deaf and Hard of Hearing Persons, and 

Easter Seals. NTIA participated in the Telecommunications for the Deaf and 

Hard of Hearing, Inc. (TDI) conference in San Francisco on August 24. 

Rural Outreach 

• NTIA is working closely with the Appalachian Regional Commission (ARC) to 

provide information packets to 70 councils of government, local development 

districts representing 23 million people in 410 counties (42 percent rural). 

• In October, NTIA will actively participate in the Rural Telecommunications 

Congress Conference in Springfield, Illinois. 

• NTIA has reached to the U.S. Department of Agriculture Cooperative State Research, Education, and Extension Service to distribute information to extension 

offices nationwide. 

Government Outreach 

• NTIA will leverage relationships with government departments and agencies to 

reach constituencies they serve. NTIA will continue to expand its group of government contacts and expects to reach millions of households through these initiatives. 

• NTIA is partnering with departments and agencies to use their existing publications and electronic newsletters to insert coupon information in scheduled mailings; link to the coupon application form from their websites; put coupon applications at local social service offices; talk about the program at meetings and 

conventions; and utilize all existing communication opportunities to inform 

them of the Coupon Program. 

• NTIA has reached out to the U.S. Department of Agriculture Food Stamp Program, Center for Medicare & Medicaid, Social Security Administration, Veterans Affairs, Department of Education’s Faith-Based Office, General Services 

Administration, Health and Human Services Administration for Children & 

Families, the Administration on Aging, IRS and its Earned Income Tax Credit 

section, the USDA’s Rural Development and Cooperative Extension, and the Department of Defense. 

• NTIA is also reaching out to state and local organizations to reach people where 

they live and work. NTIA has initiated outreach relationships with the National 

Association of Counties, National League of Cities, National Council of State 

Legislatures, and the National Association of Regulatory Utility Commissioners. 

Publications, Meetings, and Conferences 

• Assistant Secretary Kneuer will be writing and submitting an article for publication later this year in the National Association of Telecommunications Officers and Advisors (NATOA) Journal: Promoting Community Interests in Communication, The National Education Association’s Today Magazine reaching 3.2 

million readers, and the American Library Association’s American Libraries. 

The article will be timed to reach consumers around January 1, 2008, when consumers can begin to request converter coupons. 

• NTIA staff will continue to attend meetings and conferences over the next year 

spreading the word of the transition and the government program designed to 

offset the cost of the converter boxes. For example, NTIA will attend the White 

55 

House Faith-Based and Community Initiatives Conference and the AARP Convention in September and other major conferences focused on our target groups. 

Ease of Information and Application 

• Brochures, flyers, posters, and applications will be printed in English and Spanish and other languages as appropriate. 

• NTIA intends to make the application process as simple and straightforward as 

possible for consumers. We will encourage consumers to apply over the phone 

using a toll-free number, but they will also have the option to use the Internet 

or mail or fax their applications. The actual coupon application will be straightforward and will be market tested to ensure it is understandable and consumer 

friendly. 

• NTIA will make the process to use the coupon to purchase and install a converter box as simple as possible. NTIA will work with retailers to simplify their 

processes and encourage retailers to accept phone orders from consumers to 

meet the needs of the home-bound. NTIA will provide a list of retail outlets selling the converter boxes, including online retailers, and also a list of approved 

boxes that can be purchased with the coupon. 

• NTIA is working with the Consumer Electronics Association (CEA) to create an 

installation video and quick set-up guide to help seniors set up the converter 

as effortlessly as possible. 

CONSUMER ELECTRONICS ASSOCIATION

Arlington, VA, July 26, 2007 

Hon. DANIEL INOUYE, 

Chairman, 

Committee on Commerce. Science, and 

Transportation, 

U.S. Senate, 

Washington, DC. 

Hon. TED STEVENS, 

Vice Chairman, 

Committee on Commerce, Science, and 

Transportation, 

U.S. Senate, 

Washington, DC. 

Dear Chairman Inouye, Vice Chairman Stevens and Members of the Committee: 

Thank you for holding today’s hearing on Preparing Consumers for the Digital 

Television Transition. The Consumer Electronics Association (CEA) has long been 

committed to ensuring that consumers are informed about the DTV transition. As 

the transition date of February 17, 2009 approaches, CEA’s tireless efforts to educate consumers are even more paramount to ensuring a seamless transition. Even 

as we are less than 2 years away from the transition date, we continue to lead the 

way with our efforts. 

Currently, CEA’s educational tools for retailers and consumers to use include: 

Five websites that promote the DTV transition through consumer and dealer education: 

• myCEknowhow: www.myCEknowhow.com. To help consumers navigate the new 

features and options made available by digital television. the CEA and CNET 

have joined forces to produce interactive CEknowhow Buying Guides. The 

Guides, which can be found on CNET.com and the CEA’s consumer information 

site, www.myCEknowhow.com. are designed to introduce consumers to digital 

television and to ease confusion about the technology before shoppers even enter 

the store. Information regarding NTIA’s DTV converter box program also is included in this program. 

• Antenna Web: www.antennaweb.org. This website specifically permits consumers and salespeople to determine the free, over-the-air DTV signals that can 

be received at their location and what type of antenna is needed to do so. The 

site receives approximately 100,000 hits per month. 

• The Connections Guide website is an interactive resource designed to help consumers better understand how to connect their audio and video (including DTV) 

products. This site is located at: www.ce.org/connectionslapplication/. 

• CE Know How: www.ceknowhow.com. This is an online retailer education program that is designed to equip retailers with up-to-date product category training for sales associates. CEknowhow.com is customizable, allowing retailers to 

license and tailor the program to suit their particular needs. In 2004, more than 

24,000 sales persons completed training via CEknowhow.com. 

In addition to these websites, CEA includes a wealth of information about HDTV 

on its own website: www.ce.org/hdtv. In addition, CEA recently issued a DTV Toolkit for legislators. The Toolkit contains materials for answering constituent quesVerDate Nov 24 2008 09:36 Sep 05, 2012 Jkt 075679 PO 00000 Frm 00059 Fmt 6601 Sfmt 6621 S:\GPO\DOCS\75739.TXT JACKIE
56 

tions about the transition. All of the materials included in the packet are available 

on CEA’s website: www.ce.org/hdtv. 

We have an ambitious schedule of additional consumer education education plans 

for 2007 include producing an HDTV Handbook for Retailers and Consumers in 

partnership with Dealerscope and e-Gear. We also are developing and producing a 

number of short videos for use on various websites and for use at retail locations. 

Video topics will include a transition overview, setting up a converter box and how 

to receive HDTV. 

We are updating our Ceknowhow.com consumer website to include information on 

the converter box coupon program and DTV labeling information. In addition, we 

are translating the website into Spanish. We are continuing our ongoing media outreach, including press kits mailing, satellite media tours and matte service articles—in English and Spanish. As part of this outreach, we are developing public 

service announcements about the transition and the coupon program. Further, we 

are reaching out to local government officials and libraries to educate about the 

transition and where to send their constituents for more information. 

Finally, CEA is exhibiting at a myriad of relevant conferences, including the National Association of Consumer Advocacy Agencies (NACAA), National Conference 

of State Legislatures (NCSL), and Digital Life in order to explain all aspects of the 

DTV transition and coupon program. 

We appreciate your interest and support regarding DTV education. We welcome 

the Committee’s use of our materials to educate constituents and welcome the opportunity to speak to your constituents at any time. 

It is critical that all stakeholders play a part in educating consumers. CEA is 

working closely with industry and government partners and we are proud of our 

leadership role in the DTV Transition Coalition (www.dtvtransition.org). It would be 

extremely helpful for the Committee to ensure that all stakeholders are involved in 

reaching out to our Nation’s consumers. CEA remains steadfast in its commitment 

to educate consumers about all aspects of the DTV transition. 

We respectfully request that this letter be submitted into the formal record of this 

today’s hearing. 

Sincerely, 

GARY SHAPIRO, 

President and CEO. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. FRANK R. LAUTENBERG TO

HON. JOHN M.R. KNEUER

Question 1. Your written testimony indicates that NTIA will not award the contract for administering the converter box coupon program until mid-August. Will the 

entity awarded the contract have enough time to establish the program before coupons become available on January 1, 2008? 

Answer. On August 15, NTIA awarded a contract to IBM to provide end-to-end 

services for the Coupon Program. NTIA and IBM will be open for business to accept 

coupon requests between January 1, 2008 and March 31, 2009. At that time consumers will be able to call 1–888–DTV–2009, go online at www.MyDTV2009.gov or 

mail in their coupon applications to request their coupons. 

Question 2. What is the NTIA doing to work with retail outlets to ensure that 

they will display converter boxes conspicuously? 

Answer. NTIA has been working aggressively to recruit retailers of all sizes into 

the program. Manufacturers and retailers have every incentive to market and 

merchandize converter boxes just as they do their other products. Manufacturers 

with whom we have spoken plan to make it clear on the converter box that these 

are coupon eligible devices and have been certified by the government. Retailers, 

such as Radio Shack, have committed to in-store signage that will inform consumers 

about the transition and the benefits of the converter option. Other major retailers 

who have expressed their intent to participate in the Coupon Program include WalMart, Best Buy, and Circuit City. 

Question 3. Are you confident that workable, affordable converter boxes will be 

widely available on January 1, 2008? 

Answer. Yes. Retailers are ordering converters from manufacturers in order to be 

ready to serve consumers after the Holiday 2007 season. To date, NTIA has certified 

three models and 18 retailers. Retailers are responsible for determining when converters will be available in their stores. Indications are good that they will be ready 

to sell converters and redeem coupons in early 2008. 

57 

Question 4. How will consumers be able to determine which retailers carry converter boxes, especially given that many consumers who rely on over-the-air broadcasting may not have Internet access? 

Answer. When NTIA mails out the coupons, we will include an enclosure in the 

mailing with important information about the Coupon Program including a list of 

nearby certified retailers, linked to household zip code, as well as makes and models 

of eligible converter boxes. NTIA will also provide a list of eligible online retailers. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. FRANK R. LAUTENBERG TO

CATHERINE W. SEIDEL

Question 1. How many analog-only televisions remain in retailers’ inventories? 

Answer. The Commission does not have estimates of the number of analog-only 

televisions currently in retailers’ inventories. I would note, however, that industry 

statistics indicate that shipments of analog-only television sets to retail outlets have 

declined precipitously in recent years. For example, between 2005 and 2006, the 

number of analog-only televisions shipped to retail stores dropped from 20.43 million sets to 10.79 million sets. In addition, industry estimates project that shipments 

of analog-only television sets this year will total 1.35 million. Further, we note that, 

the Nation’s largest consumer electronics retailer, Best Buy, recently announced 

that it has pulled all remaining analog television products from store shelves and 

will only sell digital television products. See http://bestbuymedia.tekgroup.com/ 

articleltext/101707l2DNRFCC.pdf. 

Question 2. What recourse is there for consumers who unwittingly buy analogonly televisions because labeling requirements have not been complied with? 

Answer. The Commission is devoting significant resources to enforcing our labeling requirements. We are doing so in order to prevent unwitting consumers from 

purchasing analog televisions. With respect to the Commission’s labeling requirement, the Commission has, as of October 31, 2007, inspected nearly 1,325 retail 

stores and websites and issued nearly 283 citations notifying retailers of violations 

for failing to comply with our requirements. Because retailers are not licensees, we 

must give them a citation prior to issuing a Notice of Apparent Liability (NAL). Currently there are NALs pending against fourteen retailers for apparently violating 

the Commission’s labeling requirements. These fines, in the aggregate, total nearly 

$4 million. In addition, the Enforcement Bureau has issued another six NALs on 

delegated authority. 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. 

Question 3. Is the FCC working with retailers to educate their salespeople on how 

to explain the digital transition to customers? 

Answer. In addition to television broadcasters, cable and satellite providers, and 

consumer electronics manufacturers, retailers can play an important role in educating consumers about the transition to digital broadcast television. For some time 

now, the Commission has been working with the Consumer Electronics Retailers 

Coalition (CERC) on educating members of the public about the DTV transition. In 

the spring of 2006, the FCC, CERC, and the Consumer Electronics Association 

(CEA) developed and disseminated a ‘‘Buying a Digital Television’’ tip sheet for consumers. Together with CERC and CEA, we are in the process of updating the tip 

sheet with the latest information on DTV. Also, in June of 2007, the FCC and CERC 

developed and disseminated a join ‘‘Retailer Advisory on Mandatory Labeling of 

Consumer Electronics Products,’’ to assist in educating CERC members and members of the public on the Commission’s labeling requirements regarding sales of analog-only TVs and TV equipment. Additionally, CERC participated in the Commission’s recent DTV Consumer Education Workshop, serving on a panel that addressed the industry’s role in the transition. Further, in July and August of 2007, 

CERC distributed over 400 packets of FCC DTV information at retailer events and 

conferences. Finally, Chairman Martin recently circulated a draft Report and Order 

to the other Commissioners that, if adopted, would require industry participants to 

implement a number of public outreach and education measures to help ensure that 

consumers receive timely and accurate information about the DTV transition. 

Among other things, the Report and Order contemplates that the Commission will 

work closely with NTIA to ensure that retail outlet personnel are fully trained and 

that consumers have access to the information they need to make informed choices. 

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