Federal Register / Vol. 72, No. 50 / Thursday, March 15, 2007 / Rules and Regulations 12097 

1See Title III of the Deficit Reduction Act of 2005, 

Pub. L. 109-171, 120 Stat. 4, 21 (Feb. 8, 2006) (the 

Act). Section 3002(a) of the Act amends Section 

309(j)(14)(A) of the Communications Act of 1934 so 

that analog full-power television licenses will 

terminate on February 17, 2009. Section 3002(b) of 

the Act directs the FCC to terminate analog 

television licenses for full-power stations by 

February 18, 2009. 

2Section 3004 of the Act. 

3See subsections 3005(c)(1)(A), (c)(4) of the Act. 

4NTIA intends to enter into a contract for 

services to administer the Coupon Program through 

a separate program acquisition plan. The contractor 

will be responsible for establishing and managing 

the systems and processes through which some of 

the final rules may be applied. In this document, 

‘‘NTIA’’ should be understood to be either NTIA or 

its contractor. 

5Section 3005(c)(3) of the Act. 

6Section 3005(b) of the Act. 

7Request for Comment and Notice of Proposed 

Rules to Implement and Administer a Coupon 

Program for Digital-to-Analog Converter Boxes, 

Notice of Proposed Rulemaking, 71 FR 42,067 (July 

25, 2006). 

8Summaries of these ex parte meetings are posted 

on NTIA’s website at http://www.ntia.doc.gov. 

9Not all local television signals are uplinked and 

delivered to satellite homes today. The extent to 

which satellite subscribers will have digital-toanalog conversion of local signals available to them 

after February 17, 2009, will depend on the 

availability of ‘‘local-into-local’’ offerings from 

satellite providers. 

10NTIA proposed to define a ‘‘television 

household’’ as a ‘‘household with at least one 

television . . . consisting of all persons who 

currently occupy a house, apartment, mobile home, 

group of rooms, or single room that is occupied as 

separate living quarters and has a separate U.S. 

postal address.’’ See NPRM, 71 FR at 42,068. 

11See Association for Maximum Service 

Television, Consumer Electronics Association, and 

National Association of Broadcasters (Joint 

Industry) Comments at 5-11; Thomson Comments at 

2; Archway Marketing Service Comments at 2; LG 

Electronics Comments at 5; Community 

Continued 

DEPARTMENT OF COMMERCE 

National Telecommunications and 

Information Administration 

47 CFR Part 301 

[Docket Number: 0612242667—7051—01] 

RIN 0660–AA16 

Rules to Implement and Administer a 

Coupon Program for Digital-to-Analog 

Converter Boxes 

AGENCY: National Telecommunications 

and Information Administration, 

Commerce. 

ACTION: Final rule. 

SUMMARY: In this document, the 

National Telecommunications and 

Information Administration (NTIA) 

adopts regulations to implement and 

administer a coupon program for digitalto-analog converter boxes. This rule 

implements provisions of section 3005 

of Public Law 109–171, known as the 

Digital Television Transition and Public 

Safety Act of 2005. This action amends 

47 CFR Chapter III by adding part 301. 

DATES: These rules become effective 

April 16, 2007. 

ADDRESSES: A complete set of comments 

filed in response to the Notice of 

Proposed Rulemaking is available for 

public inspection at the Office of the 

Chief Counsel, National 

Telecommunications and Information 

Administration, Room 4713, U.S. 

Department of Commerce, 1401 

Constitution Avenue, N.W., 

Washington, D.C. The responses can 

also be viewed electronically at http:// 

www.ntia.doc.gov. 

FOR FURTHER INFORMATION CONTACT: 

Milton Brown, NTIA (202) 482–1816. 

SUPPLEMENTARY INFORMATION: 

TABLE OF CONTENTS 

Heading 

Paragraph 

No. 

I. Background ................................... 001 

II. Discussion .................................... 004 

A. Eligible U.S. Households .......... 004 

B. Coupon Value and Use Restrictions ........................................... 012 

C. Application Process .................. 019 

D. Coupon Expiration .................... 023 

E. Coupon-Eligible Converter Box 026 

F. Manufacturer Certification ......... 096 

G. Retailer Participation ................ 103 

H. Consumer Education ................ 125 

III. Procedural Matters 

I. Background 

1. The Digital Television Transition 

and Public Safety Act of 2005 (the Act), 

among other things, directs the Federal 

Communications Commission (FCC) to 

require full-power television stations to 

cease analog broadcasting and to 

broadcast solely digital transmissions 

after February 17, 2009.1 The returned 

analog television spectrum is to be 

auctioned, and the Act directs the FCC 

to deposit receipts from that auction 

into a new Treasury Fund to be known 

as the Digital Television Transition and 

Public Safety Fund (the Fund).2

2. Recognizing that consumers may 

wish to continue receiving broadcast 

programming over the air using analogonly televisions not connected to cable 

or satellite service, the Act authorizes 

NTIA to create a digital-to-analog 

converter box assistance program 

(Coupon Program). Specifically, Section 

3005 of the Act directs NTIA to 

implement and administer a program 

through which eligible U.S. households 

may obtain via the United States Postal 

Service a maximum of two coupons of 

$40 each to be applied towards the 

purchase of a Coupon-Eligible Converter 

Box (CECB).3 To implement the Coupon 

Program, the Act authorizes NTIA to use 

up to $990 million from the Fund for 

the program, including up to $100 

million for program administration 

(Initial Funds).4 A contingent level of 

$510 million in additional funds is 

authorized upon a 60-day notice and 

certification to the Committee on Energy 

and Commerce of the House of 

Representatives and the Committee on 

Commerce, Science, and Transportation 

of the Senate that the initial funding 

level is insufficient to fulfill coupon 

requests for eligible U.S. households 

(Contingent Funds).5 NTIA is, therefore, 

authorized to expend up to a total of 

$1.5 billion for the program, including 

up to $160 million for administration. 

Assuming the entire administrative 

amount is taken into account, $1.34 

billion would be available for 

distributing up to 33.5 million coupons. 

This section also authorizes NTIA, 

beginning on October 1, 2006, to borrow 

not more than $1.5 billion from the 

Treasury to implement the program. 

NTIA must reimburse the Treasury for 

this amount, without interest, as 

recovered analog television spectrum 

auction proceeds are deposited into the 

Fund.6

3. On July 25, 2006, NTIA published 

a Notice of Proposed Rulemaking 

(NPRM) and Request for Comment in 

the Federal Register on ways to 

implement and administer such a 

program pursuant to the Act.7 NTIA also 

held meetings on November 14 and 15, 

2006, to afford interested parties the 

opportunity to clarify comments 

submitted in response to the NPRM.8

II. Discussion 

A. Eligible U.S. Households 

4. After February 17, 2009, 

households may make one or more of 

several consumer choices to achieve 

digital-to-analog conversion, such as via 

cable or satellite service (where 

available), or through a converter 

device.9 In the NPRM, NTIA proposed 

to define those U.S. households eligible 

to participate in the Coupon Program as 

‘‘those households that only receive 

over-the-air television signals using 

analog-only television receivers.’’10

NTIA further proposed to make 

households that receive cable or satellite 

television service, even if those 

households have one or more analog 

television signals not connected to such 

service, ineligible for the Coupon 

Program. 

5. Many commenters disagreed with 

NTIA’s proposed definition and argued 

that all consumer households should be 

eligible to receive coupons.11 Given the 


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12098 Federal Register / Vol. 72, No. 50 / Thursday, March 15, 2007 / Rules and Regulations 

Broadcasters Association Comments at 3; Consumer 

Electronics Retailers Coalition (CERC) Comments at 

5; AARP Comments at 5; MTVA Comments at 3; 

Joint Consumer Comments at 2-8; APTS Comments 

at i; RadioShack Corporation Comments at 3-6; 

Sodexho Comments at 4. 12See Letter to Hon. John M. R. Kneuer from Hon. 

John D. Dingell, Hon. Edward J. Markey, Hon. 

Henry A. Waxman, Hon. Frank Pallone, Jr., Hon. 

Bart Gordon, Hon. Eliot L. Engel, Hon. Ted 

Strickland, Hon. Lois Capps, Hon. Tom Allen, Hon. 

Rick Boucher, Hon. Sherrod Brown, Hon. Bart 

Stupak, Hon. Gene Green, Hon. Diana Degette, Hon. 

Mike Doyle, Hon. Jan Schakowsky, (Letter from 

Members of the House Energy and Commerce 

Committee) (Nov. 15, 2006) at 2. 13 Joint Consumer Comments at 2-8; Richard 

Brittain Comments; Joint Industry Comments at 5. 14 Joint Industry Comments at i. 

15CERC Comments at 5. 

16See, e.g., Marvin Clegg Comments at 1; Richard 

Brittain Comments at 1; Thomson Comments at 2. 

17See, e.g., Richard Brittain Comments at 1. 

18Community Broadcasters Association 

Comments at 5. Section 3002 of the Act permits 

Class A and LPTV facilities to broadcast in analog 

after February 17, 2009. Moreover, a cable system 

must carry a LPTV facility only if it meets certain 

limited requirements. 47 U.S.C. § 534(h)(2). 

19 Joint Consumer Comments at 9. 

20RadioShack Comments at 7. 

21See ‘‘Digital Broadcast Television Transition: 

Several Challenges Could Arise in Administering a 

Subsidy Program for DTV Equipment,’’ GAO-05- 

623T (May 26, 2005) at 11-13 (GAO Challenges 

Report). In addition to the cable industry’s 

reluctance to give the government access to its 

subscriber lists, GAO noted that it would be 

difficult to merge information across the more than 

1,100 cable and satellite companies in the United 

States. GAO Challenges Report at 12. 

22See, e.g., RadioShack Comments at 8. 

23See, e.g., Thomson Comments at 2. 

24See, e.g., Archway Marketing Services 

Comments at 2. 

25See U. S. Census Bureau, http:// 

www.census.gov (Current Population Survey —

Definitions and Explanations). 

26Sunbelt Multimedia Company Comments at 11. 

27See supra, para 2. 

28See Section 3005(c)(3)(ii) of the Act. 

funding level and the possibility that 

many households with cable or satellite 

service may wish to purchase a 

converter box, commenters expressed 

concern about excluding any 

household.12 Commenters also 

expressed concern about those 

consumers that may need to rely on 

over-the-air capabilities in times of 

emergency. Some commenters argued 

that the Act and the legislative history 

do not support NTIA’s proposed 

definition and that the Agency lacks the 

statutory authority to limit the eligibility 

requirements.13 For example, in Joint 

Industry Comments, the commenters 

argued that the Act and the legislative 

history, as well as practical 

considerations, ‘‘preclude any 

implementation of the program that 

would exclude from coupon eligibility 

analog sets in cable or satellite-served 

homes not connected to those 

services.’’14 Likewise the Consumer 

Electronics Retailer Coalition (CERC) 

argued that there is no basis in the Act 

or the legislative history to support the 

standard proposed in the NPRM.15

6. Several comments raised other 

points in favor of expanding eligibility 

beyond that proposed in the NPRM. For 

example, some commenters noted that 

even cable and satellite households may 

need the ability to receive signals over 

the air in times of emergency or severe 

weather.16 Others noted that limiting 

coupons to over-the-air-only households 

could disadvantage satellite customers 

who receive their local broadcast signals 

over the air.17 Operators of Class A and 

LPTV stations noted that these facilities 

will continue to broadcast in analog 

after February 17, 2009, that most of 

these facilities are not eligible for cable 

or satellite must carry and that NTIA 

should not deny converter-box subsidies 

to households that rely on analog 

receivers to watch Class A and LPTV 

stations over the air, even if they have 

another means to view digital fullpower stations.18 Consumers Union 

contended that denying converter boxes 

to all households would cause 

disruptions in service that could 

undermine consumer support for the 

digital television transition.19

RadioShack suggested that limiting 

eligibility could reduce demand for 

converter boxes, thus raising their costs 

and potentially harming low-income 

households.20

7. NTIA recognizes that limiting 

eligibility as proposed in the NPRM 

would be difficult to enforce. There are 

no lists of households that only receive 

over-the-air television broadcasts. 

Moreover, as the Government 

Accountability Office (GAO) recognized, 

it would be a highly challenging task to 

obtain a list of cable and satellite 

subscribers in order to identify over-theair-reliant homes by the process of 

elimination.21 In fact, it would be 

difficult for NTIA to determine which 

U.S. households currently have, or plan 

to obtain, an analog television set 

requiring a CECB. Moreover, efforts to 

confirm eligibility would likely delay 

reasonable and timely distribution of 

coupons.22 Unless NTIA devoted 

substantial resources to review 

applicants’certifications of eligibility, 

there would be potential for waste, 

fraud and abuse.23 Such efforts could 

also substantially increase the costs of 

administering the program.24

8. Upon careful consideration of all 

arguments raised in the comments for 

and against limiting household 

eligibility criteria, NTIA has decided not 

to initially limit household eligibility in 

the Coupon Program to households 

reliant exclusively on over-the-air 

broadcasts for television service. 

Accordingly, the Final Rule permits 

coupons to be distributed initially to all 

U.S. households. As proposed in the 

NPRM and consistent with the 

definition used by the U.S. Census 

Bureau, a ‘‘household’’ consists of all 

persons who currently occupy a house, 

apartment, mobile home, group of 

rooms, or single room that is occupied 

as a separate U.S. postal address.25

NTIA received a comment from SunBelt 

Multimedia Company that requested the 

household definition to be expanded to 

allow multiple families residing at a 

single address to each count as a 

household, based on the community or 

income criteria.26 NTIA recognizes that 

multiple families may exist in 

households as defined by this Final 

Rule, however, it would be 

administratively difficult to determine 

the number and location of these 

households and to establish a definition 

based on community or income criteria. 

9. Recognizing that funds allocated for 

this program are limited and the 

possibility that over-the-air reliant 

television households may lose 

television service as a result of this 

decision, NTIA will permit open 

eligibility on a first-come, first-served 

basis while the Initial Funds are 

available (i.e., until coupons valuing 

$890,000,000 have been redeemed and 

issued but not expired, in accordance 

with Section 3005(c)(2)(B) of the Act).27

The Act permits funding of the program 

to increase by $510,000,000 to a total of 

$1,500,000,000 upon certification to 

Congress that the initial allocated 

amount of $990,000,000, the Initial 

Funds, is insufficient to fulfill coupon 

requests.28 If such Contingent Funds are 

available for the Coupon Program, the 

eligibility for those coupons provided 

from Contingent Funds will be limited 

to over-the-air-only television 

households (Contingent Period). 

Consumers requesting those coupons 

during the Contingent Period must 

certify to NTIA that they do not 

subscribe to a cable, satellite, or other 

pay television service. NTIA makes this 

decision balancing the demand 

uncertainty and funding limitations 

with the need to prioritize contingency 

funds for over-the-air reliant households 

which will lose total access to television 

broadcasts after the transition date. 

10. NTIA did not propose to consider 

‘‘economic need’’ as part of the 

eligibility requirement, but solicited 

comment on whether it should be 

considered and, if so, how it should be 

determined. NTIA received comments 

opposing adoption of eligibility criteria 


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Federal Register / Vol. 72, No. 50 / Thursday, March 15, 2007 / Rules and Regulations 12099 

29See Carolyn McMahon Comments; Stored 

Value Systems, Inc. Comments at 4; Consumer 

Union, Consumer Federation of America, and Free 

Press Comments at 9-10; Sodexho Comments at 5; 

Letter from Members of the House Energy and 

Commerce Committee at 2. 

30See American Association of People with 

Disabilities Comments at 8 (the federal programs 

cited by AAPD include Medicaid, Food Stamps, 

Supplemental Security Income, Federal Public 

Housing Assistance, Low-Income Home Energy 

Assistance Program, Temporary Assistance to 

Needy Families, The National School Lunch 

Program’s Free Lunch Program, Bureau of Indian 

Affairs General Assistance, Tribally Administered 

Temporary Assistance for Needy Families, Head 

Start, Tribal National Lunch Program). 

31See Jon Kaps Comments (arguing that schools 

should be eligible to participate in the Coupon 

Program). 

32Robert Diaz Comments. 

33Best Buy Comments at 4. 

34RadioShack Comments at 13. 

35To further prevent fraud, the Final Rule states 

that consumers may not sell, duplicate or tamper 

with the coupon. 

36However, if a consumer returns a CECB to a 

retailer, the retailer may refund to the consumer 

that portion of the purchase price not covered by 

the coupon. 

37See Richard Brittain Comments. 

38See Poorman-Douglas & Hilsoft Notifications 

Comments. 

39 Id. 

40See CERC Comments at 7-8; Archway 

Marketing Services at 5-6. 

41See Joint Industry Commenters at 22; CERC 

Comments at 7-8; Samsung Electronics Comments 

at 2; Joint Consumer Comments at 17; Best Buy 

Comments at 2; RadioShack Corporation Comments 

at 10. 

42CERC Comments at 6-9. 

43 Id. at 8. 

encompassing economic need because 

of the complications involved in such 

an analysis. Some commenters also 

asserted that NTIA lacks such statutory 

authority.29 Other commenters, 

however, supported the idea of adopting 

a means test and suggested that NTIA 

use income or participation in other 

federally supported programs as a basis 

of determining eligibility. For example, 

the American Association of People 

with Disabilities suggested that NTIA 

adopt a program similar to the FCC 

Lifeline-Linkup phone subsidy program 

which uses 135 percent of the poverty 

level or persons who are beneficiaries of 

other federal assistance programs as a 

basis for eligibility.30

11. NTIA agrees that including 

economic need as an eligibility factor in 

the Coupon Program would be a 

complicated process. Furthermore, 

because this is a one-time program, it 

would not be cost effective to develop 

eligibility requirements and verification 

systems such as those used by other 

federal assistance programs, such as 

Food Stamps. NTIA noted in the NPRM 

that neither the Act nor the legislative 

history suggests such a requirement. 

Accordingly, NTIA will not consider 

economic need as part of an eligibility 

requirement for the coupon program. 

Moreover, the Agency will only make 

the Coupon Program available to 

individual U.S. households, as proposed 

in the NPRM, not businesses, schools, or 

other entities as suggested by one 

commenter.31 The Act states that a 

‘‘household’’ may obtain coupons, and 

there is nothing in the legislative history 

or the comments that suggests that 

Congress intended to extend eligibility 

beyond households. 

B. Coupon Value and Use Restrictions 

12. Consistent with the Act, NTIA 

proposed in the NPRM to issue $40 

coupons to be redeemed only at 

certified retailers when purchasing a 

CECB. The Agency also proposed to 

place identifying serial numbers on the 

coupons to keep track of the number of 

coupons issued to and redeemed by 

consumers as well as to minimize fraud, 

such as counterfeiting. NTIA did not 

propose a specific form of the coupon, 

but requested comment on whether the 

Agency should issue a paper coupon or 

an electronic coupon card. 

13. NTIA proposed to restrict each 

individual coupon to the purchase of 

one CECB. Consistent with the Act, 

NTIA also proposed to prevent coupon 

holders from using two coupons in 

combination toward the purchase of a 

single CECB. To prevent fraud, NTIA 

also proposed to prohibit coupon 

holders from returning a converter box 

to a retailer for a cash refund or for 

credit towards the purchase of another 

item. However, the Agency did propose 

to permit the even exchange for another 

CECB in the event of defective or 

malfunctioning equipment. 

14. One commenter argued that a 

buyer should be able to use the $40 

coupon to buy a converter box with 

deluxe features.32 Best Buy supported 

only ‘‘even’’ exchanges of devices and 

opposed allowing consumers to return 

converters for a cash refund or for credit 

towards the purchase of an upgraded 

device.33 RadioShack recommended 

that statements such as ‘‘No Cash 

Value’’ or ‘‘Exchange Only for Eligible 

Converter’’ be clearly printed on the 

coupon and in accompanying consumer 

material.34

15. Consistent with the Act, the value 

of the coupons issued will be $40. In no 

case may consumers receive any cash 

value for the coupon.35 If the cost of a 

CECB is less than $40, retailers will only 

be reimbursed for the retail price of the 

box. Likewise, consumers cannot 

receive a refund or credit towards the 

purchase of another item if the price of 

the CECB is less than the $40 value of 

the coupon. Retailers and consumers are 

also prohibited from using two coupons 

in combination towards the purchase of 

a single CECB. NTIA recognizes the 

opportunities for fraud and abuse by 

permitting consumers to receive a cash 

refund for the value of the coupon or for 

credit towards another item outside of 

the program. Therefore, NTIA will 

permit an exchange only for another 

converter box certified under these 

regulations.36

16. Some commenters supported the 

use of a paper coupon. For example, one 

commenter stated that it was 

Congressional intent to issue a paper 

coupon with UPC coupon-type barcode, 

which brick-and-mortar retailers and 

clearinghouses could handle in the 

same fashion as manufacturers’ cents-off 

coupons because this would minimize 

the cost of the overall program.37

Another commenter stated that the 

paper coupon was both straightforward 

to use and provides for a fast and 

economical means to mail eligible 

applicants their coupons in a short time 

frame.38 Moreover, paper coupons could 

have several security features, including 

unique serial numbers, barcodes, 

security paper and consumer 

identification.39 Many of the comments, 

however, addressed the problems 

associated with paper coupons 

including the potential for fraud, delay 

in retailer reimbursement and increased 

administrative costs.40

17. Other commenters, particularly 

retailers, supported the use of an 

‘‘electronic coupon card’’ (ECC) on 

which the $40 value can be credited 

towards the purchase of a CECB. Many 

commenters agreed that use of the ECC 

was the most efficient way to administer 

the program as well as the best way to 

reduce fraud.41 CERC stated that an ECC 

should (a) bear a ‘‘use by’’ date on its 

surface and should be coded to expire 

after the time indicated on its surface; 

(b) carry a unique serialized number 

(encoded in a magnetic strip and 

printed in human-readable form on the 

card) that can be transmitted to a central 

database immediately upon submission 

for on-line verification; and (c) provide 

clear and succinct rules concerning 

coupon use.42 CERC also noted that the 

use of ECCs would permit more 

consumer friendly converter 

exchanges.43 It was also noted that the 

use of ECCs would facilitate real-time 

transmission of information on 

redemption rates which is important 

because transmission delays may limit 

NTIA’s ability to monitor performance 

or to request additional congressional 


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12100 Federal Register / Vol. 72, No. 50 / Thursday, March 15, 2007 / Rules and Regulations 

44 Joint Consumer Comments at 17. 

45ORC Macro Comments at 3. 

46Archway Marketing Services Comments at 6; 

Sodexho Comments at 9; Best Buy Comments at 2: 

CERC Comments at 7; Stored Value Systems, Inc. 

Comments at 8. 

47Best Buy Comments at 2; CERC Comments at 

6. 

48An example of a paper card with electronic 

tracking capability would be a MetroCard, used in 

the Washington D.C.-area Metro system. 

49CERC Comments at 9. 

50Council Tree Communications Inc. Comments 

at 1. 

51Sunbelt Multimedia Co. Comments at 12. 

52Robert Diaz Comments. 

53Section 3005(c)(1)(A) of the Act. 

54AARP Comments at 9-10. 

55The Department of Commerce Limited English 

Proficiency guidelines are provided on the 

Department’s website at http://www.osec.doc.gov/ 

ocr/doclepplan2003.pdf. 

56Susan Stanke Comments; Richard Brittain 

Comments; AARP Comments at 10; Best Buy 

Comments at 3; RadioShack Comments at 9; 

Sunbelt Multimedia Co. Comments at 11. See also 

Ralph L. Mlaska Comments (coupons issued in first 

6 months of the year should expire in December; 

coupons issued in the last 6 months should expire 

in July of the following year); George McLam 

Comments (program should last all of 2009). 

funding.44 There were, however, 

concerns expressed about the use of 

ECCs. For example, ORC Macro noted 

that these cards may not be compatible 

with electronic scanning devices used 

by participating retailers, and that the 

requirement for electronic systems may 

eliminate small retailers from 

participating.45 NTIA also received 

conflicting comments on whether ECCs 

could be encoded to limit use to a 

specific product.46 Retailers suggested 

that ECCs may require significant upfront costs for software, payment 

processing and employee training.47

18. The coupons will not carry any 

‘‘stored value,’’ but the appropriate 

amount will be identified on the cards 

and authorized for redemption when 

matched to the central database to verify 

each transaction. In light of the 

comments received, particularly those 

from retailers, NTIA will provide 

coupons that are capable of 

electronically encoding information that 

is necessary for the program to run 

efficiently and permit electronic 

tracking of transactions. NTIA also 

believes that electronically encoded 

coupons will reduce opportunities for 

fraud in the program. NTIA notes that 

electronic information may be encoded 

on paper coupons as well as plastic 

cards.48

C. Application Process 

19. NTIA proposed to require coupon 

applicants to submit the following 

information: (1) name; (2) address (no 

Post Office Box); (3) the number of 

coupons required, not to exceed two 

coupons; (4) a certification that they 

only receive over-the-air television 

signals using an analog-only (NTSC) 

television receiver; and (5) a 

certification that no other member of the 

household has or will apply for a 

coupon. Furthermore, consistent with 

the Act, NTIA proposed to commence 

the application period on January 1, 

2008 and conclude on March 31, 2009. 

If an applicant does not specify the 

number of coupons needed, NTIA 

proposed sending the applicant one 

coupon. Also consistent with the Act, 

NTIA proposed sending the requested 

coupon(s) via the United States Postal 

Service. 

20. Few of the comments raised 

concerns about the information NTIA 

proposed to require consumers to 

provide as part of the application 

process. CERC, however, argued that 

certifications that a household receives 

only over-the-air television signals and 

that no one else in the household will 

apply is neither consistent with the Act, 

nor practical nor fair.49 Council Tree 

Communications Inc. argued that NTIA 

should allow for ‘‘alternative methods of 

delivering the coupons to Indian 

Reservations and Alaskan Native 

Villages.’’50 Some commenters 

encouraged the Agency to make 

applications available in foreign 

languages.51 With respect to the 

application period, one commenter 

suggested that the time period be 

extended to December 31, 2009, because 

consumers may not understand the need 

for a converter box until their 

televisions go dark after February 17, 

2009.52

21. The Final Rule requires applicants 

to provide NTIA with only the 

information necessary for NTIA to fulfill 

a coupon request. Accordingly, 

applicants for coupons must provide the 

following: (1) name; (2) address; (3) the 

number of coupons that they require; 

and (4) a certification as to whether they 

receive cable, satellite, or other pay 

televison service. NTIA is sensitive to 

privacy concerns and is not requesting 

unnecessary personal identification 

information, such as social security 

numbers. Multifamily residences (i.e., a 

residence occupied by more than one 

family unit) will not be eligible for more 

than two coupons unless each 

household is occupied as separate living 

quarters and has a separate U.S. postal 

address. Coupons will be mailed via the 

U.S. postal service along with the terms 

and conditions of use. Given the 

sensitivity of commenters to the 

prevalence of Post Office Boxes in rural 

America, NTIA will make allowances 

for households on Indian Reservations, 

Alaskan Native Villages and other rural 

areas where Post Office Boxes are the 

only means of mail delivery. Residents 

of Indian reservation, Alaskan Native 

Villages and other rural areas without 

home postal delivery may be requested 

to supply additional information to 

identify the physical location of the 

household. With respect to the 

application period, NTIA will adhere to 

the period provided in the legislation; 

thus NTIA will accept applications only 

between January 1, 2008 and March 31, 

2009.53

22. Commenters agreed with NTIA’s 

proposal to make application forms 

widely available.54 NTIA will 

administer the program to make it 

accessible particularly to those in need 

of coupons. As part of the consumer 

education program, consumers will be 

made aware of the various ways to 

access and submit applications for the 

Coupon Program. NTIA will ensure that 

applications and accompanying 

materials are available in other 

languages consistent with its obligations 

under Executive Order 13166, 

‘‘Improving Access to Services for 

Persons with Limited English 

Proficiency,’’ (Aug. 11, 2000).55 The 

Final Rule provides that coupons may 

be requested by mail, by phone and 

electronically (e.g., by email or through 

a website). 

D. Coupon Expiration 

23. According to the Act, coupons 

issued under this program are to expire 

three months after issuance. 

Accordingly, NTIA proposed to print an 

expiration date on each coupon and 

proposed that the expiration date be 

three months after the coupon’s 

issuance date. NTIA defined issuance 

date as the date upon which the coupon 

is placed in the U. S. mail. 

24. Although commenters agreed with 

NTIA’s proposal to print an expiration 

date on the coupon, many thought that 

the proposed expiration date of three 

months after the coupon’s issuance 

should be extended. The time that 

commenters suggested the date be 

extended varied from three to ten days 

after issuance to take into consideration 

such matters as the rural location of the 

consumers, homebound or disabled 

consumers, slow mail delivery and 

coupons lost in the mail.56

25. As stated above, the Act requires 

NTIA to issue coupons that expire three 

months after issuance. NTIA believes 

that three months is reasonable and 

allows ample time for consumers to 

receive and use the coupons. The 

expiration date will encourage 


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57See Section 3005(d) of the Act. 

58FCC receiver standards are set forth at 47 CFR 

15.117; FCC transmission standards are set forth at 

47 CFR 73.682. Examples of industry standards and 

guidelines incorporated in this Final Rule are ATSC 

A/74 and CEA 909. 

59Thomson Comments at 8. 

60NPRM, 71 FR at 42,069-70. 

61 Id. at 42,069. 

62See e.g., Funai Comments at 7; Microtune 

Comments at 1; Motorola Comments at 2. 

63Zoran Comments at. 2. 

64 Joint Industry Comments at i. See also LG 

Electronics Comments at 10; Samsung Comments at 

2; Thomson Comments at 4. 

65MTVA Comments at 9-10. 

66Charles W. Rhodes Comments at 1. 

67See Comments from New America Foundation, 

Media Access Project Consumer Federation of 

America, Wireless Internet Service Providers 

Association (Wispa), Acorn Active Media 

Foundation Community Technology Centers’

Network, Champaign Urbana Community Wireless 

Network (Cuwin), The Ethos Group, and 

Freenetworks.org (collectively, referred to hereafter 

as NAF Comments). 

consumers to use coupons promptly and 

will permit NTIA to use funds from 

expired coupons to issue coupons to 

other households. Accordingly, NTIA 

adopts a rule that coupons will be 

issued with an expiration date of three 

months after the issuance date. Three 

months will further be defined as 90 

calendar days to provide a uniform 

redemption period for all coupon 

recipients. The issuance date will be the 

date the coupon is placed in the U. S. 

Mail. 

E. Coupon-Eligible Converter Box 

26. The Act defines the term ‘‘digitalto-analog converter box’’ (a CECB) as ‘‘a 

stand-alone device that does not contain 

features or functions except those 

necessary to enable a consumer to 

convert any channel broadcast in the 

digital television service into a format 

that the consumer can display on 

television receivers designed to receive 

and display signals only in the analog 

television service, but may also include 

a remote control device.’’57 NTIA’s 

Final Rule adopts technical 

specifications and features required for 

a CECB to qualify for the Coupon 

Program. Manufacturers are free to 

market converter boxes which do not 

comply with the requirements of the 

Final Rule, although such devices 

would not be eligible for the Coupon 

Program. 

27. NTIA acknowledges that many 

sections of the NPRM incorporate 

standards or rules adopted by the FCC 

regarding digital television transmission 

or receiver requirements, and also 

incorporate industry standards and 

guidelines adopted by the Advanced 

Television Systems Committee (ATSC), 

CEA or other organizations.58 NTIA’s 

incorporation of these industry 

standards and guidelines or FCC 

standards and rules into its regulations 

is intended to assist converter-box 

manufacturers by gathering NTIA’s 

basic converter-box requirements in a 

single place. NTIA’s regulations do not 

supercede the FCC’s authority, affect 

any FCC requirement or revise any of 

the industry standards and guidelines 

discussed in this document. In these 

regulations, NTIA adopts technical 

specifications and features required for 

a CECB. NTIA recognizes that CECBs are 

not currently available to consumers, 

and that manufacturers will have barely 

12 months to bring converter boxes 

compliant with NTIA specifications to 

market, less than the typical 18–month 

manufacturing cycle.59

28. NTIA underscores that the 

converter boxes that will be eligible for 

this program are in development and are 

not yet commercially available. NTIA 

cannot warrant the performance, 

suitability or usefulness of any CECB. 

29. The NPRM requested comment on 

NTIA’s proposed rule to define the 

converter box eligible for the Coupon 

Program. The NPRM presented several 

guidelines which NTIA used in 

developing the proposed rule and 

analyzing the comments submitted by 

the public. These guidelines include the 

ability of consumers to continue 

receiving broadcast programming in the 

same receiving configuration (e.g., same 

household antenna, same location) as 

used for the existing analog reception; 

that the CECBs be inexpensive but meet 

a minimum performance level; and that 

they should be easy to install and 

operate.60

30. The NPRM requested comment on 

several related issues, including the 

appropriate minimum technical 

capabilities for CECBs, their features; 

and the extent to which NTIA should 

consider certain standards, such as 

energy efficiency, in determining the 

type of converter box that would be 

eligible for the Coupon Program. 

Comment was also sought on how NTIA 

can determine whether a converter box 

meets the requirements of the Coupon 

Program and how the CECBs should be 

identified so the public is informed that 

a specific box is eligible for a coupon. 

Comments were received on each of 

these issues as well as additional areas. 

Each of these is discussed in the 

following sections. 

a. Minimum Technical Specifications: 

ATSC Guidelines A/74 and FCC Part 73 

31. The NPRM stated that ‘‘[f]or 

purposes of the coupon program, NTIA 

proposed certain standards for a 

minimum-capabilities converter box 

that simply converts an ATSC terrestrial 

digital broadcasting signal to the analog 

National Television Standards 

Committee (NTSC) format.’’61 The 

NPRM proposed that the converter box 

should be capable of receiving, 

decoding and presenting video and 

audio from digital television 

transmissions as specified in FCC Part 

73 (47 CFR Part 73) and that meet the 

ATSC Recommended Practice: Receiver 

Performance Guidelines ATSC A/74 (A/ 

74). 

32. NTIA received many comments 

regarding the technical specifications 

proposed in the NPRM. All the 

comments agreed that A/74 should form 

the basis of the technical specifications 

for the CECB.62 One commenter, Zoran, 

urged NTIA to adopt, but not exceed, 

the A/74 guideline. Zoran stated that 

‘‘[e]xceeding A/74 on a basic set top box 

calls for over engineering and the use of 

non-commodity parts that increase cost 

exponentially.’’63 Many of the 

commenters recommended that NTIA 

adopt performance specifications for the 

converter box that go beyond the 

receiver guidelines contained in A/74. 

The Joint Industry Comments noted that 

there have been ongoing improvements 

in technology since the A/74 guidelines 

were adopted in 2004 that would enable 

NTIA to set reasonable requirements 

exceeding A/74 performance levels in 

some areas and also to fill in some 

requirements for performance levels 

where A/74 only specified test 

procedures.64 MTVA, an association of 

television stations that serve the New 

York City metropolitan area, echoed the 

Joint Industry Comments and indicated 

that it may be possible to improve on 

the A/74 performance levels with the 

fifth generation of VSB decoder chips 

and new RF tuners that have been 

developed since A/74 was adopted.65

Charles Rhodes, former Chief Scientist 

of the Advanced Television Test Center, 

that tested the DTV systems adopted by 

the FCC in 1996, stated that A/74 was 

just a guideline and was never intended 

to serve as a minimum performance 

standard.66

33. The New America Foundation et 

al (NAF) also recommended that NTIA 

establish performance specifications 

beyond those contained in A/74.67

NAF’s concerns regarding NTIA 

converter-box specifications extend 

beyond the delivery of digital television 

to those who currently depend on 

analog television. NAF argued that the 

quality of the converter boxes NTIA 

mandates will affect the utility of the 

white spaces within TV channels 2–51 


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68NAF Comments at 2; See also Charles W. 

Rhodes Comments at 1. 

69NAF Comments at 5. 

70NAF 2nd Comments (November 16, 2006). 

71MTVA Comments at 17. 

72For example, while A/74 does not require any 

specific number of field ensembles to be 

successfully demodulated, the Joint Industry 

Comments recommended that a converter box 

successfully demodulate 30 of the 50 field 

ensembles included in A/74. Joint Industry 

Comments at Appendix 4. Rhodes recommends that 

‘‘tests of ACI [adjacent channel interference] should 

be carried out over the full range of D [desired] 

signal powers that will exist within the coverage 

area of the transmitter,’’ while A/74 only specifies 

three desired signal power levels. Rhodes 

Comments at 4. MTVA stated that multiple 

interfering signal tests are important but said that 

reasonable interference levels are not yet known. 

MTVA Comments at 15. NAF indicated that in 

addition to the A/74 guidelines, tests must also 

include desensitization performance. NAF 

Comments at 5. 

73For example, the MTVA noted that ‘‘reasonable 

interference values are not yet known at this time, 

but should be investigated (with lab testing) in the 

near future recognizing current tuner technology.’’

MTVA Comments at 15. See also Charles Rhodes 

Comments at 7 (‘‘testing should cover the same 

desired signal power range as in single Taboo 

testing above....It is my intention to actually 

perform these tests in my own laboratory in the 

next few months’’); NAF Comments at 5 (‘‘detailed 

engineering measurements as to the susceptibility 

of current DTV receiver designs to interference from 

out-of-band signals are needed.’’). 

74 ‘‘[A]ssuming NTIA adopts final rules by 

January 1, 2007, manufacturers will have barely 12 

months to bring compliant converter boxes to 

market-less than the typical 18-month 

manufacturing cycle.’’ Thompson Comments at 8. 

75 Joint Industry Comments at 1. 

76 Id. at 13. 

77Letter from Members of the House Energy and 

Commerce Committee at 2 (stating that converter 

boxes should, at a minimum, replicate the picture 

and audio quality consumers experience today 

when watching their analog televisions). 

and noted that, in an FCC NPRM on 

‘‘Unlicensed Operation in the Broadcast 

Bands’’ (Docket 04–186), the FCC 

expressed concern that low-quality DTV 

receivers could severely impact the 

utility of the white spaces within TV 

channels 2–51.’’68 NAF suggested that 

desensitization performance of the 

converter boxes should be considered 

and should be equivalent to most of the 

stand-alone TV sets presently marketed. 

NAF also proposed that detailed 

engineering measurements be made of 

the susceptibility of current DTV 

receiver designs to interference from out 

of band signals.69 NAF noted that the 

FCC was conducting tests that will not 

be available until mid–2007, but 

presented preliminary results of the 

three receiver tests it funded at the 

University of Kansas.70 Raising another 

issue regarding interference, MTVA 

recommended that NTIA adopt MTVA 

specifications for NTSC into DTV taboo 

channels (television channels that 

cannot be used because of interference 

with other channels).71 MTVA did not 

provide laboratory or real world 

measurements supporting its 

recommendation or information on 

whether manufacturers can currently 

build DTV equipment capable of 

meeting proposed specifications. 

34. The comments filed by these 

organizations all highlight areas where 

the commenters believe the A/74 

Receiver Performance Guidelines of 

June 18, 2004, do not provide a 

sufficient level of performance for the 

CECB. The technical comments and 

thoughtful recommendations of these 

commenters prompted NTIA to 

reexamine the NPRM proposal that the 

A/74 guidelines be adopted as the 

performance specifications for the 

CECBs. 

35. While all of these commenters 

recommend that NTIA adopt 

specifications or tests to qualify a CECB 

that go beyond those in the A/74 

guidelines, they each present differing 

technical recommendations.72 NTIA 

shares the concern of the commenters 

that CECBs perform at a level to meet 

the reception needs of the American 

public. NTIA has carefully analyzed the 

recommendations presented by the 

commenters, and has seen no scientific 

data that any proposed set of technical 

specifications will ensure any given 

level of performance of converter boxes 

in real-world environments. Many of the 

commenters recommend that further 

tests be performed.73 Given the 

requirements of the Act that coupons be 

available for CECBs early in 2008, there 

is time neither for additional analysis 

testing as proposed by the commenters 

nor for the establishment of industryaccepted standards following such 

tests.74

36. While NTIA cannot guarantee the 

performance of the CECBs, NTIA 

intends that coupons be used for 

converter boxes using current 

technology available in the marketplace. 

To this end, NTIA recognizes that 

digital reception technology has 

advanced in the two years since the 

adoption of A/74. Further, NTIA 

recognizes that in order to qualify a 

converter box to meet minimum 

specifications, it must, in the words of 

the Joint Industry Comments ‘‘fill in 

some requirements for performance 

levels where ATSC A/74 only specified 

test procedures.’’75

37. Having reviewed the comments 

filed by many parties, NTIA has 

accepted the technical 

recommendations of the Joint Industry 

Comments as the basis for the minimum 

technical specifications of the CECB. 

The Joint Industry Comments represent 

a collaboration by the broadcast 

industry and the consumer electronics 

industry to present a set of technical 

specifications which both industries 

believe can provide the American 

consumer with a high-quality, low-cost 

and easy-to-use CECB. The Joint 

Industry Comments use the A/74 

guidelines as the basis for their 

proposal, but propose several revisions 

to reflect advances in technology in the 

two years since the A/74 standard was 

adopted. Further, they propose target 

performance levels in several areas 

where A/74 only specifies test 

procedures. The NAB and MSTV have 

funded the development of converterbox prototypes from two manufacturers 

which they state demonstrate that the 

technical specifications they propose 

are ‘‘clearly achievable in practical 

products designed to be amenable to 

production in mass manufacturing 

quantities. Further, the project results 

provide tangible evidence that a highquality, low-cost converter box can be 

built with measured performance that 

exceeds the levels specified in the ATSC 

A/74 Recommended Practice on 

Receiver Performance in several 

important areas and consequently can 

provide reliable reception under a 

variety of real-world conditions.’’76

38. NTIA believes that CECBs should 

be produced according to specifications 

currently accepted by major 

manufacturers. It would be contrary to 

the public interest if coupons were used 

to purchase converters designed with 

obsolete or poorly performing 

components.77 On the other hand, some 

commenters suggested technical 

specifications that have not been widely 

agreed upon nor quantified; and 

products in widespread commercial 

deployment have not been tested to 

these specifications. The technical 

specifications adopted by NTIA should 

provide American consumers with an 

economical CECB containing state-ofthe-art technology available today from 

manufacturers within the time frame 

required by the Act. 

39. Therefore, NTIA adopts the 

required minimum features and 

technical specifications in Technical 

Appendix 1 of the Final Rule. In 

addition, NTIA specifies permitted and 

prohibited features of a CECB in 

Technical Appendix 2. 

b. Converter-Box Antenna Inputs 

i. Smart Antenna 

40. The NPRM proposed that the only 

input to the converter box shall be for 

an external antenna. The NPRM stated 

that ‘‘[a] single input (Type F connector) 

ensures that only an antenna can be 


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78NPRM, 71 FR at 42,070. 

79A standard for smart antenna interfaces is 

defined by the CEA-909 Antenna Control Interface 

standard, which is included in the A/74 guidelines, 

Section 4.2. 

80 Joint Industry Comments at 17. 

81MTVA Comments at 5-6. 

82Zoran Comments at 3; but see CERC Comments 

at 10. 

83Radio ShackComments at 20. 

84NPRM, 71 FR at 42,069. 

85See GAO Challenges Report at 6. 

86Funai Comments at 10. 

87Funai 2nd Comments at 1-2. 

88See Section 3005(d) of the Act. 

89MTVA Comments at 5. 

90CBA Comments at 6. Richard Brittain also 

noted that older sets still have 300–ohm ribbon 

leads and screw terminals instead of Type F 

connectors. See Richard Brittain Comments. 

connected to eligible boxes thus 

ensuring use of such boxes as for overthe-air television reception only.’’78 The 

F-type connector is the standard 

antenna input in most television 

receivers. While the F-type connector 

was supported by all who commented 

on antenna inputs, many commenters 

requested that an additional antenna 

input be permitted in the CECB. Most of 

the comments proposing an additional 

antenna input requested the flexibility 

to include an interface for a technology 

known as a smart antenna.79 A smart 

antenna allows for automatic electronic 

steering and signal-level control so a 

consumer can receive the best signal for 

each channel. The Joint Industry 

Comments stated that in many markets, 

television stations’ transmitters are 

located on different sides of the 

population center due to separation 

requirements or other practical 

considerations outside their control. In 

these instances, consumers can achieve 

the best reception using electronically 

steered smart antennas.80

41. MTVA stated that in difficult 

reception environments, the DTV video 

and audio is either perfect or 

nonexistent and the use of a smart 

antenna can mean the difference 

between having good DTV service or no 

service.81 CERC noted that a smart 

antenna would ‘‘better allow consumers 

to adjust for propagation characteristics 

and set capabilities. This may minimize 

consumer disappointment and post-sale 

product exchanges.’’82

42. Zoran, however, opposed the use 

of a smart antenna and only supported 

the use of a passive antenna. 

RadioShack supported the option of a 

smart antenna interface in a CECB. In its 

comments, RadioShack did not propose 

that a smart antenna interface be 

mandated as it will add unnecessary 

cost for many consumers, but 

recommended that it should be an 

option in a certified converter box for 

those consumers who seek it.83

43. NTIA recognizes that DTV 

reception can be difficult in many 

regions of the country. The NPRM stated 

that ‘‘[i]deally, a converter box should 

be able to receive digital broadcast 

signals in the same receiving 

configuration (e.g., same household 

antenna, same location) as used for the 

existing analog reception.’’84 NTIA 

notes, however, recent GAO 

congressional testimony indicating that 

antenna reception of digital signals may 

vary based on a household’s geography 

and other factors.85 In addition, 

antennas configured for primarily VHF 

service may not be as effective as many 

stations switch to UHF frequencies. 

44. After reviewing the comments 

from Joint Industry Comments, MTVA 

and others, as well as the GAO 

congressional testimony, NTIA 

concludes that many consumers may 

wish to use smart antennas. While NTIA 

expects that the industry will continue 

to work on improving the performance 

and reduce the cost of both passive and 

active smart antennas, NTIA believes 

that many consumers will benefit from 

smart-antenna technology to receive 

over-the-air digital television 

broadcasts. It is clear, however, that a 

smart-antenna interface will add to the 

cost of the converter box and will not 

be needed by many households. 

45. In order to permit the inclusion of 

a smart antenna, but not add to the cost 

of the converter box for those who do 

not require this capability, the Final 

Rule will permit, but not require, 

manufacturers to include in their CECBs 

the circuitry and connectors associated 

with the so-called smart-antenna 

interface. 

ii. Bundling 

46. In its comments, Funai supported 

the use of a smart antenna and 

recommended that ‘‘the ‘bundling’ of 

such an antenna with a DTA box should 

not preclude eligibility for the 

subsidy.’’86 Funai suggested that 

‘‘[a]lthough prices may fluctuate due to 

market conditions, we conservatively 

estimate that it is possible to price a 

DTA and Smart-Antenna bundle at less 

than $100.’’87 NTIA does not believe 

that the bundling of a smart antenna 

with a converter box meets the 

requirement of the Act which defines a 

CECB as a ‘‘stand-alone’’ device.88 The 

purchase of a smart antenna at the same 

time a consumer purchases a converter 

box equipped with a smart-antenna 

interface will ease the installation and 

operation of the converter box for many 

people. Manufacturers or retailers may 

wish to offer combined purchases of 

converter boxes with smart antenna 

interfaces and smart antennas at 

promotional prices. The CECB, 

however, must be presented for sale at 

all outlets as a stand-alone single unit 

and cannot be sold conditioned on the 

purchase of any other items. 

iii. CEA–909 

47. CEA–909 is the current industry 

standard for a smart antenna interface. 

MTVA stated that ‘‘eligibility should not 

be limited to only devices that comply 

with this standard (CEA–909) since 

such a requirement could preclude or 

delay technological advances in this 

area that are now being considered.’’89

NTIA recognizes that technological 

advances are being made in many areas 

of digital television broadcasting. In 

order for this program to proceed so 

converter boxes can be available to the 

public in 2008, however, NTIA must 

establish a Final Rule to specify CECBs 

which manufacturers will build during 

2007. A reference to this standard will 

be included in the Final Rule for the 

program. 

iv. 300 Ohm Inputs 

48. The Community Broadcasters 

Association (CBA) did not object to 

NTIA’s proposal that a CECB have an RF 

input, but recommended that 

‘‘manufacturers who choose to add a 

300–ohm input with screw terminals 

should not be penalized for doing so.’’90

The CBA comments included no further 

explanation or information supporting 

this recommendation. NTIA recognizes 

that use of 300–ohm antenna inputs is 

old technology and has no information 

on the number of television receivers in 

use today that are equipped only with 

300–ohm antenna inputs. NTIA also 

recognizes that many inexpensive 

indoor ‘‘rabbit-ear’’ antennas have 300–

ohm connectors. NTIA notes that 

manufacturers of television receivers 

commonly include inexpensive 

matching transformers to connect 300–

ohm ribbon leads to Type F inputs 

rather than including built-in 300–ohm 

antenna inputs, and that such 

transformers are commonly available 

where television receivers are sold. We 

believe that the use of these inexpensive 

transformers is the most economical 

method of meeting the needs of those 

consumers who have television 

receivers which only contain 300–ohm 

inputs. The Final Rule, therefore, will 

permit, but not require, manufacturers 

to include matching transformers to 

connect 300–ohm ribbon leads to the 

required Type F connectors. The Final 

Rule will also permit manufacturers to 


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91National Translator Association Comments at 

1. 

92CBA Comments at 3. 

93 Island Broadcasting Comments at 2. Similar 

comments were filed by the Association of Public 

Television Stations (APTS), which recommended 

‘‘that NTIA allow eligible converter boxes to 

contain a built-in and easily workable A/B switch.’’

APTS Comments at 30. Richard Brittain 

recommended a pass through of analog signals if 

the box is turned off. See Brittain Comments. 

94Funai, 2nd Comments at 2 (Nov. 17, 2002). 95RadioShack Comments at 19. 

96THAT Corp. Comments at 8-9. 

97For example, Zoran, Brittain, and Diaz 

recommended that NTIA permit S-video as an 

output. See Zoran Comments at 1; Richard Brittain 

Comments; Diaz Comments at 1. 

98Funai Comments at 11. 

99 Id. at 11-12. 

100 Id. 

provide connectors for 300–ohm inputs 

on the CECB. 

c. Analog Signal Pass Through 

49. The National Translator 

Association recommended that the 

CECBs pass analog signals directly 

through without processing or 

modification.91 The CBA also requested 

that NTIA require that CECBs pass 

through an analog signal, either actively 

or passively. CBA noted that Class A 

and LPTV stations are not subject to the 

February 17, 2009 end-of-transition 

deadline, applicable to full-power 

stations. It indicated that it was 

important that the converter box not 

block the analog signal.92 LPTV licensee 

Island Broadcasting noted that 

thousands of LPTV stations in the 

United States will remain analog after 

the transition and are not carried on a 

cable system or other multi-channel 

video delivery service. Island 

recommended that the converter box 

contain a feature to pass through the 

analog signal from the antenna to the TV 

receiver, either when the box is shut off, 

the signal is passed, or by means of a 

built in by-pass switch.93 Funai, 

however, noted that ‘‘[a]n analog pass 

through, while conveniently retaining 

legacy analog TV support, would 

degrade the RF noise performance of all 

so-equipped DTA tuners by 3dB–a 

penalty that could not be recovered by 

any consumer with such a unit.’’ Funai 

recommended that a consumer purchase 

a separate switch and/or external 

splitter to receive analog television.94

50. NTIA is sensitive to the needs of 

consumers who will wish to continue to 

view over-the-air analog television 

during and after the digital transition. 

Not only will many consumers continue 

to rely on analog television reception of 

Class A stations, LPTV stations and 

translators after the transition, many 

consumers who purchase the CECB will 

require the ability to receive analog 

television signals during the transition 

period as not all full-power television 

stations in the United States have 

completed their digital build-out. NTIA, 

however, is reluctant to require an 

analog pass through feature because it 

will result in a reduction in received 

signal level and in increased cost to all 

consumers who purchase a CECB. The 

amount of reduction in receiver 

sensitivity and increased cost is 

dependent on how the analog pass 

through feature is implemented. This 

reduction may not be noticeable to 

consumers who receive strong signals in 

urban areas, but may mean that 

consumers who receive marginal digital 

and analog signals will be unable to 

receive television signals via the CECB. 

NTIA notes that switches and external 

splitters are commonly available where 

television sets are sold. A single A/B 

switch will not fully bypass a CECB, 

however, creating a difficult wiring 

scenario for the consumers. Splitters 

and their inherent loss as well as 

additional cabling makes their use less 

than optimal in fringe reception areas. 

NTIA strongly urges manufacturers to 

take into consideration the needs of 

consumers to receive analog television 

along with digital television in the 

development of CECBs and to 

investigate minimal signal loss solutions 

that would ensure an acceptable analog 

signal pass-through. In the Final Rule, 

NTIA permits that the converter box to 

pass through the analog signal from the 

antenna to the TV receiver. 

d. Converter-Box Outputs 

i. RF and Composite Video Outputs 

51. The NPRM proposed that the 

converter box contain the following 

outputs: Composite video and stereo 

audio (all three RCA connectors) and 

Channel 3 or 4 switchable (NTSC) RF 

(Type F connector) output. RadioShack 

recommended that NTIA permit the 

inclusion of an RF modulator output as 

an option, but not require this feature. 

RadioShack stated that ‘‘there are only 

a limited number of households with 

televisions requiring RF modulators, 

and of those households, many have 

already purchased RF modulators in 

order to connect such devices as DVD 

players and game consoles, etc. Thus, 

mandating that all consumers pay extra 

for a product they do not need or may 

already have in order to satisfy the 

needs of a smaller number of consumers 

seems inconsistent with Congress’

desire to subsidize a reasonably priced 

converter box.’’95

52. Most commenters on the subject 

supported the inclusion of both 

composite video/audio and RF outputs 

in the converter box. THAT Corporation 

(THAT Corp.) noted in its comments 

that ‘‘[t]o utilize these (composite video) 

outputs, consumers must be able to 

connect three separate cables from these 

converter box outputs to three 

corresponding inputs on the TV 

monitor. . . such a hookup requires a 

degree of technical competence lacking 

in many consumers.’’96 All receiver 

manufacturers supported the inclusion 

of both RF and composite outputs as did 

comments received from other members 

of the public. A few commenters 

suggested that NTIA permit the 

converter box to include an S-video 

output.97 S-video is an analog output 

which delivers standard definition 

video to the television receiver. 

53. As noted earlier, NTIA seeks to 

ensure that the CECB will be easy to 

install and operate. The RF output is 

very easy to use as it only requires the 

consumer to connect a single cable 

between the converter box and the 

analog television. The Final Rule, 

therefore, requires that the CECB 

include an RF output and also requires 

that the CECB include composite 

outputs for those consumers who wish 

to continue to use the features provided 

by this technology. NTIA will also 

permit a S-video output which provides 

a better standard definition picture 

using a simple and inexpensive hookup 

with one cable. 

54. In its comments, Funai 

recommended that NTIA clarify the 

types of outputs that would not be 

permitted in a CECB. Funai commented 

that ‘‘we feel that it is inappropriate to 

extend Coupon Program eligibility to 

devices that support high-definition 

(HDTV) viewing, i.e., a display with 

higher-than-standard definition video 

resolution.’’98 Funai then listed a series 

of connectors which it felt should not be 

permitted in the NTIA supported 

converter box. Funai requested that the 

following connectors be excluded from 

the converter box program: Digital 

Video Interface (DVI), high-definition 

multimedia interface (HDMI), analog 

component video (YPbPr), computer 

video (VGA), as well as USB IEEE–1394 

(sometimes trademarked as iLink or 

Firewire), or IEEE–802.3 (Ethernet) or 

IEEE–802.11 (wireless).99 Funai further 

recommended that ‘‘any device that 

includes an integrated display intended 

for use as the primary video 

presentation should be ineligible for the 

Subsidy.’’100

55. In the NPRM, NTIA proposed that 

‘‘the converter box would not be 

required to render pictures and sound at 

more than standard definition 


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101NPRM, 71 FR at 42,069-70. 

102See Section 3005(d) of the Act. 

103 Id. 

104NPRM, 71 FR at 42,070. 

105THAT Corp. at 13. ‘‘BTSC’’ derives from the 

Broadcast Television Systems Committee, an 

industry group convened in the late 1970s that, 

primarily, added additional audio channels to 

NTSC, allowing stereo (left and right) audio and a 

second audio program (SAP) channel to be 

broadcast. In 1984, the FCC developed rules and 

specified a pilot tone for BTSC. See Second Report 

and Order, Docket No. 21323, Rad. Reg. 2d (P&F) 

1642 (1984). See Multichannel Television Sound 

Transmission and Audio Processing Requirements 

for the BTSC System in OET Bulletin No. 60, 

Revision A (Feb. 1986). 

106Combined Comments of NCAM, American 

Association of People with Disabilities, and 

Information Technology and Accessible Interface 

Rehabilitation Engineering Research Center, Trace 

Center-University of Wisconsin-Madison Comments 

at 2 (hereafter NCAM Comments). The secondary 

audio program channel is provided under the BTSC 

standard and the FCC does not require nor restrict 

the use of the SAP channel. 

107See Motion Picture Ass’n of Am. v. FCC, 309 

F.3d 796 (D.C. Cir. 2002) (holding that the FCC did 

not have statutory authority to issue video 

description regulations). 

108Congress enacted this coupon program ‘‘[t]o 

help consumers who wish to continue receiving 

broadcast programming over the air using analogonly televisions.’’ H.R. Rep. No. 109—362, at 201 

(2005) (Conf. Rep.). Consistent with that guidance, 

NTIA encourages manufacturers to incorporate 

features that enhance accessibility. 

109Audio standards for digital television are 

contained in ATSC A/52, Digital Audio 

Compression Standard, (AC-3); ATSC A/53, and 

ATSC Digital Television Standard; guidelines for 

implementation of ATSC audio are contained in 

ATSC A/54, Recommended Practice: Guide to the 

Use of the ATSC Digital Television Standard. 110Funai Comments at 7. 

quality.’’101 This proposal follows from 

the definition of a converter box 

contained in the Act, which limits the 

converter box to a unit so ‘‘the 

consumer can display on television 

receivers designed to receive and 

display signals only in the analog 

television service.’’102 If NTIA were to 

permit any digital output to the CECB, 

then it would cease to be a digital-toanalog converter and would become a 

digital tuner capable of providing a 

digital signal to a television monitor. 

This would clearly be beyond the plain 

language of the Act which states that the 

CECB shall ‘‘convert any channel 

broadcast in the digital television 

service into a format that the consumer 

can display on television receivers 

designed to receive and display signals 

only in the analog television service.’’103

56. Therefore, NTIA specifies in the 

Final Rule those connectors that will 

not be permitted in a CECB. Likewise, 

NTIA clarifies in the Final Rule that 

CECBs are prohibited from containing 

items such as display screens, recorders 

or storage devices that go beyond the 

simple task of converting a digital 

television signal to an analog signal for 

display on analog television receivers. 

ii. Audio outputs 

57. Two organizations, the WGBH 

National Center for Accessible Media 

(NCAM) and THAT Corp., commented 

on NTIA’s proposal that the outputs 

include stereo audio. The NPRM 

proposed that ‘‘[t]he outputs shall be 

channel 3 or 4 (NTSC modulated 

signals), composite video (NTSC 

baseband), and audio (stereo).’’104

58. THAT Corp. requested that NTIA 

clarify the stereo requirement proposed 

in the NPRM. They noted that the 

proposed output with ‘‘composite video 

(NTSC baseband), and audio (stereo)’’

will provide the analog television 

receiver with a stereo audio signal. 

THAT Corp. continued stating that the 

proposed output on ‘‘channel 3 or 4 

(NTSC modulated signals)’’ does not, by 

itself, provide a stereo signal to the 

analog television receiver. THAT Corp. 

notes that ‘‘the RF output will contain 

stereo (left/right) audio information if, 

and only if, the output contains BTSC 

stereo audio information.’’105 They 

recommended that NTIA specify that 

the RF output must contain BTSC stereo 

audio information. 

59. NCAM recommended that the 

converter boxes’ audio outputs support 

the Secondary Audio Program (SAP) 

service where video description for 

blind individuals is provided. NCAM 

indicated that video description within 

digital television signals will be 

delivered via multiple ancillary audio 

services (including alternate language 

audio) and these additional audio 

channels should be available via the 

subsidized converter box.106 NTIA notes 

that television stations are not required 

to broadcast video descriptions.107 None 

of the commenters provided information 

regarding the number of digital 

television stations providing video 

description services, the number of 

people served by such services, or the 

number of manufacturers currently 

building digital television equipment 

capable of processing such services. 

NTIA believes that it would be desirable 

for manufacturers to include a 

capability in CECBs that will enable the 

use of SAP type services, including 

video description.108 We note that 

because digital television encodes audio 

in a different manner than the encoding 

used in analog television, digital 

television does not utilize the SAP 

channel present in analog television. 

Standards and guidelines for digital 

television audio are contained in ATSC 

publications A/52, A/53 and A/54.109

Section 6.6 of A/54 provides for two 

types of main audio service and six 

types of associated services, including 

associated services for the visually 

impaired (VI). The A/54 standard also 

permits the transmission of secondary 

language programming and reserves 

associated audio services for the hearing 

impaired (HI) and for emergencies (E). 

Because of the important public services 

that may be provided by these 

associated audio services, NTIA will 

permit CECBs to be capable of 

processing these associated audio 

services broadcast by a digital television 

station, particularly as more stations 

provide them in the coming years. 

60. Manufacturers may provide 

output for the main channel audio 

service and associated audio services on 

the RF Type F connector by using either 

of the following two methods. NTIA 

will permit manufacturers to follow 

current industry practice regarding RF 

outputs for audio/video equipment 

which provides a mono RF output 

which is switchable between a station’s 

main channel audio and other 

associated audio services. In this 

instance, consumers could use a button 

on the converter box remote control to 

select the RF output for a station’s 

monaural main channel audio or toggle 

through a station’s visually impaired 

(VI) or other associated audio services. 

NTIA will also permit manufacturers to 

provide BTSC Multichannel Television 

Sound (stereo audio) in the RF output. 

The BTSC stereo audio signal and 

included SAP carrier will provide stereo 

main channel or visually impaired or 

other associated audio service to the 

television receiver as selected by the 

consumer. Consumers will also have the 

option of receiving stereo audio through 

the converter box’s left/right audio 

outputs (RCA connectors). 

iii. Multicast Reception 

61. Funai asked NTIA to clarify its 

interpretation of the Act which defines 

the converter box in part, as a device ‘‘to 

enable a consumer to convert any 

channel broadcast in the digital 

television service.’’ Funai stated that the 

converter box ‘‘should provide access to 

all ‘sub-channels’ of a DTV 

transmission, i.e., the so-called ‘major 

and minor’ channels that may be 

transmitted as a ‘multicast’ by the 

broadcast operator.’’110 NTIA believes 

that multicast capability is an integral 

feature of digital television transmission 

and the Act clearly intends that the 

CECB convert all channels, including 

those that are multicast. NTIA notes that 

the Act’s definition requires the 

converter box to ‘‘enable a consumer to 

convert any channel broadcast in the 

digital television service into a format 


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111See Section 3005(d) of the Act (emphasis 

added). 

112NPRM, 71 FR at 42,070. 

113The FCC’s Closed Captioning receiver 

requirements are contained in 47 CFR 15.122 and 

incorporate the CEA 708 standard ‘‘Digital 

Television (DTV) Closed Captioning’’ which was 

developed from the CEA 608 standard. The FCC’s 

Parental Control (V-Chip) receiver requirements are 

contained in 47 CFR 15.120 and incorporate the 

EIA/CEA-766-A standard. ‘‘U.S. and Canadian 

Region Rating Tables (RRT) and Content Advisory 

Descriptors for Transport of Content Advisory 

Information using ATSC A/65-A Program and 

System Information Protocol (PSIP).’’ FCC 

requirements for Closed Captioning and Parental 

controls were noted by Thomson, Funai and 

Brittain. Thomson Comments at 3; Funai Comments 

at 7; Richard Brittain Comments at 5. 

114Funai, Thomson and Richard Brittain noted 

that there were no FCC rules regarding EAS 

applicable to television receivers. Funai Comments 

at 7; Thomson Comments at 3; Richard Brittain 

Comments at 5. 

115 In the Matter of Review of the Emergency Alert 

System, First Report an Order and Further Notice 

of Proposed Rulemaking, FCC 05-191, November 3, 

2005. 

116 47 CFR Part 11. 

117 47 CFR 15.120, 15.122. 

118 47 CFR 15.177(b). 

119CBA Comments at 6; see also MTVA 

Comments at 11; Joint Industry Comments at 

Appendix 1. 

120Richard Brittain Comments at 5. 

121NCAM Comments at 3. NCAM also suggested 

the inclusion of a ‘‘talking menu’’ which can read 

out the functions that are highlighted on an onscreen menu. Id. 

122See 29 U.S.C. 794d. 

that the consumer can display on 

television receivers designed to receive 

and display signals only in the analog 

television service.’’111 The Act, 

therefore, does not permit the output to 

another device such as a computer 

which might be required to capture 

streams of data included on the digital 

television transport stream. The Final 

Rule will clarify that a CECB is required 

to receive, decode and display all 

channels, including multicast channels, 

broadcast by digital television station 

that can be displayed on an analog 

television receiver. 

e. Requirements for Closed Captioning, 

Emergency Alert System (EAS) and 

Parental Controls (V-Chip) 

62. NTIA proposed in the NPRM that 

CECBs comply with FCC requirements 

for Closed Captioned, Emergency Alert 

System (EAS) and the required parental 

controls (V-chip).112 Several 

commenters noted that the FCC Rules 

require that television tuners decode 

Captioning and Parental Control (VChip) and, therefore, NTIA regulations 

are not required in this regard.113

63. Several commenters state that 

there are no FCC-imposed specific EAS 

requirements on television receivers at 

this time.114 NTIA notes that the FCC 

requires that all digital television 

stations participate in the Emergency 

Alert System after December 31, 

2006.115 The Emergency Alert System is 

an important way that national, state 

and local emergency management 

personnel reach the public with 

emergency messages. It is, therefore, in 

the public interest that all television 

viewers be able to receive and display 

EAS messages. The Final Rule will 

include a requirement that, in order to 

be eligible to participate in the NTIA 

Coupon Program, a CECB must be 

capable of receiving, decoding and 

displaying EAS messages broadcast by 

digital television stations as required by 

the FCC Rules.116

64. NTIA believes that it is helpful to 

manufacturers that the Final Rule 

provide a comprehensive listing of 

features required for a CECB. With 

regard to Closed Captioning and 

Parental Controls, NTIA will require 

that CECBs comply with the FCC 

receiver requirements for Closed 

Captioning and Parental Controls and 

NTIA will not impose any requirements 

beyond those contained in the FCC 

Rules.117

f. Tuning Capability to All Television 

Channels 2–69 

65. There was no opposition to the 

NPRM proposal that the converter box 

tune to all television channels, 2–69. 

This proposed rule reaffirmed the FCC 

Rules that ‘‘TV broadcast receivers shall 

be capable of adequately receiving all 

channels allocated by the Commission 

to the television broadcast service.’’118

NTIA clarifies that the CECB is required 

to receive signals for those television 

channels that will be ‘‘out of core’’

(channels 52–69) once the digital 

transition is complete. 

66. In its comments, CBA notes that 

it is important that the tuning capability 

of boxes not stop at channel 51 because 

Class A and LPTV stations are permitted 

to operate on channels 52-69 on a 

secondary basis even after the February 

17, 2009 deadline when full power 

stations must broadcast within the 

FCC’s ‘‘core’’ channels, 2–51. Moreover, 

operation on temporary companion 

digital channels will be permitted on 

channels 52–59, even after the end of 

the full-power transition; and temporary 

flash-cut digital operations is permitted 

on channels 60–69 when no other 

channel is available.119

67. NTIA did not receive comments 

opposing the action. The Final Rule 

contains the requirement that the CECB 

receive all television channels 2–69. 

g. Remote Control 

68. In the NPRM, NTIA proposed that 

the CECB be operable by and include a 

remote control. The Act specifically 

permits NTIA to require a remote 

control, and remote control units are 

now standard with almost all consumer 

video equipment such as television 

receivers, VCR and DVD players and 

recorders. There were few comments on 

the requirement to include a remote 

control. Brittain noted that there may be 

‘‘real-world reasons for requiring a 

remote (such as to provide the 

minimum ATSC functionality).’’120

69. NCAM called NTIA’s attention to 

the difficulty the blind and visually 

handicapped have in using remote 

controls. NCAM recommended that the 

CECB’s remote control contain 

dedicated keys which provide direct 

access to the closed captioning function 

and the SAP/video description 

function.121 To that extent NCAM 

directed NTIA’s attention to Section 508 

related to products purchased by the 

Federal government. Section 508 

applies to all Federal agencies when 

they develop, procure, maintain or use 

electronic and information 

technology.122 Although converter 

boxes may fall under the definition of 

electronic and information technology, 

NTIA is not developing, procuring, 

maintaining or using CECBs; therefore, 

Section 508 is not applicable to CECBs 

in NTIA’s program. Nevertheless, NTIA 

strongly urges manufacturers to take 

into consideration the needs of 

consumers with disabilities in the 

development of CECBs. 

70. In order to ease customer use of 

the remote control, the Final Rule will 

require that the remote control is 

supplied with batteries and uses 

standard technology and codes 

commonly used by television 

manufacturers as part of remote controls 

provided with television receivers. The 

standard codes for the remote control 

will be included in the CECB 

instructions so consumers can, at a 

minimum, program an existing remote 

control to turn on and off both the 

converter box and their existing analog 

television receiver. The Final Rule will 

also permit the manufacturer to provide 

a programmable remote control which 

can accept the code of the consumer’s 

existing analog receiver and related 

video/audio equipment. 

h. Program Information Displays 

(Electronic Program Guide) 

71. Many commenters raised the issue 

of whether the inclusion of an electronic 

program guide would disqualify a 

converter from being eligible for the 

Coupon Program. The Joint Industry 

Comments stated that the requirement 

that broadcasters transmit program 


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123 Joint Industry Comments at 16-17; see also 47 

CFR 73.682. 

124LG Comments at 7. 

125CERC Comments at 10. 

126 Gemstar Comments at 6-8. 

127RadioShack Comments at 20. 

128Letter from Members of the House Energy and 

Commerce Committee at 2 (CECBs should have the 

capability to be updated, modified, or repaired in 

circumstances where problems arise). 

129Update Logic Comments at 1. 

130CBA Comments at 6-7. 

131NCAM Comments at 4-5. 

132NAF Comments at 7; NCWO Comments at 1. 

133National Datacast Comments at 1. 

134Field tests were completed of the ‘‘UpdateTV’’

technology in July 2006 and the service is expected 

to be commercially available in 2007. Update Logic 

Comments at 5. 

content information is included in the 

FCC’s adoption of the ATSC A/65 

standard regarding transmission of 

Program System Information Protocol 

(PSIP), including program content 

details in digital television broadcast 

signals. They felt that this requirement 

‘‘is premised on the FCC’s conviction 

that a mechanism for locating digital 

channel and program content, including 

multicast channels, is an integral feature 

of the digital television experience.’’123

72. The inclusion of an electronic 

program guide was supported by 

television receiver manufacturers 

Samsung, Thomson and LG Electronics. 

LG Electronics noted that ‘‘[e]ase of use 

is particularly important given the 

ability of digital broadcasters to transmit 

multiple program streams (i.e, 

multicast) via their DTV signals.’’124

CERC recommended that the converter 

boxes contain program guides and the 

capability to process PSIP data because 

such features may be of assistance to 

consumers that are inexperienced in 

finding and tuning digital channels. 

They also note that the components and 

software for displaying PSIP data are 

commonly included in the manufacture 

of televisions.125

73. Gemstar-TV Guide International 

(‘‘Gemstar’’) requested that NTIA permit 

the inclusion of hardware and software 

that would enable a consumer to receive 

Gemstar’s TV Guide On Screen 

electronic program guide or other thirdparty guides. Gemstar notes that 

distribution of television program 

information is required by the A/65 

standard, which defines the PSIP. The 

PSIP also includes information about 

the multicast channels and contains the 

parental control (V-chip) information 

required by the FCC. Gemstar further 

notes that many televisions are 

equipped with built-in capability to 

receive and display Gemstar’s TV Guide 

On Screen service. Gemstar stated that 

it is working with the Society of Cable 

Telecommunications Engineers 

regarding the Digital Video Standard 

706 ‘‘VBI-in-MPEG’’ which will allow 

carriage of existing analog standard 

definition video VBI signals in digital 

broadcast transmissions.126

74. RadioShack sought clarification 

that it would be permissible to include 

full PSIP capability and noted that overthe air television viewers will see the 

number of broadcast channels increase 

fourfold and thus having the television 

appropriately display the channels is an 

important feature for these viewers. 

RadioShack also noted that because the 

functionality is imbedded in chips 

already, providing this functionality 

adds no cost to the box.127

75. After reviewing the comments 

received on the NPRM, NTIA requires 

that the converter box receive, decode 

and display information contained in 

the PSIP broadcast pursuant to the A/65 

standard. NTIA notes that television 

receivers must decode the PSIP in order 

to display the parental controls required 

by the FCC. The basic capability of 

decoding PSIP information, therefore, is 

already required of all converter boxes. 

Moreover, with PSIP functionality 

incorporated in ATSC tuner chips, it 

would be costly and impractical to 

require manufacturers to build 

converters without such functionality. 

76. Further, NTIA will permit, but not 

require, a CECB to display other 

electronic program information. As 

noted by many of the commenters, this 

capability will assist the consumer in 

navigating through the many channels 

that will be provided by digital 

broadcasters. NTIA believes the means 

to achieve such electronic program 

information should be left to the 

judgment of individual receiver 

manufacturers who will be permitted to 

make hardware and software 

modifications necessary to display 

electronic program information. 

i. Software Upgrades 

77. Several commenters 

recommended that NTIA require that a 

CECB be capable of receiving software 

updates from an over-the-air terrestrial 

broadcast distribution service.128

Update Logic noted that the converter 

boxes are essentially small computers 

which contain a set of software 

programs, software that has bugs and 

needs updates. They also noted that in 

everything from PCs to cell phones to 

ATMs, routine and multiple software 

upgrades have been installed to fix 

errors, improve quality and maintain 

functionality. The converter box will be 

no different.129

78. CBA noted that digital television 

technology is likely to advance in the 

not-too-distant future, as equipment 

manufacturers seek to make the system 

more robust and efficient. If upgrade 

capability is forbidden, then the boxes 

that qualify for subsidies may become 

obsolete and may be discarded before 

the end of the useful life of their 

electronic components. In no event 

should the program impose a restriction 

that will shorten the useful life of the 

product.130

79. NCAM echoed these comments 

and added that over-the-air software 

download mechanisms are available to 

assure the continuing successful 

operation of the boxes and should be 

required as part of the maintenance 

program that should also be put in place 

by manufacturers of the devices. 

Software downloads will accommodate 

any potential future changes to 

emergency alerting, closed captioning or 

V-chip parental control ratings as they 

may develop.131 Both the NAF and the 

National Council of Women’s 

Organizations reiterated that converter 

boxes should have the capability of 

receiving software downloads to repair 

problems and make necessary 

updates.132

80. National Datacast indicated that 

an industry standard for software 

downloads exists. ‘‘The broadcast and 

CD industry anticipated the need for 

firmware updates and created the ATSC 

‘Software Data Download Specification’

(A–97) which was ratified in 2004.’’133

81. After reviewing these comments, 

NTIA believes that the automatic 

software download and upgrade 

capability proposed by the commenters 

is a desirable feature that could 

materially ease the consumer’s use of 

the CECB. The use of automatic software 

upgrades could benefit both 

manufacturers in updating software and 

the users in upgrading a CECB’s 

authorized features. It is NTIA’s 

understanding that this automatic 

software update feature was only 

recently field tested and is not currently 

commercially available, even in 

expensive television receivers134 NTIA 

is reluctant to require that 

manufacturers include in a CECB this 

new technology which is just emerging 

from field tests. The Final Rule will, 

therefore, permit a CECB to receive and 

decode software pursuant to ATSC 

Standard A–97. 

j. Energy Specifications 

82. In response to its request for 

comments on whether and to what 

extent NTIA should consider energy 

usage in determining eligibility 


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135NPRM, 71 FR at 42,070. 

136Natural Resources Defense Council (NRDC) 

Comments at 4; American Council for an EnergyEfficient Economy (ACEEE) Comments at 1; Letter 

from Members of the House Energy and Commerce 

Committee at 2. 

137ACEEE Comments at 1. 

138EPA Comments at 2. 

139Letter of CERC, The Association for Maximum 

Service Television, Inc., National Association of 

Broadcasters, and Natural Resources Defense 

Council to Honorable John M.R. Kneuer, (Joint 

Industry Energy Comments) (Oct. 25, 2006). 

140This measurement is in accordance with 

industry standard, CEA 2013-A. 

141 Joint Industry Energy Comments at 4. 

142Walmart Comments at 2; see also NRDC 

Comments at 4; ACEEE Comments at 1. 

143CEA Standard 2013, Digital STB Background 

Power Consumption. 

144See EPA Comments at 2; ACEEE Comments at 

1. 

145Walmart Comments at 2. 

146The EPA ENERGY STAR specifications are 

available on the Internet at http:// 

www.energystar.gov/ ia/partners/productlspecs/ 

eligibility/dtaslelig.pdf. 

147 Joint Industry Energy Comments at 20; LG 

Comments at 11; Walmart Comments at 2; CERC 

Comments at 11; APTS Comments at 30. 

148Motorola Comments at 3. 

149LG Comments at 11-12; Thomson Comments 

at 6. 

150 KTech Comments at 4. 

criteria,135 several comments urged 

NTIA to either adopt minimum 

requirements or, on a permissive basis, 

encourage manufacturers to incorporate 

certain energy efficiency features. In 

addition to several comments generally 

urging NTIA to address energy usage, 

three areas of specific recommendations 

emerged from the comments: (1) an 

automatic power down feature and 

maximum power level for converters in 

‘‘sleep’’ or standby mode; (2) a 

maximum power level in the ‘‘on’’ or 

operating mode; and (3) the effect of an 

NTIA energy specification on various 

state regulations and proposals. 

83. The majority of comments support 

adoption of some type of energy usage 

requirement into the eligibility criteria 

for CECBs.136 With respect to NTIA’s 

proposal to consider the CECB’s cost, 

comments advised NTIA to consider 

that energy costs could raise the box’s 

overall cost. According to the American 

Council for an Energy-Efficient 

Economy (ACEEE), a converter without 

energy usage limits of any kind would 

cost ‘‘more than two times more to 

operate over its estimated 5 year life 

than its estimated $40-$50 purchase 

cost.’’137 Comments assert that energy 

standards for CECBs would reduce the 

energy cost for U.S. consumers, thereby 

lowering the overall cost of ownership. 

84. The record suggests that 

significant operating cost and energy 

savings could be achieved by requiring 

CECBs to include an auto power-down 

feature and standby power limits. The 

Environmental Protection Agency (EPA) 

estimated that televisions are not in use 

in typical households for 18–20 hours 

per day, yet converter boxes may remain 

on during that time if no one turns them 

off or if there is no automatic powerdown feature.138 The EPA urged NTIA 

to require an auto power-down feature, 

to mandate that products be shipped 

with the feature enabled, and also 

suggested an auto power down feature 

after four hours of user inactivity, 

combined with a one watt power limit 

in standby mode. 

85. A supplementary comment was 

received from the Joint Industry 

Comments with the additional support 

of the Natural Resources Defense 

Council (NRDC) and the CERC139

requesting NTIA adopt two energy use 

performance specifications: (a) 

converters shall use no more than two 

watts of electricity in a ‘‘Sleep’’ state, 

and (b) converters shall meet an 

automatic power-down requirement 

after four hours of inactivity.140 The 

Joint Industry Energy Comment also 

recommended these settings be enabled 

at the factory as default settings that 

could be changed by the consumer.141

86. Walmart also supported an 

automatic standby mode after four hours 

with a maximum allowable standby 

level of two watts.142 The standby 

energy level of two watts is also 

consistent with the CEA’s voluntary 

standard CEA–2013 and is appropriate 

for the narrow purposes of the converter 

coupon program.143 No comments 

opposed adoption of a four-hour 

standby trigger or a two watt standby 

energy level. NTIA believes that 

consumers will benefit significantly 

from an automatic power-down feature 

triggered after four hours of inactivity 

and a ‘‘sleep’’ state operating power 

level of two watts. Therefore, NTIA will 

require these performance capabilities 

for eligible converters. 

87. ACEEE calculated that significant 

cost savings could be realized through 

capping a CECB’s operating power 

limits at eight watts, a reduction from an 

estimated 17 or 18 watts.144 No other 

comments suggested an operating limit 

be imposed. Walmart stated that while 

it is ‘‘very supportive of efforts to reduce 

the ‘On-mode’ power use due to the 

additional energy savings they can 

provide, we are deferring such 

discussions to other policy forums such 

as ENERGY STAR and state standard 

setting procedures.’’145

88. We are aware that, on January 31, 

2007, the EPA’s ENERGY STAR 

program adopted voluntary 

specifications for converter boxes. The 

EPA’s voluntary specifications include 

one watt power consumption during the 

‘‘sleep’’ mode and also include eight 

watt power consumption during the 

‘‘on’’ mode.146 NTIA’s requirements for 

a CECB include two watt power 

consumption during the ‘‘sleep’’ mode, 

and does not include a specification for 

power consumption during the ‘‘on’’

mode. NTIA urges manufacturers 

participating in the Coupon Program to 

adopt those ENERGY STAR 

specifications. 

89. Some comments assert that cost 

savings could be achieved by adopting 

a single, national pre-emptive energy 

consumption standard.147 These parties 

are concerned that by permitting states 

to enact their own energy efficiency 

standards for converter boxes, the cost 

would rise for all converter boxes as 

manufacturers attempt to design, 

manufacturer, test and distribute boxes 

that comply with varying requirements 

of individual states. Motorola generally 

opposed including energy standards 

into the regulations, but said that to the 

extent that an energy requirement is 

considered, it should be instituted at the 

Federal level and not the state level to 

avoid inconsistent and costly 

requirements.148

90. NTIA is adopting these 

performance capabilities solely for the 

purpose of implementing the Coupon 

Program and does not intend to 

influence any other Federal or state 

agency activity regarding energy 

efficiency guidelines or requirements for 

CECBs. Converter boxes are not yet 

commercially available and 

manufacturers are willing to design and 

produce them as new products with 

these energy efficiency requirements.149

NTIA is also persuaded by those 

comments regarding the cost savings 

that can be achieved by converter boxes 

that incorporate energy efficient 

standards. 

k. Other proposals regarding the 

converter box specifications. 

91. KTech, a manufacturer of DTV 

equipment, provided several 

recommendations regarding features of 

the CECB. KTech recommended that the 

CECB contain a LED power light to 

allow users to determine if the external 

power is connected to the unit. KTech 

noted that ‘‘a ‘power-good’ display 

function [should be] allowed on the 

converter as a possible health and status 

display of the unit.’’150 NTIA has 

determined that a power light LED will 

be useful to consumers in the operation 

of the CECB, and the Final Rule will 


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Federal Register / Vol. 72, No. 50 / Thursday, March 15, 2007 / Rules and Regulations 12109 

151See Richard Brittain Comments. 

152 KTech Comments at 4. 

153Advanced Television Standard Committee, 

Standard A/74, section 4.7 ‘‘Consumer Interface–

Received Signal Quality Indicator.’’

154Richard Brittain Comments. 

155NPRM, 71 FR at 42,070. 

156 ‘‘Verification’’ or self-certification; 

‘‘Declaration of Conformity’’ which requires testing 

by third-party laboratories selected from an 

accredited list; and ‘‘Certification’’ under which the 

FCC itself tests products prior to approval. The 

procedures are described at http://www.fcc.gov/oet/ 

ea/procedures.html#sec1. 

157Thomson Comment at 7; LG Comments at 10; 

CERC Comments at 10-11; Funai Comments at 12- 

13. 

158Motorola Comments at 2. 

159RadioShack Comments at 21. 

require a power light indicating when 

the unit is turned on. 

92. KTech believes that, as written, 

the NPRM only permits an antenna 

input and does not state that an external 

AC/DC power input connector is 

allowed on the CECB. In the Final Rule, 

NTIA clarifies the power input 

connections and also responds to 

several comments regarding the use of 

battery power. Brittain noted that, as a 

safety measure, ‘‘many people have a 

second, battery-operated TV for use if 

the power goes out; virtually all of these 

are analog, and it will likely be years 

before similar DTVs are available at an 

affordable price.’’ He recommended that 

the Final Rule ‘‘should be written so as 

not to prohibit battery-powered boxes, 

which would be a necessity for batterypowered TVs.’’151 Because of the public 

interest benefit, the Final Rule, 

therefore, permits, but does not require, 

manufacturers to provide converter 

boxes that operate on battery power as 

well as those which use an external AC/ 

DC power input. 

93. KTech also recommends that 

NTIA require that the CECB display a 

variety of technical measurements to 

assist consumers in improving 

television reception. KTech notes a 

variety of possible reception 

impairments (e.g., multi-path 

interference and signal blockage). KTech 

recommends that the CECB display test 

measurement results for RF power level 

expressed in dBm, measured Signal-toNoise Ratio number expressed in dB, 

measured Bit Error Rate and other 

technical measurements that could aid 

the consumer in taking steps to improve 

signal reception.152

94. NTIA recognizes that television 

signal reception for some consumers 

will present challenges, whether analog 

or digital. As discussed earlier, to assist 

consumers in improving signal 

reception, the Final Rule permits the 

inclusion of a smart antenna interface in 

the signal box. NTIA notes that the A/ 

74 guidelines states that ‘‘[t]he 

capability to display received signal 

quality conditions on a quasi-real time 

basis is a feature that should be 

included in all digital broadcast 

receivers.’’ To further assist consumers 

in improving signal reception, we 

include in the Final Rule provisions that 

require manufacturers to include 

software which will display on the 

television receiver signal strength and 

permit the display of other operating 

parameters chosen by the manufacturer. 

Display of signal information on the 

television receiver will provide 

information to the consumer at minimal 

cost. NTIA will not, however, specify 

exactly what such signal-quality 

information should contain. NTIA will 

follow the guideline of A/74, that 

‘‘[m]eans to achieve such signal quality 

indications should be left to the 

judgment of individual receiver 

manufacturers.’’153

95. Brittain recommends that the 

CECB come with a Type F cable to 

connect the RF output of the converter 

box to the RF input of the television 

receiver.154 Because most consumers 

who purchase a CECB will require at 

least a cable of this type, we believe that 

such an RF cable is integral to the use 

of the converter and should be required. 

The Final Rule will, therefore, require 

that manufacturers supply an RF cable 

and also permit manufacturers to supply 

additional cables, such as a cable with 

three RCA connectors, if they desire. 

F. Manufacturer Certification 

96. In the NPRM, NTIA proposed that 

manufacturers self-certify that their 

CECBs meet NTIA’s performance 

specifications and reserved the right to 

test CECBs that have been self-certified 

to ensure that they meet NTIA’s 

technical eligibility requirements.155

NTIA sought comment on this proposal 

and other compliance testing and 

verification procedures that could be 

used for the Coupon Program. 

97. Several commenting parties 

referred to the FCC’s well-established 

three-tiered approach for Equipment 

Authorization.156 Most supported 

NTIA’s proposal that, after successful 

testing, manufacturers self-certify that 

their CECBs meet the NTIA eligibility 

features and functionality; some 

recommended that the manufacturer’s 

test results be submitted to a third party 

for an independent level of review.157

Most parties felt that ‘‘certification,’’ the 

most stringent level of FCC technical 

approval, applicable to new technology, 

computers, cell phones and other nontelevision products, was inapplicable to 

CECBs. Motorola said that a third-party 

certification process would decrease the 

amount of time available for product 

development and would increase the 

costs of bringing the device to 

market.158 RadioShack opposed 

government testing of each model 

certified as it would burden 

manufacturers and delay product 

introduction.159

98. Most commenters supported an 

approval process proposed by the Joint 

Industry Comments, termed 

‘‘verification plus.’’ The Joint Industry 

Comments stated the following: 

Rather than developing a new and 

untested conformity assessment 

program, the Joint Industry 

Commenters urge that NTIA 

leverage the existing resources of 

the FCC, the longstanding expert 

agency in this area, to conduct an 

efficient and accurate conformity 

assessment process. Specifically, 

NTIA should adopt a ‘‘verification 

plus’’ process, based on the FCC’s 

present, well-established and wellunderstood verification procedures. 

Under these procedures, 

manufacturers would be 

responsible for conducting 

compliance testing at their own 

facilities or through an independent 

laboratory contracted by the 

manufacturer. This process would 

ensure efficiency and avoid delays 

that would occur if the FCC or any 

other third-party entity were 

required independently to test 

every converter box. To ensure the 

integrity of the program, however, 

the FCC, most likely through its 

Office of Engineering and 

Technology, should have the ability 

to be involved in the approval 

process before the devices are 

released to market. To this end, 

manufacturers should be required 

to submit their test results, along 

with appropriate samples of the 

tested equipment, to the FCC. The 

FCC should then review test results 

to ensure conformity between the 

converter boxes and the NTIA’s 

performance standards which 

themselves are based on standards 

endorsed by or known to the FCC. 

If the FCC does not alert NTIA and 

the manufacturer of any problem 

within 15 days of when the data 

were submitted, the device should 

automatically qualify for the 

program. If the FCC does issue 

notification of a problem, however, 

it should expedite its own testing 

and rapidly notify NTIA and the 

manufacturer of any 


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12110 Federal Register / Vol. 72, No. 50 / Thursday, March 15, 2007 / Rules and Regulations 

160 Joint Industry Comments at 21-22. 

161Letter from Members of the House Energy and 

Commerce Committee at 3 (coupon program should 

be designed so that retailers can provide updated 

information concerning the inventory of converter 

boxes in order to remedy supply difficulties 

promptly). 

162NPRM, 71 FR at 42,070. 

163 Id. 

164RadioShack Comments at 2-3. 

165CERC Comments at 4. 

166RadioShack Comments at 16. 

noncompliance.160

99. NTIA will adopt the FCC’s 

verification process as the core of its 

technical acceptance plan to identify 

CECBs. As noted, several stakeholders 

in the Coupon Program, including 

manufacturers, retailers and 

broadcasters, support this proposal. 

This approval process will not unduly 

burden manufacturers and will not add 

significant costs or delay to the 

development and production of CECBs. 

100. NTIA believes it is not 

procedurally sound for converters to 

become ‘‘automatically’’ eligible for the 

Coupon Program without agency 

confirmation. While manufacturers may 

market any converter or other device 

including digital-to-analog decoding 

functionality outside of the Coupon 

Program, NTIA intends to use a central 

electronic tracking database to track 

retailers’ point-of-sale (POS) 

transactions including authorization of 

coupon redemptions and sales data of 

CECBs.161 Action is required, therefore, 

by NTIA to load and update eligibility 

data (e.g., product SKU) for each model 

approved by NTIA. 

101. Therefore, the Final Rule 

requires manufacturers to 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 for CECBs. It also 

requires manufacturers to provide 

detailed certified test results along with 

a sample of the tested equipment to 

NTIA and its designee. NTIA has 

entered into an agreement with the FCC 

by which the FCC may review the 

manufactures’ converter box test results 

submitted to NTIA. The FCC may test 

converter boxes, if necessary. NTIA will 

base its decision to approve each 

converter box upon its consultation 

with the FCC. A Public Notice will be 

published subsequent to issuance of the 

Final Rule to provide manufacturers 

with specific address and contact 

information regarding the required 

submission of these materials. NTIA 

will record the date test results and 

sample models are received and will 

notify the manufacturer of the date by 

which the agency intends to make a 

determination of eligibility. In general, 

NTIA will attempt to ensure that the 

review of test results and any additional 

testing are completed within the 15–day 

period proposed by the Joint Industry 

Comments. As promptly as possible, 

NTIA will issue a statement of eligibility 

or non-eligibility for each converter 

model submitted by a manufacturer. 

The agency will attempt to meet 

demand, although the pacing of 

manufacturer submissions may be 

uneven. Because it is impossible to 

determine at this time how many 

manufacturers will submit test results 

and equipment, whether multiple 

models will be built by each 

manufacturer, and when converters will 

be proposed for inclusion in the Coupon 

Program, NTIA must allow flexibility to 

establish the appropriate time frame for 

agency review. As noted above, NTIA 

will promptly include make and model 

number information in its POS data, 

consumer education materials and other 

files used to identify CECBs. 

102. Finally, NTIA reserves the right 

to test CECBs. As an additional means 

to ensure that converters made available 

to the public as part of the Coupon 

Program meet NTIA’s technical 

specifications, NTIA may select 

converters to test at any time during the 

course of the Coupon Program. If a 

converter box appears not to meet 

NTIA’s technical specifications, NTIA 

will follow a process similar to that 

used by the FCC in consulting with the 

manufacturer. If a converter box model 

is subsequently found not to meet the 

features and performance specifications 

set forth in the Final Rule, that model 

will no longer be eligible for the Coupon 

Program. 

G. Retailer Participation 

103. In the NPRM, NTIA noted that 

participation by retailers in this program 

would be voluntary, and that NTIA 

would not compensate retailers that 

choose to participate. Given the nature 

of the program, NTIA proposed to 

permit consumers to redeem coupons at 

retailers that have established 

production and distribution channels 

and who have demonstrated that they 

can redeem coupons expeditiously and 

efficiently.162 NTIA proposed to require 

retailers to adhere to and enforce 

coupon restrictions such as prohibiting 

coupon holders from using two coupons 

in combination towards the purchase of 

a single CECB and prohibiting 

consumers from using coupons to 

purchase any device other than an 

eligible converter box, pursuant to these 

regulations. NTIA proposed to 

reimburse retailers within 60 days after 

receiving sales information related to 

CECBs.163

104. Several comments were received 

from retail companies, organizations 

and members of the public addressing 

these proposals and raising other issues 

affecting retailers. NTIA believes that 

the regulations of this one-time program 

should not discourage retailer 

participation. Some comments noted 

that there has not been a governmentsponsored program involving retailers 

quite like the Coupon Program, but that 

other government programs such as the 

USDA’s Food Stamps and Women, 

Infants and Children’s benefits may 

provide examples for NTIA to follow.164

105. Commenters made 

recommendations and asked NTIA for 

clarification with respect to (a) retailer 

obligations to predict or meet demand 

for CECBs; (b) legal liability and 

additional operating costs for retailers 

who voluntarily participate in the 

program; (c) the timing for retailers to be 

ready to redeem coupons; (d) need for 

confidential treatment of sales data; (e) 

retailer certification criteria and 

procedures; (f) payment terms to 

retailers; and (g) consumer and retailer 

appeals. 

a. Retailer Obligations to Predict or 

Meet Demand 

106. CERC stated that retailers and 

manufacturers should not be subject to 

sanction for an inability to predict or 

meet demand. They pointed out that the 

demand for converters may peak in the 

millions and then drop toward zero, all 

within a period as short as 90 days. At 

the end of the Coupon Program, excess 

inventory may be unsellable at any 

price.165 RadioShack opposed an 

obligation on the part of the retailer to 

maintain inventory in all stores at all 

times because it would be burdensome 

and perhaps impossible to meet such a 

requirement.166

107. NTIA recognizes that the product 

cycle for converters is unknown and 

perhaps atypical of consumer 

electronics products generally. 

Furthermore, NTIA does not want 

retailers to decline to participate 

because they feel that our requirements 

are too burdensome or unrealistic. 

Therefore, NTIA will clarify that 

retailers are expected to follow 

commercially reasonable practices in 

ordering and managing inventories of 

CECBs. 

108. CERC raised a related point in 

response to NTIA’s proposal that 

retailers accept the obligation ‘‘to honor 

all valid coupons that are tendered in 


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Federal Register / Vol. 72, No. 50 / Thursday, March 15, 2007 / Rules and Regulations 12111 

167See NPRM, 71 FR at 42,070. 

168CERC Comments at 11. 

169CERC Comments at 12 (quoting NPRM, 71 FR 

at 42,070). 

170 Id. 

171RadioShack Comments at 16. 

172See e.g., 18 U.S.C. 1001 (‘‘False Statement 

Statute’’); 31 U.S.C. 3729 (False Claims Act). 

173 31 U.S.C. 3729(a). 

174CERC Comments at 11. 

175RadioShack Comments at 17. 

176Best Buy Comments at 2. 

177CERC Comments at 11. 

178RadioShack Comments at 17. 

179Best Buy Comments at 2. 

180 Id. 

181CERC Comments at 4. 

182See Conf. Rep. at 202. 

183 Id. at 12. 

the authorized manner.’’167 A 

reasonable interpretation, according to 

CERC, is that a retailer will honor valid 

coupons ‘‘if the retailer is offering 

subsidized Converters for sale at the 

time the coupon is presented by the 

consumer.’’168 NTIA agrees and will not 

expect retailers to attempt to redeem 

coupons if they have no CECBs 

available for sale. 

b. Legal Liability and Additional Cost 

for Retailer Participation 

109. CERC described NTIA’s 

statement in the NPRM that retailers 

must certify ‘‘under penalty of law’’ as 

‘‘insufficiently vague to offer guidance 

yet daunting in their possible 

consequence.’’169 CERC stated that any 

interested retailer would reasonably 

want to be fully aware of the potential 

for liability, to third parties as well as 

to the government, before agreeing to 

participate.170 Similarly, RadioShack 

asked us to clarify what was meant that 

retailer certification statements would 

be made ‘‘under penalty of law.’’ They 

suggested that penalties ‘‘would only 

apply to intentional efforts to defraud 

the program and that unintentional noncompliance or error would not be 

subject to penalties.’’171

110. The Act did not include any 

specific government remedies or civil or 

criminal penalties for violations or noncompliance with the statute or the 

regulations promulgated by NTIA 

thereunder. Retailers should be aware, 

however, that other statutes provide for 

civil or criminal penalties for 

wrongdoing in connection with federal 

programs such as the Coupon 

Program.172 For example, the False 

Claims Act establishes penalties for 

‘‘any person who knowingly presents, or 

causes to be presented, to an officer of 

employee of the United States 

Government . . . a false or fraudulent 

claim for payment or approval.’’173

NTIA clarifies that it does not intend to 

sanction retailers for unintentional noncompliance or error. NTIA encourages 

retailers and other participants in the 

Coupon Program to familiarize 

themselves with the laws that impose 

liability for making false statements to 

the Federal government, for making 

false claims, or engaging in other 

activities that violate Federal law. 

111. CERC and other commenters 

expressed concern that they may incur 

substantial costs to participate in the 

program. CERC stated that the 

‘‘[c]onverter is a unique, limited 

occasion product that is likely to be 

subject to unique laws of supply, 

demand, and subsidy. As a matter of 

public policy, there are simply too many 

novel costs and risk factors, and 

imponderables, for NTIA to place these 

investments, expenses, and risks solely 

on the backs of retail vendors who come 

forward to participate in this 

program.’’174 The electronically 

trackable coupon will necessitate 

custom changes to retailers’ point of 

purchase systems. RadioShack added 

that ‘‘[i]n a normal retail environment, 

a retailer would likely consider this cost 

as an investment, amortized against the 

sales life of the many products sold in 

its stores. . .[But] there is nothing 

against which to amortize this cost - - 

the shelf life of the eligible converter 

box is as short as the 18 months of the 

program and the system upgrade is only 

required for the purchase of the few 

models of eligible converter boxes.’’175

Best Buy also pointed out that their 

‘‘current electronic processing systems 

are not able to limit an Electronic 

Coupon Card to a single product 

purchase.’’176

112. CERC stated that it would be 

prudent to use some of the 

administrative funds authorized for the 

Coupon Program for ‘‘NTIA’s contract(s) 

with its vendor(s) to provide—in light of 

the apparent inadequacy of existing 

commercial channels—for the 

distribution of the necessary software 

and other system support to 

participating retailers as an included 

cost of the program.’’177 RadioShack 

said such payments could be 

‘‘considered analogous to the 

manufacturers’ common payment to 

retailers of fees for the handling of their 

manufacturing coupons.’’178 In the 

NPRM, NTIA stated that it will not 

compensate retailers for participating in 

the program. NTIA maintains that it 

does not intend to compensate retailers 

directly for participation in the program. 

NTIA, however, fully intends to 

distribute and process coupons 

consistent with reasonable commercial 

practices that do not place undue 

burdens on participating retailers. 

c. Timing of Retailers to be Ready to 

Redeem Coupons 

113. Best Buy urged NTIA and its 

contractor to ‘‘avoid the holiday months 

of October, November, December and 

January to require participating retailers 

to implement or upgrade any POS 

systems.’’179 Best Buy stated that 

because these months include the 

heaviest shopping traffic and volume of 

transactions of the year, it could not risk 

any costly down time of its systems or 

employees caused by complicated 

upgrades.180 CERC said that ‘‘once into 

the holiday shopping season, it would 

be very difficult for retailers to modify 

their point of sale and other hardware 

and software systems so as to be ready 

by January 1, 2008.’’181

114. NTIA reiterates that it is its 

intent to establish regulations and 

procedures that are reasonable and 

practical in light of commercial 

constraints. The Act requires NTIA to 

accept requests for coupons between 

January 1, 2008 and March 31, 2009, 

and thus, it proposed that retailers be 

ready to redeem coupons starting 

January 1, 2008, consistent with the 

statutory guidance. NTIA expects 

widespread retailer POS system 

modifications to occur in the first 

quarter of 2008. 

d. Confidential Treatment of Sales and 

Inventory Data 

115. Consistent with the legislative 

history regarding measures to reduce 

fraud and abuse, NTIA intends to 

establish a system for coupon 

redemption that is easily audited.182

NTIA will need to ensure that only valid 

coupons are redeemed by those actually 

requesting them, how many CECBs are 

being sold, how many are available in 

the market, and how demand is pacing 

for the program’s initial and contingent 

funding. NTIA will need cooperation 

from retailers to provide reports of that 

nature. CERC pointed out that NTIA 

will receive ‘‘sales data, pertaining to 

individual retailers and manufacturers, 

that ordinarily would be held 

confidential by these entities. 

Accordingly, it will be necessary to 

protect the non-aggregate sale data of 

particular retailers and their vendors, as 

highly confidential.’’183 RadioShack 

urged NTIA to clarify that its vendor 

‘‘will retain such proprietary 

information confidentially’’ and that it 


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184RadioShack Comments at 15. 

185NPRM, 71 FR at 42,070. 

186CERC Comments at 11. 

187RadioShack Comments at 15. 

188CERC Comments at 11. 

189CERC Comments at 9. 

190RadioShack Comments at 10-11. 

191RadioShack Comments at 15. 

192Best Buy Comments at 3. 

193NPRM, 71 FR at 42,070. 

194RadioShack Comments at 16. 

195 Id. 

will ‘‘not be released to the public or to 

other retailers or manufacturers.’’184

116. Again, because NTIA wishes to 

encourage participation by a wide range 

of retail entities in the Coupon Program, 

competitively sensitive or proprietary 

information provided by retailers in 

non-aggregated form to NTIA will be 

treated confidentially consistent with 

federal law and regulations, including 

Freedom of Information Act requests 

and court orders. 

e. Retailer Certification and Procedures 

117. Commenting parties generally 

supported NTIA’s proposal that retailers 

comply with specific requirements by 

certifying that they will: (1) provide 

information to customers about the 

necessity for and the installation of a 

CECB; (2) have in place systems that can 

be easily audited as well as systems that 

have the ability to prevent fraud and 

abuse in the Coupon Program; (3) are 

willing to be audited at any time during 

the course of the Coupon Program; (4) 

have the ability to electronically provide 

NTIA with sales information related to 

coupons used in the purchase of CECBs, 

specifically tracking each serialized 

coupon by number with a 

corresponding certified converter box 

purchase; and (5) will only submit 

coupons for redemption as a result of 

purchases of CECB models certified by 

NTIA.185

118. CERC stated that certification 

should entail representations by 

retailers that they have ‘‘established 

production and distribution channels 

and have demonstrated that they can 

redeem coupons expeditiously and 

efficiently.’’186 Radio Shack urged NTIA 

to require participating retailers ‘‘to 

demonstrate that they have experience 

in consumer electronics retail.’’187

119. NTIA agrees that retailers must 

have experience in consumer 

electronics retail sales sufficient to 

support the sale of CECBs as an 

additional CE product. We do not think 

that this program is appropriate for 

brand new ventures, either of the bricks 

and mortar type or online sellers. NTIA 

agrees with CERC that demonstrated 

capabilities as to staff, training, capacity 

to carry inventory and to order and take 

delivery of CECBs through commercial 

channels is important.188 As a result, 

retailers will need to certify that they 

have been engaged in the consumer 

electronics business for at least one year 

prior to their application. This 

requirement may be waived by NTIA 

upon a showing of good cause. A 

determination of ‘‘good cause’’ will be 

based on a showing of what is the best 

interest of the coupon program. This 

application process will provide NTIA 

with information well in advance of the 

2008 launch of which retailers will 

participate and what markets will be 

served. 

120. The comments from retailers 

were unanimous that NTIA should 

dispense with the proposed consumer 

certifications regarding eligibility. CERC 

said that the two per household limit 

‘‘can be complied with by the simply 

electronic means of not allowing the 

system to allocate more than two 

coupons to any specific household 

address.’’189 RadioShack said that 

‘‘fraud would be minimized by use of an 

electronic coupon card’’ with several 

suggestions on how the request, 

distribution, and redemption system 

would work.190 NTIA agrees that an 

electronically trackable system will 

enable NTIA to reduce the chance that 

no more than two coupons are sent to 

a given household. NTIA agrees that 

retail employees should not be placed in 

the position of having to judge whether 

a particular customer is eligible to 

purchase the product. However, NTIA 

expects retailers to report suspicious 

patterns of customer behavior to NTIA. 

Recognizing that many scenarios may 

exist for fraudulent activity, NTIA will 

leave it to the retailer’s discretion as to 

the type of behavior that requires 

notification to NTIA. 

121. Some commenters addressed the 

need for retailers to provide information 

to customers about converter boxes. In 

support of NTIA’s proposal, RadioShack 

said that retailers should be required to 

demonstrate that their sales people have 

received ‘‘specific training on the 

necessity for and use of the converter 

box so that consumers can ask questions 

and receive accurate answers. [B]ecause 

the need for specific features and 

capabilities will vary based on the age 

and location of televisions, 

knowledgeable sales people are 

essential to the success of the converter 

box program.’’191 Best Buy said that 

‘‘[w]hile it is reasonable to expect 

participating retailers to inform 

consumers on which converter boxes 

are eligible for the coupon subsidy, they 

should not be legally required to invest 

in displays, placards, or advertisements. 

Retailers should be allowed flexibility to 

incorporate the list of eligible converters 

into existing consumer education and 

communications plans and materials at 

their own discretion.’’192 NTIA agrees 

and will not specify how retailers are to 

market or promote CECBs. 

f. Payment Terms. 

122. NTIA proposed that retailers 

participating in the Coupon Program 

would be required to present to the 

Government coupons for payment 

within 30 days of the redemption 

transaction and retain hard copies of 

sale information for one year, and that 

payment from the Government would be 

made to the retailer for all validly 

redeemed coupons within 60 days of 

receipt by the Government.193

Commenting parties asserted that if an 

electronic system is used, there would 

be no need for a records retention 

requirement, and that the proposed 60–

day payment would be unnecessarily 

long. 

123. RadioShack said that ‘‘a retailer 

may be reluctant to participate in the 

program, knowing that they are in effect 

lending the government $40 for each 

sale for at least 60 days.’’194 Instead, 

RadioShack suggested that 

‘‘reimbursement should occur 

immediately upon a transaction. . . 

[W]ith an electronic coupon card 

system, the reimbursement would be 

automatic with the transaction, saving 

an endless amount of time in the 

transaction settlement process.’’195

124. Payments from program funds to 

retailers will be accomplished in a 

commercially reasonable manner. While 

it may be possible for payment to occur 

within a day or two if an electronically 

trackable system is used, payments will 

typically be processed no later than 3 

business days after the retailer submits 

an authorized transaction to NTIA or its 

contractor. For purposes of these 

payments to retailers, ‘‘business day’’

means a calendar day other than a 

Saturday, Sunday or a federal holiday. 

To ensure that vendors are paid 

promptly, they will be required to 

complete a Central Contractor 

Registration (CCR). CCR validates the 

registrant information and electronically 

shares the secure and encrypted data 

with the federal agencies’ finance offices 

to facilitate paperless payments through 

electronic funds transfer (EFT). To 

ensure payment to the retailer and 

provide a closed loop audit trail, NTIA 

will require retailers to provide positive 

verification that payment has been 

received for authorized coupon 

redemption transactions. With respect 


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to retaining hard copies of sales 

information for one year, in view of the 

decision to allow the use of ECCs, NTIA 

will not require retailers to retain hard 

copies of this information. However, for 

auditing purposes, sales information 

must be retained for at least one year 

and to the extent that retailers choose to 

retain it electronically, they should be 

prepared to convert it to a hard copy 

format if requested by NTIA. 

H. Consumer Education 

125. Many commenters offered 

suggestions about effective means of 

educating consumers about the Coupon 

Program. While the program regulations 

will not directly address consumer 

education issues, NTIA will carefully 

consider the many commenters’ advice 

as it develops a comprehensive 

consumer education campaign. In 

addition, the comments demonstrated 

the link between consumer education 

and other aspects of the proposed Rule, 

such as coupon eligibility, application 

process and certification of eligible 

boxes and participating retailers. 

Commenters offered many useful 

suggestions about educating consumers 

about the Coupon Program. Mindful of 

the need to manage our consumer 

education resources effectively and to 

work cooperatively with the consumer 

electronics and broadcast industry, 

community organizations, and the FCC, 

NTIA will build on the commenters’

suggestions to develop a comprehensive 

consumer education effort. 

III. Procedural Matters 

Paperwork Reduction Act 

The Paperwork Reduction Act (PRA), 

44 U.S.C. Chapter 35, requires federal 

agencies to seek and obtain OMB 

approval before undertaking a collection 

of information directed to ten or more 

persons. Under the PRA, a rule creates 

a ‘‘collection of information’’ where ten 

or more persons are asked to report, 

provide, disclose, or record 

‘‘information’’ in response to ‘‘identical 

questions.’’

In the NPRM, NTIA invited comment 

on three information collections 

required for the implementation of the 

Coupon Program. To successfully 

administer the Coupon Program, NTIA 

requested approval on three collection 

requirements and reporting 

requirements for: (1) The applications 

that households must submit to receive 

coupons; (2) the certification form for 

retailers that will sell the converter 

boxes and submit coupons for 

redemption; and (3) the certification 

form and recordkeeping and reporting 

requirements for manufacturers 

regarding converter boxes eligible for 

the coupon program. Specifically, 

comments were invited on (a) whether 

the collection of information is 

necessary for the proper performance of 

the functions of the agency, including 

whether the information will have 

practical utility; (b) the accuracy of the 

agency’s estimate of burden including 

the validity of the methodology and 

assumptions used; (c) ways to enhance 

the quality, utility; and clarity of the 

information collected; and (d) ways to 

minimize the burden of the collection of 

information on those who are to 

respond, including through the use of 

appropriate automated, electronic, 

mechanical, or other technological 

collection techniques or other forms of 

information technology. 

NTIA received over 100 comments in 

response to the NPRM. There were no 

comments submitted specifically with 

respect to the information collection 

and recordkeeping requirements. The 

comments to the NPRM and the analysis 

to the NPRM, however, resulted in 

changes or modifications from the 

proposed rule to the Final Rule. 

Accordingly, NTIA has modified certain 

aspects of the information collection 

and reporting requirements. These 

modifications are discussed below. 

(1) Title: Application for the Digitalto-Analog Converter Box Coupon 

Type of Request: New Collection 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average .25 hours (15 

minutes) per transaction 

Respondents: U.S. households 

Estimated Number of Respondents: 

110 million 

Estimated Number of Responses per 

Respondent: 1 

Estimated Total Annual Burden on 

Respondents: 27,500,000 hours 

This new information collection is for 

the application required to request and 

receive a coupon to purchase a digitalto-analog converter box. This collection 

of information is necessary for NTIA to 

provide the benefit to U.S. households 

as directed in the Act. In the NPRM, 

NTIA estimated the public reporting 

burden for this collection to average .25 

hours (15 minutes) per respondent. The 

NPRM identified the respondents 

affected by this information collection 

as U.S. television households that 

receive over-the-air television in an 

analog format. The estimated number of 

respondents was 21 million U.S. 

television households. Because the 

Final Rule has been changed to include 

all U.S. households, the estimated 

number of respondents is 110 million. 

This estimate assumes that all U.S. 

households with analog television sets 

will apply for a coupon. The Final Rule 

requires consumers to submit the 

following: (1) name; (2) address; (3) the 

number of coupons requested; and (4) a 

certification as to whether they receive 

cable, satellite, or other pay televison 

service. 

The OMB Approval Number of the 

information collection will be provided 

in a subsequent Federal Register notice. 

(2) Title: Certification for Retailer to 

Accept and Redeem Coupons for the 

purchase of a Digital-to-Analog 

Converter Box Coupon 

Type of Request: New Collection 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average .25 hours per 

respondent 

Respondents: Retailers that accept 

coupons for digital-to-analog converter 

boxes 

Estimated Number of Respondents: 

10,000 

Estimated Number of Responses per 

Respondent: 1 

Estimated Total Annual Burden on 

Respondents: 2,500 hours 

As part of the coupon program, 

retailers that choose to participate in the 

program by selling converter boxes must 

accept the coupons from consumers and 

then seek reimbursement from the 

Federal Government. The Final Rule 

requires retailers that wish to participate 

in the program to submit a form to the 

agency which requires them to selfcertify to that they: (1) have been 

engaged in the consumer electronics 

retail business for at least one year; (2) 

have completed a Central Contractor 

Registration; (3) have in place systems 

that can be easily audited as well as 

systems that can provide adequate data 

to minimize fraud and abuse in retail 

redemption and government payment 

for coupons; (4) agree to have coupons 

box sales audited at any time during the 

term of participation in the coupon 

program by the U. S. Government or an 

independent auditor at no expense to 

the retailer; (5) will provide NTIA 

electronically with redemption 

information and payment receipts 

related to coupons used in the purchase 

of converter boxes, specifically tracking 

each serialized coupon by number with 

a corresponding converter box purchase; 

(6) agree only to accept coupons for, and 

receive payment from authorized 

purchases made for CECBs. 

The OMB Approval Number of the 

information collection will be provided 

in a subsequent Federal Register notice. 

(3) Title: Certification of Digital to 

Analog Converter Box 

Type of Request: New Collection 


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196See NPRM, 71 FR at 42,072, Appendix A. 

197 See 5 U.S.C. § 604. 

198 See Title III of the Deficit Reduction Act of 

2005, Pub. L. 109-171, 120 Stat. 4, 21 (Feb. 8, 2006). 

199See Stored Value Comments at 46. 

200See NPRM, 71 FR at 42,074, Appendix A. 

201Id. 

202 Stored Value Comments at 46. 

203 5 U.S.C. 604(a)(3). 

204 5 U.S.C. 601. 

205 See U.S. Small Business Administration Table 

of Small Business Size Standards Matched to North 

American Industry Classifications Systems Codes, 

http://www.sba.gov/size. 

Estimate of Burden: Public reporting 

burden for this collection is estimated at 

1.25 hour per respondent 

Respondents: Companies that 

manufacture digital to analog converter 

boxes who request NTIA certification 

Estimated Number of Respondents: 10 

Estimated Number of Responses per 

Respondent: 1 

Estimated Total Annual Burden on 

Respondents: 12.5 hours 

Manufacturers that wish to participate 

in the program must submit a notice of 

intent to NTIA at least three months 

prior to submitting test results and 

sample models of converter boxes. The 

notice shall include a brief description 

of the proposed converter box, 

including permitted as well as required 

features, and the date which the 

proposed converter box is expected to 

be available for testing. The notice of 

intent shall supply the name, title and 

address and phone number of an 

individual responsible for the 

manufacturer’s submission. When the 

manufacturer submits its converter box 

to NTIA, it shall also provide test results 

along with a certification of the testing 

supervisor as to their authenticity, 

completeness, and accuracy. 

The OMB Approval Number of the 

information collection will be provided 

in a subsequent Federal Register notice. 

Executive Order 12866 

This Final Rule has been determined 

to be economically significant for 

purposes of Executive Order 12866; and 

therefore, has been reviewed by the 

Office of Management and Budget 

(OMB). In accordance with Executive 

Order 12866, and Economic Analysis 

was completed outlining the costs and 

benefits of implementing this program. 

The complete analysis is available from 

NTIA upon request. 

Executive Order 12988 

This Final Rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. NTIA has determined 

that the rule meets the applicable 

standards provided in section 3 of the 

Executive Order, to minimize litigation, 

eliminate ambiguity, and reduce 

burden. 

Congressional Review Act 

This rule has been determined to be 

major under the Congressional Review 

Act, 5 U.S.C. 801 et seq. 

Regulatory Flexibility Analysis 

As required by the Regulatory 

Flexibility Act, an Initial Regulatory 

Flexibility Analysis (IRFA) was 

prepared and published with the 

NPRM.196 A copy of the IRFA was 

provided to the Chief Counsel for 

Advocacy of the Small Business 

Administration. Although NTIA 

specifically sought comment on the 

costs to small entities of complying with 

the Final Rule, no commenters provided 

specific cost information. NTIA has 

carefully considered whether to certify 

that the Final Rule will not have a 

significant impact on a substantial 

number of small entities. NTIA 

continues to believe the Final Rule’s 

impact will not be substantial in the 

case of small entities. However, NTIA 

cannot quantify the impact the Final 

Rule will have on such entities. 

Therefore, in the interest of 

thoroughness, NTIA has prepared the 

following Final Regulatory Flexibility 

Analysis (RFA) with this Final Rule in 

accordance with the Regulatory 

Flexibility Act.197

1. Succinct Statement of the Need for, 

and Objectives of the Rule: 

NTIA is issuing this Final Rule 

because of a statutory mandate to create 

and implement a coupon program that 

will affect the public under Section 

3005 of the Digital Television Transition 

and Public Safety Act of 2005.198 The 

Act requires the Federal 

Communications Commission (FCC) to 

require full-power television stations to 

cease analog broadcasting after February 

17, 2009. After that date, households 

using analog-only televisions will no 

longer be able to receive over the air 

television broadcasts unless the 

television is connected to a converter 

box that converts the digital signal to 

analog format. As a result, the Act 

authorizes NTIA to create a program 

whereby U.S. households can apply for 

$40 coupons to be used towards the 

purchase of digital-to-analog converter 

boxes. 

The Final Rule sets forth a framework 

to implement the coupon program as 

authorized by the Act. The Final Rule 

also provides clear guidance for 

consumers, manufacturers, and retailers 

regarding eligibility, responsibilities, 

and certifications. 

2. Summary of the Significant Issues 

Raised by the Public Comments in 

Response to the IRFA; Summary of the 

Assessment of the Agency of Such 

Issues; and Statement of Any Changes 

Made in the Rule as a Result of Such 

Comments: 

The only comments that directly 

responded to the IRFA were those 

submitted by Stored Value Systems, Inc. 

(Stored Value), although other 

comments submitted in response to the 

NPRM addressed issues raised in the 

IRFA.199 Stored Value commented on 

the IRFA section regarding 

‘‘Alternatives to Minimize Burdens.’’ In 

that section, NTIA stated that the 

proposed self-certification by retailers 

for certain compliance requirements 

was less burdensome than other 

alternatives such as requiring thirdparty compliance, or instituting a 

process whereby NTIA certified 

compliance.200 NTIA stated that either 

of those options would involve 

additional steps in the certification 

process and would therefore increase 

time and cost.201 Although Stored Value 

agreed with our analysis, it added that 

‘‘not pursuing either option would not 

necessarily relieve the program or 

associated stakeholders with conducting 

similar additional steps and most likely 

would add even increased time and 

cost, or possible program delay.’’202

NTIA maintains that a third-party 

certification of retailer credentials 

would add costs and delay 

implementation of the program. The 

Final Rule, therefore, permits retailers to 

provide self-certification as to the 

program requirements. 

3. Description and Estimate of the 

Number of Small Entities to Which the 

Rule will Apply Or an Explanation of 

Why no Such Estimate is Available: 

The RFA requires agencies to provide 

a description and an estimate of the 

number of small entities to which the 

rule will apply or an explanation of why 

no such estimate is available.203 Under 

the RFA, the term ‘‘small entity’’ has the 

same meaning as the terms ‘‘small 

business,’’ ‘‘small organization’’ and 

‘‘small governmental jurisdiction.’’204

To the extent that this rule affects small 

businesses, the affect would be on 

businesses in the retail or manufacture 

of digital-to-analog converter boxes. The 

Small Business Administration defines 

small entities in the ‘‘radio, television 

and other electronic stores’’ sector as 

those organizations with less than $8 

million in annual revenue.205 With 

respect to equipment manufacturers, the 

SBA defines those small entities as 

those with less 750 employees. 

As stated in the IRFA, NTIA does not 

have precise information on the number 


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206See U. S. Census Bureau, 2002 Economic 

Census, Industry Statistics by Employment Size, 

Radio and Television Broadcasting and Wireless 

Communications Equipment Manufacturing (NAICS 

Code 334220), Table 4, available at http// 

www.census.gov/econ/census02. 

207See http://www.ce.org/Membership/Divisions/ 

98.asp. 

208See http://www.narda.com. 

of qualifying small businesses that are 

in the manufacturing or electronic 

retailing sectors that would be affected 

by the Final Rule. The digital-to-analog 

converter box is not commercially 

available today and the life of this 

particular product is limited. Thus, 

there is no readily available data that 

would assist NTIA in making an 

estimate as to the number of ‘‘small 

business’’ retailers or manufacturers that 

would be affected by the regulations. 

Moreover, none of the comments 

submitted in response to the NPRM 

addressed the number of small entities 

to which these regulations will apply. 

According to data from the U.S. 

Census Bureau, there were 1014 U.S. 

companies in 2002 that manufactured 

radio and television communications 

equipments, and approximately 1010 of 

these firms were classified as small 

entities having fewer than 750 

employees.206 Specific figures for the 

number of firms that manufacture 

television equipment are unavailable, 

however, NTIA believes that some of 

these companies are capable of 

manufacturing a converter box pursuant 

to the standards provided in the Final 

Rule. In fact, several electronic 

equipment manufacturers submitted 

comments in this proceeding. There was 

no indication that any of these 

manufacturers were small businesses. 

To the extent that there exist small 

entities capable of manufacturing a 

converter box pursuant to the standards 

provided in the Final Rule, the extent to 

which they choose to participate in the 

coupon program will be a business 

decision and not based on any 

mandatory action resulting from this 

Final Rule. Therefore, NTIA is unable to 

predict with any certainty the number of 

small entities that will consider the 

coupon program an advantageous 

business opportunity. Moreover, the 

comments submitted in response to the 

proposed rule did not provide data that 

would assist NTIA in making such an 

estimate. 

Likewise, it is not possible to 

ascertain the number of consumer 

electronic retailers that qualify as small 

entities for the purpose of this program. 

Certain data from trade associations, 

however, provide a glimpse of the type 

of small businesses that may participate 

in the coupon program. For example, 

the Professional Audio-Video Retailers 

Association (PARA) division of the 

Consumer Electronics Association 

(CEA) has more than 250 professional 

audio, video, home theater, and custom 

electronics specialty dealers.207 CEA has 

also formed a partnership with the 

North America Retailers Association 

(NARDA), a group of independent 

retailers that include consumer 

electronics retailers that represent 

approximately 3,500 storefronts and 

accounts for over $11 billion in annual 

sales.208 However, not all NARDA 

members may be interested in 

participating in the digital-to-analog 

converter box coupon program. In 

addition to consumer electronics, 

NARDA’s members also sell and service 

kitchen and laundry appliances, 

consumer mobile electronics, computers 

and other home and small office 

products, furniture, sewing machines, 

vacuum cleaners, room air conditioners, 

and other consumer products. 

Moreover, NARDA’s members are not 

limited to retailers, but also include 

manufacturers, suppliers and vendors. 

PARA and NARDA members may be 

specialty electronic dealers not 

interested in selling converter boxes. 

The comments submitted in response to 

the IRFA did not provide data that 

would assist NTIA in making an 

estimate of ‘‘small entities.’’

4. Description of Projected Reporting, 

Recordkeeping and Other Compliance 

Requirements of the Rule, Including an 

Estimate of the Classes of Small Entities 

That Will Be Subject to the Requirement 

and the Type of Profession Skills 

Necessary for Preparation of the Report 

or Record: 

It should be noted again here that this 

coupon program is for a limited amount 

of time so there will not be any long 

term or recurring reporting, 

recordkeeping and other compliance 

requirements. Moreover, participation 

in this program is voluntary, thus any 

requirements would only occur if a 

retailer or manufacturer chooses to 

participate. As stated above, there is no 

readily available data to assist NTIA is 

making an estimate as to the number of 

‘‘small entities’’ that will be subject to 

the requirements of the rule, and 

comments submitted in response to the 

proposed rule did not address such an 

estimate. 

A. Manufacturers 

The Final Rule requires 

manufacturers that wish to participate 

in the program to submit a notice of 

intent to NTIA at least three months 

prior to submitting test results and 

sample models of converter boxes. The 

notice shall include a brief description 

of the proposed converter box, 

including permitted as well as required 

features, and the date which the 

proposed converter box is expected to 

be available for testing. As part of this 

notice of intent, the manufacturer shall 

supply the name, title, address and 

phone number of an individual 

responsible for the manufacturer’s 

submission. When the manufacturer 

submits its converter box to NTIA, it 

shall also provide test results along with 

a certification of the testing supervisor 

as to their authenticity, completeness, 

and accuracy. 

Because these certification and 

recordkeeping requirements should be a 

part of a manufacturer’s normal course 

of business, NTIA does not anticipate 

that a particular type of professional 

skill is necessary beyond that already 

incorporated into the manufacturer’s 

existing business operations. It should 

be noted that most of the comments 

submitted in response to the NPRM, 

supported the approach adopted in the 

Final Rule whereby the manufacturer 

would conduct its own testing and 

submit the converter box to NTIA for 

‘‘verification plus.’’ No comments 

submitted in this proceeding indicated 

that the compliance requirements of this 

Rule would require a particular type of 

professional skill. 

B. Retailers 

The Final Rule requires retailers to 

have in place systems that are capable 

of electronically processing coupons for 

redemption and payment, tracking each 

transaction and generating reports that 

are auditable. The Final Rule also 

requires retailers to provide transaction 

reports to NTIA and to retain such 

reports for at least one year. Retailers are 

required to provide NTIA redemption 

information and payment receipts 

related to coupons used in the purchase 

of converter boxes. To participate in the 

program, retailers must have engaged in 

electronic retailing for at least one year 

and must register in the Central 

Contractor Registration database. 

Because these certification and 

recordkeeping requirements are 

typically part of a retailer’s normal 

course of business, NTIA does not 

anticipate that a particular type of 

professional skill is necessary beyond 

that already incorporated into a 

retailer’s existing business operations. 

No comments submitted in this 

proceeding indicated that the 

compliance requirements of this Rule 

would require a particular type of 

professional skill. The recordkeeping 

requirements for reports are necessary 

for NTIA to monitor the program to 


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12116 Federal Register / Vol. 72, No. 50 / Thursday, March 15, 2007 / Rules and Regulations 

ensure that coupons are being utilized 

and redeemed. This information is 

necessary in the event NTIA is required 

to request additional program funding. 

Moreover, because this is a federal 

government program, NTIA must ensure 

that it can be audited as necessary. 

There were comments received that 

the use of coupons may not be 

compatible with electronic scanning 

devices used by participating retailers 

and that the requirement for electronic 

systems may eliminate small retailers 

from participating. Moreover, some 

retailers suggested that the use of 

electronic coupon cards may require 

significant up-front costs for software, 

payment processing and employee 

training. NTIA notes again that this 

program is voluntary, thus any costs 

incurred are a result of retailers 

choosing to participate. With respect to 

limiting small retailers, NTIA did not 

receive comments from any small 

retailers that the use of electronic 

systems would somehow discourage 

them from participating. On the other 

hand, most of the retailers stated that 

incorporating electronically encoded 

information on the coupons was 

necessary for the program to run 

efficiently. There was no data submitted 

in this proceeding indicating that small 

retailers would not have electronic 

systems in place. As for those retailers 

that state that electronic systems would 

require significant up front cost, NTIA 

reiterates that retailers are free to set the 

retail price of the converter boxes. Thus, 

any up-front costs incurred by a retailer 

can be recouped. 

5. Description of the Steps the Agency 

Has Taken to Minimize the Significant 

Economic Impact on Small Entities 

Consistent with the Stated Objectives of 

Applicable Statutes, Including a 

Statement of the Factual, Policy, and 

Legal Reasons for Selecting the 

Alternative Adopted in the Final Rule 

and Why Each of the Other Significant 

Alternatives to the Rule Considered by 

the Agency That Affect the Impact on 

Small Entities Was Rejected: 

The IRFA proposed and solicited a 

number of alternatives to minimize the 

economic impact on small entities. It 

should be noted, as it was in the IRFA, 

that any significant economic impact 

would not be caused by the Final Rule 

because participation in this program is 

voluntary on all levels—consumers, 

retailers and manufacturers. Likewise, 

there is no significant economic impact 

if a small entity chooses not to 

participate in the program. Nonetheless 

the Final Rule includes steps to 

minimize any adverse economic impact 

on all participants. 

a. No Limits on Pricing of the Converter 

Boxes 

The Final Rule does not restrict the 

wholesale or retail price of the converter 

box. Thus, to the extent that 

manufacturers and retailers incur 

certain costs to provide the converter 

boxes, these costs may be recouped 

through the retail or wholesale price 

established by them. The alternative 

would have been to limit the retail price 

of the converter box. That alternative 

may cause a hardship on small entities 

because it would limit the ability of 

small entities to recoup costs involved 

in making the converter box available. 

Because this program is new and the 

demand for the converter box is 

uncertain, NTIA’s decision to allow 

manufacturers and retailers to price the 

box as they deem appropriate should 

minimize economic burdens. Moreover, 

NTIA does not have the statutory 

authority to determine the price for the 

set top boxes. 

b. Retaining Hard Copies of Sales Data 

In the NPRM, NTIA proposed to 

require retailers to retain hard copies of 

sales information for at least one year. 

Retailers submitted comments asserting 

that if electronic systems were used, 

there would be no need for such a 

records retention requirement. 

Accordingly, the Final Rule dispensed 

with the requirement that retailers 

retain hard copies of sales information 

for one year, however, retailers are still 

required to retain such information 

electronically for one year and to 

convert it to a hard copy format if 

requested by NTIA. 

c. Electronic Processing of Coupons 

The comments from retailers 

overwhelmingly recommended the use 

of an electronic coupon card system. 

Retailers were concerned that unless an 

electronic system was utilized, 

reimbursement from the government 

would be delayed. As a result of these 

comments, NTIA intends to use retailer 

point of sale electronic tracking systems 

to authorize coupon redemptions and to 

track sales transactions of eligible 

devices. To ensure that retailers are 

reimbursed in a timely manner, the 

Final Rule permits retailers to register in 

Central Contractor Registration which 

facilitates paperless payments though 

electronic funds transfer. Alternatively, 

retailers would have to wait a longer 

period of time to be reimbursed by the 

Federal Government. 

List of Subjects in 47 CFR Part 301 

Antennas, Broadcasting, Cable 

television, Communications, 

Communications equipment, Electronic 

products, Telecommunications, 

Television. 

■ For the reasons set forth in the 

preamble, NTIA adds 47 CFR Part 301, 

which is currently reserved, with the 

following: 

PART 301 DIGITAL-TO-ANALOG 

CONVERTER BOX COUPON 

PROGRAM 

301.1 Program Purposes 

301.2 Definitions 

301.3 Household Eligibility and 

Application Process 

301.4 Coupons 

301.5 Manufacturers’ Technical 

Approval Process 

301.6 Retailer Participation 

Technical Appendix 1 

Technical Appendix 2 

Authority: Title III of the Deficit Reduction 

Act of 2005, Pub. L. No. 109–171, 120 Stat. 

4, 21 (Feb. 8, 2006) (the ‘‘Act’’). 

§ 301.1 Program Purposes. 

Pursuant to section 3005 of the Act, 

(The Deficit Reduction Act of 2005), the 

purpose of the Digital-to-Analog 

Converter Box Coupon Program is to 

provide $40 coupons that can be 

applied towards the purchase price of 

eligible digital-to-analog converter 

boxes. After February 17, 2009, the 

Federal Communications Commission 

will require that all full-power 

television stations in the United States 

broadcast using digital television 

technology. Consumers who wish to 

continue to receive local broadcast 

television programming over-the-air 

using analog televisions not connected 

to cable or satellite service may wish to 

purchase digital-to-analog converter 

boxes in order to do so. 

§ 301.2 Definitions. 

Act means Title III of the Deficit 

Reduction Act of 2005, Pub. L. No. 109–

171, 120 Stat. 4, 21 (Feb. 8, 2006). 

Agency means the National 

Telecommunications and Information 

Administration of the United States 

Department of Commerce or its 

contractor. 

Certified Retailer means a seller of 

Coupon-Eligible Converter Boxes 

directly to consumers that has met the 

requirements for certification and has 

been identified by NTIA as certified to 

redeem coupons. 

Contingent Funds means those funds 

referenced in Section 3005 (c)(3) of the 

Act. 

Coupon means a voucher provided by 

the Agency to Eligible Households 

which only may be used to purchase a 

Coupon-Eligible Converter Box from a 

Certified Retailer. 


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Coupon–Eligible Converter Box 

(CECB) means a stand-alone device that 

does not contain features or functions 

except those necessary to enable a 

consumer to convert any channel 

broadcast in the digital television 

service into a format that the consumer 

can display on a television receiver 

designed to receive and display signals 

only in the analog television service. 

CECBs may also include remote control 

devices. CECBs must have the features 

required by, and meet the technical 

performance specifications listed in 

Technical Appendix 1. 

Department means the United States 

Department of Commerce. 

Eligible Household means those 

Households in the United States and its 

territories that make a valid request for 

a coupon pursuant to Rule 301.3 within 

the time period specified by NTIA, but 

no later than March 31, 2009. 

FCC means the Federal 

Communications Commission. 

State includes each of the fifty states, 

the District of Columbia, the 

Commonwealth of Puerto Rico, the 

Virgin Islands, Guam, American Samoa, 

and the Northern Mariana Islands. 

Household consists of all persons who 

currently occupy a house, apartment, 

mobile home, group of rooms, or single 

room that is occupied as separate living 

quarters and has a separate U.S. Postal 

address. A household does not mean a 

Post Office Box. 

§ 301.3 Household Eligibility and 

Application Process. 

(a) To apply for and receive a coupon, 

an Eligible Household must: 

(1) provide the name of the person 

submitting the request 

(2) provide a United States Postal 

Service mailing address 

(A) a Post Office Box will not be 

considered a valid mailing address 

unless (2)(B) applies 

(B) residents of Indian reservations, 

Alaskan Native Villages and other rural 

areas without home postal delivery may 

be requested to supply additional 

information to identify the physical 

location of the household, as required. 

(3) indicate the number of coupons 

requested, but no more than two 

coupons. 

(b) As of January 1, 2008, requests for 

coupons may be submitted by mail, 

telephone or the Internet on forms 

provided by the Agency. 

(c) Requests for coupons must be 

submitted to the Agency no later than 

March 31, 2009. 

(d) Once Contingent Funds are 

available for the Coupon Program, only 

over-the-air households will be eligible. 

During the period in which Contingent 

Funds are available, households must 

certify that they do not receive cable, 

satellite, or other pay television service. 

(e) If an applicant does not meet the 

above eligibility requirements, the 

request will be denied. 

§ 301.4 Coupons. 

(a) The coupon value will be $40 or 

the price of the CECB, whichever is less. 

(b) Each Eligible Household will be 

limited to a total of two coupons. 

(c) Two coupons may not be used in 

combination toward the purchase of a 

single CECB. 

(d) Coupons will be sent to Eligible 

Households via the United States Postal 

Service. 

(e) Coupons will expire 90 days after 

the issuance date. Issuance date means 

the date upon which the coupon is 

placed with the United States Postal 

Service. 

(f) Consumers may not return a CECB 

to a retailer for a cash refund for the 

coupon amount or make an exchange for 

another item unless it is another CECB. 

(g) The coupon has no cash value. It 

shall be illegal to sell, duplicate or 

tamper with the coupon. 

§ 301.5 Manufacturers’ Technical Approval 

Process. 

(a) Manufacturers wishing to 

participate in the coupon program must 

submit a notice of intent to NTIA at 

least three months prior to submitting 

test results and sample models of 

converter boxes. Notices should be sent 

to DTV Converter Coupon Program, 

NTIA/OTIA, U.S. Department of 

Commerce, Room 4809, Washington, DC 

20230, Fax Number 202–482–4626 and 

provide the name, title, address, and 

phone number of an individual 

responsible for the manufacturer’s 

submission. The notice shall also 

include a brief description of the 

proposed converter box, including 

permitted as well as required features, 

and the date which the proposed 

converter box is expected to be available 

for testing. 

(b) NTIA shall treat the notices of 

intent received as business confidential 

and proprietary information and will 

not release information from the notices 

of intent to the public unless otherwise 

required by law. 

(c) The manufacturer will supply two 

production sample converter boxes to 

NTIA. NTIA will provide the 

manufacturer with mailing information 

in a letter of acknowledgment after 

NTIA receives the notice of intent. 

(d) Each model proposed to be a CECB 

shall meet the performance specification 

and features set forth in Technical 

Appendix 1 of this Section. Each model 

proposed may also include ‘‘permitted’’

features set forth in Technical Appendix 

2, but shall not include ‘‘disqualifying’’

features set forth therein. 

(e ) NTIA may issue other guidance or 

test-bed conditions and it is the 

manufacturer’s responsibility to conduct 

tests pursuant to any guidance so 

provided. A manufacturer shall conduct 

its own tests or have a qualified 

independent third party conduct the 

tests. 

(f) Reports of test conditions and test 

results must be clear and 

comprehensive so that they can be 

easily interpreted by NTIA and others 

reviewing them. The FCC may test 

converter boxes, if requested by NTIA. 

(g) Test results shall be submitted to 

NTIA along with a certification of the 

testing supervisor as to their 

authenticity, completeness and accuracy 

based on personal knowledge. 

(h) NTIA will provide prompt notice 

to the individual submitting test results 

whether the model has met technical 

approval and is or is not a CECB. NTIA 

will base its decision whether to 

approve each converter box upon 

consultation with the FCC. 

(i) A list of CECBs, including make 

and model number, will be maintained 

by NTIA and regularly distributed to 

participating retailers for use in 

electronic Point-of-Sale (POS) systems. 

(j) It is the responsibility of the 

manufacturers to resolve any 

performance or product defect issues 

with consumers and retailers. 

(k) NTIA shall not warrant the 

performance, suitability, or usefulness 

of any CECB for any use. 

§ 301.6 Retailer Participation. 

Retailer participation is voluntary. 

NTIA encourages retailers to participate 

in the Coupon Program and to cooperate 

with NTIA and its contractor in the 

administration of an effective and 

efficient program resulting in high 

customer satisfaction with a minimum 

of waste, fraud and abuse. 

(a) Retailer Obligations: Certified 

Retailers are required to redeem valid 

coupons toward the purchase of CECBs, 

and 

(1) Must have systems in place that 

are capable of electronically processing 

coupons for redemption and payment, 

tracking each and every transaction, and 

generating reports that are easily 

auditable. 

(2) Must train employees on the 

purpose and operation of the Coupon 

Program. NTIA or its contractor will 

provide training material. 

(3) Will not be responsible for 

checking consumer or household 

eligibility but shall report to NTIA 


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1Subjective evaluation methodologies use the 

human visual and auditory systems as the primary 

measuring ‘‘instrument.’’ These methods may 

incorporate viewing active video and audio 

segments to evaluate the performance as perceived 

by a human observer. For subjective measurement, 

the use of an expert viewer is recommended. The 

viewer shall observe the video and listen to the 

audio for at least 20 seconds in order to determine 

Threshold of Visibility (TOV) and Threshold of 

Audibility (TOA). Subjective evaluation of TOV 

should correspond with achievement of transport 

stream error rate not greater than a BER of 3×10¥6. 

If there is disagreement over TOV performance 

evaluation, it will be resolved with a measurement 

of actual BER. 

suspicious patterns of customer 

behavior. 

(4) Use commercially reasonable 

methods to order and manage inventory 

to meet customer demand for CECBs. 

(5) Must provide transaction reports 

based on NTIA’s requirements. Reports 

must be maintained by the retailer for at 

least one year. Business confidential 

and proprietary information shall not be 

disclosed to the public unless otherwise 

required by law. 

(b) Retailer Certification: 

(1) Retailers seeking to participate in 

the Coupon Program must apply for 

certification by contacting NTIA 

between June 1, 2007 and March 31, 

2008. 

(2) Retailers must complete the form 

provided by the Agency which requires 

the retailers to self certify that they: 

(A) Have been engaged in the 

consumer electronics retail business for 

at least one year unless waived for good 

cause by NTIA. Good cause will be 

determined upon a showing by the 

retailer that participation would be in 

the best interest of the program. NTIA 

will issue a written determination as to 

whether a retailer has made a sufficient 

showing of good cause to waive this 

requirement; 

(B) Have completed a Central 

Contractor Registration (www.ccr.gov); 

(C) Have in place systems or 

procedures that can be easily audited as 

well as systems that can provide 

adequate data to minimize fraud and 

abuse in retail redemption and 

government payment for coupons; 

(D) Agree to have coupon box sales 

audited at any time during the term of 

participation in the coupon program by 

the U.S. Government or an independent 

auditor at no expense to the retailer; 

(E) Will provide NTIA electronically 

with redemption information and 

payment receipts related to coupons 

used in the purchase of converter boxes, 

specifically tracking each serialized 

coupon by number with a 

corresponding CECB purchase; and 

(F) Agree only to accept coupons for, 

and receive payment resulting from 

authorized purchases made for CECBs. 

(3) Retailer Certification may be 

revoked by NTIA if a Certified Retailer 

fails to comply with these regulations, 

with the terms of any agreement made 

between the Certified Retailer and 

NTIA, or for other actions inconsistent 

with the Coupon Program. 

(4) NTIA will not revoke retailer 

certification for unintentional noncompliance or error. 

(5) Retailers may contact NTIA for late 

application or dispute resolution for 

problems such as denial or revocation of 

certification. Such issues will be 

resolved on a case-by-case basis. 

TECHNICAL APPENDIX 1 

NTIA Coupon-Eligible Converter Box 

(CECB) 

Required Minimum Performance 

Specifications and Features 

REFERENCE DOCUMENTS 

ATSC A/74, Receiver Performance 

Guidelines, June 2004 

ATSC A/53E, ATSC Digital Television 

Standard, Revision E with 

Amendments No. 1 and No. 2, 

September 2006 

ATSC A/65C, Program and System 

Information Protocol for Terrestrial 

Broadcast and Cable (Revision C) 

With Amendment No. 1, May 2006 

Recommendation ITU-R BT.500-11, 

Methodology for the subjective 

assessment of the quality of television 

pictures 

ATSC A/69, PSIP Implementation 

Guidelines for Broadcasters, June 

2002 

ELIGIBLE CONVERTER BOXES SHALL 

COMPLY WITH THE FOLLOWING 

MINIMUM PERFORMANCE 

SPECIFICATIONS AND FEATURES: 

1. Decoder 

Equipment shall be capable of 

receiving and presenting for display 

program material that has been encoded 

in any and all of the video formats 

contained in Table A3 of ATSC A/53E. 

The image presented for display need 

not preserve the original spatial 

resolution or frame rate of the 

transmitted video format. 

2. Output Formats 

Equipment shall support 4:3 center 

cut-out of 16:9 transmitted image, 

letterbox output of 16:9 letterbox 

transmitted image, and a full or partially 

zoomed output of unknown transmitted 

image. 

3. PSIP Processing 

Equipment shall process and display 

ATSC A/65C Program and System 

Information Protocol (PSIP) data to 

provide the user with tuned channel 

and program information. See ATSC A/ 

69 for further guidance. 

4. Tuning Range 

Equipment shall be capable of 

receiving RF channels 2 through 69 

inclusive. 

5. RF Input 

Equipment shall include a female 75 

ohm F Type connector for VHF/UHF 

antenna input. 

6. RF Output 

Equipment shall include a female 75 

ohm F Type connector with userselectable channel 3 or 4 NTSC RF 

output. 

7. Composite Output 

Equipment shall include female RCA 

connectors for stereo left and right audio 

(white and red) and a female RCA 

connector for composite video (yellow). 

Output shall produce video with ITU-R 

BT.500-11 quality scale of Grade 4 or 

higher. 

8. RF Dynamic Range (Sensitivity) 

Equipment shall achieve a bit error 

rate (BER) in the transport stream of no 

worse than 3×10¥6 for input RF signal 

levels directly to the tuner from -83 

dBm to -5 dBm over the tuning range. 

Subjective video/audio assessment 

methodologies could be used to comply 

with the bit error rate requirement.1

Test conditions are for a single RF 

channel input with no noise or channel 

impairment. Refer to ATSC A/74 

Section 4.1 for further guidance. (Note 

the upper limit specified here is 

different than that in A/74 4.1). 

9. Phase Noise 

Equipment shall achieve a bit error 

rate in the transport stream of no worse 

than 3×10¥6 for a single channel RF 

input signal with phase noise of -80 

dBc/Hz at 20 kHz offset. The input 

signal level shall be - 28 dBm. 

Subjective video/audio assessment 

methodologies described above could be 

used to comply with the bit error rate 

requirement. Refer to ATSC A/74 

Section 4.3 for further guidance. 

10. Co-Channel Rejection 

The receiver shall not exceed the 

thresholds indicated in TABLE 1 for 

rejection of co-channel interference at 

the given desired signal levels. Refer to 

ATSC A/74 Section 4.4.1 for further 

guidance. 


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TABLE 1—CO-CHANNEL REJECTION

THRESHOLDS. 

Type of Interference 

Co-Channel D/U 

Ratio (dB) 

Weak Desired 

(¥68 

dBm) 

Moderate 

Desired 

(¥53 

dBm) 

DTV interference 

into DTV.

+15.5 +15.5 

NTSC interference 

into DTV.

+2.5 +2.5 

Notes: 

NTSC split 75% color bars with pluge bars 

and picture to sound ratio of 7 dB should be 

used for video source. 

ATSC high definition moving video should 

be used for video source. 

All NTSC values are peak power; all DTV 

values are average power. 

11. First Adjacent Channel Rejection 

The receiver shall not exceed the 

thresholds indicated in TABLE 2 for 

rejection of adjacent channel 

interference at the given desired signal 

levels. Refer to ATSC A/74 Section 4.4.2 

for further guidance. 

TABLE 2—ADJACENT CHANNEL

REJECTION THRESHOLDS

Type of Interference 

Adjacent Channel D/U 

Ratio (dB) 

Weak 

Desired 

(¥68 

dBm) 

Moderate 

Desired 

(¥53 

dBm) 

Strong 

Desired 

(¥28 

dBm) 

Lower DTV interference 

into DTV.

≥¥33 ¥33 ¥20 

Upper DTV interference 

into DTV.

≥¥33 ¥33 ¥20 

Lower NTSC 

interference 

into DTV.

≥¥40 ¥35 ¥26 

Upper NTSC 

interference 

into DTV.

≥¥40 ¥35 ¥26 

Notes: 

NTSC split 75% color bars with pluge bars 

and picture to sound ratio of 7 dB should be 

used for video source. 

ATSC high definition moving video should 

be used for video source. 

All NTSC values are peak power; all DTV 

values are average power. 

12. Taboo Channel Rejection 

The receiver shall not exceed the 

thresholds indicated in TABLE 3 for 

rejection of taboo channel interference 

at the given DTV desired and undesired 

signal levels. Refer to ATSC A/74 

Section 4.4.3 for further guidance. 

TABLE 3—TABOO CHANNEL REJECTION THRESHOLDS FOR DTV INTERFERENCE INTO DTV 

Channel 

Taboo Channel D/U Ratio (dB) 

Weak Desired 

(¥68 dBm) 

Moderate Desired 

(¥53 dBm) 

Strong Desired 

(¥28 dBm) 

N+/¥2 ..................................................... ≥¥44 ¥40 ¥20 

N+/¥3 ..................................................... ≥¥48 ¥40 ¥20 

N+/¥4 ..................................................... ≥¥52 ¥40 ¥20 

N+/¥5 ..................................................... ≥¥56 ¥42 ¥20 

N+/¥6 to N+/¥13 ................................... ≥¥57 ¥45 ¥20 

N +/¥14 and N+/¥15 ............................ ≥¥46 ¥45 ¥20 

Notes: ATSC high definition moving video should be used for video source. All DTV values are average power. 

13. Burst Noise 

Equipment shall tolerate a noise burst 

of at least 165 μs duration at a 10 Hz 

repetition rate without visible errors. 

The noise burst shall be generated by 

gating a white noise source with average 

power -5 dB, measured in the 6 MHZ 

channel under test, referenced to the 

average power of the DTV signal. The 

input DTV signal level shall be -28 dBm. 

Refer to ATSC A/74 Section 4.4.4 for 

further guidance. 

14. Field Ensembles 

Equipment shall demonstrate that it 

can successfully demodulate, with two 

or fewer errors, 30 of the 50 field 

ensembles available from ATSC in 

conjunction with ATSC A/74. Error 

counts are not expected to include 

inherent errors associated with the start 

and end or looping of field ensembles 

for playback. 

Refer to ATSC A/74 Section 4.5.2 for 

further guidance. 

15. Single Static Echo 

Equipment shall comply with either 

CRITERIA A or CRITERIA B, below. 

CRITERIA A: 

Equipment shall tolerate a single 

static echo with the magnitude, relative 

to a desired DTV signal power of -28 

dBm, and delay defined in TABLE 4. 

CRITERIA B: 

Equipment may demonstrate 

compliance by tolerating a single static 

echo with the magnitude, relative to a 

desired DTV signal power of -28 dBm, 

and delay defined in TABLE 5, if the 

equipment also demonstrates that it can 

receive 37 of the 50 field ensembles. See 

FIELD ENSEMBLES requirement. 

CRITERIA A: 

TABLE 4—MAXIMUM SINGLE STATIC

ECHO DELAY

Echo Delay Desired to Echo Ratio 

¥50 μs ...................... 16 dB 

¥40 μs ...................... 12 dB 

¥20 μs ...................... 6 dB 

¥10 μs ...................... 5 dB 

¥5 μs ........................ 2 dB 

0 μs ........................... 1 dB 

10 μs ......................... 2 dB 

20 μs ......................... 3 dB 

40 μs ......................... 10 dB 

50 μs ......................... 16 dB 

CRITERIA B: 

TABLE 5—MINIMUM SINGLE STATIC

ECHO DELAY

Echo Delay Desired to Echo Ratio 

¥50 μs ...................... 16 dB 

¥40 μs ...................... 16 dB 

¥20 μs ...................... 7.5 dB 


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12120 Federal Register / Vol. 72, No. 50 / Thursday, March 15, 2007 / Rules and Regulations 

TABLE 5—MINIMUM SINGLE STATIC

ECHO DELAY—Continued 

Echo Delay Desired to Echo Ratio 

¥10 μs ...................... 5 dB 

¥5 μs ........................ 2 dB 

0 μs ........................... 1 dB 

10 μs ......................... 2 dB 

20 μs ......................... 3 dB 

40 μs ......................... 16 dB 

50 μs ......................... 16 dB 

16. Channel Display 

Equipment must display all channels, 

including multicast channels, broadcast 

by a digital television station that can be 

displayed on an analog TV receiver. 

17. Closed Captioning, Emergency Alert 

System (EAS) and Parental Controls (VChip) 

Equipment must display (1) EAS 

message broadcast pursuant to 47 CFR 

§ 11.11 of the FCC Rules; (2) parental 

control information as required by the 

FCC Rules in 47 CFR § 15.120 and 

incorporate the EIA/CEA-766-A 

standard; and (3) Close Captioning 

information as required by the FCC 

Rules in 47 CFR § 15.122 and 

incorporate the CEA 708/608 standard. 

18. Remote Control 

A remote control to operate the 

equipment shall be provided with 

batteries. Standard codes will be used 

and provided so the consumer can 

program an existing remote control to, at 

a minimum, change channels and turn 

on and off the converter box and the 

consumer’s existing analog television 

receiver. 

19. Audio Outputs 

The RF output must be modulated 

with associated audio program 

information; the RCA audio connectors 

must provide stereo left/right, when 

broadcast. 

20. Energy Standards 

The equipment shall use no more 

than two watts of electricity in the 

‘‘Sleep’’ state. Sleep state power shall be 

measured in accordance with industry 

standard CEA-2013-A. Eligible 

equipment shall provide the capability 

to automatically switch from the On 

state to the Sleep state after a period of 

time without user input. This capability 

shall be enabled at the factory as the 

default setting for the device. The 

default period of inactivity before the 

equipment automatically switches to the 

Sleep state shall be four hours. Eligible 

equipment may allow the current 

program to complete before switching to 

the Sleep state. The default energy 

related settings shall not be altered 

during the initial user set-up process 

and shall persist unless the user chooses 

at a later date to manually: (a) disable 

the ‘‘automatic switching to Sleep state’’

capability, or (b) adjust the default time 

period from 4 hours to some other 

value. 

21. Owner’s manual 

An owner’s manual shall include 

information regarding the remote 

control codes used to permit the 

consumer to program a universal remote 

control. The owner’s manual will 

include information regarding the 

availability of the main audio channel 

and other associated audio channels on 

the RF and left/right audio outputs. 

22. LED Indicator 

The equipment shall contain an LED 

to indicate when the unit is turned on. 

23. RF Cable 

The equipment will include at least 

one RF cable to connect the unit with 

its associated analog television receiver. 

24. Signal Quality Indicator 

The equipment will display on the 

television receiver signal quality 

indications such as signal strength per 

ATSC A/74, Section 4.7. 

TECHNICAL APPENDIX 2—NTIA Coupon-Eligible Converter Box (CECB): Permitted and Disqualifying 

Features 

Feature Permitted Feature Disqualifying Feature 

General Requirements ......................... ............................................................................. Any device or capability which provides for more 

than simply converting a digital over-the-air television signal (ATSC) for display on an analog 

television receiver (NTSC), including, but not 

limited to: 

Integrated video display; Video or Audio recording 

or playback capability such as VCR, DVD, 

HDDVD, Blue Ray, etc. 

Antenna Inputs ..................................... Smart Antenna interface connector (CEA 909 

Smart Antenna Control Interface standard).

The manufacturer may supply a 300 ohm connector or a matching transformer to connect 300 

ohm ribbon leads to the required RF antenna 

input.

Antenna Pass-Through ........................ Equipment may pass through a NTSC analog signal from the antenna to the TV receiver.

By-pass switch to permit NTSC pass-through.

Bundling Antenna and Converter Box Equipment and Smart Antenna may be sold together at promotional prices.Equipment cannot be sold conditioned on the purchase of a Smart Antenna or other equipment. 

Outputs (General) ................................ S-Video .................................................................... Digital Video Interface (DVI); 

Component video (YPbPr); 

High-Definition Multimedia Interface (HDMI); 

Computer video (VGA); 

USB IEEE-1394 (iLink or Firewire) 

Ethernet (IEEE-802.3) 

Wireless (IEEE0802.11) 


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Federal Register / Vol. 72, No. 50 / Thursday, March 15, 2007 / Rules and Regulations 12121 

TECHNICAL APPENDIX 2—NTIA Coupon-Eligible Converter Box (CECB): Permitted and Disqualifying 

Features—Continued 

Feature Permitted Feature Disqualifying Feature 

Outputs (Audio) .................................... Equipment may process associated audio services 

described in Section 6.6 of A/54.

RF output may provide monaural audio for the selected audio channel.

RF output may provide BTSC stereo for the selected audio channels.

Automatic Software Repair/Upgrade ... Equipment is able to receive and process software 

pursuant to ATSC A-97.

Program Information ............................ Equipment may contain software and hardware 

modifications necessary to display other program information as determined by the manufacturer.

Remote Control .................................... Manufacturers may include a programmable universal remote control to operate the equipment 

and other existing video and audio equipment.

Remote control may have dedicated keys to provide direct access to closed captioning and descriptive video functions.

Other Features ..................................... Equipment may be operated on battery power as 

well as external AC/DC power.

Manufacturer may supply additional cables, such 

as a cable with 3 female RCA connectors for 

composite video (yellow connector) and stereo 

left and right audio (white and red connectors).

Equipment may display on the television receiver 

additional signal quality information as determined by the manufacturer.

Energy Standards ................................ Equipment may comply with standards established 

by the EPA Energy Star program or state regulatory authorities.

Dated: March 9, 2007. 

John M.R. Kneuer, 

Assistant Secretary for Communications and 

Information Administration. 

[FR Doc. E7–4668 Filed 3–14–07; 8:45 am] 

BILLING CODE 3510–60–S 

DEPARTMENT OF COMMERCE 

National Telecommunications and 

Information Administration 

47 CFR Part 301 

Digital-to-Analog Converter Box 

Coupon Program Public Meeting 

AGENCY: National Telecommunications 

and Information Administration, 

Commerce. 

ACTION: Public meeting. 

SUMMARY: Summary: NTIA will hold a 

public meeting on March 19, 2007 in 

connection with its Digital-to-Analog 

Converter Box Coupon Program 

described in the Final Rule that was 

recently adopted by NTIA. 

DATES: The meeting will be held on 

March 19, 2007 at 10 a.m., Eastern 

Standard Time. 

ADDRESSES: The meeting will be held at 

the U.S. Department of Commerce 

Auditorium, 1401 Constitution Avenue, 

N.W., Washington, D.C. 

FOR FURTHER INFORMATION CONTACT: For 

further information regarding the 

meeting, contact Sandra Stewart at (202) 

482–2246. 

SUPPLEMENTARY INFORMATION: NTIA will 

host a public meeting to discuss its 

Final Rule establishing the Digital-toAnalog Converter Box Coupon Program. 

A copy of the Final Rule is available on 

NTIA’s website at http:// 

www.ntia.doc.gov. The public meeting 

will be limited to those issues addressed 

in the Final Rule. NTIA will not 

entertain questions related to the 

Request for Information published by 

NTIA on July 31, 2006, or other 

procurement related issues. All 

procurement-related questions should 

be directed to Diane Trice at (301) 713–

0838 ext. 102 or diane.trice@noaa.gov. 

Public attendance at the meeting is 

limited to space available. The meeting 

will be physically accessible to people 

with disabilities. Individuals requiring 

special services, such as sign language 

interpretation or other ancillary aids, are 

asked to indicate this to Sandra Stewart 

at least two (2) days prior to the 

meeting. Members of the public will 

have an opportunity to ask questions at 

the meeting. Individuals who would 

like to submit written questions should 

e-mail their questions to Francine 

Jefferson at fjefferson@ntia.doc.gov. 

Dated: March 9, 2007. 

Kathy D. Smith, 

Chief Counsel, National Telecommunications 

and Information Administration. 

[FR Doc. E7–4642 Filed 3–14–07; 8:45 am] 

BILLING CODE 3510–60–S 


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