Digital Television Transition: Preliminary Information on Progress of the DTV Transition
Published: 2007-10-17T00:00:00

Fast Facts:

Highlights:
section_title: Why GAO Did This Study
paragraphs: On February 17, 2009, federal law requires all full-power television stations in the United States to cease analog broadcasting, enabling the government to reclaim valuable spectrum that the broadcasters currently use for analog broadcasts. This change, often referred to as the digital television (DTV) transition, requires action by broadcasters and consumers to ensure broadcast television signals are still available and viewable. The National Telecommunications and Information Administration (NTIA) created a program to subsidize consumers' purchases of digital-to-analog converter boxes. This testimony provides preliminary information on (1) the progress made by federal entities, and others, to facilitate the transition, (2) the progress in the education of consumers about the transition, (3) the progress made in implementing the converter box subsidy program, (4) technical issues of the transition, and (5) future GAO work on the progress of the DTV transition. GAO interviewed officials with the Federal Communications Commission (FCC) and NTIA. Further, GAO interviewed a wide variety of industry and other stakeholders involved with the transition, including members of the DTV Transition Coalition--a group of public and private stakeholders, and experts on strategic communications. GAO discussed this testimony with FCC and NTIA officials and incorporated their comments.
section_title: What GAO Found
paragraphs: FCC and NTIA, in conjunction with other stakeholders, have taken steps to facilitate the DTV transition. For example, FCC has conducted periodic reviews to report on transition progress, and NTIA has issued a contract for administering the converter box subsidy program. In addition, private sector industries have also begun preparing for the transition. Despite public-private sector interaction designed to help facilitate the transition, we found that no comprehensive plan exists for the DTV transition. Without such a plan, meaningful guidance for coordinating responsibilities and measuring progress might not be available to the private or public sector. Several federal and private stakeholders have begun consumer education campaigns. FCC and NTIA have developed informational materials and begun direct outreach to consumer groups. In addition, private industry stakeholders created the DTV Transition Coalition and are voluntarily conducting outreach efforts. However, these efforts are in the planning stages and challenges remain. An expert panel that GAO convened identified potential challenges and key practices for a consumer education campaign. NTIA has made progress in implementing the converter box subsidy program, but the program's outcome depends on the voluntary participation of retailers and manufacturers. Retailers we contacted expressed concerns about the possibility of a redemption system that would affect their point-of-sale systems and stated they would need more information on IBM's technical solution before they could assess the impact on their systems and whether it would affect their participation. With limited or delayed retailer participation, consumers might face difficulties in redeeming their coupons for eligible converter boxes. Most television stations already transmit a digital signal, but technical and coordination issues, such as antenna replacement and tower construction, may present challenges for broadcasters. In addition, cable and satellite television providers must coordinate with broadcasters to ensure that they can continue to receive and transmit the digital broadcast signals. Further, certain stations that retransmit the television signals, known as translator stations, are not required to cease analog broadcasting. These stations may choose to retransmit a digital signal, or they may convert the digital signal to analog and continue to broadcast in analog after February 2009. We plan on reporting on the progress of the DTV transition, including the status of consumer education and awareness about the DTV transition, IBM and NTIA's administration of the converter box subsidy program, and industry technical preparations throughout the upcoming transition period. We will continue to monitor government and industry consumer education efforts and plan to analyze the efforts compared with key practices for consumer outreach. In addition, we plan to survey broadcasters on the technical issues that must be addressed prior to the DTV transition date.

section_title: Letter
paragraphs: I am pleased to be here today to report on our work on the progress made  in the nation’s transition to digital television (DTV). We have a detailed  report on public and private sector efforts underway to implement the  transition that will be issued in November 2007. The findings that I am  reporting to the Subcommittee today are based on our draft report and are  therefore preliminary.
A primary goal of the DTV transition is for the federal government to  reclaim spectrum that broadcasters currently use to provide analog  television signals. The spectrum that the federal government will reclaim  at the end of the transition is considered highly valuable because of its  particular technical properties. In all, the DTV transition will free up 108  megahertz (MHz) of spectrum. The Federal Communications Commission  (FCC) has reallocated 24 MHz of the spectrum that will be recovered for  public safety purposes, which became a higher priority following the  terrorist attacks of September 11, 2001. FCC will auction the remaining  spectrum for commercial purposes, with the resulting proceeds allocated  for, among other things, reducing the federal deficit.
The Digital Television Transition and Public Safety Act of 2005 mandates  the cessation of analog television broadcast signals on February 17, 2009.  After that date, households who view television on analog sets solely  through the reception of over-the-air signals must take action to ensure  that they have the necessary equipment, such as a digital-to-analog  converter box, or subscription video service to be able to view the digital  broadcast signals. If they do not take such action, they will lose the ability  to view the digital signals on their analog sets; i.e., they will not be able to  watch television programs. The act also directed the National  Telecommunications and Information Administration (NTIA) to establish a  $1.5 billion program through which households can obtain coupons for the  purchase of digital-to-analog converter boxes. NTIA issued a final rule that  adopted regulations to implement the converter box subsidy program, and  in August 2007, selected IBM Corporation (IBM) to administer the  program. Beginning January 1, 2008, households can request up to two $40  coupons toward the purchase of eligible digital-to-analog converter boxes.
Although it is unclear what percentage of households who rely exclusively  on over-the-air broadcasts have analog sets, potentially millions of those  households stand to be left without any television service unless they take  action. To help the public understand the DTV transition and the various  options they have, consumer education and awareness programs are  underway and additional programs are being planned.
My testimony today will focus on progress made in the DTV transition. In  particular, I will discuss (1) the progress made by federal entities, in  conjunction with other stakeholders, in facilitating the transition, (2) the  progress made in educating consumers about the transition and any  related challenges, (3) the progress made in implementing a subsidy  program for converter boxes and any related challenges, (4) the technical  issues facing the broadcast industry in meeting the transition, and (5)  future work on the progress of the DTV transition that we will undertake.
To meet these objectives, we reviewed government documents and  interviewed officials with FCC and NTIA, the steering committee members  of the Digital Television Transition Coalition, as well as a wide variety of  industry and other private stakeholders, such as broadcasters, satellite  television providers, cable companies, manufacturers, retailers, industry  associations, and consumer advocacy groups. Further, we consulted  strategic communications experts representing public, private, and  academic organizations to identify potential challenges that might obstruct  consumer education efforts, as well as key practices for consumer  outreach campaigns. We reviewed FCC and NTIA rules and proposed rule- makings related to the digital television transition, and the comments they  received in response to the proposed rule-makings. Finally, we reviewed  NTIA’s request for proposals for administering the converter box subsidy  program, and related contract documents. We performed our review from  January 2007 through October 2007 in accordance with generally accepted  government auditing standards. We discussed this testimony with FCC and  NTIA officials to obtain their comments. FCC and NTIA provided  additional information that we incorporated where appropriate.
subsections: section_title: Background
paragraphs: The DTV transition will enable the government to allocate valuable  spectrum from analog broadcast to public safety and other purposes.  Further, digital transmission of television signals provides several  advantages compared to analog transmission, such as enabling better  quality picture and sound reception as well as using the radiofrequency  spectrum more efficiently than analog transmission. With traditional  analog technology, pictures and sounds are converted into “waveform”  electrical signals for transmission through the radiofrequency spectrum,  while digital technology converts these pictures and sounds into a stream  of digits consisting of zeros and ones for transmission.
The Digital Television Transition and Public Safety Act of 2005 addresses  the responsibilities of two federal agencies—FCC and NTIA—related to  the DTV transition. The act directs FCC to require full-power television  stations to cease analog broadcasting on February 17, 2009. While full- power television stations are required to terminate their analog signals,  this deadline does not apply to translator television stations. Translator  stations receive a signal from a television station and simultaneously  retransmit the signal on another channel. These stations are intended to  provide service to areas where direct reception of full-service broadcast  stations is unsatisfactory because of distance or terrain obstructions, such  as in mountainous regions.
As we have previously reported, households with analog televisions that  rely solely on over-the-air television signals received through a rooftop  antenna or indoor antenna must take action to be able to view digital  broadcast signals after the termination of analog broadcasts. Options  available to these households include (1) purchasing a digital television set  that includes a tuner capable of receiving, processing, and displaying a  digital signal; (2) purchasing a digital-to-analog converter box, which  converts the digital broadcast signals to analog so they can be viewed on  an existing analog set; or (3) subscribing to a cable, satellite, or other  service to eliminate the need to acquire a digital-to-analog converter box.  The act also directed NTIA to establish a $1.5 billion subsidy program  through which households can obtain coupons toward the purchase of  digital-to-analog converter boxes. The last day for consumers to request  coupons is March 31, 2009, and coupons will be redeemed through July 9,  2009. As required by law, all coupons expire 90 days after issuance.  Consumers can redeem their coupons at participating retailers (both  “brick and mortar” and online) for eligible converter boxes.
To help inform consumers about the transition, in February 2007, eight  private sector organizations launched the Digital Television Transition  Coalition. These eight organizations are the Association for Maximum  Service Television, Association of Public Television Stations, Consumer  Electronics Association, Consumer Electronic Retailers Coalition,  Leadership Conference on Civil Rights, LG Electronics, National  Association of Broadcasters, and the National Cable and  Telecommunications Association. These founding organizations comprise  the Coalition’s steering committee and make decisions on behalf of the  Coalition. To better represent the interests of at risk or underserved  populations—such as the elderly—AARP later joined the steering  committee. The Coalition’s mission is to ensure that no consumer is left  without broadcast television due to a lack of information about the  transition. Currently, the Coalition has over 160 member organizations  comprised of business, trade and industry groups, as well as FCC.
Recent surveys conducted by industry trade associations indicate that  consumer awareness of the digital transition is low. The Association for  Public Television Stations reported in January 2007 that 61 percent of  participants surveyed had “no idea” that the transition was taking place.  Another study conducted by the National Association of Broadcasters  focused on households that primarily receive their analog television  signals over-the-air—and will therefore be most affected by the  transition—and reported that 57 percent of those surveyed were not aware  of the transition. Both surveys found that almost all people with some  awareness of the transition had limited awareness of the date the  transition will take place.
section_title: Federal Entities and Other Stakeholders are Facilitating the Transition, but Comprehensive Planning and Risk Management is Limited
paragraphs: FCC and NTIA, in conjunction with other stakeholders, have taken steps  to facilitate the DTV transition. FCC has primary responsibility to regulate  the television broadcast industry for the federal government and has taken  a number of actions regarding the transition. For example, FCC has  proposed and set deadlines to upgrade station equipment to send digital  signals. In addition, FCC has conducted periodic reviews to report on  transition progress and held a workshop for interested parties to discuss  transition challenges and issues. NTIA has statutory responsibility for the  converter box subsidy program, and it has issued a contract in preparation  for that program’s development. Private sector industries, including  broadcasters, manufacturers, and retailers have also begun preparing for  the transition. Despite public-private sector interaction designed to help  facilitate the transition, we found that no comprehensive plan exists for  the DTV transition. Among other things, a comprehensive plan can detail  milestones and key goals, which provide meaningful guidance for  assigning and coordinating responsibilities and deadlines and measuring  progress. Such planning also includes assessing, managing, and mitigating  risks, which can help organizations to identify potential problems before  they occur and target limited resources. We have previously reported on  the benefits of managing risks, including assisting other organizations  involved in high stakes efforts similar to the DTV transition. For example,  we credited one federal agency’s success in weathering the potential for  critical computer system failures during the Year 2000 Computer  Conversion (Y2K), in part, due to reducing risks to facilities, systems,  programs, and services during the critical rollover period.
section_title: Progress in Consumer Education on the DTV Transition Has Been Made, But Widespread Implementation Is Not Yet Underway
paragraphs: FCC and NTIA, along with industry and other private stakeholders, have  made progress in educating consumers about the DTV transition. For  example, FCC and NTIA have developed informational materials on the  transition and begun outreaching directly to consumer and stakeholder  groups. Both agencies are also involved with the Digital Television  Transition Coalition, a group representing over 160 business, trade, grass  roots, and other organizations whose purpose is to provide consumers  with information about the transition. Private industry stakeholders are  voluntarily taking the lead on planning public service announcements,  developing Web sites, and garnering media coverage on the transition.  While federal and private stakeholders have taken these initial steps, the  initiative is still largely in the planning stages and widespread efforts have  yet to be implemented. Further, because of the number of public and  private sector entities involved in consumer education efforts for the  transition and the timing, coordination and content of the messages they  produce, consumers might become confused over what steps, if any, are  necessary to avoid disruptions to their television viewing after the  transition date.
To identify the difficulties and challenges to consumer education and  outreach, we convened an expert panel to discuss consumer education  issues applicable to the DTV transition, including potential challenges that  may obstruct efforts and the key planning components of a consumer  education campaign that will help to overcome some of those challenges.  Expert panel members as well as other private and public sector officials  highlighted several challenges, as follows:  Prioritizing limited resources. With limited time and financial resources,  it is likely to be a challenge for stakeholders to determine how best to  allocate those resources within the campaign—for example, whether to  target a smaller audience over a set period of time, versus targeting a  broader audience over a shorter period of time.
Educating consumers who do not necessarily need to take action. Many  of the outreach efforts will be focused on educating consumers on what to  do to keep their television sets from going dark after the termination of  analog broadcasts. However, a large proportion of U.S. households will  not need to do anything—for example, because they have cable or satellite  television service that will enable their analog set to continue to display  programming. Because many messages focus on the actions that  households that rely on over-the-air analog broadcasting need to take,  consumers unaffected by the transition may become confused and  purchase equipment they do not need. In our past work looking at a  similar digital transition in Germany, we have described this potential  confusion to cable and satellite households as a challenge of educating  consumers about the transition.
Reaching underserved populations. Conveying the message to  underserved populations—for example, senior citizens, disabled, those  residing in rural areas, or non-English speaking households will provide an  added challenge. For example, many groups outreaching to consumers  about the transition are doing so on Web sites, which may not be available  to people who lack Internet access or are less technically savvy. Another  challenge is providing information in a wide variety of formats, such as in  different languages for non-English speaking consumers and in text, video,  voice, and Braille for the disabled. Overall, a challenge of consumer  education is that those households in need of taking action may be the  least likely to be aware of the transition.
Aligning stakeholders. Panel members and other industry representatives  also noted the challenge of aligning stakeholders—some who are natural  competitors—to work together. In our past work, we have reported that  federal agencies engaged in collaborative efforts—such as the transition— need to create the means to monitor and evaluate their efforts to enable  them to identify areas for improvement. Reporting on these activities can  help key decision makers within the agencies, as well as clients and  stakeholders, to obtain feedback for improving both policy and  operational effectiveness.
In addition to highlighting potential challenges, the expert panelists  identified the following key practices as important to planning a consumer  education campaign that will motivate consumers to take the steps needed  to avoid television viewing disruptions, as well as help to alleviate  identified challenges along the way:  While still too early to evaluate the Coalition’s consumer education efforts,  the Coalition has employed strategies consistent with the key practices  identified by the expert panel. For example, the Coalition has identified  stakeholders and conducted focus groups to test and refine its consumer  messages. However, at the time of our report, it remains unclear whether  public-private sector interaction can ensure a consistent message to  prevent confusion or unnecessary purchases on the part of consumers.  Moreover, the absence of comprehensive planning to assess and mitigate  risks associated with the transition, including outreach efforts, may  increase the potential for at risk populations not adequately preparing for  the transition.
section_title: NTIA Has Taken Steps to Implement a Subsidy Program for Converter Boxes, but Challenges Remain
paragraphs: NTIA has made progress in implementing the converter box subsidy  program, including soliciting stakeholder comments, meeting with  industry participants, and selecting IBM in August 2007 to administer the  program. The subsidy program’s outcomes depend on the coordination  and participation of NTIA, IBM, converter box manufacturers, retailers,  and consumers. Manufacturers and retailers are voluntarily participating  in the program, as NTIA does not have the authority to require their  participation. IBM will develop the technical solution for the program,  which includes determining how consumers will request, receive, and  redeem coupons, and how this will affect retailers’ current point-of-sale  systems. NTIA and IBM will also be conducting consumer outreach  specific to the program. Figure 1 depicts the necessary, interrelated  actions for the subsidy program.
As shown in figure 2, consumers can begin applying for converter box  coupons starting January 1, 2008, with NTIA requiring full distribution of  coupons to begin by April 1, 2008. Consequently, some consumers that  request coupons in January might have to wait months to receive their  coupons. Complicating matters is uncertainty regarding retailer  participation and readiness. At the time of our review, several retailers we  contacted expressed concerns about the possibility of a redemption  system that would affect their point-of-sale systems, noting that modifying  these systems can be time-consuming, resource-intensive, and expensive,  and can affect their other financial systems. Retailer representatives told  us they will need more information about the contractor’s technical  solution before they could assess the impact on their systems and whether  it would affect their participation. Further, they said that March or April of  2008—3 to 4 months after consumers can begin requesting coupons—is a  more likely time frame for retailers to be ready to participate in the  program. The extent to which point-of-sale system modifications will be  necessary and the potential impact on retailers will remain unknown until  IBM presents its technical solution. With limited or delayed retailer  participation, consumers might face difficulties in redeeming their  coupons for eligible converter boxes during the designated time period.  Some manufacturer, advocacy, and retailer representatives we contacted  expressed concern about consumers’ ability to find participating retailers  that are able to redeem coupons and have converter boxes in stock. The  final rule does not require remedies if certain geographic areas lack  participating retailers and NTIA does not have the explicit authority to  require that participating retailers maintain a certain level of inventory.  Thus, it is uncertain whether consumers with coupons will be able to  locate a participating retailer with converter boxes in stock.
section_title: While Most Television Stations Are Transmitting a Digital Signal, Numerous Technical and Coordination Issues Remain
paragraphs: The vast majority of broadcast television stations already broadcast a  digital signal with many of these stations prepared to turn off their analog  signal on February 17, 2009. However, a number of technical and  coordination issues remain, such as antenna replacement and tower  construction. In addition, cable and satellite television providers must  coordinate with broadcasters to ensure that they can continue to receive  and transmit the digital broadcast signals after the transition. While not  required to cease analog broadcasting, some translator stations may  choose to retransmit a digital signal but others will convert the digital  signal to analog and continue to broadcast in analog after February 2009.
subsections: section_title: Broadcasters Face Technical and Coordination Issues
paragraphs: According to FCC, as of April 2007, approximately 93 percent of television  broadcast stations were transmitting a digital signal.  FCC reports that  nearly 1,200 of these stations already transmitting a digital signal have  been authorized to continue to operate on their current digital channel  after February 17, 2009. FCC states that these stations will have a  relatively simple transition to their final post-transition digital operation.  Additionally, FCC states that approximately 750 of these stations may now  already be or are very close to being ready for their post-transition  operations and will simply have to turn off their analog signal. For  example, managers representing six television broadcast stations that we  interviewed said that they face no major transition issues between by  February 17, 2009, and will only have to turn off their analog signal.
However, as discussed below, stations may encounter challenges in  completing their digital transition such as, (1) antenna and equipment  replacement or relocation, (2) tower construction, (3) channel relocation,  and (4) coordination with Canadian and Mexican governments.
Issues with antenna and equipment replacement or relocation. One of  the major tasks that many television stations have to complete to build out  their post-transition digital facilities is to install a digital antenna on the  top of the broadcast tower, where the analog antenna resides. According  to a broadcast industry official, many stations need to have their digital  antenna at the top of the tower in order to fully replicate the area that their  analog service covers. The broadcast industry official stated that stations  have two options in placing their digital antenna at the top of the  broadcast tower: (1) move the digital antenna to the top now, and buy a  new side mounted analog antenna, which would ensure that the analog  signal continues until it is switched off and that the digital signal would be  at full power; or (2) keep the analog antenna at the top of the tower until it  is turned off on February 17, 2009, then install the digital antenna at the  top of the tower. The industry official stated that both options, however,  present problems for broadcast stations. For the first option, stations may  have to purchase a new analog antenna, which will only be used for a few  months, and as a result of the analog antenna being side mounted, stations’  analog broadcast coverage area would be reduced by 2 percent to 9  percent of the viewing market. Stations agreed that they could potentially  have to reduce their analog service prior to the transition date. For  example, the owner of a station in Minnesota commented that it may not  be possible to complete the construction of its digital facilities without  significantly disrupting its analog operation as well as its digital  operations. The owner said the power of its analog signal would have to be  significantly reduced before February 17, 2009, affecting a large number of  its viewers. For the second option, problems include the digital signal not  being at full power until later in the year, and getting the necessary  authority to do this from FCC. Further, broadcast stations have  commented that the design, manufacture, and installation of new antennas  can take months to complete. For example, a company that owns five  television stations commented that it can take up to 6 months to design,  order, receive and install a new antenna.
Even when stations do have their digital facilities fully operational, they  may not broadcast their digital signal to the exact coverage area that their  analog signal covered. For example, representatives from a commercial  television station told us that in order for the stations to replicate its  analog service contour, it had to reduce coverage for part of its digital  contour. As a result, the station representatives said that the digital signal  will reach 15,000 fewer people and that while many of these homes will  have cable and satellite to still receive the station’s signal, some will not.  As shown in figure 3, the digital signal coverage of a station can differ from  its analog signal coverage. Consequently, homes residing in the light  shaded areas relying on over-the-air signals might not be able to receive  the digital broadcast signals.
FCC has acknowledged that a reduction or termination of analog service  may be necessary if maintaining full analog coverage hinders the  construction and operation of digital facilities. FCC officials told us that  some loss of analog service is part of a tradeoff needed to ensure the  entire transition is as smooth as possible. FCC officials also said it is  difficult to replicate an existing signal contour, and is almost impossible to  exactly replicate a pattern. FCC stated that it is not always in the best  interest of the public to have a digital signal fully replicate the analog  signal because a digital signal can cause serious interference to nearby  stations. Further, FCC said that, in some instances, while contour shifting  may result in some viewers losing a station’s signal, other homes might  gain the signal of a station. For example, FCC said contour shifting might  disenfranchise 500 people in one area, but cover a new area with 10,000  people.
Issues with tower construction. According to FCC, a station that must  change its DTV tower locations may face considerable challenges,  especially if the station must construct a new tower. FCC states that such  stations must consider whether there are any existing towers that can be  used or if a new tower must be constructed. FCC states that because of  the lead times involved in purchasing or leasing land with appropriate  federal government clearances, local and state zoning requirements, and  varying timelines for designing the new tower, ordering equipment,  delivery of equipment, and construction-related issues, stations must begin  planning as soon as possible in order to transition by the deadline.  According to a major television broadcast network, equipment  manufacturing constraints and the limited number of tower crews and  other key equipment installation resources available between now and the  transition date will impede stations’ movement to final digital channels by  February 17, 2009. Additionally, any work on towers could be hampered  by weather conditions for towers located in northern climates and on  higher elevations. Television stations commented that working on towers  in the winter months can be problematic, if not impossible. For example, a  major broadcast network commented that many station transmitting sites  are not readily accessible during the winter, especially to cranes and other  heavy equipment necessary for tower rigging and equipment installation.  In fact, the broadcaster commented that snow and ice make one of its  stations accessible only by a special vehicle from October until March and  another of its sites can only be reached by special vehicle until April.
Issues with channel relocation. According to FCC, approximately 600  stations will have to move to a different channel once the transition is  complete. Some of these stations are broadcasting on a temporary digital  channel and plan to relocate this digital channel back to their current  analog channel. For example, one station we visited has its digital signal  on channel 16 but plans to relocate the digital signal to channel 9, which is  the station’s current analog channel and the channel number people  recognize for that station. Other stations will have to move to a completely  new channel once the transition is complete. According to a broadcast  industry association representative, television stations moving to another  channel will face some technical challenges. For example, the broadcast  representative stated that stations moving to another channel could cause  interference for their neighboring channels if they move too early or if the  neighboring channel moves too late. He estimated that there could be  interference issues for up to 300 stations and stressed the need for  coordination to minimize interference issues. Additionally, some stations  broadcasting an analog signal do not have a paired digital channel and  plan to “flash cut” to their digital channel by February 17, 2009. According  to FCC, “flash cutting” may present challenges since it will involve stations  ending their analog television operations and beginning their digital  television operations on their current analog channel and, in some cases,  will require that a station change to a new channel to be fully operational.
Coordination issues with Canadian and Mexican governments. Another  challenge for some stations located along the northern and southern  borders of the United States is reaching agreements with Canadian and  Mexican governments on the coverage of their digital signals that cross the  border. According to FCC, some stations may still have unresolved  coordination issues with Canadian and Mexican governments. Stations  have commented that coordination issues with Canadian and Mexican  governments might affect their ability to finalize their digital operations.  For example, a company that operates several stations near the Canadian  border commented that uncertainty about the stations’ final digital signal  coverage are preventing it from ordering equipment, scheduling tower  crews and making necessary changes to its transmitter buildings. The  company stated that if coordination issues cannot be resolved, the stations  would face significant additional costs in constructing their digital  facilities and could result in two of its stations discontinuing operations as  full power stations and rather, operate as low power stations. Another  station located near the Mexican border commented that the station’s  digital channel allotment could result in the Mexican government delaying  or denying any request for coordination due to concerns about  interference with a station on the Mexican side of the border. The station  comments that any delay in coordination will result in the station not  having sufficient time to construct its digital facilities. FCC officials told us  that they are in discussions with Canadian and Mexican governments to  resolve any coordination issues and expect to the discussions to be  completed by January 2008. However, FCC has commented that if there  are situations where international coordination cannot be obtained,  stations may have to broadcast to a smaller coverage area.
section_title: Cable and Satellite Television Providers Must Coordinate with Broadcasters to Ensure They Continue to Receive Broadcast Signals
paragraphs: Cable and satellite television providers face fewer challenges than  broadcasters with the DTV transition, however, there are technical issues  that need to be resolved to ensure they can provide digital broadcast  signals to their subscribers. For cable, FCC recently indicated its intent to  require cable to either carry both a digital and analog signal, often referred  to as a “dual carriage” requirement, or carry only the digital signal  provided all subscribers can view the signal. FCC further indicated its  intent to require that high definition broadcast signals continue to be  carried in high definition format. According to FCC, this will ensure all  cable subscribers are able to view broadcast signals on their current  televisions –whether analog or digital. We heard from cable providers that  there are key technical challenges needing to be resolved prior to the  transition. As previously noted, the technical and coordination issues  facing the broadcasters can vary from station to station, with some  stations moving to a new channel or changing the coverage area of their  broadcast signal. As a result, cable providers told us there is uncertainty  whether its cable head-ends will continue to receive the broadcast  signals. For example, if a broadcaster’s digital coverage area differs from  its analog coverage area, there is a possibility the cable head-end will no  longer be able to receive that signal. One cable provider told us this could  be particularly problematic in smaller markets where head-ends rely on  over-the-air broadcast to pull in the broadcast signals. Cable providers will  have to coordinate with local broadcasters to ensure cable continues to  receive local broadcast feeds. In particular, we heard that cable providers  need the coverage areas, or signal contour maps, from broadcast stations  as soon as possible to help them identify problem areas. One cable  provider we spoke with indicated based on potential changing signal  coverage areas, it might need to reposition its antennas or otherwise  update its head-ends so that they can continue to receive the broadcast  signals. Since the cable provider has hundreds of head-ends, it could be  time consuming to update them. Furthermore, this cable provider  emphasized concerns with clearing enough bandwidth for the “dual  carriage” requirements. While this should not be a major issue in the  bigger markets, it could be problematic in many of the smaller markets  where there is no viable technological solution for dealing with these  requirements on bandwidth.
The satellite television providers we talked to anticipate no technical  issues that will impact their subscribers’ viewable broadcast signals  following the transition date. However, similar to cable, satellite providers  have concerns about broadcasters’ coverage area changing such that the  satellite receiving stations will fall out of the coverage area resulting in a  lost or poorly received broadcast signal. Since satellite television operates  on a national platform, the satellite providers will have to coordinate with  all broadcast stations carried nationally. To better coordinate and be  better prepared for the DTV transition, both cable and satellite providers  support broadcast stations making their transition plans public. Cable and  satellite providers indicated advanced planning will allow them adequate  time to make technical modifications to their systems, such as updating  their receiving equipment and testing signal strength and reception.
section_title: Owners of Translator Stations Will Need to Take Action in Order for Viewers to Continue to Receive Translator Signals
paragraphs: Unlike full power broadcast television stations, the February 17, 2009  deadline to cease analog broadcasting does not apply to translator  stations. However, since translator stations retransmit signals from full  power broadcast stations, owners of these stations will need to take action  to ensure broadcast signals continue to reach viewers. Translator stations  can either transition to digital or take the digital signal and convert it to  analog before transmitting it to their viewers. Those stations transitioning  to digital have two options; they can cease analog transmission and begin  operation of new digital transmitting equipment on the same date, or they  can operate a digital companion channel allowing them to deliver both  analog and digital signals. According to a broadcast industry association,  there are currently several hundred companion digital channels operating,  and FCC is not presently allowing these stations to cease analog operation  even though they are transmitting a digital signal. However, many  translator stations will continue to transmit an analog signal beyond the  full-power analog shutdown date. One broadcast industry association  representative told us that although many translators will likely have  obtained the hardware to operate with the digital input signal by the  transition date, some stations will not have the necessary equipment.
If a translator station decides to convert the digital signal to analog and  retransmit the signal, there is a possibility they will not reach those  viewers who have purchased set-top converter boxes. According to a  broadcast industry association, there are some instances where translator  stations serve communities that receive at least one full-power television  station, which would necessitate those over-the-air viewers to obtain a  converter box. Since these areas will continue receiving both digital and  analog signals, there is concern that those people who buy a set-top  converter box that does not have analog pass through will have to turn  them off or have an external bypass arrangement to allow for over-the-air  signals to pass through their analog sets.
section_title: Our Future Work Will Focus on the Progress of the DTV Transition
paragraphs: We have work planned to assess the progress of the DTV transition. To  accomplish this, we will continue to monitor public and private sector  efforts related to the transition, including consumer outreach, the  converter box subsidy program, and technical issues. Specifically, we will  review consumer education programs and plan to conduct a series of  consumer surveys throughout the year prior to the transition date. The  surveys we conduct will be aimed at determining the population that will  be affected by the DTV transition and the public awareness of the  transition. In determining the affected population, we will look at the  percent of the population relying on over-the-air broadcasts for their  primary television, as well as the percent of the population with non- primary televisions being used to watch over-the-air television.  Additionally, we will review the demographic characteristics of the  affected population to determine what groups might be most disrupted by  the transition. We will survey for public awareness of the DTV transition,  and specific knowledge of the transition, such as when the transition will  take place. We will seek to determine the level of public awareness of  those who will be affected by the transition and awareness of the  converter box subsidy program and other options for viewing digital  signals after the transition. We plan to report on changes in consumer  awareness over time by conducting surveys throughout the transition  process. Furthermore, we will continue to monitor government and  industry consumer education efforts and will analyze the efforts compared  with key practices for consumer outreach. We will also monitor the  outcome of FCC’s notices of proposed rulemaking regarding the transition  and collect details on IBM’s consumer education plan as they become  available. To monitor the implementation of the converter box subsidy  program, we plan to continue reviewing the steps taken by NTIA and IBM  in administering the subsidy program. In addition, we plan to survey  broadcasters to obtain their perspectives on the technical issues that must  be addressed prior to the DTV transition date.
Mr. Chairman, this concludes my prepared statement. I would be happy to  respond to any questions you or other Members of the Committee may  have at this time.
section_title: Contacts and Acknowledgements
paragraphs: For questions regarding this testimony, please contact Mark L. Goldstein  on (202) 512-2834 or goldsteinm@gao.gov. Individuals making key  contributions to this testimony included Matthew Cail, Andy Clinton,  Simon Galed, Eric Hudson, Bert Japikse, Crystal Jones, Aaron Kaminsky,  Sally Moino, Andrew Stavisky, and Margaret Vo.
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