Digital Television Transition: Broadcasters' Transition Status, Low-Power Station Issues, and Information on Consumer Awareness of the DTV Transition
Published: 2008-06-10T00:00:00

Fast Facts:

Highlights:
section_title: Why GAO Did This Study
paragraphs: The Digital Television (DTV) Transition and Public Safety Act of 2005, requires all full-power television station in the United States to cease analog broadcasting by February 17, 2009. Low-power stations are not required to cease analog transmissions and most will continue broadcasting in analog. Federal law also requires the National Telecommunications and Information Administration (NTIA) to subsidize consumers' purchases of digital-to-analog converter boxes. After the transition, households with analog sets that rely on over-the-air broadcasts must take action or they will lose television service, but some households might not be aware of this potential disruption. This testimony provides information on (1) technical and coordination issues facing full-power broadcast stations as they transition to digital, (2) issues pertaining to low-power broadcasting and how they affect consumers, and (3) the extent to which American households are aware of the DTV transition and likely to utilize the converter box subsidy program. GAO interviewed officials with the Federal Communications Commission (FCC) and NTIA and met with a wide variety of industry participants and other stakeholders. GAO conducted a Web-based survey of broadcasters to determine their status in transitioning to digital and issues they were encountering and commissioned a survey of the U.S. population on consumer awareness. This statement is based on GAO's body of work on the DTV transition.
section_title: What GAO Found
paragraphs: Broadcasters have made significant progress in preparing for the DTV transition. In fact, many stations are already broadcasting their full digital signal with the only remaining step being to turn off their analog signal. As of February 2008, 91 percent of broadcasters responding to our survey reported that they were already transmitting a digital signal. Nine percent of stations in our survey had yet to begin broadcasting a digital signal, but almost all of those stations expected to be broadcasting digitally by the transition date. In finalizing the transition to digital, some stations still must resolve technical, coordination, and construction issues. Technical issues include relocating either digital or analog antennas and, in some cases, constructing new broadcast towers. Some stations are bound by financial constraints related to the costs of resolving these issues. In addition, some stations have outstanding coordination issues, such as the U.S. government reaching agreements with the Canadian and Mexican governments regarding signal interference issues and coordinating with cable and satellite providers. Since most low-power stations will not transition to digital by February 2009, it is possible for viewers to receive programming in analog and digital after the transition. Potentially millions of viewers can receive low-power analog transmissions, including programming from the major networks, Spanish language broadcasting, and public television. To have access to both analog and digital television signals after the DTV transition, viewers could purchase a special kind of converter box that passes through an analog signal and a digital signal, or purchase other equipment. Public and private stakeholders have taken steps to educate the public about the low-power broadcasts potentially remaining in analog but some advocacy groups and others have expressed concerns that the messages intending to explain the low-power issue are instead confusing the public. Further complicating matters, many consumers do not know the difference between full-power and low-power stations or whether the signals they receive are full or low power. Most households will be unaffected by the DTV transition and a vast majority have heard of the transition. About 84 percent of people have heard of the transition, but fewer have more specific knowledge about the transition. Those at higher risk of being affected by the transition--households viewing over-the-air television signals--have higher levels of awareness than those who will be unaffected. Over half of the population has heard of the converter box subsidy program and those households at risk of losing television service who plan to take action are likely to utilize the program. However, only a third of those indicating plans to purchase boxes and utilize the coupons know how to obtain coupons. In addition, there are indications that some consumers are confused about the transition, as 45 percent of those households who are at risk plan inadequate or no action to prepare for the transition. Conversely, amongst those unaffected by the transition, 30 percent indicated they have plans to ready themselves for the transition--despite the fact that no action will be required to maintain television service.

section_title: Letter
paragraphs: I am pleased to be here today to discuss our recently issued report on  technical issues arising from the digital television (DTV) transition —  Digital Television Transition: Majority of Broadcasters Are Prepared for  the DTV Transition, but Some Technical and Coordination Issues  Remain—and our work on the extent of consumer awareness about the  transition. My comments are based on our body of work on the DTV  transition completed for this subcommittee. We are continuing to review  public and private sector efforts underway to implement the transition and  plan to report on those issues later this year.
The Digital Television Transition and Public Safety Act of 2005 mandates  that full-power analog television broadcast signals cease 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 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. Beginning January 1, 2008,  households could request up to two $40 coupons toward the purchase of  eligible digital-to-analog converter boxes. While federal law mandates that  all full-power stations must cease to broadcast in analog on February 17,  2009, low-power television broadcast stations are not covered by the law.   Low-power stations provide opportunities for locally-oriented television  service in small communities and these stations may continue to broadcast  in analog after the DTV transition. Viewers who wish to continue watching  low-power analog programming might need to take action to continue  receiving analog signals after the transition. To help the public understand  the DTV transition and the various options they have, FCC, NTIA, and  industry stakeholders are conducting consumer education and awareness  programs.
In my testimony today, I will discuss (1) the progress full-power broadcast  stations have made in transitioning to digital, as well as the technical and  coordination issues they face; (2) issues pertaining to low-power television  stations and how they affect consumers; and (3) the extent to which  American households are aware of the DTV transition and likely to utilize  the converter box subsidy program.
To obtain information on the technical and coordination issues facing  broadcast stations, we conducted a Web-based survey of the full-power  commercial and noncommercial television broadcast stations. From a  total of 1,747 broadcasters, we surveyed 1,682 stations located in the 50  states and the District of Columbia for which we could obtain contact  information. To determine the extent of consumer awareness about the  transition, we commissioned a telephone survey of the U.S. adult  population. This survey followed a probability sampling procedure based  on random selections of households and individuals. A total of 1,010  completed interviews were collected during late March and early April  2008. All percentage estimates presented have margins of error of plus or  minus 6 percentage points or less. Further, we reviewed government  documents and data and interviewed officials with the Federal  Communications Commission (FCC) and NTIA, as well as a wide variety  of industry and other private stakeholders, such as satellite and cable  television providers, manufacturers, national retailers, industry  associations, and consumer advocacy groups. See appendix I for more  detailed information on our scope and methodology. We conducted our  work in accordance with generally accepted government auditing  standards. Those standards require that we plan and perform the audit to  obtain sufficient, appropriate evidence to provide a reasonable basis for  our findings and conclusions based on our audit objectives. We believe  that the evidence obtained provides a reasonable basis for our findings  and conclusions based on our audit objectives.
Broadcasters have made significant progress in preparing for the DTV  transition. Many stations are already broadcasting their digital signal in full  power with the only remaining step being to turn off their analog signal.  Specifically, as of February 2008, 91 percent of broadcasters responding to  our survey reported that they were already transmitting a digital signal.  Nine percent of stations responding to our survey had yet to begin  broadcasting a digital signal, but almost all of those stations expected to  be broadcasting digitally by February 17, 2009. In finalizing the transition  to digital, some stations still must resolve technical, coordination, and  construction issues. Technical issues include relocating either digital or  analog antennas and, in some cases, constructing new broadcast towers.  Some stations are bound by financial constraints related to the costs of  resolving these issues. In fact, at the time of our survey, 69 stations  indicated they have yet to start construction on their final digital facilities  due to financial constraints. In addition, some stations have outstanding  coordination issues, such as the U.S. government reaching agreements  with the Canadian and Mexican governments regarding signal interference  issues and coordinating with cable providers and satellite companies.
Since most low-power stations do not plan to transition to digital by  February 2009, it is possible for some viewers to receive programming in  analog (from low-power stations) and digital (from full-power stations)  after the transition date. Potentially millions of viewers can receive low- power analog transmissions, including programming from the major  networks (ABC, CBS, NBC, and Fox), Spanish language broadcasting, and  public television. To have access to both analog and digital television  signals after the DTV transition, viewers could purchase a special kind of  converter box that passes through an analog signal and a digital signal,  often referred to as analog pass through, or purchase other equipment.  Currently, converter boxes with analog pass through are available for  purchase online and at two national retailers. Public and private  stakeholders have taken steps to educate the public about the low-power  broadcasts potentially remaining in analog and options available to  consumers, but some advocacy groups and others have expressed  concerns that the messages intending to explain the low-power issue are  instead confusing the public. Further complicating matters, many  consumers do not know the difference between full-power and low-power  stations or whether the signals they receive are full or low power.
According to our consumer survey results, most households will be  unaffected by the DTV transition and a vast majority have heard of the  transition. While about 84 percent of people have heard of the transition, a  smaller number of people have more specific knowledge of the transition  date and why the transition is taking place. Those at higher risk of being  affected by the transition—households viewing over-the-air television  signals—have higher levels of awareness than those who will be  unaffected. Over half of households have heard of the converter box  subsidy program and those households at risk of losing television service  who plan to take action reported that they are likely to utilize the program.  However, only a third of those indicating plans to purchase boxes and  utilize the coupons reported knowing how to obtain coupons. While  general awareness of the DTV transition is high, there are indications that  some consumers are confused or unknowledgeable about the transition,  as 45 percent of those households who are at risk plan no action or  inadequate action to prepare for the transition. Amongst those unaffected  by the transition, 30 percent indicated they have plans to ready themselves  for the transition—despite the fact that no action will be required to  maintain television service.
subsections: section_title: Background
paragraphs: All full-power television broadcasters are required by law to cease  broadcasting their analog signal by February 17, 2009. There are numerous  benefits to transitioning to digital-only broadcast signals, such as enabling  better quality television picture and sound reception and 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. A digital  receiver can make the digital picture and sound near perfect until  significant fading occurs, at which point no picture can be seen.
To facilitate the digital transition, Congress and FCC temporarily provided  each eligible full-power television station (both commercial and  noncommercial educational stations, including public stations) with  additional spectrum so they could begin broadcasting a digital signal. This  companion, or paired, digital channel simulcasts the analog program  content in digital format. Assignment of the paired digital channel began in  1997 and FCC completed the digital channel assignment for most stations  in August 2007. A station’s final digital channel could be (1) the same  channel as its paired digital channel, (2) the same channel that its analog  signal uses to broadcast, or (3) an entirely new channel.
The DTV transition involves preparation on the part of American  households. This preparation will require citizens’ understanding of the  transition and the actions that some might have to take to maintain  television service. The specific equipment needs for each household to  transition to DTV—that is, to be able to view broadcast digital signals— depends on certain key factors. The method through which a household  watches television, and whether it has already upgraded its television  equipment to be compatible with digital television, will factor into the  equipment needs of the household. While many households may need to  take specific actions to ensure that they continue to receive television  signals, others may not need to take any action. 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 broadcasting. 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 that provides the  necessary signal to eliminate the need to acquire a digital-to-analog  converter box.
The Digital Television Transition and Public Safety Act directed NTIA to  establish a $1.5 billion subsidy program through which households can  obtain coupons for the purchase of digital-to-analog converter boxes.  NTIA established that beginning January 1, 2008, households could request  up to two $40 coupons toward the purchase of eligible digital-to-analog  converter boxes. Households requesting coupons must submit the name of  the person requesting the coupon and a valid United States Postal Service  address. Initially, any household is eligible to request and receive the  coupons, but once $890 million worth of coupons have been redeemed,  and issued but not expired, NTIA must certify to Congress that the  program’s initial allocation of funds is insufficient to fulfill coupon  requests. NTIA will then receive $510 million in additional program funds,  but any households requesting coupons during this second phase must  certify that they do not receive cable, satellite, or other pay television  service. Total possible program funding, which includes coupons  redeemed, and issued but not expired, is $1.5 billion. The last day for  consumers to request coupons is March 31, 2009, and coupons can be  redeemed through July 9, 2009. As required by law, all coupons expire 90  days after issuance. The fully funded program could provide 33.5 million  coupons.
While all full-power broadcast stations must cease analog broadcasts, low- power stations may continue broadcasting in analog after February 17,  2009. FCC established low-power television service in 1982 to provide  opportunities for locally-oriented television service in small communities.  These communities may be in rural areas or may be individual  communities within larger urban areas. Low-power stations provide  programming from networks, syndicated programs, movies, and a wide  range of locally-produced programs. According to FCC, there are more  than 2,100 low-power stations in operation, some of which broadcast  syndicated content of major commercial networks and public television  and numerous other stations reaching a broad swath of the television  viewing public. Low-power broadcast stations are not required to cease  broadcasting in analog as of February 2009 and most will continue to  broadcast in analog after the conclusion of the full-power transition.  Because there is no mandated transition date for the low-power stations, it  is unclear when these stations will transition to digital broadcasts.
section_title: The Vast Majority of Broadcasters are Transmitting a Digital Signal, but Some Broadcast Stations Face a Range of Technical, Coordination, or Other Issues in Completing Their DTV Transition
paragraphs: Most broadcasters have made significant progress in preparing their  stations for the transition to digital, with approximately 91 percent of  broadcasters responding to our survey reporting that they were already  transmitting a digital signal. A small number of stations responding to our  survey (9 percent) had yet to begin broadcasting a digital signal, but  almost all of those stations expected to be broadcasting digitally by  February 17, 2009. Before the transition to digital can be finalized, some  stations still have to resolve (1) technical issues, such as the relocation of  their digital or analog antenna; (2) coordination issues, such as the U.S.  government reaching agreements with the Canadian and Mexican  governments and coordinating with cable providers and satellite  companies; or (3) other issues, such as the construction of broadcast  towers or financial constraints that might hinder their ability to complete  the steps necessary for the transition.
subsections: section_title: Almost All Stations are Transmitting a Digital Signal and the Majority are Operating at Full Power
paragraphs: Broadcast stations have made substantial progress in transitioning to DTV,  with the vast majority already transmitting a digital signal. Information  obtained from our survey of broadcast stations indicates that  approximately 91 percent of full-power stations are currently transmitting  a digital signal. Our survey further indicated that approximately 68 percent  of respondents are transmitting their digital signal at full strength. In  addition, 68 percent of survey respondents are currently transmitting their  digital signal on the channel from which they will broadcast after the  transition date. Twenty-three percent of stations that responded to our  survey indicated they will be moving their digital signal to their analog  channel. In addition, other stations need to move to a completely new  channel. While almost all full-power stations are already broadcasting a  digital signal, 97 stations, or 9 percent of stations responding to our  survey, are not currently broadcasting digitally. Almost all of these  stations, however, indicated that they plan to have their digital signal  operational by February 17, 2009. Three stations responded that they were  not planning to broadcast a digital signal by February 2009. According to  FCC, stations that are not currently transmitting a digital signal either (1)  were granted a license to operate a digital signal along with their analog  signal but have yet to begin broadcasting digitally or (2) were not given a  companion, or paired, digital channel and plan to turn off their analog  signal at the same time that they turn on their digital signal—known as  “flash cutting.” According to our survey, 5 percent of the stations (61  stations) indicated that they plan to flash cut to a digital-only broadcast.  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 or, in  some cases, will require that a station change to a new channel to be fully  operational. Of those stations responding to our survey that plan to flash  cut, only 21 percent had begun constructing final digital facilities at the  time of our survey. Furthermore, 64 percent of the flash cutters  responding to our survey noted that they need to order equipment to  complete their digital facilities.
section_title: Some Broadcast Stations Need to Address Technical, Coordination, and Other Issues to Support a Smooth Transition
paragraphs: Some stations, including those already broadcasting a digital signal, still  have technical, coordination, or other issues that need to be resolved  before completing their transition. For example, over 13 percent of  stations responding to our survey indicated that they have to install or  relocate their digital or analog antennas in transitioning to digital. Some  stations still needed to order equipment, such as antennas, to build their  final digital facilities. According to an antenna manufacturer we contacted,  it can take from 6 weeks to 9 months to design, order, and install an  antenna, depending on the antenna’s complexity. This manufacturer told  us that stations need to have their orders placed by June 2008 to be  assured of having the equipment installed prior to the transition date.  Furthermore, stations may have coordination issues to address in  completing their final digital facilities. For example, some stations are  awaiting agreements with the Canadian and Mexican governments  regarding their signals crossing the borders of these respective countries  before the stations can complete their digital facilities. Stations will also  need to coordinate with cable providers and satellite companies to ensure  that cable and satellite facilities can receive digital signals when the analog  signals are turned off; most of those responding to our survey indicated  that they are coordinating with or are planning to coordinate with cable  providers and satellite companies. Lastly, stations that have to construct  broadcast towers or have financial constraints might be affected during  their transition. According to our survey, 47 stations indicated that they  need to construct a broadcast tower or reinforce an existing tower to build  their digital facilities. Another 69 stations responding to our survey  indicated that due to financial constraints, they have not started  construction on their final digital facilities or that they have not begun  broadcasting a digital signal.
section_title: Viewers Have Options to Prevent Loss of Service from Low- Power Analog Broadcasts, but Concerns Remain About the Clarity of Information Pertaining to this Issue
paragraphs: Potentially millions of viewers can receive low-power analog  transmissions, including programming from the major networks (ABC,  CBS, NBC, and Fox), Spanish language broadcasting, and public  television. According to FCC data, 296 low-power stations broadcast one  of the four major networks, 109 low-power stations broadcast a Spanish  language network, and 45 low-power stations are affiliated with the public  broadcasting service. Since most low-power stations will not transition to  digital in February 2009, it is possible for viewers to receive programming  in analog (from low-power stations) and digital (from full-power stations)  after the transition date. As previously noted, one of the options  households have to prepare for the transition is purchasing a digital-to- analog converter box. However, such a box could prevent the television  from receiving low-power analog signals. To have access to both analog  and digital television signals after the DTV transition, viewers could use a  special kind of converter box that passes through an analog signal and a  digital signal, often referred to as analog pass through. Absent a converter  box with analog pass through capability, viewers could obtain a small  device called a “splitter.” According to the National Association of  Broadcasters (NAB), installing the splitter and new wiring is similar to  connecting a television to a DVD player and VCR.
Currently, converter boxes with analog pass through are available for  purchase online, and two national retailers indicated the boxes are  available in their stores now. The remaining national retailers we  contacted told us they would begin stocking such boxes in mid June  through early September. At least one national retailer we spoke with is  carrying items (such as the splitter) which would allow consumers to view  both digital and analog signals without purchasing a converter box with  analog pass through. The retailers we contacted said all of their stores will  be selling converter boxes with analog pass through, regardless of location  or prevalence of low-power stations. Some retailers said they are analyzing  market data to help them understand which markets will have increased  need for these boxes. For example, one retailer told us that it is analyzing  data to determine which markets will need and therefore initially receive  more boxes with analog pass through, with the goal of having boxes with  analog pass through in all stores later in the summer of 2008.
Public and private stakeholders have taken steps to educate the public  about the low-power issue and the options available to consumers. For  example, FCC issued a consumer advisory which serves as a resource  guide on low-power television. Further, FCC is urging all low-power  broadcasters to immediately begin educating their viewers about this  issue. FCC noted that such stations could notify their viewers that they are  watching a low-power broadcast station that will continue to offer analog  service after the transition date and viewers that plan to purchase a  converter box should purchase a model with analog pass through. NTIA  also developed a resource guide. According to NTIA, it has provided  information to operators of low-power stations so they can inform their  viewers of the options they have regarding the DTV transition. NTIA said it  has encouraged converter box manufacturers to consider the needs of all  viewers, including viewers of low-power stations, in the development of  converter boxes. NAB and others have added information about low- power stations to their Web sites and clarified that only full-power stations  are transitioning in February 2009. However, the Community  Broadcasters Association, which represents low-power stations, believes  public and private education efforts about the DTV transition focus on the  end of analog broadcasts and are misleading to viewers.
While public and private efforts are ongoing to inform the public about  low-power stations not transitioning to digital, some have expressed  concerns that the messages intended to explain this issue are instead  confusing the public. Further complicating matters, many consumers do  not know the difference between full-power and low-power stations or  whether the signals they receive are full or low power. We heard from  advocacy groups for disadvantaged populations that the messages  intending to explain the low-power issue could be overly confusing. For  example, one group questioned how those watching low-power stations  would understand that (1) they are viewing low-power broadcasts, (2)  these stations are not transitioning to digital, and (3) what actions they  need to take to maintain the ability to watch low-power broadcasts. This  group said many Spanish speakers are reliant on low-power stations to  view Spanish language broadcasts but many in that community are not  aware of the issue with low-power stations or that they are reliant on low- power stations.
section_title: Most People are Aware of the DTV Transition, but Many are Unprepared or Have Inadequate Plans
paragraphs: Most households will be unaffected by the DTV transition and a vast  majority have heard of the transition. According to our consumer survey  results, about 84 percent of the population has heard of the transition, but  smaller numbers of people have more specific knowledge of the transition  date and why the transition is taking place. Those at higher risk of being  affected by the transition—households viewing over-the-air television  signals—have higher levels of awareness than those who will be  unaffected. Over half of the population has heard of the converter box  subsidy program and those in households at risk of losing television  service who plan to take action are likely to utilize the program. However,  only a third of those indicating plans to purchase boxes and utilize the  coupons know how to obtain coupons. While general awareness of the  DTV transition is high, there are indications that some consumers are  confused or unknowledgeable about the transition, as 45 percent of those  households who are at risk plan no action or inadequate action to prepare  for the transition.
subsections: section_title: About 65 Percent of Households Have All Televisions Connected to a Subscription Service, but the Remaining 35 Percent are at Risk of Losing Some or All of Their Television Service After the Transition
paragraphs: Our survey categorized households into varying risk levels of being  affected by the DTV transition, with most households (65 percent) unlikely  to lose television service. According to our survey of consumers,  approximately 15 percent of households are at risk of losing television  service once the transition is complete because they rely solely on over- the-air television signals. We refer to this group as “high risk.” An  additional 21 percent of households have at least one television used to  watch over-the-air signals. While this group of consumers has one or more  televisions connected to a subscription service such as cable or satellite,  they still have at least one television used to watch over-the-air television.  We refer to this group as “medium risk” because unless they take action,  they could lose television service on the set or sets not connected to cable,  satellite, or other subscription service. Also, our survey found that 65  percent of households have all of their televisions used for watching  programming connected to a subscription service. We refer to this group  as “low risk” since they are unlikely to be adversely affected by the DTV  transition.
Our survey suggests that while most Americans do not believe the  transition will be disruptive, some do not fully understand the  ramifications the transition could have on their ability to watch television.  We asked respondents how disruptive they expected the change from  analog to digital to be and found that 55 percent expect the transition will  not be at all disruptive. Only 10 percent of the population expects the  transition to be very disruptive and even among high risk households— those who most likely must take action or lose television service—only 20  percent expect the transition to be very disruptive. Nevertheless, while  most households (69 percent) believe the transition will be either not at all  disruptive or not too disruptive, of this segment of the population, 54  percent had inadequate or no plans for the transition despite being at  medium or high risk of losing television service.
NTIA and FCC have identified a number of at-risk populations who might  be more likely to be adversely affected by the transition. These groups  include seniors, low-income, minority and non-English speaking, rural  households, and persons with disabilities. Those most likely to be affected  by the transition are spread across all types of households throughout the  country, but in some cases, there are particular characteristics of note  regarding which types of households represent the high and medium risk  groups. Our survey collected demographic information on households and  found that certain subgroups of the population were more likely to be  affected by the transition. For example, households at risk of losing all  television service—those in the high risk group—were more likely to be in  urban locations than households in the medium risk group. Households in  the various income categories are spread across the different risk groups;  however, the lower income group has a larger portion of high risk  households. Specifically, those with income lower than $50,000 are  composed of 19 percent high risk, whereas 14 percent of households with  income from $50,000 to $99,999 are high-risk and only 7 percent of  households with income of $100,000 and above are high risk.
section_title: General Awareness of the DTV Transition is High, but Detailed Knowledge is Much Lower
paragraphs: Overall, about 84 percent of Americans have heard of the DTV transition  according to our survey results. To test the survey respondents’ level of  awareness, we asked if they had heard of the DTV transition and if they  knew when and why the transition was taking place. We found the  percentage of people with detailed knowledge about the transition  declines with the specificity of information. For example, 62 percent knew  the year (2009) that the transition would take place, but only 31 percent  knew the month and year (February 2009). Additionally, only 35 percent of  people who indicated they were aware of the transition—29 percent of the  population as a whole—could explain why the transition is taking place.  The most common responses on why the transition is taking place were  related to technology improvements. Twenty percent indicated the  transition would bring about general technological advancements and 30  percent cited better television picture quality as the reason for the  transition. Much smaller percentages of the population indicated the  transition was to free up airwaves for a variety of reasons, including  improved emergency communications.
Those who may be more seriously affected by the transition have higher  levels of knowledge about the transition and when it will take place than  those who will be less seriously affected. To determine the awareness of  the households that will be most affected by the transition, we segmented  survey questions by risk group. Our survey indicates that consumer  awareness was higher, in most cases, across a variety of questions, for the  medium and high risk groups than for the population as a whole. In  particular, for the medium risk group—the largest block of affected  households—90 percent indicated they were aware of the transition. In the  more detailed indicator of awareness, knowledge of the transition date, 40  percent of high risk households, 37 percent of medium risk households,  and 27 percent of low risk households were aware of the month and year  the transition will take place.
Our survey results indicate that some demographic groups show different  levels of awareness from the overall population. We examined awareness  of the transition across demographic factors, such as age, ethnicity,  income, and disability and examined, additionally, the awareness of those  households likely to be affected by the transition—the high and medium  risk groups.
Age: Across various age categories, there were few differences in overall  consumer awareness, but people in the middle-age group (45 to 64) have  the highest rates of awareness of the DTV transition, its timing, and why it  is occurring. Respondents who were 65 and older showed slightly lower  levels of awareness. When looking specifically at awareness of the  transition date for age groups, 29 percent of 18- to 44-year-olds, 36 percent  of 45- to 64-year-olds, and 26 percent of those 65 and older knew the  month and date of the transition. As for the reason for the transition, 18- to  44-year-olds had the lowest percentage of those aware of why the  transition was taking place.
Ethnicity: By ethnicity, those self-described as white or Caucasian had  higher general awareness (86 percent) than those nonwhite ethnic groups  (78 percent). This trend in awareness followed for the additional specific  questions about the transition and is more pronounced for the at-risk  groups. When high and medium risk households were asked about why the  transition was taking place, only 16 percent of nonwhite respondents were  knowledgeable compared with 45 percent in the white/Caucasian group.
Income: Higher income was associated with greater awareness. For those  individuals with incomes from $15,000 to $34,000, 84 percent were aware;  for those with incomes ranging from $35,000 to $49,000, 90 percent were  aware; $50,000 to $99,000, 90 percent were aware; and for those making  over $100,000, 94 percent were aware. On the other hand, 69 percent of  those making less than $15,000 per year were aware of the transition.
Disabilities: We found that 77 percent of those with disabilities were  aware of the transition.
Community type: We found that awareness did not differ significantly in  different community types. In urban, suburban, and rural/small-town  groups, awareness was around 84 percent, similar to that of the  population. There was also little variance by region of the country: the  Northeast, Midwest, West, and South regions all showed similar  awareness.
Our results indicate that, across all risk groups, television is the most  pervasive source of information about the transition. In particular, 82  percent of the population indicated they heard of the transition by  television. In addition, 45 percent said they had heard about the transition  by word-of-mouth and 30 percent from newspapers or magazines. Many  fewer (17 percent) had heard about the transition from the Internet and 11  percent heard about the transition from retail stores.
section_title: Households Planning to Take Action for the DTV Transition are Likely to Utilize the Converter Box Subsidy Program, but Many Household Plan to Take No Action to Prepare for the Transition
paragraphs: Greater than half of the population is aware of the NTIA converter box  subsidy program, but more detailed knowledge of the program is much  weaker. Overall, awareness of the converter box subsidy program is at 55  percent. The high and medium risk groups have higher awareness, at 63  percent and 56 percent respectively, than the low risk group at 53 percent.  While general awareness of the subsidy program itself is relatively high, of  those households who intend to purchase a converter box and to request a  coupon from the NTIA program, only 33 percent were aware of how to  obtain a coupon.
Those households who indicated that they were likely to purchase a  converter box reported very high rates of likelihood to request the  coupons. In the high risk group, of those who intend to purchase a  converter box, 100 percent of respondents said they were likely to request  a coupon. In the medium risk group, 89 percent of these households said  they were likely to request coupons. According to NTIA officials, the rate  of those requesting two coupons is approximately 89 percent.
The intention of households to utilize the converter box subsidy program  if they plan on purchasing converter boxes is clear. However, the percent  of those who indicated they are likely to purchase a converter box in the  first place is much lower. In the high risk group, 49 percent, and in the  medium risk group, 32 percent of households are likely to purchase a  converter box. Additionally, 15 percent of households in the low risk  group said they would purchase a converter box when the transition takes  place. This indicates not only that some households may be confused or  unknowledgeable—low risk households should not need converter  boxes—but that households with no need for converter boxes may utilize  the subsidy program. Of the low risk households who plan to purchase a  converter box, 86 percent said they would utilize the NTIA subsidy  program. Based on an analysis of our survey, we estimate that households  will request roughly 30.6 million coupons. This estimate assumes that  households will follow through with their plans to request coupons.
Despite high overall awareness of the DTV transition, many households  were unprepared for the transition. We describe as unprepared for the  DTV transition those in the medium or high risk groups who indicated that  for the transition, they will do nothing, they do not know what they will  do, or they specified some other action that will not prepare them for the  transition. Our analysis determined that 35 percent in the high risk group  were unprepared and 52 percent in the medium risk group were  unprepared. Overall, these unprepared groups make up 16 percent of the  total population. Amongst low risk households, 30 percent indicated they  have plans to ready themselves for the transition—despite the fact that no  action is required to maintain television service.
Thank you, Mr. Chairman, that concludes my statement. I will be pleased  to answer any questions that you or other Members of the Subcommittee  might have.
section_title: GAO Contact and Staff Acknowledgements
paragraphs: For further information about this testimony, please contact Mark L.  Goldstein at (202) 512-2834. Other key contributors to this testimony  include Andy Clinton, Colin Fallon, Ronald Fecso, Simon Galed, Eric  Hudson, Bert Japikse, Aaron Kaminsky, Sally Moino, Karen O’Conor, and  Andrew Stavisky.
section_title: Appendix I: Scope and Methodology
paragraphs: To obtain information on the technical and coordination issues facing  broadcast stations, we conducted a Web-based survey of the full-power  commercial and noncommercial television broadcast stations. We asked  the broadcasters questions related to their digital facilities, construction  plans, and issues affecting the digital transition. From a total of 1,747  broadcasters, we surveyed 1,682 stations located in the 50 states and the  District of Columbia for which we could obtain contact information. We  conducted our survey from December 2007 through February 2008 and  obtained completed questionnaires from 1,122 stations, for a response rate  of 66.7 percent. Of those completed questionnaires, 72 percent were from  commercial stations and 28 percent were from noncommercial stations.
To obtain information on issues pertaining to low-power television  stations and how they affect consumers, we reviewed data from the  Federal Communications Commission and interviewed a wide variety of  industry and other private stakeholders, such as national retailers,  industry associations, and consumer advocacy groups.
To determine the extent of consumer awareness about the transition, we  commissioned a telephone survey of the U.S. adult population. Our  objectives were to produce nationally representative estimates of (1)  knowledge and awareness of the DTV transition and sources of that  knowledge and awareness, (2) knowledge about the converter box coupon  program and likelihood to request one or two coupons, and (3) attitudes  about the impact of the conversion to digital television (e.g. level of  disruption) Although the survey was designed to measure these issues at  the population level, our intent was also to focus on several sub- populations, including (1) those most at risk of losing their television  signal, (2) those with lower household incomes, (3) older Americans, (4)  African Americans and Hispanics, and (5) those with disabilities. We  analyzed the comparisons between these sub-populations and report on  differences statistically significant at the 95 percent level. Percentage  estimates have margins of error of less than 6 percent.
This survey of the American public was conducted from March 24, 2008 to  April 7, 2008 by a private research firm. A total of 1,010 completed  interviews were collected and calls were made to all 50 states.
Telephone surveys require assumptions regarding the disposition of non-  contacted sample households that meet certain standards. For this survey  the response rates were calculated using American Association of Public  Opinion Research (AAPOR) Response Rate 3. Based on these  assumptions, the response rate for the survey is 38 percent. A random digit  dial (RDD) sampling frame was used that includes both listed and unlisted  numbers from working blocks of numbers in the United States.  Technically, it provides a near 100 percent coverage of all households with  landlines however; the RDD sampling frame approach cannot provide any  coverage of the increasing number of cell phone only households. The 30.6  million estimate for coupon requests (which ranges from 25.6 million to  35.5 million coupons) does not include 13.1 percent of the households that  are cell phone only households or 13.3 percent of the households for  which there was no telephone service or no reported telephone status.  While we could not substantiate an assumption that these households  would respond similarly to landline households, if they do, this could add  another 11 million coupon requests to the estimate. Additionally, the  number of households that decide to replace their television rather than  add the converter box could increase, which may decrease the demand for  converter boxes.
Because many households contain more than one potential respondent,  obtaining an unbiased sample from an RDD frame requires the random  selection of the individual respondent from among all potential  respondents within the sampled household (as opposed to always  interviewing the individual who initially answers the phone). This was  accomplished using the most recent birthday method, in which the  interviewer requests to speak to the household member aged 18 or older  who had the most recent birthday. If the selected respondent was not  reachable after three call attempts, a substitute respondent was selected  from among household members 18 years of age or older who were  available at the time of the call, or an appointment was set for a household  member who was willing to participate at a later time.
The results of this survey reflect an estimated awareness of the DTV  transition for the time frame of the survey only. Some questions in the  survey ask about the respondent’s knowledge or awareness of the  transition and the coupon program. As consumer education about the  transition and the coupon program increases, the number of people aware  of the transition and the coupon program will probably increase.  Additionally, the respondent may not be the person in the household  responsible for obtaining a coupon or deciding how to handle the  transition. As a result, the individual response may indicate that the person  is unaware, but someone else in the household could be planning to take  care of the issue. As a result, we may overestimate the percentage of  unaware households.
Finally, in the survey we asked respondents about likely behavior once the  transition occurred. Only those who said they were likely to purchase a  converter box were asked if they would request a coupon and then were  asked whether they would request one or two government coupons. In our  calculation of coupon demand we assume that those who do not say they  are likely to purchase a coupon box will not request a coupon.
section_title: Appendix II: Related GAO Products
paragraphs: Digital Television Transition: Majority of Broadcasters Are Prepared for  the DTV Transition, but Some Technical and Coordination Issues  Remain. GAO-08-510. Washington, D.C.: April 30, 2008  Digital Television Transition: Increased Federal Planning and Risk  Management Could Further Facilitate the DTV Transition. GAO-08-43.  Washington, D.C.: November 19, 2007.
Digital Television Transition: Preliminary Information on Progress of  the DTV Transition. GAO-08-191T. Washington, D.C.: October 17, 2007.
Digital Television Transition: Preliminary Information on Initial  Consumer Education Efforts. GAO-07-1248T. Washington, D.C.:  September 19, 2007.
Digital Television Transition: Issues Related to an Information  Campaign Regarding the Transition. GAO-05-940R. Washington, D.C.:  September 6, 2005.
Digital Television Transition: Questions on Administrative Costs of an  Equipment Subsidy Program. GAO-05-837R. Washington, D.C.: June 20,  2005.
Digital Broadcast Television Transition: Several Challenges Could Arise  in Administering a Subsidy Program for DTV Equipment. GAO-05-623T.  Washington, D.C.: May 26, 2005.
Digital Broadcast Television Transition: Estimated Cost of Supporting  Set-Top Boxes to Help Advance the DTV Transition. GAO-05-258T.  Washington, D.C.: February 17, 2005.
Telecommunications: German DTV Transition Differs from U.S.  Transition in Many Respects, but Certain Key Challenges Are Similar.  GAO-04-926T. Washington, D.C.: July 21, 2004.
Telecommunications: Additional Federal Efforts Could Help Advance  Digital Television Transition. GAO-03-7. Washington, D.C.: November 8,  2002.
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