The DTV transition has been in progress for over two decades. With a firm date established in law, all full-power television broadcasters will 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. While the digital signal disperses over distances, a digital receiver can adjust and recreate the missing zeros and ones from the digital transmission, thus making 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 with the hopes that operating this digital channel would help stations learn about broadcasting a digital signal, in addition to raising consumer interest and understanding about the digital transition. The paired digital channel was intended to be used for a limited period until all stations were assigned a final digital broadcast station and were able to broadcast on their final digital channel. 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 Digital Television Transition and Public Safety Act of 2005 addresses the responsibilities of FCC related to the DTV transition. The act directs FCC to require full-power television stations to cease analog broadcasting after February 17, 2009. Stations are responsible for meeting this requirement and being prepared to commence digital broadcasting by this date; stations not ready to commence digital broadcasting risk losing interference protection and operating authority. The capability to provide a digital broadcast signal often involves a large outlay of capital and effort by broadcast stations. Sometimes a new broadcast tower or significant modifications to an existing tower is required. While a new antenna could cost a station several hundred thousand dollars, an industry association stated that stations could spend as much as $2 million to purchase and install a new broadcast tower, antenna, and equipment. If new towers or antennas are not required, stations may still need to alter or upgrade existing towers. Alterations may include moving the digital antenna from a side-mounted antenna to the top of the tower to increase the coverage of the digital signal. Upgrades to an existing tower may include strengthening a tower before additional antennas can be added. For stations building new towers, installing new antennas, or making changes to existing structures, the stations must plan in advance to order the proper equipment and schedule construction crews. In September 2007, FCC adopted an order designed to ensure that all cable subscribers, including those with analog television sets, can view digital broadcasts after the transition. FCC stated that all cable operators must make all broadcast signals viewable to all subscribers and cannot degrade any signal so that a difference in the cable signal and the broadcast signal would be perceptible to a viewer. According to the order, cable operators can meet this requirement in one of two ways, either (1) carry the signals of commercial and noncommercial must-carry stations in analog format to all analog cable subscribers or (2) for all-digital systems, carry those signals in a digital-only format, provided all subscribers with analog television sets have the proper equipment to view the digital signals. This requirement ensures that subscribers will have the ability to view a digital signal or an analog signal, depending on which best suits their equipment. While this ruling did not address satellite companies, FCC is considering how to apply the content and degradation requirements to satellite carriage of digital broadcast signals, and the commission expects to complete this ruling before the transition. Satellite companies already transmit digital signals to subscribers by digitizing broadcasters’ analog signals. Most broadcasters have made significant progress in preparing their stations for the transition to digital, with 91 percent of survey respondents reporting that they were already transmitting a digital signal. Of the broadcasters already transmitting a digital signal and responding to our survey, 68 percent indicated that they are broadcasting their digital signal at full strength. In addition, 68 percent of survey respondents are broadcasting their digital signal on the channel from which they will be broadcasting after the transition. A small number of stations responding to our survey (9 percent) have yet to begin broadcasting a digital signal, but almost all of those stations expect to be broadcasting digitally by February 17, 2009. Our survey of broadcast television stations found that almost all stations (91 percent of respondents) are transmitting a digital signal. Of those stations transmitting a digital signal, the operating status of these survey respondents, as of February 8, 2008, is shown in figure 1. As figure 2 shows, 68 percent of stations that responded to our survey said that their digital channel will not move after the transition. However, about one third of stations are currently operating on a temporary digital channel and will move to another channel to complete their transition to digital. Twenty-three percent of survey respondents said they will abandon their current digital channel to begin broadcasting digitally at the channel location currently occupied by their analog channel. Approximately 9 percent of survey respondents will have to move to a completely new channel once the transition is complete. Our survey of broadcast stations found that 97 stations, or 9 percent, are not broadcasting a digital signal. On the basis of the information provided by survey respondents, these stations serve a smaller number of households, on average, compared with those stations broadcasting a digital signal. In particular, survey respondents that are not broadcasting digitally transmit their analog signal to approximately 350,000 households, on average, compared with the average of nearly 775,000 households from stations responding to our survey that are already broadcasting digitally. Almost all of these stations that are not yet broadcasting digitally noted 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 17, 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 digital license 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 (61 stations) of the 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. Before the transition to digital can be finalized, some stations still have to resolve technical, coordination, or other issues. According to stations responding to our survey, a major technical task for over 13 percent of the stations is the relocation of their digital or analog antenna. Other stations responding to our survey indicated that they have coordination issues to resolve prior to completing the transition, such as the U.S. government reaching agreements with the Canadian and Mexican governments and coordinating with cable providers and satellite companies. Our survey also found that other issues, such as the construction of broadcast towers or financial constraints, have affected some stations’ ability to finalize their digital facilities. Broadcast stations and industry representatives have stated that technical issues might affect television stations’ ability to finalize digital operations. Technical issues that some stations need to address include (1) antenna and equipment replacement or relocation and (2) channel relocation. One of the major tasks that many television stations have to complete to build their 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 representative, many stations need to have their digital antenna at the top of the tower to fully replicate the area that their analog service covers. The broadcast industry representative 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, and then install the digital antenna at the top of the tower. The industry representative 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. Also, as a result of the analog antenna being side mounted, stations’ analog broadcast coverage area would be reduced by a range from 2 to 9 percent of the viewing market. Stations agreed that they might 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 operations 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, which would affect a large number of its viewers.