Coupons for converter boxes run into cash-flow problem
6:45 PM Tue, Jan 06, 2009 | Permalink
Email
 |
 |
Projo 7 to 7 News BlogTaking the news pulse of Rhode Island and Southeastern Massachusetts, by Providence Journal and projo.com staff, from 7 to 7, every business day |
|
Get the 7 to 7 on your mobile at www.projo.com. Twitter: projo | RSS | Email alerts
« Next conference in Station fire damages case on Jan. 20 |
Main
| Tonight: Hear some blues at Tazza in Providence »
By C. Eugene Emery Jr. If you own an old television set and haven't made your request for one of those $40 coupons to help you buy a digital converter box, you may be seeing a lot of snow on your Sony after Feb. 17, even if you request a converter today. The problem could apply to as many as 10,000 households in the Providence-New Bedford television market. The Commerce Department's National Telecommunications and Information Administration (NTIA) announced this week that its coupons program has run into a cash flow problem. People who requested vouchers for the boxes this week are now on a waiting list that, as of Monday, was roughly 103,000 names long. They will only get their coupons as already-delivered coupons expire. About half the coupons that have been ordered have gone unused. The converter boxes, which range in price from $40 to $80, are needed so older TVs can recognize view over-the-air signals when stations switch to digital broadcasts next month. Cable television subscribers will not be affected. The creation of the waiting list prompted Attorney General Patrick C. Lynch to issue a statement today warning consumers not to fall for conversion-related scams designed to charge people far more than the cost of the box itself. "As frustrating as it is that the federal government has failed to adequately fund this initiative, it will be worse if consumers become victimized by scams in the days leading up to the switch-over," he said. There are no firm statistics about how many Rhode Islanders are threatened by a sudden lack of reception. NTIA spokesman Todd Sedmak said that about 57,000 households in the Providence-New Bedford television market rely exclusively on analog antennas, according to the Nielsen rating service. Among that group, there have been 47,000 requests for one or more coupons, he said. "That leaves you up to 10,000 households that need to make sure they have done something, or do something: converter box, cable, satellite or a new TV," said Sedmak. The $1.34 billion set aside for coupons was raised from the federal auction of broadcast frequencies that will be freed up once the conversion to digital is complete. Over-the-air digital TV signals require much less bandwidth than traditional analog signals. 
CommentsLeave a commentPlease be civil. Vicious comments, personal attacks and profanity won't be published. Name and email are required; email address will not publish. |
Tags 
New comments
New photos
Authors
New posts
Projo blogs
Archives
I'm amazed at the audacity of the federal government to mandate such a thing, without a way to 'bail-out' those that have no way to get a converter box, the elderly - that can't understand the policy, or have no means to do so, and those that do not have the capacity to get one, or understand this. yes, there were warnings - timeframes.
It's not going to work.
If the government wanted to make a mandate - they should have provided help.
Report Abuse
I was, and still am amazed at how this transition is to work - let's make everyone in the country pay $20 or so to see television without having to subscribe to cable or satellite TV. It seems that those companies are about to have a windfall. So, those people that like their regular programs, and are fine with their local channels are going to be out of the mainstream. It seems like a financial boom for satellite & cable services.
So, seeing as how the cost of a converter - as the advertisements say: it'll be a smooth transition. Not so much. it's an extra cost, and may not be understood. The companies benefiting from this, and the federal government are to blame for making citizens change with their knowledge or not, make money for gov., and cable/dtv. It makes me sick.
Report Abuse
Liz
The government needed to have broadcasters switch from analog to digital because the analog signals take to much bandwith. This transition has been years in the making. TV makers have only been able to sell digital sets for the last year. The converter boxes for older sets cost around $45. The government gives you 2 coupons for $40 each. There fore you can still watch TV for a 1 time charge of around $10-$15. I am sure this change is not driving people to DTV or cable. You say"If the government wanted to make a mandate - they should have provided help." They have provided help. What do you want, the government to show up and install the converter for you?
Report Abuse