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Dept. of Commerce
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Congressional
Affairs:
Committee on Commerce, Science, and Transportation
United States Senate
Testimony of Meredith A. Baker
Acting Assistant Secretary for Communications
and Information
National Telecommunications and Information Administration
U.S. Department of Commerce
Before the
Committee on Commerce, Science, and Transportation
United States Senate
Hearing on
Oversight of the DTV Transition
April 8, 2008
Chairman Inouye, Vice Chairman Stevens and Members
of the Committee, thank you for the opportunity to
appear before you today to discuss the progress being
made by the National Telecommunications and Information
Administration (NTIA), Department of Commerce, in assisting
Americans to prepare for the digital television (DTV)
transition. In particular, I am pleased to report
to you on NTIA’s successful launch three months
ago of the Television Converter Box Coupon Program
(Coupon Program). Although the Program is off
to a very good start, we are still in the early phases
of this important undertaking. In this statement,
I will share with you the additional steps NTIA is
taking to implement the Coupon Program, the agency’s
ongoing efforts to expand public education and outreach
on the DTV transition and the Coupon Program, and challenges
that we are addressing
Coupon Program Data
As I indicated, NTIA successfully launched the Coupon
Program on January 1, 2008. Since then, across
the Nation, consumers have been ordering their coupons
through one of four convenient methods: via a
toll-free number (1-888-DTV-2009), online at www.DTV2009.gov,
by mail or by fax. The phone line is available
to consumers 24 hours a day, seven days a week, with
live agents available at all times, and an Interactive
Voice Response system is available for English and
Spanish-speaking callers. The phone line can
accommodate requests in more than 150 different languages. A
special assistance line also is available for the hearing
impaired in English and Spanish. Braille application
forms are available for the visually impaired. As
of April 4, 2008, approximately 60 percent of the requests
have been received through our Web site, 38 percent
by telephone, and 1.6 percent by mail and fax. Approximately
89 percent of the household requests seek the maximum
number of two coupons.
On January 1, NTIA with its partner IBM took requests
from over 249,000 applicants requesting 475,000 coupons. Consumers
from every state applied on that first day. By
the end of the first week, NTIA had received over one
million requests for two million coupons. As
of April 7, 2008, NTIA has accepted more than 5.2 million
household requests for almost 9.9 million coupons,
which represents approximately 46 percent of the program’s
base funding. Approximately 48 percent of these
households identified themselves as fully reliant on
over-the-air television. Consumers have begun
to purchase converters with the coupons.
As of April 4, 2008, consumers have redeemed more than
280,128 coupons. Because consumers have only
had coupons for a few weeks, it is too early to draw
conclusions about redemption rates, which will be the
key factor determining program spending. NTIA
will continue to monitor redemption rates carefully
as a critical factor in the financial management of
the program. Our expectation is that redemptions
will be the greatest as consumers reach the end of
the first 90-day expiration period.
Consumer Education and Outreach
NTIA’s daily efforts working with the media have
helped generate awareness of the DTV transition and
Coupon Program. During these first three months,
the Coupon Program obtained more than 200 million print
and broadcast media impressions, as well as over 1.8
million online impressions. The high level of
interest in the Program and the correspondingly high
application rate indicate that consumers are becoming
increasingly aware of the DTV transition and are ready
to take action.
Multiple consumer surveys bear this out: a recent survey
released by the Association of Public Television Stations
shows a 50 percent jump in consumer awareness about
the transition in just the last 4 months – from
51 percent in November 2007 to more than 76 percent
in March 2008. Surveys conducted by Consumers
Union (64 percent) and the Consumer Electronics Association
(74 percent) reveal similarly high levels of consumer
awareness. In other words, our combined efforts
to get the word out are succeeding.
One of the keys to the success of this program is its
voluntary nature, which has fostered strong public-private
partnerships. As I have discussed this issue
with other federal officials, non-profit leaders, and
private sector organizations with which NTIA is collaborating,
I have witnessed their willingness to work together
to make the transition a success. The industries
most directly affected by the transition have initiated
significant educational efforts with real financial
commitments to ensure that no household is caught unprepared
on February 18, 2009. The DTV Coalition is also
making great strides in educating the American public
about their options for making the transition.
As a complement to these efforts, NTIA has instituted
a proactive campaign to educate consumers about the
role of the Coupon Program in the DTV transition, leveraging
relationships with consumer groups, community organizations,
federal agencies, and industry to inform consumers
of their options. NTIA is collaborating with
more than 200 partner organizations, including social
service and community organizations with ties to the
senior citizens, rural, minority, and disabled communities,
as well as a variety of federal agencies with direct
communications with other constituent groups. NTIA
is reaching out to trusted institutions, such as the
NAACP, AARP, Spanish-language broadcasters, and the
Native American Journalists Association to reach populations
most likely to be affected by the transition.
These groups are responding with thoughtful and creative
ways to spread the word to their constituencies about
the transition. A good example is the 4-H arm
of the U.S. Department of Agriculture’s (USDA)
Cooperative State Research Education and Extension
Service (CSREES). Collegiate 4-H - the college
student 4-H organization - selected the DTV transition
as its 2008 National Service Project topic. During
the year, each chapter must carry out at least one
DTV project based on lesson-plan material developed
by NTIA. A project might include helping vulnerable
individuals fill out an application or installing their
converter boxes.
NTIA is keenly aware of the need to reach out to non-English-speaking
communities, some of which rely heavily on over-the-air
broadcasts. Information about the Coupon Program
is being made available in numerous foreign languages
-- Spanish, French, Chinese, Vietnamese, Korean, Filipino,
and Tagalog. On December 1, 2007, Secretary of
Commerce Carlos M. Gutierrez was featured in the first
of a series of public service programs entitled, “TV
Digital…¿Que Tal?” aired throughout
the United States and Puerto Rico by the Spanish-language
Univision Television Network. The program discussed
the benefits of digital television broadcasting and
provided detailed information about the need for viewers
that rely on over-the-air broadcasting to obtain digital-to-analog
converter boxes to continue to use their analog television
sets, and how to access the Coupon Program to obtain
coupons for the purchase of boxes.
Just last week, NTIA kicked off “Digital Television:
Experience the Benefits,” a consumer education
campaign we are coordinating with local organizations
across the country to educate consumers about the benefits
of DTV and the TV Converter Box Coupon Program. Our
initial event on March 31st gave consumers an
opportunity to “Ask the Experts” at Radio
Shack’s flagship store in Fort Worth, Texas. Tomorrow,
Secretary Gutierrez will discuss the digital television
transition in Fort Worth, Texas, and later in the week
will travel to McAllen, Texas – one of the nation’s
highest over-the-air television markets – for
a similar event. NTIA will continue to work
with an ever-increasing number of interested industry
and community groups to ensure that information about
the DTV transition reaches these non-English-speaking
communities as broadly and often as possible.
While relevant industry segments are taking the initiative
to ensure their consumers have the information to navigate
the transition, the Federal government has a role in
ensuring that all population groups, particularly those
that are least likely to receive industry-produced
information, and those more likely to rely on over-the-air
television, receive a consistent and accurate message. Recognizing
the importance of such a holistic approach from the
start, NTIA hosted a meeting on January 24, 2008, with
more than 15 other federal agencies, including the
Federal Communications Commission; the Departments
of Veterans Affairs and Agriculture, the Department
of Health and Human Services’ Administration
on Aging; and the Department of Homeland Security’s
Federal Emergency Management Agency, to further coordinate
federal efforts to educate the nation about the February
17, 2009, deadline to transition to digital television. During
the meeting, NTIA outlined its current and upcoming
consumer education efforts, and the agencies discussed
their strategies and existing communications efforts
to raise consumer awareness of the DTV transition and
the Coupon Program. The response from agencies
has been positive. For example, the Department
of Veterans Affairs (VA) has made a concerted effort
to educate its employees, veterans, and their families
about the DTV Transition and Coupon Program. Among
other things, the VA has publicized the Program through
Vanguard magazine, VA News, the American Veterans,
and the Pentagon channel. It has distributed
Coupon Program information to National Veteran Services
Organizations such as the American Legion, VFW, Disabled
American Veterans, Paralyzed Veterans Associations,
AMVETS, and the Vietnam Veterans Association.
NTIA has worked with IBM and Ketchum, the subcontractor
with expertise in public outreach efforts related to
the Program, to develop a comprehensive toolkit of
information to help organizations that are playing
a critical role in educating their members, constituents
and customers about the Coupon Program. Available
for use since January 1, 2008, the Toolkit attempts
to offer simple tips and recommendations to help each
organization reach its members with information about
the Coupon Program in a way that will resonate best
with them. The Toolkit consists of a set of materials,
including fact sheets, a poster, a mailer, sample presentations
and other materials that can be co-branded for use
by partners. The Toolkit also contains specific tools
and strategies that can be used to reach the media
to effectively deliver the Coupon Program message,
and ideas and resources for informing consumers through
community and in-store events or other activities.
The Toolkit includes four sections, each of which can
be used on its own, or in conjunction with other parts
of the Toolkit:
- Program Background. This section
includes background information on the DTV transition
and the TV Converter Box Coupon Program. Partners
are strongly encouraged to familiarize themselves
with the Coupon Program and with what consumers told
us they want to know.
- Development and Dissemination of Messages
and Materials. This section includes a series
of tailored messages about the Coupon Program that
partners can incorporate into their own materials
to explain how to apply for and redeem coupons.
The messages have been tested in consumer focus
groups to ensure that they are easily understood
and have been reviewed by NTIA for accuracy and
consistency. This section also outlines the ready-made
materials available for downloading, co-branding
and use by all partners.
- Communicating Through the Media. This
section provides guidance and ideas for generating “earned
media” coverage through television, radio,
print or online information sources. The information
in this section ranges from ideas for conducting
proactive media outreach, to placing public service
announcements and tips on conducting a solid media
interview.
- Conducting Outreach Activities. The
Toolkit includes creative ideas for communicating
about the Coupon Program through existing organizational
resources, as well as developing events and activities
that focus specifically on the TV Converter Box Coupon
Program.
The Toolkit also is an extremely useful resource for
Members of Congress seeking to communicate to their
constituents about the Coupon Program. NTIA
has worked closely with many offices to help prepare
materials for town hall meetings, franked mailings,
and other outreach, including to senior centers and
other critical-to-reach groups.
Manufacturer and Retailer Participation
NTIA has been very pleased with the high level of participation
in the Coupon Program, both by converter box manufacturers
and consumer electronics retailers. As of today,
NTIA has certified 66 converter boxes, each designed
for the exclusive statutory purpose of enabling a consumer
to view digital broadcast signals on an analog television.
NTIA’s rules also permit certain other features,
including the ability to pass-through analog broadcast
signals. These boxes can be found at leading
retailers for as little as $45. We are continuing
to review and certify boxes as manufacturers come into
this Program. A complete list of converter boxes
certified to date is available on NTIA’s website,
and is attached to my testimony.
The response from America’s retailers has been
similarly outstanding. As of April 1, 2008, the
Program includes more than 1,100 participating retailers. These
retailers represent 11,448 participating outlets nationwide,
including locations in all 50 states, Puerto Rico and
the U.S. Virgin Islands. Participating retailers
include four of the largest consumer electronics retailers – Best
Buy, Circuit City, RadioShack, and Wal-Mart – as
well as hundreds of smaller retailers. NTIA expects
four other large retailers – Kmart, Sam’s
Club, Sears and Target – to participate shortly. Additionally,
consumers can choose from among seven online retailers
and three phone retailers. In short, consumers – even
those in areas where the closest consumer electronics
retailer is fifty or one hundred miles away – will
have ready access to coupon-eligible converter boxes.
At the request of many of these retailers, NTIA has
made information available about the number of coupons
requested not only on a per state basis but now based
on 5-digit zip code. NTIA and IBM have made
employee training materials available to all participating
retailers so that they will be ready to answer consumers’ questions
about certified boxes and the use of the coupon for
payment. Participating stores have completed
certification in the Coupon Program and indicated that
their employees are trained, they have converter box
inventory in their stores, and their systems are prepared
to redeem coupons. Participating retailers can
be found on www.DTV2009.gov under “Locate
a Retailer Near You.”
We are pleased with the progress that has been made
in these first few months of the Coupon Program’s
operational phase and we are confident our continued,
combined and cooperative efforts will only add to this
success to the benefit of all Americans, as well as
other stakeholders such as public safety entities.
Addressing Challenges That Arise
That said, as with any program as large and complex
as this, there are bound to be bumps in the road and
challenges that arise. NTIA currently faces several
such challenges and is working diligently to resolve
them as quickly as possible and in a manner that serves
the best interests of the American people.
NTIA is concerned about how to best meet the needs
of viewers of Class A, low-power television and television
translator stations. As this Committee is well
aware, these stations are not subject to the February
17, 2009, analog broadcasting cutoff deadline, and
viewers of these stations who wish to continue receiving
these analog broadcasts as well as the new digital
signals after the February 17, 2009 deadline may choose
to get a converter box that includes an analog signal
pass through feature. When the Coupon Program
regulations were issued, NTIA asked manufacturers to
take this into consideration in the development of
certified converter boxes. At the same time,
NTIA asked manufacturers interested in including this
feature to investigate options that would provide an
acceptable analog signal pass through with minimal
signal loss. On February 5, 2008, I sent a letter
to each of the prospective converter box manufacturers
involved in the certification process to once again
encourage them to consider the needs of all viewers,
including the viewers of Class A, low-power television,
and television translator stations, in the development
of converter boxes for the Coupon Program. Currently,
NTIA has certified seven boxes with an analog pass-through
capability, and several more are in the testing process
of becoming certified. NTIA highlights boxes
with this feature on the Program’s website and
in consumer mailings with the coupons. In addition,
NTIA has sent helpful information to operators of Class
A, low-power television and television translator stations
so that they can inform their viewers of the options
they have regarding the digital transition.
Congress set aside a total of $75 million in auction
proceeds to fund two grant programs that will assist
eligible Class A, low-power television, and television
translator stations to make the transition as quickly
and smoothly as possible. The Low-Power Television
and Translator Digital-to-Analog Conversion Program
will provide $1,000 to eligible low-power stations
that must purchase a digital-to-analog conversion device
to convert the incoming digital signal of a full-power
television station to analog for transmission on the
low-power station’s analog channel. To date,
213 grants have been awarded under this program. Applications
will be accepted until February 17, 2009.
Of course, stations that operate at less than full
power will eventually convert to digital broadcasts. The
Low-Power Television and Television Translator Upgrade
Program established by Congress directs NTIA to assist
this effort through a program that provides $65 million
for equipment upgrades to stations in eligible rural
communities. To implement this program in a timely
manner, a technical correction to the program authorization
is required to permit the agency to begin making funds
available during fiscal year 2009. S. 2607, which
Senator Snowe has introduced, would make this correction. NTIA
will continue to work with the FCC, industry and the
broadcast community to assist low-power television
stations and their viewers during the transition to
digital broadcasting.
As the Coupon Program moves forward, NTIA will continue
to address challenges and work diligently to resolve
issues that arise. For example, NTIA is currently
looking at concerns about program eligibility, including
for residents of nursing homes and applicants who use
a post office box. NTIA is finalizing proposed
rule changes and expects to release a Notice of Proposed
Rulemaking in near future. Changes to the rule,
at this stage, will pose challenges for the Program,
but we will meet those challenges.
Thank you again for this opportunity to testify before
you today. I will be happy to answer your questions.
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Click or call for coupons:
1-888-388-2009
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