Department of Commerce to fund billion-dollar upgrade of old TV sets

Analog TVs will no longer receive a signal come Feb. 19, 2009, unless users update their hardware to receive a digital signal.

Federal officials announced details Monday about how that transition will work, saying the government will help consumers buy the necessary equipment to upgrade to digital — a converter box that attaches to the TV set.

The Department of Commerce’s National Telecommunications and Information Administration (NTIA) said it is setting aside $990 million to pay for the boxes. Each home can request up to two $40 coupons for a digital-to-analog converter box, which consumer electronics makers such as RCA and LG plan to produce. Prices for the box have not been determined, but industry and consumer groups have estimated they will run $50 to $75 each.

“Besides our own consumer education efforts, NTIA is working with partners such as broadcasters, consumer electronics retailers, manufacturers and consumer organizations to reach out to those most in need of the coupon program,” said the telecommunication administration’s Assistant Secretary for Communication and Information John Kneuer. “We welcome partners and ask that interested parties contact our office at (202) 482-6260 to learn how they can help inform the public about the coupon program.”

[Ellen Lee, Chronicle Staff Writer: San Francisco Chronicle, March 13, 2007]

Via Slashdot.

“It’s way different in Germany”

I would be suspectful of any kind of voucher system that ties my location and other personal information to my presumed consumption of digital television.

Of course this a data mining dream come true, but there is another factor. Granting licenses (FCC->Broadcaster) in Germany has the following outcome: There is a “company” known as the GEZ (Gebühreneinzugszentrale) that regulates Joe Public’s consumption of the media (radio, television, computer with internet) and demands a monthly payment of fees from Joe Public. This money then trickles down to the media distributors. No, pay -> go to court. Pay fine, pay fee.

[dantho: Slashdot]

Amusing Ourselves to Death

RCA and LG are foreign (French and S Korean, respectively) corporations with $BILLIONS in marketing budgets. Yet the US government wants to give a $BILLION of our tax money to them in direct subsidies for a new product, which will cost more than the coupon, so therefore even more profit for them.

Which will serve to keep even more Americans with analog TVs, instead of the digital ones that actually exploit the services for which our taxes already subsidize (for $BILLIONS more) TV broadcasters and content producers.

While our country is $TRILLIONS in unsupportable debt. Mostly because we watch too much TV.

[Doc Ruby: Slashdot]

Not Entirely Irrational

Consider:
1. The FCC controls airwave licenses.
2. A significant number of people out there do not have the means, or rightfully refuse to upgrade to a television capable of decoding over the air digital signals.
3. A significant number of people out there do not have the mans, or rightfully refuse to purchase cable and/or satellite service, yet they continue to watch TV via over the air signals.
4. Eliminating analog over the air signals will open up gobs of frequencies for other uses; including 2-way communications, IP communications, and more digital channels, both TV and radio.
5. Finally, $990 million is _nothing_ compared to how much auctioning off the new spectrum will generate in revenue for the FCC. The last auction generated something like $40 billion; $990 million in order to generate good will among the populace, and ensure that the working class (working poor) does not get cut off from their TV, is a win-win.

If the government didn’t have a plan like this, most likely the analog over-the-air signals would end up continuing. This is a *bad* thing, as that spectrum is very valuable, and being used inefficiently.

Is this government intervention? Yes, of course it is. Unfortunately, this is a situation that libertarian’s like myself have to learn to handle delicately, because it involves an actual *public* good, that being frequency spectrum.

[WhiteWolf666: Slashdot]