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US: Digital switchover coupon fund runs dry

The program set up by the US Government to provide $40 coupons to assist in the switchover to digital television in America has this week run out of money and has sparked calls for the switchover to be delayed.   Mainland America is set to switchover in 40 days, while Hawaii will switchover next week.

The program, which provides redeemable coupons for low-tech converter boxes in order to assist in the financial burden of converting to digital has issued over 30 million coupons but only 18 million have been redeemed within 90 days of the coupons issue.   The financial status of the program was questioned late last year in a US Congress hearing into the Digital Television switchover, where the hearing was told that money was expected to run out sooner then the February 17th changeover date.

The National Telecommunications and Information Administration who are operating the program are directing applicants to either buy a converter box without a coupon, place their name of a waiting list and wait until after switchover to potentially receive a coupon (subject to further funding approval by Congress), have digital cable or satellite installed or to upgrade their analog cable service.

The Consumers Union have written to the chair of the Congress hearings asking that the date for switchover be delayed to an as yet undetermined time, stating that not enough money is being made available for both the coupon program but for other programs to encourage conversion:

Consumers need assistance to navigate the transition at the lowest cost possible. Although the Federal Communications Commission (FCC) announced yesterday $8.4 million in grants to 12 grassroots groups, we are concerned the timing and level of funding for on-the-ground education is inadequate. To put the announcement yesterday into context, the United Kingdom is spending close to $400 million to educate a population one-fifth the size of the U.S. about its digital broadcast transition.

Any delay may be unlikely, with the auction of previously analog television spectrum expected to net the Government over $19 billion

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