May 27, 2005

Yesterday, Democrats on the House telecommunications subcommittee bemoaned the lack of a subsidy for consumers who have not purchased either digital TV sets or who receive their TV signals from satellite or cable in a House Republican draft of a bill that would set the completion of the DTV transition at January 1, 2009.

"On New Year's Day 2009, the government will still be in the red even as American TVs go black," said Rep. Edward Markey (D-Mass.), ranking member of the House telecommunications subcommittee.

"If you are one of the millions of American consumers to have an analog TV clicker in one hand, you better have your other hand on your wallet, because the government is coming for both."

Markey and his fellow Democrats are unhappy that the DTV transition was being handled as part of the budget process.

The House Commerce Committee has been tasked with coming up with $4.8 billion to help reduce the federal budget deficit.

At least one Republican, Rep. Barbara Cubin (R-Wyo.), also said a subsidy was necessary because "single mothers and low-income Americans have other pressing needs than paying $50 for their TV signals."

In 1997, Congress said that in 2007, broadcasters would have to return the extra 6 megahertz of spectrum in the 700 MHz band given to TV broadcasters to facilitate the DTV transition.

But TV broadcasters could keep the spectrum if more than 15 percent of the homes in their viewing areas could not receive digital signals. Removing the caveat has become known as establishing a hard date and has been widely encouraged by the wireless industry, which wants access to some of the spectrum.

The DTV bill would also require TV manufacturers to place warning labels on analog-only sets and the FCC to begin a consumer-education campaign.

Rep. Joe Barton (R-Texas), chairman of the House Commerce Committee, made news last year when he said he wants to consider a "Berlin" subsidy to help complete the DTV transition.

When Berlin switched to DTV, the government subsidized the purchases of set-top boxes for low-income TV viewers who had not purchased DTVs.

Barton said Thursday he continues to support a limited subsidy that is "means tested with limited impact on the treasury."

Source: RCR News