Gregg Lengling
06-04-2004, 11:55 AM
In an effort to speed up the transition to digital TV technology, federal lawmakers indicated today that they are giving serious consideration to subsidizing the acquisition of digital converters for millions of analog television sets-a move that industry sources said could cost the U.S. Treasury billions of dollars.
The lawmakers didn't spell out exactly how many of the almost 300 million analog TV sets currently in U.S. homes would qualify for the subsidies. But at congressional hearings today, Rep. Joe Barton, R-Texas, the influential chairman of the House Energy and Commerce Committee, suggested that any federal payments be limited to low-income Americans. He also said the payment plan could clear the way for setting a firm DTV transition deadline as early as the end of 2006.
At the hearings, Gary Shapiro, president and CEO of the Consumer Electronics Association, said digital-to-analog converters currently cost anywhere from $200 to $400, but that the price could drop to less than $100 when manufactured in volume.
Industry sources said there are 80 million analog TV sets in the United States that aren't hooked up to cable or satellite. So at the $100 price, it would cost the government $8 billion to subsidize converters for the broadcast-only sets alone. A controversial plan by the Federal Communications Commission could eliminate more than 70 million analog sets currently hooked up to cable from the universe of 300 million sets needing converters by clearing the way for cable operators to downconvert broadcast digital signals to analog at system headends.
The FCC proposal, though vehemently opposed by broadcasters, received positive reviews from some key lawmakers at today's hearings. "I am intrigued so far by what I have heard of the proposal," Rep. Barton said.
Rep. Fred Upton, R-Mich., said, "This proposal brings a lot to the table."
The lawmakers didn't spell out exactly how many of the almost 300 million analog TV sets currently in U.S. homes would qualify for the subsidies. But at congressional hearings today, Rep. Joe Barton, R-Texas, the influential chairman of the House Energy and Commerce Committee, suggested that any federal payments be limited to low-income Americans. He also said the payment plan could clear the way for setting a firm DTV transition deadline as early as the end of 2006.
At the hearings, Gary Shapiro, president and CEO of the Consumer Electronics Association, said digital-to-analog converters currently cost anywhere from $200 to $400, but that the price could drop to less than $100 when manufactured in volume.
Industry sources said there are 80 million analog TV sets in the United States that aren't hooked up to cable or satellite. So at the $100 price, it would cost the government $8 billion to subsidize converters for the broadcast-only sets alone. A controversial plan by the Federal Communications Commission could eliminate more than 70 million analog sets currently hooked up to cable from the universe of 300 million sets needing converters by clearing the way for cable operators to downconvert broadcast digital signals to analog at system headends.
The FCC proposal, though vehemently opposed by broadcasters, received positive reviews from some key lawmakers at today's hearings. "I am intrigued so far by what I have heard of the proposal," Rep. Barton said.
Rep. Fred Upton, R-Mich., said, "This proposal brings a lot to the table."