Demand for TV converter coupons raises supply fears

In less than two months, television broadcasters will go all-digital, permanently shutting off the traditional analog signals they’ve relied on for more than half a century.

Government officials say that means TV watchers should immediately order coupons for the digital converter boxes they’ll need to keep watching those sets with antennas.

Viewers in about 14 million U.S. households watch television over an analog signal. Each of those households will need to install a converter box -- a small set-top device that converts digital broadcasts into analog so older TVs can still get a picture.

Orders for the boxes hit record highs over the weekend, rising 30% over the previous weekend. Now some in Congress are worried that the increased demand could lead to delays in getting the coupons to consumers.

Compared with the alternatives of subscribing to cable or satellite service, or buying a digital TV, getting a converter box with a government-sponsored coupon is much cheaper.

But even before the surge in requests, mail delivery of the coupons was taking as long as four weeks. Government officials are urging consumers to order the vouchers now to get them before the Feb. 17 shut-off date.

Rep. Edward J. Markey (D-Mass), chairman of the House Subcommittee on Telecommunications and the Internet, said last week that “it is becoming increasingly clear that at minimum, Congress may need to quickly pass additional funding for the converter box program in early January to prevent any delay in coupon availability or issuance.”

Congress originally allocated $1.5 billion to provide $40 vouchers to help offset the cost of the converters, which cost $50 to $80. Markey said that “lingering consumer confusion” about the transition and a possible shortage of converter boxes could threaten the transition’s success.

Consumers have requested 44 million coupons, and they have redeemed nearly 18 million. The coupons can be ordered until March 31, or as long as supplies last, according to the National Telecommunications and Information Administration, a Commerce Department agency that is running the coupon program. The agency said last week that it might need additional funds to ensure enough coupons were available in time for the transition.

Each household is eligible to order two $40 coupons, which expire after 90 days. Unredeemed coupons are supposed to be redistributed to other households. But as demand increases, some consumers could find themselves on a waiting list until funds from unredeemed coupons become available. That means some viewers who rely on antennas to receive TV signals may not get coupons before the transition takes place.

At a Best Buy store in Alexandria, Va., converter box sales dropped off during the holidays as consumers focused more on gift items such as game consoles and laptops, store manager Luis Castillo said.

“But now they’re reminding themselves of the switch and traffic is starting to pick back up,” he said. “A good amount of people are choosing to stay with the TV they have because there’s nothing wrong with it,” he said, adding that others are using the digital transition as an excuse to upgrade to a flat-screen TV.

Castillo said antennas have also been selling well, especially flat antennas that are not as visible as the traditional “rabbit ears.”

In addition to a converter box, some TV watchers may need to get a more powerful antenna to receive the digital signals, according to the Federal Communications Commission. Digital signals do not travel as far as analog signals, and viewers in hilly or rural areas could have trouble tuning in. An analog picture gets fuzzier as signals get weaker, but digital signals either come in clearly or not at all. So viewers on the edge of a TV station’s coverage area could lose the picture.

And stations are not required to replicate existing analog coverage areas with digital broadcasts. In a report released last week, the FCC said 196, or 11%, of the nation’s 1,749 full-power stations will have a signal that reaches at least 2% fewer viewers than their current analog signals. The rest are expected to reach more people after the transition.

To order a coupon, visit https:// www.dtv2009.gov/ “> www.dtv2009.gov/ or call (888) DTV-2009.

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Hart writes for the Washington Post.