McCain DTV Conversion Bill Slates $1 Billion for Converter Boxes
Senate Commerce Committee Chmn. McCain (R-Ariz.) will propose a $1 billion subsidy for DTV converter boxes when the Committee takes up new legislation designed to set a 2009 deadline for broadcasters to vacate the analog spectrum. The Commerce Committee is scheduled to mark up the bill Wed. The bill relies on estimates that auction proceeds from that portion of the 700 MHz band of spectrum could net the govt. $30-$70 billion and quotes both testimony from FCC Chmn. Powell and New America Foundation figures.
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“NAB will oppose the bill on grounds that tens of millions of Americans could potentially lose access to their local TV stations,” an NAB spokesman said. The bill is called: “Spectrum Availability for Emergency Response and Law Enforcement to Improve Vital Emergency Service Act” -- the “SAVE LIVES Act.”
The bill directs the Dept. of Homeland Security (DHS) to study public safety communications, including: (1) The need for additional spectrum allocation. (2) The ability of public safety entities to utilize wireless broadband applications. (3) The communications capabilities of first receivers such as hospitals. DHS would have one year to complete the study.
The bill also would create a program in DHS to address interoperability. DHS would house the program, to address federal, state, tribal and local first responders, and coordinate the program along with the Justice Dept. Office of Science and Technology and any other federal programs. The program would: (1) Research development of a communications system architecture that would ensure interoperability. (2) Support development and promote mutually compatible standards for interoperability. (3) Develop a model strategic plan that could be used by any state. DHS would be given $22.1 million to carry out the program. The bill is also likely to authorize funds for DHS that would go toward public safety and equipment and training.
In creating the $1 billion Digital Transition Program, the bill would make eligible for the subsidies both digital-to-analog converter devices and conversion equipment needed for multichannel video programming. It would give priority to lower income households that rely exclusively on over-the-air TV broadcasts. The bill also stresses that the program be technologically neutral and conducted with low administrative costs. An industry source said that with an estimated 73 million TV sets, and an estimated cost of $100 for each converter box, the bill falls short of the money needed to subsidize a conversion.
The bill would set a labeling requirement for analog TV sets sold after Sept. 30, 2005. The label would tell consumers that the TV set can’t pick up DTV signals. The bill would also require sales associates to give a point- of-sale warning. Also, the NTIA director would have to report to Congress on consumer education programs and whether federal funding of consumer programs is warranted.
The bill would require the FCC issue final orders on several issues: (1) By Jan. 2005, DTV signal carriage requirements. (2) By Jan. 2006, DTV broadcaster public interest obligations. (3) By Jan. 2006, DBS carriage of local broadcast signals.
The bill is scheduled for markup Wed., 9:30 a.m., Rm. 253 Russell Bldg.