DTV Converter Box Eligibility Rules Await NTIA Interpretation

The law aims to promote broad availability of converter boxes at low prices. But NTIA must fulfill its charge without stifling product innovation or consumer choice. Vouchers can be redeemed toward purchase of a converter box defined as a stand-alone device “that does not contain features or functions except those necessary” to display DTV images on a legacy analog set. The bill says the box may include a remote control, but it’s silent on what else may or may not be included to qualify it for the program. For example, if a box provides for an electronic program guide, would that void its eligibility for voucher purchases, even if the box’s cost is on par with others lacking EPG functionality?

Observers noted that when MSTV and NAB chose LG and Thomson to build a prototype low-cost converter box, they required that the box be operable using an included remote control, as the law specifies. But MSTV and NAB set other requirements they considered basic to retrofitting a legacy analog TV set for over-the-air DTV reception but not spelled out in the legislation. These include that the box: (1) Be PSIP-compliant. (2) Have a “friendly” menu guide. (3) Comply with closed captioning, EAS and parental controls. (4) Include a detachable antenna and a “smart” external antenna interface and interconnect cables. As long as any box has a low cost and is widely available, it’s presumed NTIA would have little trouble accepting it with added functionality beyond simple DTV reception and a remote control. But its rules will need to spell that out.

There’s speculation NTIA, to protect the voucher program, will retain rights, not yet specified, to audit retailer activity when consumers take vouchers to stores. Charged in the law with administering the program and allocated $100 million for that, NTIA will want to be sure the $40 vouchers aren’t redeemed toward purchase of $150 converter boxes with built-in PVRs, disc drives or other frills. That would be defy the legislation’s intent to promote availability of boxes for the disenfranchised at $50 or less, officials said.

Thomson -- a key supplier of converter boxes -- plans to work closely with the NTIA to make sure consumers “get maximum functionality within the spirit and the letter of the law,” Vp David Arland told our affiliate Consumer Electronics Daily. “While the bill itself doesn’t set a dollar limit on the retail price of a set-top box eligible for the subsidy, I think everyone understands what Congress is contemplating. This is not a one-horse ride.”

Arland said a wide variety of set-top boxes will be available to consumers the next 3 years, before the analog service goes dark. He said Thomson showed 3 examples at CES: (1) A “no frills” RCA-brand box ideal for simple reception of ATSC and conversion to analog display. (2) A more advanced model that receives NTSC and ATSC and would be “ideal as a signal source for desktop computers.” (3) An innovative Jensen-brand laptop receiver designed to turn a laptop into a digital TV capable of receiving ATSC, NTSC and FM radio broadcasts. All 3 could be introduced this year, Arland said. Thomson also continues to work with MSTV and NAB on their set- top platform, with a design built to the broadcaster’s specifications, he said.