NTIA’s DTV coupon program ‘faces challenges’ that could affect it...

asking if the agency had concerns about the coupon program, based on GAO’s testimony at an Oct. 17 House Telecom Subcommittee on the DTV transition (CD Oct 18 p7). Since manufacturer and retailer participation in the program is voluntary, there’s much uncertainty about how many will take part, said Mark Goldstein, GAO director for physical infrastructure issues. “Some manufacturer, advocacy, and retailer representatives we contacted expressed concern about consumers’ ability to find participating retailers that are able to redeem coupons and have converter boxes in stock,” Goldstein said. “Furthermore, uncertain demand for the converter boxes, as well as uncertainty about the extent of retailers’ participation in the program, could affect the number of converter boxes that manufacturers produce and the corresponding availability of coupon-eligible converter boxes in stores.” GAO has not evaluated whether NTIA should prepare for “a potential shortfall in program funding,” as Dingell had asked, Goldstein said. NTIA’s contract with IBM requires the contractor to set up an electronic dashboard to monitor “the number of coupons pending, mailed, redeemed, expired and canceled,” Goldstein said. NTIA officials assured GAO “that they will monitor the coupon metrics on the electronic dashboard and use this information to inform the congressional committees if they would need the additional funds,” he said. “They added that this monitoring should help avoid any lapse in depletion of the initial $890 million and receiving the additional funding” that the law provides for if needed, he said. As to Dingell’s question whether the FCC has the statutory authority to convene an inter-agency DTV task force as Commissioner Jonathan Adelstein had called for but Chairman Kevin Martin opposes, Goldstein said the FCC does have that authority under the Federal Advisory Committee Act. “FCC has several federal advisory committees that provide advice and recommendations to the commission on numerous technical, operational and consumer telecommunications issues,” Goldstein said. “All of FCC’s federal advisory committees are discretionary, meaning the committees were not required to be established by law but rather were established by FCC.” The Commerce Department and its NTIA understand the risks of voluntary participation in the coupon program and the hurdles of educating the public about the DTV transition, Commerce Secretary Carlos Gutierrez told GAO Comptroller General David Walker in an Oct. 15 letter that NTIA released Friday. “But the solution is not the establishment of a digital transition czar or single government-mandated message,” Gutierrez said. CE retailers have begun “making important commitments” to the coupon program, he said, citing RadioShack’s announcement at NTIA’s Sept. 25 workshop that all its 4,400 stores will carry coupon-eligible boxes. Best Buy, Circuit City and Target since have also vowed to take part. “NTIA’s own efforts will largely be directed at educating the public about the availability of coupons to assist with the purchase of converter boxes, if needed,” Gutierrez said.