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House Passes Bill Delaying Digital TV Switchover

The House of Representatives came to its collective senses and passed a bill delaying the switch from analog to digital television signals until June, 2009. President Obama is expected to sign the bill soon.
The U.S. switch to digital television signals will be delayed four months until June under legislation that cleared Congress on Wednesday and now goes to President Barack Obama for his signature into law. Obama supports the delay, sharing concerns that 20 million mostly poor, elderly and rural households were not ready for the congressionally mandated switch. The bill delaying the changeover to June 12 from Feb. 17 cleared the U.S. House of Representatives in a 264-158 vote and followed Senate passage last month.

About 13 million people hold expired $40 coupons the government was providing to offset the costs of converter boxes needed for older televisions, according to Consumers Union. The government ran out of coupons last month and millions of requests for coupons are pending. "We believe it is irresponsible to ask mostly rural, or elderly consumers to reach into their own pockets to deal with this transition when many folks, including the federal government, are making a profit," said Joel Kelsey, a policy analyst at Consumers Union.

Airwaves to be vacated by television broadcasters after the switch were purchased mostly by AT&T Inc (T.N) and Verizon Communications Inc (VZ.N) in an auction that raised about $19 billion for the U.S. government. Both companies agreed to a short one-time delay and their licenses will be extended under the bill.
Now those 20 million people will have four months to either find a way to afford cable, or get a converter box so that their old tv sets can read the new digital signal. No word yet as to whether the government will honor the now-expired converter box coupons or if they will just print more coupons. That won't be cheap, because the coupon program ran out of money.

Posted on February 4, 2009





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