Washington, D.C.
(February 3, 2007)
-- The federal government's proposed subsidy for a
Digital TV converter box will not cover the entire cost
of the set-top.
That's according to John Kneuer, the federal official who's overseeing the U.S. transition from analog to Digital TV, which will take place on February 17, 2009.
If Kneuer is right, every American who wants a set-top that will convert the new digital signals so they can play on old analog TVs in 2009 will have to spend at least $10-35 of their own money.
Otherwise, they will have to buy a new Digital TV and/or subscribe to a cable or satellite service to continue to watch TV.
That's according to John Kneuer, the federal official who's overseeing the U.S. transition from analog to Digital TV, which will take place on February 17, 2009.
If Kneuer is right, every American who wants a set-top that will convert the new digital signals so they can play on old analog TVs in 2009 will have to spend at least $10-35 of their own money.
Otherwise, they will have to buy a new Digital TV and/or subscribe to a cable or satellite service to continue to watch TV.
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The federal government last year passed a Digital TV transition law which includes $1.5 billion in subsidies for the converter boxes. But the subsidy will likely only be $40 while the boxes are expected to cost between $50 and $75. In addition, the $1.5 billion is not expected to be enough to cover everyone's needs.
Kneuer, assistant secretary of commerce and head of the National Telecommunications & Information Association, discusses the Digital TV transition tonight at 6:30 p.m. ET on C-SPAN's new series, Communicators.
"It was explicitly contemplated that the $40 would be toward the purchase price and there would likely be a requirement for consumers to make some sort of payment on their own," Kneuer says on the program.
During the show, Kneuer also suggests there will not be a "means test" for the converter boxes. That means that low-income residents may not get special consideration in applying for the subsidy.
Kneuer's agency recently submitted rules for the subsidy program to the Office of Management and Budget. Asked on C-SPAN whether the rules would include a means test for low-income residents, he said the transition will affect "a broad cross-section of Americans...and that to the extent possible, they should be eligible."
Click TVPredictions.com to see today's Swanni Sez.
© TVPredictions.com
____________________________________________
The federal government last year passed a Digital TV transition law which includes $1.5 billion in subsidies for the converter boxes. But the subsidy will likely only be $40 while the boxes are expected to cost between $50 and $75. In addition, the $1.5 billion is not expected to be enough to cover everyone's needs.
Kneuer, assistant secretary of commerce and head of the National Telecommunications & Information Association, discusses the Digital TV transition tonight at 6:30 p.m. ET on C-SPAN's new series, Communicators.
"It was explicitly contemplated that the $40 would be toward the purchase price and there would likely be a requirement for consumers to make some sort of payment on their own," Kneuer says on the program.
During the show, Kneuer also suggests there will not be a "means test" for the converter boxes. That means that low-income residents may not get special consideration in applying for the subsidy.
Kneuer's agency recently submitted rules for the subsidy program to the Office of Management and Budget. Asked on C-SPAN whether the rules would include a means test for low-income residents, he said the transition will affect "a broad cross-section of Americans...and that to the extent possible, they should be eligible."
Click TVPredictions.com to see today's Swanni Sez.
© TVPredictions.com

