- STATUS OF THE DTV TRANSITION: 370 DAYS AND COUNTING

House Hearing, 110 Congress] [From the U.S. Government Publishing Office] STATUS OF THE DTV TRANSITION: 370 DAYS AND COUNTING ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON TELECOMMUNICATIONS AND THE INTERNET OF THE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED TENTH CONGRESS SECOND SESSION ---------- FEBRUARY 13, 2008 ---------- Serial No. 110-88 Printed for the use of the Committee on Energy and Commerce energycommerce.house.gov STATUS OF THE DTV TRANSITION: 370 DAYS AND COUNTING STATUS OF THE DTV TRANSITION: 370 DAYS AND COUNTING ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON TELECOMMUNICATIONS AND THE INTERNET OF THE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED TENTH CONGRESS SECOND SESSION __________ FEBRUARY 13, Expose exciting promotional deals at TobeCoupon 2008 __________ Serial No. 110-88 Printed for the use of the Committee on Energy and Commerce energycommerce.house.gov ---------- U.S. GOVERNMENT PRINTING OFFICE 55-219 PDF WASHINGTON : 2010 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 COMMITTEE ON ENERGY AND COMMERCE JOHN D. DINGELL, Michigan,Chairman HENRY A. WAXMAN, California JOE BARTON, Texas EDWARD J. MARKEY, Massachusetts Ranking Member RICK BOUCHER, Virginia RALPH M. HALL, Texas EDOLPHUS TOWNS, New York J. DENNIS HASTERT, Illinois FRANK PALLONE, Jr., New Jersey FRED UPTON, Michigan BART GORDON, Tennessee CLIFF STEARNS, Florida BOBBY L. RUSH, Illinois NATHAN DEAL, Georgia ANNA G. ESHOO, California ED WHITFIELD, Kentucky BART STUPAK, Michigan BARBARA CUBIN, Wyoming ELIOT L. ENGEL, New York JOHN SHIMKUS, Illinois ALBERT R. WYNN, Maryland HEATHER WILSON, New Mexico GENE GREEN, Texas JOHN B. SHADEGG, Arizona DIANA DeGETTE, Colorado CHARLES W. ``CHIP PICKERING, Vice Chairman Mississippi LOIS CAPPS, California VITO FOSSELLA, New York MIKE DOYLE, Pennsylvania STEVE BUYER, Indiana JANE HARMAN, California GEORGE RADANOVICH, California TOM ALLEN, Maine JOSEPH R. PITTS, Pennsylvania JAN SCHAKOWSKY, Illinois MARY BONO, California HILDA L. SOLIS, California GREG WALDEN, Oregon CHARLES A. GONZALEZ, Texas LEE TERRY, Nebraska JAY INSLEE, Washington MIKE FERGUSON, New Jersey TAMMY BALDWIN, Wisconsin MIKE ROGERS, Michigan MIKE ROSS, Arkansas SUE WILKINS MYRICK, North Carolina DARLENE HOOLEY, Oregon JOHN SULLIVAN, Oklahoma ANTHONY D. WEINER, New York TIM MURPHY, Pennsylvania JIM MATHESON, Utah MICHAEL C. BURGESS, Texas G.K. BUTTERFIELD, North Carolina MARSHA BLACKBURN, Tennessee CHARLIE MELANCON, Louisiana JOHN BARROW, Georgia BARON P. HILL, Indiana ______ Professional Staff Dennis B. Fitzgibbons,Chief of Staff Gregg A. Rothschild,Chief Counsel Sharon E. Davis,Chief Clerk David L. Cavicke,Minority Staff Director (ii) Subcommittee on Telecommunications and the Internet EDWARD J. MARKEY, Massachusetts,Chairman MIKE DOYLE, Pennsylvania FRED UPTON, Michigan Vice Chairman Ranking Member JANE HARMAN, California J. DENNIS HASTERT, Illinois CHARLES A. GONZALEZ, Texas CLIFF STEARNS, Florida JAY INSLEE, Washington NATHAN DEAL, Georgia BARON P. HILL, Indiana BARBARA CUBIN, Wyoming RICK BOUCHER, Virginia JOHN SHIMKUS, Illinois EDOLPHUS TOWNS, New York HEATHER WILSON, New Mexico FRANK PALLONE, Jr., New Jersey CHARLES W. ``CHIP PICKERING, BART GORDON, Tennessee Mississippi BOBBY L. RUSH, Illinois VITO FOSELLA, New York ANNA G. ESHOO, California GEORGE RADANOVICH, California BART STUPAK, Michigan MARY BONO, California ELIOT L. ENGEL, New York GREG WALDEN, Oregon GENE GREEN, Texas LEE TERRY, Nebraska LOIS CAPPS, California MIKE FERGUSON, New Jersey HILDA L. SOLIS, California JOE BARTON, Texas (ex officio) JOHN D. DINGELL, Michigan (ex officio) C O N T E N T S ---------- Page Hon. Edward J. Markey, a Representative in Congress from the State of Massachusetts, opening statement...................... 1 Hon. Cliff Stearns, a Representative in Congress from the State of Florida, opening statement.................................. 3 Hon. Jane Harman, a Representative in Congress from the State of California, opening statement.................................. 4 Hon. Bart Stupak, a Representative in Congress from the State of Michigan, opening statement.................................... 5 Hon. Lois Capps, a Representative in Congress from the State of California, opening statement.................................. 6 Hon. Hilda Solis, a Representative in Congress from the State of California, opening statement.................................. 7 Hon. John D. Dingell, a Representative in Congress from the State of Michigan, opening statement................................. 8 Prepared statement........................................... 9 Hon. Anna G. Eshoo, a Representative in Congress from the State of California, opening statement............................... 10 Prepared statement........................................... 11 Hon. Gene Green, a Representative in Congress from the State of Texas, opening statement....................................... 11 Witnesses Kevin J. Martin, Chairman, Federal Communications Commission, Washington, DC................................................. 13 Prepared statement........................................... 17 Answers to submitted questions............................... 198 Meredith Baker, Acting Assistant Secretary for Communications and Information, Department of Commerce, Washington, DC............ 37 Prepared statement........................................... 39 Answers to submitted questions............................... 191 Ronald J. Bruno, President, Community Broadcasters Association, President, Bruno-Goodworth Network, Inc., Pittsburgh, Pennsylvania................................................... 68 Prepared statement........................................... 70 Answers to submitted questions............................... 194 Kyle McSlarrow, President and CEO, National Cable & Telecommunications Association, Washington, DC................. 71 Prepared statement........................................... 73 Answers to submitted questions............................... 316 David K. Rehr, President and CEO, National Association of Broadcasters, Washington, DC................................... 79 Prepared statement........................................... 81 Answers to submitted questions............................... 320 Chris Murray, Senior Counsel, Consumers Union, Washington, DC.... 113 Prepared statement........................................... 115 Tom Romeo, Director, Federal Services, Global Business Service, IBM Corporation, Bethesda, Maryland............................ 119 Prepared statement........................................... 120 Laurance Harris, Vice President of Merchandising, RadioShack, Fort Worth, Texas.............................................. 122 Prepared statement........................................... 124 Mark Jackson, President, Echostar Technologies Corporation, Englewood, Colorado............................................ 134 Prepared statement........................................... 135 Answers to submitted questions............................... 318 Submitted Material Graph entitled ``Coupon Statistics............................. 146 LPTV station list................................................ 152 Coupon Eligible Converter Boxes (CECB), list of.................. 189 STATUS OF THE DTV TRANSITION: 370 DAYS AND COUNTING WEDNESDAY, FEBRUARY 13, 2008 House of Representatives, Subcommittee on Telecommunications and the Internet, Committee on Energy and Commerce, Washington, DC. The subcommittee met, pursuant to call, at 9:30 a.m., in room 2123 of the Rayburn House Office Building, Hon. Edward J. Markey (chairman) presiding. Members present: Representatives Markey, Harman, Gonzalez, Inslee, Boucher, Eshoo, Stupak, Green, Capps, Solis, Dingell (ex officio), Stearns, Upton, Deal, Shimkus, Walden, Terry, Barton (ex officio), and Blackburn. Staff present: Amy Levine, Mark Seifert,Tim Powderly, Maureen Flood, Colin Crowell, David Vogel, Philip Murphy, Neil Fried, Courtney Reinhard, and Garrett Golding. OPENING STATEMENT OF HON. EDWARD J. MARKEY, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MASSACHUSETTS Mr. Markey. Good morning, ladies and gentleman, and before I start I just want to note for the members that last night Congressman Pickering and I introduced legislation to preserve Internet freedom for consumers and innovators. It is a bill which enshrines the broad principles of openness and safeguarding the Internet's vital role in our economy. It tasks the FCC with conducting an assessment of broadband practices and consumer rights including public hearings and a report back to Congress. We would welcome members who wish to co-sponsor to join us in this bipartisan initiative. Today we are 370 days away from a significant milestone in the history of television. This morning's hearing will give us an important status check on our progress towards a successful consumer friendly transition. The government's coupon program has begun and already this year some 2.5 million consumers have requested coupons toward the purchase of converter boxes valued at roughly $190 million. Retailers are stocking such converter boxes on shelves for coupon redemption imminently. The broadcasting cable industries have stepped up to air public service announcements and engage in consumer outreach as well. The details of the national plan to effectuate this transition were embodied in a budget act in the last Congress and were not endorsed by many members on the Democratic side of the aisle, including myself and Chairman Dingell. Nevertheless, we are committed to trying to make this plan work. Toward that goal, this subcommittee intends to continue vigorous oversight of the DTV transition and to work closely with our Republican colleagues to insure success. Today there are several issues at the moment that merit our attention. First, we are eager to be reassured that the converter box program and redemption process is working smoothly. Second, because the signal characteristics of digital transmission and the anticipated geographic coverage area for individual broadcasters are different than for analog television many consumers may not receive the digital version of channels they currently receive after the switch. It is important to know how many such households will be affected by this and the extent to which households may need to adjust or acquire antennas to receive digital signals. Third, there are hundreds of low power television stations and thousands of translators that will not be converting to digital in February of next year. It is still unclear how many communities and how many television households will be affected by this. In addition, only a small percentage of the approved converter boxes permit the so-called pass through of the analog signals so that consumers can easily see both digital and analog television in markets where some broadcasters will convert and others won't. It is vital to insure that steps are taken by the FCC and the NTIA to coordinate on these matters with the affected industries so that the consumer education and outreach efforts effectively guards against widespread consumer confusion in these communities. And finally I want to commend several major retailers for taking action to limit consumer confusion. It has been my concern that analog only televisions remains on the shelves of major retailers and could result in consumers unwittingly purchasing a TV set due to need additional equipment in little over one year. Best Buy has already voluntarily removed its analog inventory from the shelves, and RadioShack is poised to do so by March 1. In addition, I have this announcement to read from Wal-Mart today. ``Although retailers are not prohibited from selling TVs with an analog tuner, Wal-Mart believes it is important consistent with congressional concern and counsel from Chairman Markey to remove the very small number of TVs with an analog tuner from our inventory. This is consistent with Wal-Mart's early commitment to the NTIA converter box program and to otherwise facilitating transition to all digital television broadcasting. We are currently working with return centers and the Wal-Mart Foundation to determine the best way to handle the remaining inventory, which was extremely small, approximately 1/10th of 1 percent of existing television inventory. This statement is effective as of yesterday, so I want to commend Wal-Mart, Best Buy, RadioShack, and other retailers who are taking this welcome step. And I urge all retailers to take the same step and to take it immediately so the consumers are not misled that the television set, the analog television set, that they may be buying will work next year without additional help. Again, we have many issues to discuss and examine, and I want to thank all of our witnesses for their willingness to attend this hearing, and I look forward to their testimony. And now I will turn and recognize the ranking member of the Telecommunications and the Internet Subcommittee, the gentleman from Florida, my good friend, Mr. Stearns. OPENING STATEMENT OF HON. CLIFF STEARNS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF FLORIDA Mr. Stearns. Thank you, Mr. Chairman, and I am pleased to be here as the ranking member and I always look forward to working with you. I hope with this net neutrality bill that you adopted will have many hearings to vet the language so we can all understand how it is enshrined. So we will look forward to that. I think by setting the date of February 17, 2009, as the date for full power broadcasters to transmit exclusively the digital format, the DTV legislation gave industry I think the needed incentives to prepare for the transition. And I think the results, as you briefly mentioned, are working well. With over a year to go manufacturers have already designed 37 coupon-eligible converter boxes. The NTIA has certified 250 retailers with a total of 15,000 stores ready to accept these coupons. Consumers have requested almost 5 million coupons suggesting awareness is not necessarily a big problem. The National Telecommunication and Information Administration will start sending coupons to consumers next week, and RadioShack, Best Buy, Circuit City, and Wal-Mart have already announced they are ready to accept them. A Consumer Electronics Association survey of 2,000 U.S. adults indicates consumer awareness of the transition has grown 80 percent since the year 2006. According to the CEA survey, the joint educational efforts of government and the private sector are working, and the digital television transition will be a success. CEA's research revealed that the top sources consumers are using to learn about the transition includes television, about 72 percent, family and friends, about 40 percent, and the Internet about 25 percent. This shows that the educational campaigns by the industry and the government are working indeed. The National Association of Broadcasters has spent more than $1 billion on a comprehensive consumer education drive. Included in their campaign are public service announcement in both English and Spanish, DTV messages running across programming on local stations, and a media blitz to promote the DTV transition. Cable operators have launched a $200 million public education campaign and committed to carrying both the analog and digital signals of both a full power commercial must carry broadcasters for 3 years to help smooth the DTV transition. My colleagues, these examples demonstrate that a market based approach works. All these groups and many others should be commended for their efforts. The benefits of the DTV transition extends far beyond that of clearer pictures and more choices about what program to watch. The real benefits will come from what is done with the radio spectrum once the TV broadcasters are cleared including providing public safety with the resources they need to insure reliable, interoperable communications now and into the future. Although the number of people using over the air signal is decreasing there still needs to be in place a system to help consumers who may wish to use analog television with over the air antennas after the transition. The DTV legislation gives the NTIA up to $1.5 billion for a digital to analog converter box program. The statute directs DTIA to use $990 million to enable U.S. households to request up to 2 $40 coupons for use towards purchase of converter boxes. If the NTIA certifies to Congress as the program progresses that it needs more money there is available another $510 million. So it is important that we don't make any rash changes today. Doing so will only recreate the uncertainty that was delaying the transition in the first place and preventing us from clearing spectrum for public safety in advance wireless service, the third generation. For example, low power broadcasters are now demanding that NTIA require all converter boxes to include an analog pass through and that the FCC give them must carry rights. Neither is necessary. There are already 4 coupon-eligible converter box with low power pass through features and there is more on the way. The market is taking care of this. Changing the box requirements now by contrast could lead retailers and manufacturers to withdraw from the program altogether, and expanding must carry could force programming off of cable system right as we are going through this very delicate transition. We are much better off keeping the current course and assessing as we move along. Wholesale changes could put the transition in jeopardy, and I don't think any one of us want that. These are important issues, Mr. Chairman. We thank you for this hearing, and I look forward to hearing from our witnesses. Mr. Markey. I thank the gentleman. The chair recognizes the gentlelady from California, Ms. Harman. Ms. Harman. Thank you, Mr. Chairman. I see a former colleague of ours, Ron Klink, in the audience, and I thought I would acknowledge him. And I thank you for holding this hearing on what I believe is a critical subject. I would like to address a few comments to Chairman Martin. Good morning. Mr. Martin. Good morning. OPENING STATEMENT OF HON. JANE HARMAN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA Ms. Harman. Chairman Martin, your appearances before this subcommittee give many of us the chance on a regular basis to tell you what you are doing wrong but today I thought we might acknowledge or I would like to acknowledge what you are doing right. This 700 megahertz auction began on time. It has largely succeeded. And the open access conditions that many of us argued for have stuck. Congratulations. Though the D block, which the commission set aside for a nationwide public safety network has not yet sold and likely will not, something that troubles me greatly, I still think we should applaud you for your boldness in pursuing a multi-faceted plan and that applause obviously extends to the other members of the commission. But as the ranking member just said, and as you know I agree, the point of the DTV transition is not converter boxes. The point of it is to satisfy a 6-year quest for a nationwide public safety broadband network that gives us true interoperable communications for emergency responders. That need has been apparent since 9/11, maybe even before 9/11, and we are not much closer to meeting that need now than we were six years ago. As I often say, we have a regional operability but we do not have national interoperability, and we won't have it until this spectrum becomes available. I think a public-private partnership using 700 megahertz spectrum is still our best hope. I think that the failure of the D block auction if it has failed or if it does fail does not signal the failure of the public-private partnership concept. If the auction ends without a D block winner, I hope that you and we will not only meet informally but then we will have a series of hearings which the chairman has said he will hold to review next steps and to come up quickly with a new plan D. Do I have that right? Not a plan B, a plan D. Mr. Markey. D for do over. Ms. Harman. That is the chairman's humor. D for do over. OK. Whatever we come up with, a new plan to reach true interoperability by the appropriate deadline. The goal should be a new option with a new set of rules that addresses the faults of the current auction but protects public safety's needs. I think we should, as I said, get on with this quickly once we determine for certain what the future, if any, is of the D block part of the auction. The DTV transition must yield a solution to first responders emergency communications needs, not just the budget converter boxes. A nationwide solution is long overdue. We still have time to get it right, and I urge us to get it right. Thank you, Mr. Chairman, I yield back. Mr. Markey. The gentlelady's time has expired. The chair recognizes the gentleman from Texas, Mr. Gonzalez. Mr. Gonzalez. Waive opening. Mr. Markey. The chair recognizes the gentleman from Virginia, Mr. Boucher. The chair recognizes the gentleman from Michigan, Mr. Stupak. OPENING STATEMENT OF HON. BART STUPAK, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MICHIGAN Mr. Stupak. Thank you, Mr. Chairman, for holding this hearing, and thank you for attending the O&I hearing yesterday afternoon. You added to it. Thank you. 370 days from now America will officially stop all of its analog broadcasts for full power television stations but approximately 2,100 low power television stations and 4,700 translator stations will still be broadcast in analog. Many parts of America will be receiving their over the air signals in both analog and digital. This information has not been clearly provided to the American public. Many don't even know that there will be stations that still broadcast in analog, let alone that they need to purchase a specific converter box with an analog pass through or they will lose channels. Out of the 35 converter boxes available on the market only 3 carry this essential component so this makes effective consumer education even more important. Until the morning of this hearing if you want to the National Telecommunications and Information Administration's DTV coupon web site and clicked on the link entitled questions about low power translator stations you viewed a 1-page with 1 sentence stating that ``information about the impact of the digital transition on low power stations coming soon. Conveniently thought I checked and now it has some low power TV information and several options for consumers. This is unacceptable. 1.6 million Americans have already signed up for coupons on this web site, and a valuable opportunity to provide them with key information was missed. Ms. Baker, as head of the NTIA I want to know what you will do in order to improve consumer education. Many of those who will be affected will come from rural districts like mine but many will also come from urban districts. I look forward to learning how you plan to inform my constituents that many of them will need an analog pass through converter box, not just a converter box but a pass through converter box. Chairman Martin, you recently circulated some proposals to be addressed by the FCC later this month regarding satellite providers, and I wanted to focus on one of them, Liberty Media's acquisition of News Corp's stake in DirecTV. In 2004 News Corp acquired DirecTV and pledged to provide local into local carriage in all 210 designated market areas by 2008. Commissioner Adelstein at the time called News Corp pledge to provide universal local to local a sham. Sadly enough, the News Corp efforts to sell their share of DirecTV we are seeing his prediction come true. Satellite subscribers in rural America are tired of being ignored. I urge the FCC to work towards insuring rural television markets are created equally to their urban counterparts. It is time for Congress and the FCC to look at a hard date for mandatory local to local carriage in all 210 designated market areas. I am quite tired of hearing pledges that go unfulfilled. Mr. Chairman, thank you again for holding this hearing. I look forward to the testimony of the witnesses as there are some very important issues we must discuss. Thank you, Mr. Chairman. Mr. Markey. The gentleman's time has expired. The chair recognizes the gentlelady from California, Ms. Capps. OPENING STATEMENT OF HON. LOIS CAPPS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA Ms. Capps. I will be brief, Mr. Chairman. I want to thank you for holding this hearing, and thank you also for your vigilant oversight of the DTV transition which has resulted in a greater focus on consumer concerns and a greater understanding of the challenges we face as we move ahead. Today's hearing promises to be a bit more technical in nature. We will talk about class C television stations, analog pass through, and the technical specs of converter boxes. And I look forward to the testimony of our witnesses and our conversation with them. During this discussion it is my hope we keep sight of the reason we are transitioning to digital television and the reason we are all here today in the interest of the American people. Even as we move toward a single digital signal over our public air waves, we are sending mixed signals to consumers about how they can continue to receive the same local and cultural content. I am particularly concerned about my Spanish-speaking constituents, many of whom enjoy Spanish language channels brought to them via translator or low power stations. These folks may be completely shut out during this transition so I look forward to this testimony, as I said, and the proposals that Chairman Martin and Acting Assistant Secretary Baker will bring us to further discussion about how we can avoid this kind of break down, how will we streamline this transition for low power television stations. I want to also hear more about how and where converter boxes will be made available, some of which had already come from our chairman, what labeling procedures make the best sense for all kinds of consumers. So thank you, Chairman Markey, and to our witnesses today. I yield back. Mr. Markey. The gentlelady's time has expired. The chair recognizes the gentlelady from California, Ms. Solis. OPENING STATEMENT OF HON. HILDA SOLIS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA Ms. Solis. Thank you, Mr. Chairman, and good morning. Thank you also for being here, Commissioner Martin, and Ms. Baker. I want to thank the witnesses for being here that will also be testifying. With just more than a year left before our full power broadcast television stations transition to digital we are learning about the new challenges and must work very hard to address all of these issues. I am particularly concerned, as you know, about the DTV transition along the U.S.-Mexican border. With ample analog Spanish language programming originating in Mexico it is still available. After the transition along the border low cable and satellite penetration and language barriers could leave thousands and thousands of households behind in DTV transition. That is why I am introducing the DTV Border Fix Act to provide full power broadcasters within 50 miles of the U.S.- Mexican border the opportunity to continue analog broadcasts for 5 years after the DTV transition. The bill insures that border area viewers will continue to receive emergency information and use over the U.S. television broadcast system. The bill is limited in scope and would work in cooperation with the FCC so that such broadcasts do not interfere with the public interest or spectrum auctions. I also have concerns about the challenges facing low power TV and how the need for analog pass through boxes can be met for both low power TV and the border region. We need to work together, both the government and the private sector, to make sure that the right boxes are stocked in appropriate areas. In addition, I am concerned about potential problems existing over the air antennas receiving digital television signals. If consumers are to receive fewer channels in digital and even if the picture quality is superior as compared to analog services because of inadequate antennas consumers may be less inclined to transition to DTV and feel they need to subscribe to cable or satellite service. We must make sure that all consumers regardless of their income level continue to receive expected services, so I look forward to hearing your testimony, and again want to hear comments regarding the transition that will occur along the U.S.-Mexican border because I really do believe that we are going to disenfranchise a very large population. And with that, I yield back the balance of my time. Mr. Markey. The gentlelady's time has expired. The chair recognizes the chairman of the full committee, the gentleman from Michigan, Mr. Dingell. OPENING STATEMENT OF HON. JOHN D. DINGELL, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MICHIGAN Mr. Dingell. Mr. Chairman, I thank you for your kindness. I commend you for holding this meeting, which is an important one, on a very important subject, and I commend you for the vigor with which you are going into this matter. I want to begin by welcoming Meredith Baker, who is the new acting head of NTIA. I want to say that I appreciate her willingness to work with the Congress and her leadership and her effort to help achieve a successful transition on digital TV service. This is very important, and quite frankly it represents something of a welcome change in some of the policies we have seen from this Administration, so congratulations and welcome. Mr. Chairman, today we address an issue that is soon going to affect millions of American households, and I commend you for your leadership and vigorousness in this matter. I refer to the digital TV, or DTV, transition. We are just a little over a year away from the end of the transition, at which time a lot of television sets around the country are going to go dark, and much remains to be done. Consumers must be properly educated, and they are not. Both the Federal Communications Commission and a number of industries stand to benefit handsomely from this matter and they all have responsibilities of the most serious sort with regard to these matters. As February 17, 2009 nears, we must learn of new steps that must be taken, and I note that time is running short and the American consuming public has little appreciation of what lies before them. The FCC has recently requested $20 million for DTV consumer education in fiscal year 2009. I still find this amount, however, woefully short and inadequate for an educational campaign that is to reach some 300 million Americans. Chairman Martin has also circulated an order regarding consumer education in response to a letter sent by you, Mr. Chairman, and by me. I commend you for moving forward on this important matter, and I look forward to the cooperation and assistance of Chairman Martin and to hearing from and seeing vigorous agency action on this question. This week, Mr. Chairman, you and I, joined by 19 of our colleagues, sent a letter to NTIA concerning reissuing converter box coupons to consumers whose original coupons have expired. This 90-day coupon expiration date is cause for concern because consumers might not be able to find stores with boxes in stock before the coupons expire. I understand, Ms. Baker, NTIA, along with their vendor, IBM, are working to resolve this problem, and I thank them for their efforts. We must be mindful of the situation confronting low power broadcasters. Only full power broadcasters are required to transition to digital next year. Low power and translator stations may take more time. This means that in some markets some stations will be broadcasting only in digital after February 17, 2009, while other stations will continue to broadcast in analog. This could lead to some very serious complications and complexities. The potential for confusion here appears high for those consumers that acquire a digital converter box and then are not able to receive analog channels. This has the potential for more mischief and confusion. I want to applaud those manufacturers who have included an analog pass through feature in their converter boxes to address this problem, as well as those who are in the process of adding this feature. I urge NTIA to quickly approve these boxes. I also expect low power and translator stations to do their part to educate their viewers about the need to purchase a converter box with analog pass through capabilities, and of course we need those kinds of boxes at an early time. Finally, some of the biggest beneficiaries of the DTV transition are the nation's retailers. The converter box coupon campaign and program will plow more than $1 billion into the stores of eligible retailers. Some consumers will choose to buy new televisions instead of converter boxes and many will purchase other items, such as CDs or video games, while they are in the store using coupons. For retailers, the DTV transition will certainly be profitable. I therefore urge the industry to be vigorous in its efforts to properly educate consumers. I am told as of yesterday that Wal- Mart no longer has analog only televisions on its shelves, and last year Best Buy pulled all analog stock from its stores. RadioShack has agreed to ship converter boxes to consumers free of charge and remove all analog sets from its stores by March 1. I applaud these decisions. They are pro-consumer. I thank you, Mr. Chairman, for your leadership in this matter, and I look forward to the testimony today. Thank you. I yield back the balance of my time. [The prepared statement of Mr. Dingell follows:] Statement of Hon. John D. Dingell Today we again address an issue that will soon affect millions of American households--the digital TV (DTV) transition. We are just over a year away from the end of the transition, and much remains to be done. Consumers must be properly educated. Both the Federal Communications Commission (FCC) and the several industries that stand to benefit handsomely have responsibilities in this regard. As February 17, 2009, nears, we learn of new steps that must be taken, and time is running short. The FCC has recently requested $20 million for DTV consumer education in fiscal year 2009. I still find this amount, however, woefully inadequate for an educational campaign that must reach more than 300 million Americans. Chairman Martin has also circulated an Order regarding consumer education in response to a letter sent by Chairman Markey and me. I commend the Chairman for moving forward on this important matter and look forward to agency action on this question. This week, Chairman Markey and I, joined by 19 of our colleagues, sent a letter to the National Telecommunications and Information Administration (NTIA) concerning reissuing converter box coupons to consumers whose original coupons have expired. The 90-day coupon expiration date is a cause for concern because consumers might be unable to find stores with boxes in stock before their coupons expire. I understand that Ms. Baker and the NTIA, along with their vendor IBM, are working to solve this problem, and I thank them for their efforts. We must be mindful of the situation confronting low power broadcasters. Only full power broadcasters are required to transition to digital next year - low power and translator stations may take more time. This means that in some markets, some stations will be broadcasting only in digital after February 17, 2009, while other stations will continue to broadcast in analog. The potential for confusion appears high for those consumers that acquire a digital converter box and then are not able to receive analog channels. I applaud those manufacturers who have included an analog pass-through feature in their converter boxes to address this problem, as well as those who are in the process of adding this feature. I urge NTIA to quickly approve these boxes. I also expect low power and translator stations to do their part to educate their viewers about the need to purchase a converter box with analog pass-through capabilities. Finally, some of the biggest beneficiaries of the DTV transition are the Nation's retailers. The converter box coupon program will plow more than one billion dollars into the stores of eligible retailers. Some consumers will choose to buy new televisions instead of converter boxes, and many will purchase other items, such as CDs or video games, while they are in a store using their coupons. For retailers, the DTV transition will certainly be profitable. I therefore urge the industry to be vigorous in its efforts to properly educate consumers. I am told that as of yesterday, Wal-Mart no longer has analog-only televisions on its shelves, and last year Best Buy pulled all analog stock from its stores. Radio Shack has agreed to ship converter boxes to consumers free of charge and will remove all analog sets from its stores by March 1. I applaud these pro- consumer decisions. Thank you again Mr. Chairman, and I look forward to the testimony. ---------- Mr. Markey. Thank you, Mr. Chairman. The chair recognizes the gentlelady from California, Ms. Eshoo. OPENING STATEMENT OF HON. ANNA G. ESHOO, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA Ms. Eshoo. Thank you, Mr. Chairman, for creating another excellent opportunity for our subcommittee to assess the progress on the digital transition. There are many issues. Of course members have raised them, and we know that there are still some that are left unresolved as we approach the 2009 deadline. It is nice to see you, Mr. Klink. I wish you were still up here. Today many members are going to be visited by their constituent public television stations, and the stations are going to express their concern that access to local public television stations digital programming is denied to almost half of all direct broadcast satellite households. Now that represents nearly 12 million households because one major DBS provider has failed to negotiate a long-term deal with public television. Last November I introduced a bill, H.R. 4121, to require DBS carriage of public television digital signals, and I am pleased that a little more than a month ago DirecTV, the Association for Public Television stations, and PBS announced that they had reached an agreement whereby DirecTV would carry public television stations digital signals. As we move closer to February 17, 2009, I think it is unacceptable for any household in the country to be denied access to public television's digital programming. The American people love PBS, and we have done a lot of battles here over the years to help protect it so I don't think this is a small item on the agenda. I am anxious to hear from Mr. Jackson, who is going to testify why EchoStar carries HD programming for all the major commercial networks but doesn't provide HD programming produced by public television stations. And I will have more questions to ask in this particular area as well as other questions, so we are moving along. I think that there is some progress. I am disturbed most frankly, Mr. Chairman, not Chairman Markey but Chairman Martin, about the treatment of cable by you. I don't know what cable has done to so enrage you but I think we need to have a conversation about that because we have important providers throughout the country and I think the relationships are really very important and I want to hear more about what is so troubling you about them. So thank you, Chairman Markey, and I look forward to the testimony today. [The prepared statement of Ms. Eshoo follows:] Statement of Hon. Anna G. Eshoo Mr. Chairman today is another excellent opportunity for this Subcommittee to assess our progress on the digital transition. There are several issues that are still left unresolved as we approach the 2009 deadline. Today many Members will be visited by their constituent public television stations. The stations will express their concern that access to local public television stations' digital programming is denied to almost half of all Direct Broadcast Satellite (DBS) households - that's nearly 12 million households because one major DBS provider has failed to negotiate a long term deal with public television. Last November, I introduced H.R. 4121 to require DBS carriage of public television stations' digital signals. I'm very pleased that, a little more than a month later, DlRECTV, Association for Public Television Stations (APTS) and PBS announced they reached an agreement whereby DIRECTV would carry public television stations' digital signals. As we move closer to February 17, 2009, it is unacceptable for any household to be denied access to public television's digital programming. I'm anxious to hear from Mr. Jackson why Echostar carries HD programming for all the major commercial networks but does not provide HD programming produced by public television stations. I'd also like to know the status of the negotiations between Echostar and public television stations on signing a long term agreement for the carriage of public television's HD programming. I'm also interested to hear from Mr. Rehr of NAB about what commercial11 broadcasters are planning for their multicast stations. Right now in my District not one commercial broadcaster produces additional content on these extra channels, except some who ai the weather radar 24 hours a day, but public television stations across the country are using their additional channels. In my District KQED has five new channels they are broadcasting today. KQED has a channel dedicated to children's programming, and another 24 hour Spanish language channel. I'd like Mr. Rehr to explain why commercial broadcasters are not producing content for these extra channels. Why is public television able to produce and air this content while commercial broadcasters are leaving these channels fallow? ---------- Mr. Markey. I thank the gentlelady. The chair recognizes the gentleman from Washington State, Mr. Inslee. Mr. Inslee. I will waive, Mr. Chair. Thank you. Mr. Markey. The chair recognizes the gentleman from Texas, Mr. Green. OPENING STATEMENT OF HON. GENE GREEN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF TEXAS Mr. Green. Thank you, Mr. Chair, for having this hearing, and I hope over the next year we will continue to have these hearings and hopefully bring attention to the transition. In fact, maybe the folks who are responsible whether it be the news media or anyone else maybe we ought to treat the transition to DTV like we are seeing the presidential primaries. So much coverage on them, a lot more interest than in the past, and so for the next year I would hope we would do that because none of us want our constituents or your customers not to be able to watch TV. We are just over a year away from the transition date and there are still many questions and preparations and outreach efforts made by various government entities involved in the transition. Last week Wired News and Technology web site magazine ran an article to point out many of the same concerns that the subcommittee has been raising over the last year, lack of coordinated consumer education program, having consumers apply for coupons before converter boxes were on the shelves. The 90- day expiration date of the coupons are major problems the article said, as well as members of the subcommittee have raised. Yesterday I joined Chairman Dingell and Chairman Markey and several members of our committee in sending a letter to Assistant Secretary Baker asking her to address one of these issues. Currently without boxes widely available it is unclear how readily consumers will be able to find an affordable coupon- eligible box. The 90-day expiration date could be a major complication for consumers if there is a disruption in production, shipping or stocking these boxes. Additionally, the article stated the Best Buy spokesman said their stores are only planning to carry one model converter box that sells for $59.99. Up selling has been a serious concern. I am afraid consumers will not be as prepared as they need to be or as many as the government thinks they will when they walk into the store looking for a converter box. The letter sent yesterday clarifies and under the statute creating these coupon programs NTIA can allow households to apply to have expired coupons reissued if there are sufficient funds. This would allow consumers more flexibility in finding converter boxes and address many supply problems that are out of their hands. I am concerned, however, that many consumers do not know about the program and how to apply for these coupons. Most estimates indicate 14 million to 20 million households allowing over the air broadcasts, yet according to NTIA stats earlier this week only 2.8 million households have applied for the coupons. Some households may go ahead and purchase a new set with the digital tuner whether than applying for converter box coupons but the number of the applications still seem low given that the program has been up and running for a month and a half, and I think more needs to be done to raise the awareness of the program. After the hearing last November Congressman Gonzalez and I sent a letter to the House Administration Committee, and we received certification that as members we can include coupon applications in our newsletters to our constituents, which I plan to do in one this spring. As far as I am concerned, public education is the most critical and least coordinated component of the transition, and we are relying too heavily on the private sector to address that component along with the 800 help lines need to be staffed so operators can help consumers when they call in. I understand there were problems with the Spanish language help line at the FCC earlier this year and I hope to hear Chairman Martin explain to us what you have done to correct that problem, and I will have some questions later on that issue. I thank you and yield back my time. Mr. Markey. The gentleman's time has expired. The chair recognizes the gentleman from Illinois, Mr. Shimkus. Mr. Shimkus. Mr. Chairman, I think I feel like Groundhog Day, our fourth or fifth DTV hearing, so I think I will just yield back and wait for the testimony. I was just being a little jovial, Mr. Chairman. Mr. Markey. No, it is Groundhog Day, and we are going to have Groundhog Day over and over again on this transition because the consequences of not getting it right are catastrophic. So all time for opening statements from members has expired. So we turn to our panel, and we welcome them to the subcommittee. We welcome you back, Chairman Martin. You have been a frequent guest before us over the last year. We thank you for that. And we congratulate you, Ms. Baker, for your promotion, and congratulations to you and thank you for joining this team to insure that this transition occurs on time and without a glitch, so we thank you both. Chairman Martin, the last time you were here I said that you were the Tom Brady of the transition. I would like to now say I would like you to be the Eli Manning of the transition, and my hope is that we can put a plan in place that will work. Whenever you are comfortable, please begin. STATEMENT OF KEVIN J. MARTIN, CHAIRMAN, FEDERAL COMMUNICATIONS COMMISSION, WASHINGTON, D.C. Mr. Martin. Thank you. Good morning, Chairman Markey, and Ranking Member Stearns, and all the members of the committee. Thank you for once again inviting me to be here today to update you on the status of the digital transition. A little over one year from today all television stations will stop broadcasting in analog and only broadcast in digital. This transition will be a historic moment in the evolution of television. Television viewers will be able to enjoy movie quality picture and sound and potentially a wealth of new programming choices. It will also allow us to significantly improve public safety communications and will usher in a new era of advanced wireless services such as widespread deployment of wireless broadband. As I have testified previously successful digital transition will depend upon minimizing the burdens placed on consumers and maximizing their ability to benefit from it. Today's hearing is a welcome opportunity to discuss the commission's work both in terms of consumer outreach and education and the necessary regulatory steps, which we are taking so that all Americans can enjoy the benefits of this historic digital transition. The commission is working to put in place the rules and policies to enable broadcasters to technically complete the conversion from analog to digital. Last August we adopted the final DTV table of allotments based on the channel elections made by all the full power broadcast stations. This order provides virtually all, over 99 percent of television stations across the country with their final digital channel assignments. At the end of last year we also concluded our third DTV periodic review. In that order the commission established the procedures and rules that will guide the broadcasters through the end of the transition. We adopted procedures that will allow broadcasters to adjust their build out according to their needs and the needs of their viewers. Currently more than 95 percent of full power television stations are broadcasting a digital signal. Nearly two-thirds of the full power stations will remain on the same channel they are currently using for the digital services and most of these stations have already completed the construction and already providing full service to their viewers. We recognize it is important for the commission to continually monitor the broadcaster's progress towards the transition, and accordingly we required each station to file periodic updates on the status of the construction of the post- transition facility and in fact the first of such updates is due next week. The commission has before it an item that would enable satellite subscribers to receive digital broadcast signals. The pending item clarifies that when broadcasters make the transition it is the digital signal that their satellite operator must carry. Last fall the commission adopted an order that guarantees that all cable customers will be able to watch all broadcast stations after the digital transition. Specifically, the commission took action to insure that cable operators continue to make signals of all broadcast stations viewable after the transition as the statute requires. These items should help reduce the burden on consumers and thereby fostering a smooth transition. The commission's DTV related enforcement efforts have focused on protecting consumers from unknowingly buying televisions that won't receive broadcast stations following the transition. With respect to the commission's labeling requirements, the commission has as of February 11, today, 2008, inspected 1,829 retail stores and web sites and issued 316 citations notifying those retailers of violations for failing to comply with our requirements. We also have 14 NALs with $4 million total aggregate pending before the commission. In addition to our labeling investigations, we are continuing to insure that no manufacturers are importing and shipping analog only television receivers. We are also insuring that the digital tuners comply with the V-Chip regulations. Thanks to information referred to us by you, Mr. Chairman, we began investigating allegations that some manufacturers were not complying with these V-Chip rules. As a result of these investigations, we released an NAL against Funai Corporation for $7.7 million and NALs against 9 other manufacturers for over $6.5 million are also on circulation. The swift enforcement of all these DTV-relates rules is critical to protecting consumers and reducing potential confusion. Our activities in this area will continue to be a priority during the next 12 months. According to data from the Consumer Electronics Association and the National Association of Broadcasters there has been some success in making consumers aware of the transition. Recent surveys published by the NAB and Consumers Union found that 79 percent and 64 percent of consumers were aware of the transition, respectively. While this increased awareness is a step in the right direction too many Americans remain confused about what they need to do to prepare for it. For instance, the Consumers Union reported that 74 percent of consumers have major misconceptions about the impact that this conversion will have on them. Now that many consumers are aware of the transition, we need to focus our efforts and our outreach on sending them a clear and consistent message about how to get prepared. At the suggestion of Chairman Dingell and Chairman Markey the commission is considering a proposal to require the industry to use public service announcements, bill inserts, and other techniques to educate consumers about the transition. Just last Friday we received a proposal from the National Association of Broadcasters setting forth alternative actions as a safe harbor that broadcasters could take to educate consumers about the transition. We are currently in the process of evaluating this new proposal and hope to finalize this item quickly. In addition to our DTV consumer education item, the commission is actively and directly promoting consumer awareness of the upcoming transition. Nearly every bureau and office of the commission has been involved in this effort including our field offices around the country. At the suggestion of several other commissioners, I have asked the Media Bureau Chief Monica Desai and Consumer and Government Affairs Bureau Chief Cathy Seidel to jointly lead an intra-agency task force of staff from the various bureaus and offices who are primarily working to facilitate the DTV transition over the next year. We are also utilizing commission staff located around the country. FCC field offices and FCC field agents are continuing to distribute information at senior centers, libraries, and other local venues. They have already distributed information to over 3,100 senior and community seniors, made 385 presentations, and have 106 scheduled in just the days ahead. We have also been forging new partnerships and participated in media events, attending conferences, and continuing to do whatever we can to get the word out. For example, DTV education posters will be displayed in all 34,000 post offices around the country. The United States Postal Service estimates that an average of 9 million people pass through their retail lobbies each day. We have also secured commitments from 24 states, the District of Columbia, and Puerto Rico to display DTV materials in 1,100 Department of Motor Vehicle locations. The FCC's consumer efforts and outreach continue to place emphasis on consumers that receive their television signals over the air on those who are hard to reach including senior citizens, non- English speaking and minority communities, people with disabilities, and low income individuals and people living in rural areas. We have been taking several specific steps to reach each of these groups. For example, the AARP has agreed to disseminate digital transition information through its tax aid program that makes volunteers available to assist AARP members in preparing their taxes. We also know that the Hispanic community disproportionately relies on over the air television. Of the 15 million broadcast only homes one-third is occupied by primarily Spanish-speaking homes. The Hispanic Chamber of Commerce and Univision have agreed to join the commission in conducting DTV awareness sessions at the Hispanic Chamber of Commerce and member chambers in the 10 biggest cities nationwide which are home to 80 percent of the Hispanic population. The first of these sessions will be held later this month in Chicago. The commission is also taking steps to inform low income consumers about the transition to all digital broadcasting. For example, the Department of Health and Human Services has made a commitment to assist the FCC in disseminating DTV materials through at least 6 of their agencies to target populations including low income consumers. For example, through their administration for children and families they will distribute information through their approximately 1,500 Head Start grantees covering more than 6,000 locations throughout the country. And their Health Resources and Services Administration will distribute flyers and information through their 4,000 community health centers. This morning I am also pleased to announce that today the commission's contract and purchasing center were awarded a contract at Ketchum. Under this contract Ketchum is going to be responsible for assisting the FCC's efforts to promote consumer awareness of the DTV transition. Specifically in the area of media services Ketchum provides full service production of multiple versions of TV and radio PSAs, web videos, educational videos, podcasts, and satellite media tours. The material developed will be produced in multiple languages and formats. In addition, Ketchum is planning to support advertising on transit systems in 18 cities in over 300 locations. Having awarded this contract, we are working with Ketchum to jump start our efforts by arranging a satellite media tour next week to highlight the switch to digital one year before the deadline. We are also asking Ketchum to develop specific plans for using grocery stores and other retail outlets frequented by our target audiences. Although I believe that a lot of progress has been made to facilitate a smooth transition there is obviously still more work to be done. For example, one of the areas that the commission has recently been spending a lot of time on is how to best insure that consumers will continue to be able to view low power television stations which are not required in transition to digital next year. I have proposed a goal of 2012 for all low power stations to transition to digital. In the mean time I have asked that the leaders of several industry organizations to take voluntary steps to help consumers continue to watch all broadcast television programming after the transition. Mr. Markey. Mr. Chairman, right now you are 4 minutes over so if you could reach that summary. Mr. Martin. Sure. Certainly the next 12 months will be challenging. Nevertheless, it is my hope that through all the combined efforts of the government, industry, and consumer groups we will reap the rewards of the digital transition and the benefits it has to offer, and I look forward to continuing to work with this committee and all the members of Congress to answer their questions and work to make this a successful transition next year. [The prepared statement of Mr. Martin follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Markey. Thank you so much. I remember when I was a kid, Dick Tracey was my favorite comic strip and he hired this guy, Sam Ketchum, to be his assistant and we hope that your hiring of Ketchum will help you as well to solve this problem. So our next witness in her first appearance before the committee, the Honorable Meredith Baker, Acting Assistant Secretary for Communications and Information from the Department of Commerce. We welcome you, and whenever you feel comfortable please begin. STATEMENT OF MEREDITH BAKER, ACTING ASSISTANT SECRETARY FOR COMMUNICATIONS AND INFORMATION, DEPARTMENT OF COMMERCE, WASHINGTON, D.C. Ms. Baker. Good morning, Mr. Chairman, and members of the subcommittee. Thank you for the opportunity to be here before you today and to discuss NTIA's successful launch of the TV converter box coupon program and our strong commitment to continued public education and outreach efforts so that this historic and important transition can take place and no American television viewer is unprepared on February 18, 2009. On January 1 consumers across the nation successfully and efficiently began to order coupons by phone, mail, fax, and on line. Consumers from every state in the nation applied on the first day. By the end of the first week NTIA had received over 1.1 million requests for 2.1 million coupons. While this initial volume was high all systems continued to handle requests. To date, NTIA has accepted more than 2.4 million household requests for more than 4.8 million coupons. Approximately 47 percent of these households have identified themselves as reliant on over the air television. On the average, 64.5 percent are applying on the web, 34.9 percent by phone, only 0.5 percent by mail, and .1 percent by fax. The overwhelming majority have been able to complete the application process in minutes with ease. We have made some adjustments and improvements as we learn about consumer experiences. For example, we have added more Spanish language operators and a Spanish language IBR. Those Spanish and English languages now have a wait time of less than 20 seconds for a live operator. Interest in the TV converter box program and demand for coupons indicate that consumers are becoming increasingly aware of the DTV transition and the program. Thanks go to NAB, CTA, CEA, and other members of the DTV coalition. By our estimate our consumer education efforts have attracted upwards of 350 million print and broadcast media impressions related to the program since September of last year. While we at NTIA have done over 60 interviews since the beginning of this year Secretary Gutierrez himself has done 25, actually over 25, because he did Good Morning America this morning, interviews on the transition in both Spanish and in English since January 1. NTIA's consumer education campaign focuses on the role of the coupon program during the transition and leverages opportunities for partnership, We, with Ketchum, which is a good choice by the FCC, have developed a comprehensive took kit which is information to make participation of partners easy such as flyers, enclosures, and sample PSAs. NTIA's consumer education partners currently include over 130 social service and community organizations which serve our vulnerable communities, the low income, the seniors, the rural residents, the minorities, and the disabled Americans. More than 15 Federal agencies have committed to use their existing channels to get the word out about the coupon program. Chairman Martin outlined some of these. Some other examples are the VA. The VA is leveraging their incredible network that touches 24 million veterans. The Department of Agriculture will distribute information with their food stamps program and their school lunch program, and HHS will be activating the Administration on Aging. NTIA has been greatly encouraged by the robust participation of manufacturers and retailers in the coupon program. As of yesterday we had certified 37 converter boxes that meet our specifications. These boxes are priced between $40 and $70. We are continuing to review and certify boxes as manufacturers come into this program, and we have offered expedited recertification for the version 2.0 boxes that are submitted with added analog pass through feature. We received notices of intent from more than half a dozen manufacturers with approved converters that claim to produce a converter box with an analog pass through. NTIA will begin mailing coupons to consumers next week. They look like this. NTIA and IBM have been working closely with participating consumer electronics to calibrate the release of the coupon with the supply of the converter boxes. The agency has certified more than 615 retailers at this point to participate in the program which represents 16,000 outlets nationwide. To assist these retailers in ordering their inventory NTIA has made available on the web as well as to the retailers a number of coupons requested by each state within their 3 digit zip code. We have also made employee training materials available and tested the process in a limited 2 market pilot program. When the coupons are mailed next week, we will have 9,000 retailer locations that will be participating in the program throughout all 50 states, Puerto Rico, and the U.S. Virgin Islands. I would like to thank Wal-Mart, Best Buy, RadioShack, and Circuit City for their leadership and participation. These stores have completed the certification program. Their employees are trained. The converter boxes are in their stores and their systems are ready to redeem coupons. More retailers will be activated and more boxes will be available in the coming weeks. We will carefully monitor and assess the process as it rolls out and will take any further necessary actions to insure the consumer experience remains favorable with the coupon program. I received your letter, Chairman Markey, and others of the committee on the issue of the 90-day expiration of coupons, and I will be happy to work with you and your staff to address this issue. NTIA is aware of concerns that have been raised about the impact of the DTV transition of low power and translator stations and on residents of nursing homes, and we are taking steps to address these matters. I would like to than NTIA's staff for their hard work in getting this program off to such a successful start. Thank you again for the opportunity to testify before you today. I have enjoyed working with your staffs and the DTV caucus, and I look forward to more collaboration as we work together to make this transition successful. I will be happy to answer your questions. [The prepared statement of Ms. Baker follows:] Statement of Meredith A. Baker Mr. Chairman and Members of the Subcommittee, thank you for the opportunity to appear before you today to discuss the progress made by the National Telecommunications and Information Administration (NTIA), Department of Commerce, in assisting Americans to prepare for the digital television (DTV) transition. In particular, I am pleased to report to you on NTIA's successful launch six weeks ago of the Television Converter Box Coupon Program (Coupon Program). Although the Program is off to a good start, this is only the beginning. In this statement, I will share with you the additional steps NTIA is taking to implement the Coupon Program and the agency's ongoing efforts to expand public education and outreach on the DTV transition and the Coupon Program. As I indicated, NTIA successfully launched the Coupon Program on January 1, 2008. Across the Nation, consumers have begun ordering their coupons through one of four convenient channels: via a toll-free number (1-888-DTV-2009), online at www.DTV2009.gov, by mail or by fax (1-888-DTV-4ME2). The phone line is available to consumers 24 hours a day, seven days a week, with live agents available at all times and an Interactive Voice Response system available for English and Spanish-speaking callers. The phone line can accommodate requests in more than 150 different languages. There is also a special assistance line for the hearing impaired in English and Spanish. Braille application forms are also available. To date, approximately 65 percent of the requests have been received through our Web site, 34 percent through our telephone channel, and less than 1 percent of the requests by mail and fax. Approximately 89 percent of the household requests are for the maximum number of two coupons. On January 1, NTIA with its partner IBM took requests from over 249,000 applicants requesting 475,000 coupons. Consumers from every state in the nation applied on that first day. By the end of the first week, NTIA had received over one million requests for two million coupons. To date, NTIA has accepted more than 2.4 million household requests for more than 4.7 million coupons, representing 20 percent of the program's base funding. Approximately 47 percent of these households identified themselves as fully reliant on over-the-air television. During this first six weeks, the Coupon Program obtained more than 83 million print and broadcast media impressions. NTIA's daily efforts working with the media has helped generate awareness of the DTV transition and Coupon Program. This initial surge of interest in the Program and the correspondingly high application rate indicate that consumers are becoming increasingly aware of the DTV transition and are ready to take action. One of the keys to the success of this program is its voluntary nature, which has fostered strong public-private partnerships. As I have discussed this issue with other federal officials, non-profit leaders, and private sector partners, I have witnessed their willingness to work together to make the transition a success. The industries most directly affected by the transition have initiated significant educational efforts with real financial commitments to ensure that no household is caught unprepared on February 18, 2009. The DTV Coalition is also making great strides in educating the American public about their options for making the transition. As a complement to these efforts, NTIA has instituted a proactive consumer education campaign about the role of the Coupon Program in the DTV transition, leveraging opportunities to partner with consumer groups, community organizations, federal agencies, and industry to inform consumers of their options. To date, NTIA's consumer education partners include over 130 social service and community organizations with ties to the senior citizens, rural,, minority, and disabled communities as well as a variety of federal agencies with direct communications with other constituent groups. NTIA is reaching out to trusted institutions, such as the NAACP, AARP, and the Native American Journalists Association to reach populations most likely to be affected by the transition. In addition, information about the Coupon Program is being made available in numerous foreign languages - - Spanish, French, Chinese, Vietnamese, Korean, Filipino, and Tagalog. On December 1, 2007, Secretary of Commerce Carlos M. Gutierrez was featured in the first of a series of public service programs entitled, "TV Digital...Que Tal?" aired throughout the United States and Puerto Rico by the Spanish-language Univision Television Network. The program discussed the benefits of digital television broadcasting and provided detailed information about the need for viewers that rely on over-the- air broadcasting to obtain digital-to-analog converter boxes to continue to use their analog television sets, and how to access the Coupon Program to obtain coupons for the purchase of boxes. In addition, NTIA hosted a meeting on January 24, 2008 with more than 15 other federal agencies, including the Federal Communications Commission, the Departments of Veterans Affairs, Health and Human Services, Agriculture, and Homeland Security, the Administration on Aging, and the Federal Emergency Management Agency, to further coordinate federal efforts to educate the nation about the February 17, 2009 deadline to transition to digital television. During the meeting, NTIA outlined its current and upcoming consumer education efforts and the agencies discussed their strategies and existing communications efforts to raise consumer awareness of the DTV transition and the Coupon Program. In collaboration with IBM and Ketchum, NTIA has developed a comprehensive toolkit of information to provide guidance to its partners that are playing a critical role in educating their members, constituents and customers about the Coupon Program. Available for use by partners since January 1, 2008 and continuing through early July 2009, the Toolkit attempts to offer simple tips and recommendations to help each organization reach its members with information about the Coupon Program in a way that will resonate best with them. The Toolkit includes a set of materials, including fact sheets, a poster, a mailer, sample presentations and other materials that can be co-branded for use by partners. The Toolkit also contains specific tools and strategies that can be used to reach the media to effectively deliver the Coupon Program message, and ideas and resources for informing consumers through community and in- store events or other activities. The Toolkit includes four sections, each of which can be used on its own, or in conjunction with other parts of the Toolkit: