The Broadcast Digital Transition Impact on Cable Television

The Broadcast Digital Transition Impact on Cable Television Households Wendy Farley Vice President, Government Affairs Comcast

What is the Broadcast Digital Transition? The Federal Governments requirement that all full-power over-the-air broadcasters change from analog to digital broadcast television. • Analog technology which conveys data as electronic signals of varying frequency has been in use to transmit conventional television signals to consumers for the past 50 years. • Digital technology provides for the compression of signals making the transmission of information faster, easier and more efficient. • Consumers will benefit from the transition to digital broadcasting with improved picture and sound quality as well as more programming choice and interactive video and data services that were not possible with analog technology.

Why the Broadcast Digital Transition? • Efforts to improve television signals began in the 1980 s and were initially focused on high-definition technology. These early efforts began shortly after the creation of digital technology. • In 1996, Congress directed the Federal Communications Commission (FCC) to give each “analog” broadcaster a new “digital” channel to which it was to migrate its broadcasts. • The final version of the Deficit Reduction Act of 2005 set the broadcast digital transition deadline at February 17, 2009 and allocated up to $1. 5 billion for a digital-to-analog converter box coupon program.

Why the Broadcast Digital Transition? The Broadcast Digital Transition is being driven by the federal government’s desire to reclaim valuable airwaves that the broadcasters have been using. As a result, Congress mandated that full-power over-the-air broadcast television stations convert from analog to all-digital broadcasting on February 17, 2009. The government will then auction off the analog airwaves for public safety, commercial mobile use and other services. Some airwaves will be used to enhance communications for emergency service providers like police, fire and emergency rescue. Allow for new commercial wireless services including mobile broadband. Airwave auctions are expected to raise $10 billion for the federal treasury.

How are Consumers Affected by the Broadcast Digital Transition? If a consumer’s television set is hooked up to cable television or another subscription video service, they don’t need to do anything. They’ll be fine. Any “analog” television set that is not connected to cable and functions with the help of “rabbit ears” or a rooftop antenna will not be able to receive full-power overthe-air broadcast TV channels as of February 17, 2009. There is one of three things a consumer can do to eliminate this problem…

How are Consumers Impacted by the Broadcast Digital Transition? Consumers with an analog television set who watch full-power overthe-air broadcast television, via a roof-top or “rabbit ears” antenna must either: Obtain a digital-to-analog converter box that will convert digital TV signals back to analog; Replace their TV set with one that includes a digital tuner; or Connect each television set to cable or another subscription video service.

Television Set Rules All television sets imported or shipped interstate after March 1, 2007 must have a digital tuner. Consumer electronics retailers can continue to sell analog-only television sets but - since May 25, 2007, they have been required to put clear and conspicuous labels on TVs warning customers about their limitations. The FCC has pursued aggressive enforcement through field inspectors looking for violations in local stores. Consumer Alert This television receiver has only an analog broadcast tuner and will require a converter box after February 17, 2009, to receive over-the-air broadcasts with an antenna because of the Nation’s transition to digital broadcasting. Analog-only TVs should continue to work as before with cable and satellite TV services, gaming consoles, VCRs, DVD players, and similar products. For more information, call the Federal Communications Commission at 1 -888 -225 -5322 (TTY: 1 -888 -8355322) or visit the Commission’s digital television website at: www. dtv. gov.

How is the Federal Government Helping? Congress directed the U. S. Department of Commerce to set up a $1. 5 billion coupon program to subsidize the purchase of digital-to-analog converters. The converters allow analog TVs not connected to cable or another video service to continue to receive full-power over-theair broadcast signals. Each household may request up to two coupons, but supplies are limited. Coupons are valid for 90 days only and may be redeemed by retailers certified by the federal government. For more information on the coupon program call 1 -800 -DTV 2009 or visit www. MYDTV 2009. gov.

Federal Coupon Distribution Coupons look like plastic gift cards used widely in the retail industry, but carry no stored value. Coupons are sent to consumers via U. S. mail and are accompanied by a list of nearby participating retailers, a list of coupon-eligible converter boxes and FAQs. Coupons expire 90 days from issue date. As of April 7 th, 10 million coupons had already been requested.

Converter Boxes National Retailers include: Best Buy Circuit City Kmart Radio Shack Sears Wal-Mart Most converters cost $50 - $70.

What Cable is Doing The cable industry has launched an extensive consumer education campaign, including English and Spanish language TV advertising valued at $200 million and an English and Spanish language informational website (www. getreadyfordigitaltv. com). The new ads can be viewed at www. ncta. com/DTVSpots. Comcast has created a toolkit on the Broadcast Digital Transition designed specifically to help local government communicate with constituents on this important topic. Cable bills will carry a monthly special message beginning in May ’ 08 through March ’ 09.

The Need for Consumer Education According to a report by the National Telecommunications and Information Administration (NTIA) and Government Accountability Office (GOA) made to congress in mid-June 2008: Eighty-four percent (84%) of consumers are aware of the DTV Transition, but many don’t know what they need to do to continue receiving TV service. Even consumers who are not affected by the DTV Transition are confused – thirty percent (30%) of the respondents indicated they planned to prepare for the transition even though they do not have to do anything to continue receiving TV service. Of the households that rely on over-the-air reception for at least one TV set, fifty-four percent (54%) had no or inadequate plans for the transitions.

Thank You!