Digital Television Transition: Preliminary Information on
Progress of the DTV Transition (17-OCT-07, GAO-08-191T).
On February 17, 2009, federal law requires all full-power
television stations in the United States to cease analog
broadcasting, enabling the government to reclaim valuable
spectrum that the broadcasters currently use for analog
broadcasts. This change, often referred to as the digital
television (DTV) transition, requires action by broadcasters and
consumers to ensure broadcast television signals are still
available and viewable. The National Telecommunications and
Information Administration (NTIA) created a program to subsidize
consumers' purchases of digital-to-analog converter boxes. This
testimony provides preliminary information on (1) the progress
made by federal entities, and others, to facilitate the
transition, (2) the progress in the education of consumers about
the transition, (3) the progress made in implementing the
converter box subsidy program, (4) technical issues of the
transition, and (5) future GAO work on the progress of the DTV
transition. GAO interviewed officials with the Federal
Communications Commission (FCC) and NTIA. Further, GAO
interviewed a wide variety of industry and other stakeholders
involved with the transition, including members of the DTV
Transition Coalition--a group of public and private stakeholders,
and experts on strategic communications. GAO discussed this
testimony with FCC and NTIA officials and incorporated their
comments.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-08-191T
ACCNO: A77428
TITLE: Digital Television Transition: Preliminary Information on
Progress of the DTV Transition
DATE: 10/17/2007
SUBJECT: Cable television
Consumer education
Digital television
Private sector
Program evaluation
Risk management
Spectrum
Strategic planning
Subsidies
Systems conversions
Telecommunications
Telecommunications equipment
Telecommunications industry
Television broadcasting
Program implementation
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GAO-08-191T
* [1]In summary:
* [2]Background
* [3]Federal Entities and Other Stakeholders are Facilitating the
* [4]Progress in Consumer Education on the DTV Transition Has Bee
* [5]NTIA Has Taken Steps to Implement a Subsidy Program for Conv
* [6]While Most Television Stations Are Transmitting a Digital Si
* [7]Broadcasters Face Technical and Coordination Issues
* [8]Cable and Satellite Television Providers Must Coordinate wit
* [9]Owners of Translator Stations Will Need to Take Action in Or
* [10]Our Future Work Will Focus on the Progress of the DTV Transi
* [11]Contacts and Acknowledgements
* [12]GAO's Mission
* [13]Obtaining Copies of GAO Reports and Testimony
* [14]Order by Mail or Phone
* [15]To Report Fraud, Waste, and Abuse in Federal Programs
* [16]Congressional Relations
* [17]Public Affairs
Testimony
Before the House Subcommittee on Telecommunications and the Internet
United States Government Accountability Office
GAO
For Release on Delivery
Expected at 9:30 a.m. EDT
Wednesday, October 17, 2007
DIGITAL TELEVISION TRANSITION
Preliminary Information on Progress of the DTV Transition
Statement of Mark L. Goldstein, Director
Physical Infrastructure
GAO-08-191T
Mr. Chairman and Members of the Subcommittee:
I am pleased to be here today to report on our work on the progress made
in the nation's transition to digital television (DTV). We have a detailed
report on public and private sector efforts underway to implement the
transition that will be issued in November 2007. The findings that I am
reporting to the Subcommittee today are based on our draft report and are
therefore preliminary.
A primary goal of the DTV transition is for the federal government to
reclaim spectrum1 that broadcasters currently use to provide analog
television signals. The spectrum that the federal government will reclaim
at the end of the transition is considered highly valuable because of its
particular technical properties. In all, the DTV transition will free up
108 megahertz (MHz) of spectrum. The Federal Communications Commission
(FCC) has reallocated 24 MHz of the spectrum that will be recovered for
public safety purposes, which became a higher priority following the
terrorist attacks of September 11, 2001. FCC will auction the remaining
spectrum for commercial purposes, with the resulting proceeds allocated
for, among other things, reducing the federal deficit.
The Digital Television Transition and Public Safety Act of 2005 mandates
the cessation of analog television broadcast signals on February 17, 2009.
After that date, households who view television on analog sets solely
through the reception of over-the-air signals must take action to ensure
that they have the necessary equipment, such as a digital-to-analog
converter box, or subscription video service to be able to view the
digital broadcast signals. If they do not take such action, they will lose
the ability to view the digital signals on their analog sets; i.e., they
will not be able to watch television programs. The act also directed the
National Telecommunications and Information Administration (NTIA) to
establish a $1.5 billion program through which households can obtain
coupons for the purchase of digital-to-analog converter boxes. NTIA issued
a final rule that adopted regulations to implement the converter box
subsidy program, and in August 2007, selected IBM Corporation (IBM) to
administer the program. Beginning January 1, 2008, households can request
up to two $40 coupons toward the purchase of eligible2 digital-to-analog
converter boxes.
1The radiofrequency spectrum is the part of the natural spectrum of
electromagnetic radiation lying below 300 gigahertz. It is the medium that
makes possible wireless communications, including cellular and paging
services, radio and television broadcasting, radar, and satellite-based
services.
Although it is unclear what percentage of households who rely exclusively
on over-the-air broadcasts have analog sets, potentially millions of those
households stand to be left without any television service unless they
take action. To help the public understand the DTV transition and the
various options they have, consumer education and awareness programs are
underway and additional programs are being planned.
My testimony today will focus on progress made in the DTV transition. In
particular, I will discuss (1) the progress made by federal entities, in
conjunction with other stakeholders, in facilitating the transition, (2)
the progress made in educating consumers about the transition and any
related challenges, (3) the progress made in implementing a subsidy
program for converter boxes and any related challenges, (4) the technical
issues facing the broadcast industry in meeting the transition, and (5)
future work on the progress of the DTV transition that we will undertake.
To meet these objectives, we reviewed government documents and interviewed
officials with FCC and NTIA, the steering committee members of the Digital
Television Transition Coalition, as well as a wide variety of industry and
other private stakeholders, such as broadcasters, satellite television
providers, cable companies, manufacturers, retailers, industry
associations, and consumer advocacy groups. Further, we consulted
strategic communications experts representing public, private, and
academic organizations to identify potential challenges that might
obstruct consumer education efforts, as well as key practices for consumer
outreach campaigns. We reviewed FCC and NTIA rules and proposed
rule-makings related to the digital television transition, and the
comments they received in response to the proposed rule-makings. Finally,
we reviewed NTIA's request for proposals for administering the converter
box subsidy program, and related contract documents. We performed our
review from January 2007 through October 2007 in accordance with generally
accepted government auditing standards. We discussed this testimony with
FCC and NTIA officials to obtain their comments. FCC and NTIA provided
additional information that we incorporated where appropriate.
2NTIA established technical and performance specifications that converter
boxes must meet to be eligible for the coupon program.
In summary:
o FCC and NTIA, in conjunction with other stakeholders, have taken
steps to facilitate the DTV transition. For example, FCC has
conducted periodic reviews to report on transition progress, and
NTIA has issued a contract for administering the converter box
subsidy program. In addition, private sector industries have also
begun preparing for the transition. Despite public-private sector
interaction designed to help facilitate the transition, we found
that no comprehensive plan exists for the DTV transition. Without
such a plan, meaningful guidance for coordinating responsibilities
and measuring progress might not be available to the private or
public sector.
o Several federal and private stakeholders have begun consumer
education campaigns, with both independent and coordinated efforts
underway. FCC and NTIA have developed informational materials and
begun direct outreach to consumer groups. In addition, private
industry stakeholders created the DTV Transition Coalition and are
voluntarily conducting outreach efforts. However, these efforts
are in the planning stages, and challenges remain. An expert panel
that we convened identified potential challenges and key practices
for a consumer education campaign, such as defining goals and
objectives and establishing metrics to measure success.
o NTIA has made progress in implementing the converter box subsidy
program, but the program's outcome depends on the voluntary
participation of retailers and manufacturers. Retailers we
contacted expressed concerns about the possibility of a redemption
system that would affect their point-of-sale systems and stated
they would need more information on IBM's technical solution
before they could assess the impact on their systems and whether
it would affect their participation. With limited or delayed
retailer participation, consumers might face difficulties in
redeeming their coupons for eligible converter boxes.
o Although most television stations already transmit a digital
signal, technical and coordination issues, such as antenna
replacement and tower construction, may present challenges for
broadcasters in preparing for the DTV transition. In addition,
cable and satellite television providers must coordinate with
broadcasters to ensure that they can continue to receive and
transmit the digital broadcast signals after the transition.
Further, select stations that retransmit television signals, known
as translator stations, are not required to cease analog
broadcasting. These stations may choose to retransmit a digital
signal, or they may convert the digital signal to analog and
continue to broadcast in analog after February 2009.
o We plan on reporting on the progress of the DTV transition,
including public and private efforts in facilitating the
transition, the status of consumer education and awareness about
the DTV transition, IBM and NTIA's administration of the converter
box subsidy program, and industry technical preparations
throughout the upcoming transition period. For example, we will
continue to monitor consumer education programs and plan to
conduct a series of consumer surveys throughout the year prior to
the transition date. The surveys we conduct will be aimed at
determining the population that will be affected by the DTV
transition and the public awareness of the transition. Throughout
the transition process, we will continue to monitor government and
industry consumer education efforts and analyze the efforts
compared with key practices for consumer outreach. In addition, we
plan to survey broadcasters on the technical issues that must be
addressed prior to the DTV transition date.
Background
The DTV transition will enable the government to allocate valuable
spectrum from analog broadcast to public safety and other purposes.
Further, digital transmission of television signals provides several
advantages compared to analog transmission, such as enabling better
quality picture and sound reception as well as using the radiofrequency
spectrum more efficiently than analog transmission. With traditional
analog technology, pictures and sounds are converted into "waveform"
electrical signals for transmission through the radiofrequency spectrum,
while digital technology converts these pictures and sounds into a stream
of digits consisting of zeros and ones for transmission.
The Digital Television Transition and Public Safety Act of 2005 addresses
the responsibilities of two federal agencies--FCC and NTIA--related to the
DTV transition. The act directs FCC to require full-power television
stations to cease analog broadcasting on February 17, 2009. While
full-power television stations are required to terminate their analog
signals, this deadline does not apply to translator television stations.
Translator stations receive a signal from a television station and
simultaneously retransmit the signal on another channel. These stations
are intended to provide service to areas where direct reception of
full-service broadcast stations is unsatisfactory because of distance or
terrain obstructions, such as in mountainous regions.
As we have previously reported, households with analog televisions that
rely solely on over-the-air television signals received through a rooftop
antenna or indoor antenna must take action to be able to view digital
broadcast signals after the termination of analog broadcasts. Options
available to these households include (1) purchasing a digital television
set that includes a tuner capable of receiving, processing, and displaying
a digital signal; (2) purchasing a digital-to-analog converter box, which
converts the digital broadcast signals to analog so they can be viewed on
an existing analog set; or (3) subscribing to a cable, satellite, or other
service to eliminate the need to acquire a digital-to-analog converter
box. The act also directed NTIA to establish a $1.5 billion subsidy
program through which households can obtain coupons toward the purchase of
digital-to-analog converter boxes. The last day for consumers to request
coupons is March 31, 2009, and coupons will be redeemed through July 9,
2009. As required by law, all coupons expire 90 days after issuance.
Consumers can redeem their coupons at participating retailers (both "brick
and mortar" and online) for eligible converter boxes.
To help inform consumers about the transition, in February 2007, eight
private sector organizations launched the Digital Television Transition
Coalition. These eight organizations are the Association for Maximum
Service Television, Association of Public Television Stations, Consumer
Electronics Association, Consumer Electronic Retailers Coalition,
Leadership Conference on Civil Rights, LG Electronics, National
Association of Broadcasters, and the National Cable and Telecommunications
Association. These founding organizations comprise the Coalition's
steering committee and make decisions on behalf of the Coalition. To
better represent the interests of at risk or underserved populations--such
as the elderly--AARP later joined the steering committee. The Coalition's
mission is to ensure that no consumer is left without broadcast television
due to a lack of information about the transition. Currently, the
Coalition has over 160 member organizations comprised of business, trade
and industry groups, as well as FCC.3
Recent surveys conducted by industry trade associations indicate that
consumer awareness of the digital transition is low. The Association for
Public Television Stations reported in January 2007 that 61 percent of
participants surveyed had "no idea" that the transition was taking place.
Another study conducted by the National Association of Broadcasters
focused on households that primarily receive their analog television
signals over-the-air--and will therefore be most affected by the
transition--and reported that 57 percent of those surveyed were not aware
of the transition. Both surveys found that almost all people with some
awareness of the transition had limited awareness of the date the
transition will take place.
3While NTIA is not an official Coalition member, the agency has been
participating in Coalition activities since its inception. The Coalition,
as well as FCC and NTIA, have created Web sites providing information on
the DTV transition and converter box subsidy program. These Web sites are
available for viewing at the following addresses:
[18]www.dtvtransition.org and [19]www.dtv.gov and
[20]http://www.ntia.doc.gov/otiahome/dtv/ .
Federal Entities and Other Stakeholders are Facilitating the Transition, but
Comprehensive Planning and Risk Management is Limited
FCC and NTIA, in conjunction with other stakeholders, have taken steps to
facilitate the DTV transition. FCC has primary responsibility to regulate
the television broadcast industry for the federal government and has taken
a number of actions regarding the transition. For example, FCC has
proposed and set deadlines to upgrade station equipment to send digital
signals. In addition, FCC has conducted periodic reviews to report on
transition progress and held a workshop for interested parties to discuss
transition challenges and issues. NTIA has statutory responsibility for
the converter box subsidy program, and it has issued a contract in
preparation for that program's development. Private sector industries,
including broadcasters, manufacturers, and retailers have also begun
preparing for the transition. Despite public-private sector interaction
designed to help facilitate the transition, we found that no comprehensive
plan exists for the DTV transition. Among other things, a comprehensive
plan can detail milestones and key goals, which provide meaningful
guidance for assigning and coordinating responsibilities and deadlines and
measuring progress. Such planning also includes assessing, managing, and
mitigating risks, which can help organizations to identify potential
problems before they occur and target limited resources. We have
previously reported on the benefits of managing risks, including assisting
other organizations involved in high stakes efforts similar to the DTV
transition. For example, we credited one federal agency's success in
weathering the potential for critical computer system failures during the
Year 2000 Computer Conversion (Y2K), in part, due to reducing risks to
facilities, systems, programs, and services during the critical rollover
period.
Progress in Consumer Education on the DTV Transition Has Been Made, But
Widespread Implementation Is Not Yet Underway
FCC and NTIA, along with industry and other private stakeholders, have
made progress in educating consumers about the DTV transition. For
example, FCC and NTIA have developed informational materials on the
transition and begun outreaching directly to consumer and stakeholder
groups. Both agencies are also involved with the Digital Television
Transition Coalition, a group representing over 160 business, trade, grass
roots, and other organizations whose purpose is to provide consumers with
information about the transition. Private industry stakeholders are
voluntarily taking the lead on planning public service announcements,
developing Web sites, and garnering media coverage on the transition.
While federal and private stakeholders have taken these initial steps, the
initiative is still largely in the planning stages and widespread efforts
have yet to be implemented. Further, because of the number of public and
private sector entities involved in consumer education efforts for the
transition and the timing, coordination and content of the messages they
produce, consumers might become confused over what steps, if any, are
necessary to avoid disruptions to their television viewing after the
transition date.
To identify the difficulties and challenges to consumer education and
outreach, we convened an expert panel to discuss consumer education issues
applicable to the DTV transition, including potential challenges that may
obstruct efforts and the key planning components of a consumer education
campaign that will help to overcome some of those challenges. Expert panel
members as well as other private and public sector officials highlighted
several challenges, as follows:
Prioritizing limited resources. With limited time and financial resources,
it is likely to be a challenge for stakeholders to determine how best to
allocate those resources within the campaign--for example, whether to
target a smaller audience over a set period of time, versus targeting a
broader audience over a shorter period of time.
Educating consumers who do not necessarily need to take action. Many of
the outreach efforts will be focused on educating consumers on what to do
to keep their television sets from going dark after the termination of
analog broadcasts. However, a large proportion of U.S. households will not
need to do anything--for example, because they have cable or satellite
television service that will enable their analog set to continue to
display programming. Because many messages focus on the actions that
households that rely on over-the-air analog broadcasting need to take,
consumers unaffected by the transition may become confused and purchase
equipment they do not need. In our past work looking at a similar digital
transition in Germany, we have described this potential confusion to cable
and satellite households as a challenge of educating consumers about the
transition.4
Reaching underserved populations. Conveying the message to underserved
populations--for example, senior citizens, disabled, those residing in
rural areas, or non-English speaking households will provide an added
challenge. For example, many groups outreaching to consumers about the
transition are doing so on Web sites, which may not be available to people
who lack Internet access or are less technically savvy. Another challenge
is providing information in a wide variety of formats, such as in
different languages for non-English speaking consumers and in text, video,
voice, and Braille for the disabled. Overall, a challenge of consumer
education is that those households in need of taking action may be the
least likely to be aware of the transition.
Aligning stakeholders. Panel members and other industry representatives
also noted the challenge of aligning stakeholders--some who are natural
competitors--to work together. In our past work, we have reported that
federal agencies engaged in collaborative efforts--such as the
transition--need to create the means to monitor and evaluate their efforts
to enable them to identify areas for improvement. Reporting on these
activities can help key decision makers within the agencies, as well as
clients and stakeholders, to obtain feedback for improving both policy and
operational effectiveness.5
In addition to highlighting potential challenges, the expert panelists
identified the following key practices as important to planning a consumer
education campaign that will motivate consumers to take the steps needed
to avoid television viewing disruptions, as well as help to alleviate
identified challenges along the way:
4GAO, Telecommunications: German DTV Transition Differs from U.S.
Transition in Many Respects, but Certain Key Challenges Are Similar,
[21]GAO-04-926T (Washington D.C.: July 21, 2004).
5GAO, Results-Oriented Government: Practices That Can Help Enhance and
Sustain Collaboration among Federal Agencies, [22]GAO-06-15 (Washington,
D.C.: October 21, 2005).
Table 1: Key Practices for Consumer Education Planning
Key Practice Description
Define Goals and Define the goals of the communications campaign,
Objectives e.g., to increase awareness or motivate a change
in behavior. Define the objectives that will
help the campaign meet those goals.
Analyze the Situation Analyze the situation, including any competing
voices or messages, related market conditions,
and key dates or timing constraints. Review
relevant past experiences and examples to
identify applicable "lessons learned" that may
help to guide efforts.
Identify Stakeholders Identify and engage all the key stakeholders who
will be involved in communications efforts.
Clarify the roles and responsibilities of each
stakeholder, including which entity or entities
will lead overall efforts.
Identify Resources Identify available short- and long-term
budgetary and other resources.
Research Target Audiences Conduct audience research, such as dividing the
audience into smaller groups of people who have
relevant needs, preferences and characteristics,
as well as measuring audience awareness,
beliefs, competing behaviors, and motivators.
Also, identify any potential audience-specific
obstacles, such as access to information.
Develop Consistent, Clear Determine what messages to develop based on
Messages budget, goals, and audience research findings.
Develop clear and consistent audience messages;
test and refine them.
Identify Credible Identify who will be delivering the messages and
Messenger(s) ensure that the source is credible with
audiences.
Design Media Mix Plan the media mix to optimize earned media
(such as news stories or opinion editorials) and
paid media (such as broadcast, print, or
Internet advertising). Identify through which
methods (e.g., advertising in newsprint ads),
how often (e.g., weekly or monthly) and over
what duration (e.g., 1 year) messages will reach
audiences.
Establish Metrics to Establish both process and outcome metrics to
Measure Success measure success in achieving objectives of the
outreach campaign. Process metrics assure the
quality, quantity, and timeliness of the
contractor's work. Outcome metrics evaluate how
well the campaign influenced the attitudes and
behaviors of the target audience(s) that it set
out to influence.
Source: GAO analysis of expert panel discussion
While still too early to evaluate the Coalition's consumer education
efforts, the Coalition has employed strategies consistent with the key
practices identified by the expert panel. For example, the Coalition has
identified stakeholders and conducted focus groups to test and refine its
consumer messages. However, at the time of our report, it remains unclear
whether public-private sector interaction can ensure a consistent message
to prevent confusion or unnecessary purchases on the part of consumers.
Moreover, the absence of comprehensive planning to assess and mitigate
risks associated with the transition, including outreach efforts, may
increase the potential for at risk populations not adequately preparing
for the transition.
NTIA Has Taken Steps to Implement a Subsidy Program for Converter Boxes, but
Challenges Remain
NTIA has made progress in implementing the converter box subsidy program,
including soliciting stakeholder comments, meeting with industry
participants, and selecting IBM in August 2007 to administer the program.
The subsidy program's outcomes depend on the coordination and
participation of NTIA, IBM, converter box manufacturers, retailers, and
consumers. Manufacturers and retailers are voluntarily participating in
the program, as NTIA does not have the authority to require their
participation. IBM will develop the technical solution for the program,
which includes determining how consumers will request, receive, and redeem
coupons, and how this will affect retailers' current point-of-sale
systems.6 NTIA and IBM will also be conducting consumer outreach specific
to the program. Figure 1 depicts the necessary, interrelated actions for
the subsidy program.
Figure 1: Coordination of Groups Involved in the Subsidy Program
As shown in figure 2, consumers can begin applying for converter box
coupons starting January 1, 2008, with NTIA requiring full distribution of
coupons to begin by April 1, 2008. Consequently, some consumers that
request coupons in January might have to wait months to receive their
coupons. Complicating matters is uncertainty regarding retailer
participation and readiness. At the time of our review, several retailers
we contacted expressed concerns about the possibility of a redemption
system that would affect their point-of-sale systems, noting that
modifying these systems can be time-consuming, resource-intensive, and
expensive, and can affect their other financial systems. Retailer
representatives told us they will need more information about the
contractor's technical solution before they could assess the impact on
their systems and whether it would affect their participation. Further,
they said that March or April of 2008--3 to 4 months after consumers can
begin requesting coupons--is a more likely time frame for retailers to be
ready to participate in the program. The extent to which point-of-sale
system modifications will be necessary and the potential impact on
retailers will remain unknown until IBM presents its technical solution.
With limited or delayed retailer participation, consumers might face
difficulties in redeeming their coupons for eligible converter boxes
during the designated time period. 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. The final rule does not require
remedies if certain geographic areas lack participating retailers and NTIA
does not have the explicit authority to require that participating
retailers maintain a certain level of inventory. Thus, it is uncertain
whether consumers with coupons will be able to locate a participating
retailer with converter boxes in stock.
6Point of sale systems record purchases, payments, returns, and exchanges,
as well as send the individual transactions to the company's internal
inventory and accounting systems. They can also include an external
component of `in real time' communication with financial institutions,
merchant banks, or other sources to identify the validity of the method of
payment and authorize utilization of that method (credit card, debit card,
gift card, check, etc).
Figure 2: Time Line of Converter Box Subsidy Program
aManufacturer converter box certification has no specified end date.
While Most Television Stations Are Transmitting a Digital Signal, Numerous
Technical and Coordination Issues Remain
The vast majority of broadcast television stations already broadcast a
digital signal with many of these stations prepared to turn off their
analog signal on February 17, 2009. However, a number of technical and
coordination issues remain, such as antenna replacement and tower
construction. In addition, cable and satellite television providers must
coordinate with broadcasters to ensure that they can continue to receive
and transmit the digital broadcast signals after the transition. While not
required to cease analog broadcasting, some translator stations may choose
to retransmit a digital signal but others will convert the digital signal
to analog and continue to broadcast in analog after February 2009.
Broadcasters Face Technical and Coordination Issues
According to FCC, as of April 2007, approximately 93 percent of television
broadcast stations were transmitting a digital signal. 7 FCC reports that
nearly 1,200 of these stations already transmitting a digital signal have
been authorized to continue to operate on their current digital channel
after February 17, 2009. FCC states that these stations will have a
relatively simple transition to their final post-transition digital
operation. Additionally, FCC states that approximately 750 of these
stations may now already be or are very close to being ready for their
post-transition operations and will simply have to turn off their analog
signal. For example, managers representing six television broadcast
stations that we interviewed said that they face no major transition
issues between by February 17, 2009, and will only have to turn off their
analog signal.
However, as discussed below, stations may encounter challenges in
completing their digital transition such as, (1) antenna and equipment
replacement or relocation, (2) tower construction, (3) channel relocation,
and (4) coordination with Canadian and Mexican governments.
Issues with antenna and equipment replacement or relocation. One of the
major tasks that many television stations have to complete to build out
their post-transition digital facilities is to install a digital antenna
on the top of the broadcast tower, where the analog antenna resides.
According to a broadcast industry official, many stations need to have
their digital antenna at the top of the tower in order to fully replicate
the area that their analog service covers. The broadcast industry official
stated that stations have two options in placing their digital antenna at
the top of the broadcast tower: (1) move the digital antenna to the top
now, and buy a new side mounted analog antenna, which would ensure that
the analog signal continues until it is switched off and that the digital
signal would be at full power; or (2) keep the analog antenna at the top
of the tower until it is turned off on February 17, 2009, then install the
digital antenna at the top of the tower. The industry official stated that
both options, however, present problems for broadcast stations. For the
first option, stations may have to purchase a new analog antenna, which
will only be used for a few months, and as a result of the analog antenna
being side mounted, stations' analog broadcast coverage area would be
reduced by 2 percent to 9 percent of the viewing market. Stations agreed
that they could potentially have to reduce their analog service prior to
the transition date. For example, the owner of a station in Minnesota
commented that it may not be possible to complete the construction of its
digital facilities without significantly disrupting its analog operation
as well as its digital operations. The owner said the power of its analog
signal would have to be significantly reduced before February 17, 2009,
affecting a large number of its viewers. For the second option, problems
include the digital signal not being at full power until later in the
year, and getting the necessary authority to do this from FCC. Further,
broadcast stations have commented that the design, manufacture, and
installation of new antennas can take months to complete. For example, a
company that owns five television stations commented that it can take up
to 6 months to design, order, receive and install a new antenna.
7As of April 2, 2007, 1,603 of the approximate 1,722 licensed television
stations broadcast a digital signal. Of the stations broadcasting a
digital signal, 1,136 represent commercial licensed stations.
Even when stations do have their digital facilities fully operational,
they may not broadcast their digital signal to the exact coverage area
that their analog signal covered. For example, representatives from a
commercial television station told us that in order for the stations to
replicate its analog service contour, it had to reduce coverage for part
of its digital contour. As a result, the station representatives said that
the digital signal will reach 15,000 fewer people and that while many of
these homes will have cable and satellite to still receive the station's
signal, some will not. As shown in figure 3, the digital signal coverage
of a station can differ from its analog signal coverage. Consequently,
homes residing in the light shaded areas relying on over-the-air signals
might not be able to receive the digital broadcast signals.
Figure 3: Example of a Station's Digital Signal Coverage Compared to
Analog Signal Coverage
FCC has acknowledged that a reduction or termination of analog service may
be necessary if maintaining full analog coverage hinders the construction
and operation of digital facilities. FCC officials told us that some loss
of analog service is part of a tradeoff needed to ensure the entire
transition is as smooth as possible. FCC officials also said it is
difficult to replicate an existing signal contour, and is almost
impossible to exactly replicate a pattern. FCC stated that it is not
always in the best interest of the public to have a digital signal fully
replicate the analog signal because a digital signal can cause serious
interference to nearby stations. Further, FCC said that, in some
instances, while contour shifting may result in some viewers losing a
station's signal, other homes might gain the signal of a station. For
example, FCC said contour shifting might disenfranchise 500 people in one
area, but cover a new area with 10,000 people.
Issues with tower construction. According to FCC, a station that must
change its DTV tower locations may face considerable challenges,
especially if the station must construct a new tower. FCC states that such
stations must consider whether there are any existing towers that can be
used or if a new tower must be constructed. FCC states that because of the
lead times involved in purchasing or leasing land with appropriate federal
government clearances, local and state zoning requirements, and varying
timelines for designing the new tower, ordering equipment, delivery of
equipment, and construction-related issues, stations must begin planning
as soon as possible in order to transition by the deadline. According to a
major television broadcast network, equipment manufacturing constraints
and the limited number of tower crews and other key equipment installation
resources available between now and the transition date will impede
stations' movement to final digital channels by February 17, 2009.
Additionally, any work on towers could be hampered by weather conditions
for towers located in northern climates and on higher elevations.
Television stations commented that working on towers in the winter months
can be problematic, if not impossible. For example, a major broadcast
network commented that many station transmitting sites are not readily
accessible during the winter, especially to cranes and other heavy
equipment necessary for tower rigging and equipment installation. In fact,
the broadcaster commented that snow and ice make one of its stations
accessible only by a special vehicle from October until March and another
of its sites can only be reached by special vehicle until April.
Issues with channel relocation. According to FCC, approximately 600
stations will have to move to a different channel once the transition is
complete. Some of these stations are broadcasting on a temporary digital
channel and plan to relocate this digital channel back to their current
analog channel. For example, one station we visited has its digital signal
on channel 16 but plans to relocate the digital signal to channel 9, which
is the station's current analog channel and the channel number people
recognize for that station. Other stations will have to move to a
completely new channel once the transition is complete. According to a
broadcast industry association representative, television stations moving
to another channel will face some technical challenges. For example, the
broadcast representative stated that stations moving to another channel
could cause interference for their neighboring channels if they move too
early or if the neighboring channel moves too late. He estimated that
there could be interference issues for up to 300 stations and stressed the
need for coordination to minimize interference issues. Additionally, some
stations broadcasting an analog signal do not have a paired digital
channel and plan to "flash cut" to their digital channel by February 17,
2009.8 According to FCC, "flash cutting" may present challenges since it
will involve stations ending their analog television operations and
beginning their digital television operations on their current analog
channel and, in some cases, will require that a station change to a new
channel to be fully operational.
Coordination issues with Canadian and Mexican governments. Another
challenge for some stations located along the northern and southern
borders of the United States is reaching agreements with Canadian and
Mexican governments on the coverage of their digital signals that cross
the border. According to FCC, some stations may still have unresolved
coordination issues with Canadian and Mexican governments. Stations have
commented that coordination issues with Canadian and Mexican governments
might affect their ability to finalize their digital operations. For
example, a company that operates several stations near the Canadian border
commented that uncertainty about the stations' final digital signal
coverage are preventing it from ordering equipment, scheduling tower crews
and making necessary changes to its transmitter buildings. The company
stated that if coordination issues cannot be resolved, the stations would
face significant additional costs in constructing their digital facilities
and could result in two of its stations discontinuing operations as full
power stations and rather, operate as low power stations. Another station
located near the Mexican border commented that the station's digital
channel allotment could result in the Mexican government delaying or
denying any request for coordination due to concerns about interference
with a station on the Mexican side of the border. The station comments
that any delay in coordination will result in the station not having
sufficient time to construct its digital facilities. FCC officials told us
that they are in discussions with Canadian and Mexican governments to
resolve any coordination issues and expect to the discussions to be
completed by January 2008. However, FCC has commented that if there are
situations where international coordination cannot be obtained, stations
may have to broadcast to a smaller coverage area.
8According to FCC, "flash-cut" refers to the situation where a station
gives up its pre-transition digital channel and transitions to digital
service using its analog channel or a newly allotted channel.
Cable and Satellite Television Providers Must Coordinate with Broadcasters to
Ensure They Continue to Receive Broadcast Signals
Cable and satellite television providers face fewer challenges than
broadcasters with the DTV transition, however, there are technical issues
that need to be resolved to ensure they can provide digital broadcast
signals to their subscribers. For cable, FCC recently indicated its intent
to require cable to either carry both a digital and analog signal, often
referred to as a "dual carriage" requirement, or carry only the digital
signal provided all subscribers can view the signal.9 FCC further
indicated its intent to require that high definition broadcast signals
continue to be carried in high definition format. According to FCC, this
will ensure all cable subscribers are able to view broadcast signals on
their current televisions -whether analog or digital. We heard from cable
providers that there are key technical challenges needing to be resolved
prior to the transition. As previously noted, the technical and
coordination issues facing the broadcasters can vary from station to
station, with some stations moving to a new channel or changing the
coverage area of their broadcast signal. As a result, cable providers told
us there is uncertainty whether its cable head-ends will continue to
receive the broadcast signals.10 For example, if a broadcaster's digital
coverage area differs from its analog coverage area, there is a
possibility the cable head-end will no longer be able to receive that
signal. One cable provider told us this could be particularly problematic
in smaller markets where head-ends rely on over-the-air broadcast to pull
in the broadcast signals. Cable providers will have to coordinate with
local broadcasters to ensure cable continues to receive local broadcast
feeds. In particular, we heard that cable providers need the coverage
areas, or signal contour maps, from broadcast stations as soon as possible
to help them identify problem areas. One cable provider we spoke with
indicated based on potential changing signal coverage areas, it might need
to reposition its antennas or otherwise update its head-ends so that they
can continue to receive the broadcast signals. Since the cable provider
has hundreds of head-ends, it could be time consuming to update them.
Furthermore, this cable provider emphasized concerns with clearing enough
bandwidth for the "dual carriage" requirements. While this should not be a
major issue in the bigger markets, it could be problematic in many of the
smaller markets where there is no viable technological solution for
dealing with these requirements on bandwidth.
9The FCC rules were adopted on September 11, 2007, but as of October 11,
2007, the final ruling had yet to be published.
10Cable providers receive the local broadcast signals to their head-ends,
while satellite providers receive the local broadcast signals at local
receive facilities. This signal can be received by the providers either
over-the-air, across fiber, by microwave antenna, or other means.
Over-the-air signals could be lost completely based on changes to the
broadcast stations antenna placement or structure, but fiber and other
means of receiving the broadcast signal may require changes in equipment.
The satellite television providers we talked to anticipate no technical
issues that will impact their subscribers' viewable broadcast signals
following the transition date. However, similar to cable, satellite
providers have concerns about broadcasters' coverage area changing such
that the satellite receiving stations will fall out of the coverage area
resulting in a lost or poorly received broadcast signal. Since satellite
television operates on a national platform, the satellite providers will
have to coordinate with all broadcast stations carried nationally.11 To
better coordinate and be better prepared for the DTV transition, both
cable and satellite providers support broadcast stations making their
transition plans public. Cable and satellite providers indicated advanced
planning will allow them adequate time to make technical modifications to
their systems, such as updating their receiving equipment and testing
signal strength and reception.
Owners of Translator Stations Will Need to Take Action in Order for Viewers to
Continue to Receive Translator Signals
Unlike full power broadcast television stations, the February 17, 2009
deadline to cease analog broadcasting does not apply to translator
stations.12 However, since translator stations retransmit signals from
full power broadcast stations, owners of these stations will need to take
action to ensure broadcast signals continue to reach viewers. Translator
stations can either transition to digital or take the digital signal and
convert it to analog before transmitting it to their viewers. Those
stations transitioning to digital have two options; they can cease analog
transmission and begin operation of new digital transmitting equipment on
the same date, or they can operate a digital companion channel allowing
them to deliver both analog and digital signals. According to a broadcast
industry association, there are currently several hundred companion
digital channels operating, and FCC is not presently allowing these
stations to cease analog operation even though they are transmitting a
digital signal. However, many translator stations will continue to
transmit an analog signal beyond the full-power analog shutdown date. One
broadcast industry association representative told us that although many
translators will likely have obtained the hardware to operate with the
digital input signal by the transition date, some stations will not have
the necessary equipment.
11The two satellite television providers, EchoStar and DIRECTV, retransmit
1,500 local broadcast signals and 1,200 local broadcast signals,
respectively.
12Most of the approximately 5,000 translator stations operate in the
mountainous western regions of the country and are often used to deliver
the only off-air television service available in rural communities.
Although some translator stations are owned by full-power stations, many
are either owned or rely on support from a local government.
If a translator station decides to convert the digital signal to analog
and retransmit the signal, there is a possibility they will not reach
those viewers who have purchased set-top converter boxes. According to a
broadcast industry association, there are some instances where translator
stations serve communities that receive at least one full-power television
station, which would necessitate those over-the-air viewers to obtain a
converter box. Since these areas will continue receiving both digital and
analog signals, there is concern that those people who buy a set-top
converter box that does not have analog pass through will have to turn
them off or have an external bypass arrangement to allow for over-the-air
signals to pass through their analog sets.
Our Future Work Will Focus on the Progress of the DTV Transition
We have work planned to assess the progress of the DTV transition. To
accomplish this, we will continue to monitor public and private sector
efforts related to the transition, including consumer outreach, the
converter box subsidy program, and technical issues. Specifically, we will
review consumer education programs and plan to conduct a series of
consumer surveys throughout the year prior to the transition date. The
surveys we conduct will be aimed at determining the population that will
be affected by the DTV transition and the public awareness of the
transition. In determining the affected population, we will look at the
percent of the population relying on over-the-air broadcasts for their
primary television, as well as the percent of the population with
non-primary televisions being used to watch over-the-air television.
Additionally, we will review the demographic characteristics of the
affected population to determine what groups might be most disrupted by
the transition. We will survey for public awareness of the DTV transition,
and specific knowledge of the transition, such as when the transition will
take place. We will seek to determine the level of public awareness of
those who will be affected by the transition and awareness of the
converter box subsidy program and other options for viewing digital
signals after the transition. We plan to report on changes in consumer
awareness over time by conducting surveys throughout the transition
process. Furthermore, we will continue to monitor government and industry
consumer education efforts and will analyze the efforts compared with key
practices for consumer outreach. We will also monitor the outcome of FCC's
notices of proposed rulemaking regarding the transition and collect
details on IBM's consumer education plan as they become available. To
monitor the implementation of the converter box subsidy program, we plan
to continue reviewing the steps taken by NTIA and IBM in administering the
subsidy program. In addition, we plan to survey broadcasters to obtain
their perspectives on the technical issues that must be addressed prior to
the DTV transition date.
Mr. Chairman, this concludes my prepared statement. I would be happy to
respond to any questions you or other Members of the Committee may have at
this time.
Contacts and Acknowledgements
For questions regarding this testimony, please contact Mark L. Goldstein
on (202) 512-2834 or [email protected]. Individuals making key
contributions to this testimony included Matthew Cail, Andy Clinton, Simon
Galed, Eric Hudson, Bert Japikse, Crystal Jones, Aaron Kaminsky, Sally
Moino, Andrew Stavisky, and Margaret Vo.
(543196)
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Highlights of [30]GAO-08-191T , a testimony before the House Subcommittee
on Telecommunications and the Internet
October 17, 2007
DIGITAL TELEVISION TRANSITION
Preliminary Information on Progress of the DTV Transition
On February 17, 2009, federal law requires all full-power television
stations in the United States to cease analog broadcasting, enabling the
government to reclaim valuable spectrum that the broadcasters currently
use for analog broadcasts. This change, often referred to as the digital
television (DTV) transition, requires action by broadcasters and consumers
to ensure broadcast television signals are still available and viewable.
The National Telecommunications and Information Administration (NTIA)
created a program to subsidize consumers' purchases of digital-to-analog
converter boxes. This testimony provides preliminary information on (1)
the progress made by federal entities, and others, to facilitate the
transition, (2) the progress in the education of consumers about the
transition, (3) the progress made in implementing the converter box
subsidy program, (4) technical issues of the transition, and (5) future
GAO work on the progress of the DTV transition. GAO interviewed officials
with the Federal Communications Commission (FCC) and NTIA. Further, GAO
interviewed a wide variety of industry and other stakeholders involved
with the transition, including members of the DTV Transition Coalition--a
group of public and private stakeholders, and experts on strategic
communications. GAO discussed this testimony with FCC and NTIA officials
and incorporated their comments.
FCC and NTIA, in conjunction with other stakeholders, have taken steps to
facilitate the DTV transition. For example, FCC has conducted periodic
reviews to report on transition progress, and NTIA has issued a contract
for administering the converter box subsidy program. In addition, private
sector industries have also begun preparing for the transition. Despite
public-private sector interaction designed to help facilitate the
transition, we found that no comprehensive plan exists for the DTV
transition. Without such a plan, meaningful guidance for coordinating
responsibilities and measuring progress might not be available to the
private or public sector.
Several federal and private stakeholders have begun consumer education
campaigns. FCC and NTIA have developed informational materials and begun
direct outreach to consumer groups. In addition, private industry
stakeholders created the DTV Transition Coalition and are voluntarily
conducting outreach efforts. However, these efforts are in the planning
stages and challenges remain. An expert panel that GAO convened identified
potential challenges and key practices for a consumer education campaign.
NTIA has made progress in implementing the converter box subsidy program,
but the program's outcome depends on the voluntary participation of
retailers and manufacturers. Retailers we contacted expressed concerns
about the possibility of a redemption system that would affect their
point-of-sale systems and stated they would need more information on IBM's
technical solution before they could assess the impact on their systems
and whether it would affect their participation. With limited or delayed
retailer participation, consumers might face difficulties in redeeming
their coupons for eligible converter boxes.
Most television stations already transmit a digital signal, but technical
and coordination issues, such as antenna replacement and tower
construction, may present challenges for broadcasters. In addition, cable
and satellite television providers must coordinate with broadcasters to
ensure that they can continue to receive and transmit the digital
broadcast signals. Further, certain stations that retransmit the
television signals, known as translator stations, are not required to
cease analog broadcasting. These stations may choose to retransmit a
digital signal, or they may convert the digital signal to analog and
continue to broadcast in analog after February 2009.
We plan on reporting on the progress of the DTV transition, including the
status of consumer education and awareness about the DTV transition, IBM
and NTIA's administration of the converter box subsidy program, and
industry technical preparations throughout the upcoming transition period.
We will continue to monitor government and industry consumer education
efforts and plan to analyze the efforts compared with key practices for
consumer outreach. In addition, we plan to survey broadcasters on the
technical issues that must be addressed prior to the DTV transition date.
References
Visible links
18. http://www.dtvtransition.org/
19. http://www.dtv.gov/
20. http://www.ntia.doc.gov/otiahome/dtv/
21. http://www.gao.gov/cgi-bin/getrpt?GAO-04-926T
22. http://www.gao.gov/cgi-bin/getrpt?GAO-06-15
23. http://www.gao.gov/
24. http://www.gao.gov/
25. http://www.gao.gov/fraudnet/fraudnet.htm
26. mailto:[email protected]
27. mailto:[email protected]
28. mailto:[email protected]
29. http://www.gao.gov/cgi-bin/getrpt?GAO-08-191T
30. http://www.gao.gov/cgi-bin/getrpt?GAO-08-191T
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