Digital Television Transition: Broadcasters' Transition Status,  
Low-Power Station Issues, and Information on Consumer Awareness  
of the DTV Transition (10-JUN-08, GAO-08-881T). 		 
                                                                 
The Digital Television (DTV) Transition and Public Safety Act of 
2005, requires all full-power television station in the United	 
States to cease analog broadcasting by February 17, 2009.	 
Low-power stations are not required to cease analog transmissions
and most will continue broadcasting in analog. Federal law also  
requires the National Telecommunications and Information	 
Administration (NTIA) to subsidize consumers' purchases of	 
digital-to-analog converter boxes. After the transition,	 
households with analog sets that rely on over-the-air broadcasts 
must take action or they will lose television service, but some  
households might not be aware of this potential disruption. This 
testimony provides information on (1) technical and coordination 
issues facing full-power broadcast stations as they transition to
digital, (2) issues pertaining to low-power broadcasting and how 
they affect consumers, and (3) the extent to which American	 
households are aware of the DTV transition and likely to utilize 
the converter box subsidy program. GAO interviewed officials with
the Federal Communications Commission (FCC) and NTIA and met with
a wide variety of industry participants and other stakeholders.  
GAO conducted a Web-based survey of broadcasters to determine	 
their status in transitioning to digital and issues they were	 
encountering and commissioned a survey of the U.S. population on 
consumer awareness. This statement is based on GAO's body of work
on the DTV transition.						 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-08-881T					        
    ACCNO:   A82310						        
  TITLE:     Digital Television Transition: Broadcasters' Transition  
Status, Low-Power Station Issues, and Information on Consumer	 
Awareness of the DTV Transition 				 
     DATE:   06/10/2008 
  SUBJECT:   Broadcasting					 
	     Cable television					 
	     Consumer education 				 
	     Digital broadcasting				 
	     Digital television 				 
	     Government information dissemination		 
	     Satellite television				 
	     Subsidies						 
	     Technical assistance				 
	     Technology assessment				 
	     Technology transfer				 
	     Television 					 
	     Television broadcasting				 
	     Television equipment industry			 
	     Digital Television Transition Coalition		 

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GAO-08-881T

This is the accessible text file for GAO report number GAO-08-881T 
entitled 'Digital Television Transition; Broadcasters' Transition 
Status, Low-Power Station Issues, and Information on Consumer Awareness 
of the DTV Transition' which was released on June 10, 2008. 

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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: 

Tuesday, June 10, 2008: 

Digital Television Transition: 

Broadcasters' Transition Status, Low-Power Station Issues, and 
Information on Consumer Awareness of the DTV Transition: 

Statement of Mark L. Goldstein, Director: 

Physical Infrastructure Issues: 

GAO-08-881T: 

GAO Highlights: 

Highlights of GAO-08-881T, a testimony before the House Subcommittee on 
Telecommunications and the Internet. 

Why GAO Did This Study: 

The Digital Television (DTV) Transition and Public Safety Act of 2005, 
requires all full-power television station in the United States to 
cease analog broadcasting by February 17, 2009. Low-power stations are 
not required to cease analog transmissions and most will continue 
broadcasting in analog. Federal law also requires the National 
Telecommunications and Information Administration (NTIA) to subsidize 
consumersï¿½ purchases of digital-to-analog converter boxes. After the 
transition, households with analog sets that rely on over-the-air 
broadcasts must take action or they will lose television service, but 
some households might not be aware of this potential disruption. This 
testimony provides information on (1) technical and coordination issues 
facing full-power broadcast stations as they transition to digital, (2) 
issues pertaining to low-power broadcasting and how they affect 
consumers, and (3) the extent to which American households are aware of 
the DTV transition and likely to utilize the converter box subsidy 
program. GAO interviewed officials with the Federal Communications 
Commission (FCC) and NTIA and met with a wide variety of industry 
participants and other stakeholders. GAO conducted a Web-based survey 
of broadcasters to determine their status in transitioning to digital 
and issues they were encountering and commissioned a survey of the U.S. 
population on consumer awareness. This statement is based on GAOï¿½s body 
of work on the DTV transition. 

What GAO Found: 

Broadcasters have made significant progress in preparing for the DTV 
transition. In fact, many stations are already broadcasting their full 
digital signal with the only remaining step being to turn off their 
analog signal. As of February 2008, 91 percent of broadcasters 
responding to our survey reported that they were already transmitting a 
digital signal. Nine percent of stations in our survey had yet to begin 
broadcasting a digital signal, but almost all of those stations 
expected to be broadcasting digitally by the transition date. In 
finalizing the transition to digital, some stations still must resolve 
technical, coordination, and construction issues. Technical issues 
include relocating either digital or analog antennas and, in some 
cases, constructing new broadcast towers. Some stations are bound by 
financial constraints related to the costs of resolving these issues. 
In addition, some stations have outstanding coordination issues, such 
as the U.S. government reaching agreements with the Canadian and 
Mexican governments regarding signal interference issues and 
coordinating with cable and satellite providers. 

Since most low-power stations will not transition to digital by 
February 2009, it is possible for viewers to receive programming in 
analog and digital after the transition. Potentially millions of 
viewers can receive low-power analog transmissions, including 
programming from the major networks, Spanish language broadcasting, and 
public television. To have access to both analog and digital television 
signals after the DTV transition, viewers could purchase a special kind 
of converter box that passes through an analog signal and a digital 
signal, or purchase other equipment. Public and private stakeholders 
have taken steps to educate the public about the low-power broadcasts 
potentially remaining in analog but some advocacy groups and others 
have expressed concerns that the messages intending to explain the low-
power issue are instead confusing the public. Further complicating 
matters, many consumers do not know the difference between full-power 
and low-power stations or whether the signals they receive are full or 
low power. 

Most households will be unaffected by the DTV transition and a vast 
majority have heard of the transition. About 84 percent of people have 
heard of the transition, but fewer have more specific knowledge about 
the transition. Those at higher risk of being affected by the 
transitionï¿½households viewing over-the-air television signalsï¿½have 
higher levels of awareness than those who will be unaffected. Over half 
of the population has heard of the converter box subsidy program and 
those households at risk of losing television service who plan to take 
action are likely to utilize the program. However, only a third of 
those indicating plans to purchase boxes and utilize the coupons know 
how to obtain coupons. In addition, there are indications that some 
consumers are confused about the transition, as 45 percent of those 
households who are at risk plan inadequate or no action to prepare for 
the transition. Conversely, amongst those unaffected by the transition, 
30 percent indicated they have plans to ready themselves for the 
transitionï¿½despite the fact that no action will be required to maintain 
television service. 

To view the full product, including the scope and methodology, click on 
[hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-08-881T]. For more 
information, contact Mark L. Goldstein at (202) 512-2834 or 
[email protected]. 

[End of section] 

Mr. Chairman and Members of the Subcommittee: 

I am pleased to be here today to discuss our recently issued report on 
technical issues arising from the digital television (DTV) 
transition[Footnote 1] --Digital Television Transition: Majority of 
Broadcasters Are Prepared for the DTV Transition, but Some Technical 
and Coordination Issues Remain--and our work on the extent of consumer 
awareness about the transition. My comments are based on our body of 
work on the DTV transition completed for this subcommittee.[Footnote 2] 
We are continuing to review public and private sector efforts underway 
to implement the transition and plan to report on those issues later 
this year. 

The Digital Television Transition and Public Safety Act of 2005 
mandates that full-power analog television broadcast signals cease 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 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. Beginning January 1, 2008, households could request up 
to two $40 coupons toward the purchase of eligible[Footnote 3] digital- 
to-analog converter boxes. While federal law mandates that all full- 
power stations must cease to broadcast in analog on February 17, 2009, 
low-power television broadcast stations are not covered by the law. 
[Footnote 4] Low-power stations provide opportunities for locally- 
oriented television service in small communities and these stations may 
continue to broadcast in analog after the DTV transition. Viewers who 
wish to continue watching low-power analog programming might need to 
take action to continue receiving analog signals after the transition. 
To help the public understand the DTV transition and the various 
options they have, FCC, NTIA, and industry stakeholders are conducting 
consumer education and awareness programs. 

In my testimony today, I will discuss (1) the progress full-power 
broadcast stations have made in transitioning to digital, as well as 
the technical and coordination issues they face; (2) issues pertaining 
to low-power television stations and how they affect consumers; and (3) 
the extent to which American households are aware of the DTV transition 
and likely to utilize the converter box subsidy program. 

To obtain information on the technical and coordination issues facing 
broadcast stations, we conducted a Web-based survey of the full-power 
commercial and noncommercial television broadcast stations. From a 
total of 1,747 broadcasters, we surveyed 1,682 stations located in the 
50 states and the District of Columbia for which we could obtain 
contact information. To determine the extent of consumer awareness 
about the transition, we commissioned a telephone survey of the U.S. 
adult population. This survey followed a probability sampling procedure 
based on random selections of households and individuals. A total of 
1,010 completed interviews were collected during late March and early 
April 2008. All percentage estimates presented have margins of error of 
plus or minus 6 percentage points or less. Further, we reviewed 
government documents and data and interviewed officials with the 
Federal Communications Commission (FCC) and NTIA, as well as a wide 
variety of industry and other private stakeholders, such as satellite 
and cable television providers, manufacturers, national retailers, 
industry associations, and consumer advocacy groups. See appendix I for 
more detailed information on our scope and methodology. We conducted 
our work in accordance with generally accepted government auditing 
standards. Those standards require that we plan and perform the audit 
to obtain sufficient, appropriate evidence to provide a reasonable 
basis for our findings and conclusions based on our audit objectives. 
We believe that the evidence obtained provides a reasonable basis for 
our findings and conclusions based on our audit objectives. 

In summary: 

* Broadcasters have made significant progress in preparing for the DTV 
transition. Many stations are already broadcasting their digital signal 
in full power with the only remaining step being to turn off their 
analog signal. Specifically, as of February 2008, 91 percent of 
broadcasters responding to our survey reported that they were already 
transmitting a digital signal. Nine percent of stations responding to 
our survey had yet to begin broadcasting a digital signal, but almost 
all of those stations expected to be broadcasting digitally by February 
17, 2009. In finalizing the transition to digital, some stations still 
must resolve technical, coordination, and construction issues. 
Technical issues include relocating either digital or analog antennas 
and, in some cases, constructing new broadcast towers. Some stations 
are bound by financial constraints related to the costs of resolving 
these issues. In fact, at the time of our survey, 69 stations indicated 
they have yet to start construction on their final digital facilities 
due to financial constraints. In addition, some stations have 
outstanding coordination issues, such as the U.S. government reaching 
agreements with the Canadian and Mexican governments regarding signal 
interference issues and coordinating with cable providers and satellite 
companies. 

* Since most low-power stations do not plan to transition to digital by 
February 2009, it is possible for some viewers to receive programming 
in analog (from low-power stations) and digital (from full-power 
stations) after the transition date. Potentially millions of viewers 
can receive low-power analog transmissions, including programming from 
the major networks (ABC, CBS, NBC, and Fox), Spanish language 
broadcasting, and public television. To have access to both analog and 
digital television signals after the DTV transition, viewers could 
purchase a special kind of converter box that passes through an analog 
signal and a digital signal, often referred to as analog pass through, 
or purchase other equipment. Currently, converter boxes with analog 
pass through are available for purchase online and at two national 
retailers. Public and private stakeholders have taken steps to educate 
the public about the low-power broadcasts potentially remaining in 
analog and options available to consumers, but some advocacy groups and 
others have expressed concerns that the messages intending to explain 
the low-power issue are instead confusing the public. Further 
complicating matters, many consumers do not know the difference between 
full-power and low-power stations or whether the signals they receive 
are full or low power. 

* According to our consumer survey results, most households will be 
unaffected by the DTV transition and a vast majority have heard of the 
transition. While about 84 percent of people have heard of the 
transition, a smaller number of people have more specific knowledge of 
the transition date and why the transition is taking place. Those at 
higher risk of being affected by the transition--households viewing 
over-the-air television signals--have higher levels of awareness than 
those who will be unaffected. Over half of households have heard of the 
converter box subsidy program and those households at risk of losing 
television service who plan to take action reported that they are 
likely to utilize the program. However, only a third of those 
indicating plans to purchase boxes and utilize the coupons reported 
knowing how to obtain coupons. While general awareness of the DTV 
transition is high, there are indications that some consumers are 
confused or unknowledgeable about the transition, as 45 percent of 
those households who are at risk plan no action or inadequate action to 
prepare for the transition. Amongst those unaffected by the transition, 
30 percent indicated they have plans to ready themselves for the 
transition--despite the fact that no action will be required to 
maintain television service. 

Background: 

All full-power television broadcasters are required by law to cease 
broadcasting their analog signal by February 17, 2009. There are 
numerous benefits to transitioning to digital-only broadcast signals, 
such as enabling better quality television picture and sound reception 
and 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. A digital receiver can make the digital 
picture and sound near perfect until significant fading occurs, at 
which point no picture can be seen. 

To facilitate the digital transition, Congress and FCC temporarily 
provided each eligible full-power television station (both commercial 
and noncommercial educational stations, including public stations) with 
additional spectrum so they could begin broadcasting a digital signal. 
This companion, or paired, digital channel simulcasts the analog 
program content in digital format. Assignment of the paired digital 
channel began in 1997 and FCC completed the digital channel assignment 
for most stations in August 2007. A station's final digital channel 
could be (1) the same channel as its paired digital channel, (2) the 
same channel that its analog signal uses to broadcast, or (3) an 
entirely new channel. 

The DTV transition involves preparation on the part of American 
households. This preparation will require citizens' understanding of 
the transition and the actions that some might have to take to maintain 
television service. The specific equipment needs for each household to 
transition to DTV--that is, to be able to view broadcast digital 
signals--depends on certain key factors. The method through which a 
household watches television, and whether it has already upgraded its 
television equipment to be compatible with digital television, will 
factor into the equipment needs of the household. While many households 
may need to take specific actions to ensure that they continue to 
receive television signals, others may not need to take any action. 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 broadcasting. 
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 that provides the necessary signal 
to eliminate the need to acquire a digital-to-analog converter box. 

The Digital Television Transition and Public Safety Act directed NTIA 
to establish a $1.5 billion subsidy program through which households 
can obtain coupons for the purchase of digital-to-analog converter 
boxes. NTIA established that beginning January 1, 2008, households 
could request up to two $40 coupons toward the purchase of eligible 
digital-to-analog converter boxes. Households requesting coupons must 
submit the name of the person requesting the coupon and a valid United 
States Postal Service address. Initially, any household is eligible to 
request and receive the coupons, but once $890 million worth of coupons 
have been redeemed, and issued but not expired, NTIA must certify to 
Congress that the program's initial allocation of funds is insufficient 
to fulfill coupon requests. NTIA will then receive $510 million in 
additional program funds, but any households requesting coupons during 
this second phase must certify that they do not receive cable, 
satellite, or other pay television service. Total possible program 
funding, which includes coupons redeemed, and issued but not expired, 
is $1.5 billion. The last day for consumers to request coupons is March 
31, 2009, and coupons can be redeemed through July 9, 2009. As required 
by law, all coupons expire 90 days after issuance. The fully funded 
program could provide 33.5 million coupons. 

While all full-power broadcast stations must cease analog broadcasts, 
low-power stations may continue broadcasting in analog after February 
17, 2009. FCC established low-power television service in 1982 to 
provide opportunities for locally-oriented television service in small 
communities. These communities may be in rural areas or may be 
individual communities within larger urban areas. Low-power stations 
provide programming from networks, syndicated programs, movies, and a 
wide range of locally-produced programs. According to FCC, there are 
more than 2,100 low-power stations in operation, some of which 
broadcast syndicated content of major commercial networks and public 
television and numerous other stations reaching a broad swath of the 
television viewing public. Low-power broadcast stations are not 
required to cease broadcasting in analog as of February 2009 and most 
will continue to broadcast in analog after the conclusion of the full- 
power transition. Because there is no mandated transition date for the 
low-power stations, it is unclear when these stations will transition 
to digital broadcasts. 

The Vast Majority of Broadcasters are Transmitting a Digital Signal, 
but Some Broadcast Stations Face a Range of Technical, Coordination, or 
Other Issues in Completing Their DTV Transition: 

Most broadcasters have made significant progress in preparing their 
stations for the transition to digital, with approximately 91 percent 
of broadcasters responding to our survey reporting that they were 
already transmitting a digital signal. A small number of stations 
responding to our survey (9 percent) had yet to begin broadcasting a 
digital signal, but almost all of those stations expected to be 
broadcasting digitally by February 17, 2009. Before the transition to 
digital can be finalized, some stations still have to resolve (1) 
technical issues, such as the relocation of their digital or analog 
antenna; (2) coordination issues, such as the U.S. government reaching 
agreements with the Canadian and Mexican governments and coordinating 
with cable providers and satellite companies; or (3) other issues, such 
as the construction of broadcast towers or financial constraints that 
might hinder their ability to complete the steps necessary for the 
transition. 

Almost All Stations are Transmitting a Digital Signal and the Majority 
are Operating at Full Power: 

Broadcast stations have made substantial progress in transitioning to 
DTV, with the vast majority already transmitting a digital signal. 
Information obtained from our survey of broadcast stations indicates 
that approximately 91 percent of full-power stations are currently 
transmitting a digital signal. Our survey further indicated that 
approximately 68 percent of respondents are transmitting their digital 
signal at full strength. In addition, 68 percent of survey respondents 
are currently transmitting their digital signal on the channel from 
which they will broadcast after the transition date. Twenty-three 
percent of stations that responded to our survey indicated they will be 
moving their digital signal to their analog channel. In addition, other 
stations need to move to a completely new channel. While almost all 
full-power stations are already broadcasting a digital signal, 97 
stations, or 9 percent of stations responding to our survey, are not 
currently broadcasting digitally. Almost all of these stations, 
however, indicated that they plan to have their digital signal 
operational by February 17, 2009. Three stations responded that they 
were not planning to broadcast a digital signal by February 2009. 
According to FCC, stations that are not currently transmitting a 
digital signal either (1) were granted a license to operate a digital 
signal along with their analog signal but have yet to begin 
broadcasting digitally or (2) were not given a companion, or paired, 
digital channel and plan to turn off their analog signal at the same 
time that they turn on their digital signal--known as "flash cutting." 
According to our survey, 5 percent of the stations (61 stations) 
indicated that they plan to flash cut to a digital-only broadcast. 
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 or, in some cases, will require that a station change to a new 
channel to be fully operational. Of those stations responding to our 
survey that plan to flash cut, only 21 percent had begun constructing 
final digital facilities at the time of our survey. Furthermore, 64 
percent of the flash cutters responding to our survey noted that they 
need to order equipment to complete their digital facilities. 

Some Broadcast Stations Need to Address Technical, Coordination, and 
Other Issues to Support a Smooth Transition: 

Some stations, including those already broadcasting a digital signal, 
still have technical, coordination, or other issues that need to be 
resolved before completing their transition. For example, over 13 
percent of stations responding to our survey indicated that they have 
to install or relocate their digital or analog antennas in 
transitioning to digital. Some stations still needed to order 
equipment, such as antennas, to build their final digital facilities. 
According to an antenna manufacturer we contacted, it can take from 6 
weeks to 9 months to design, order, and install an antenna, depending 
on the antenna's complexity. This manufacturer told us that stations 
need to have their orders placed by June 2008 to be assured of having 
the equipment installed prior to the transition date. Furthermore, 
stations may have coordination issues to address in completing their 
final digital facilities. For example, some stations are awaiting 
agreements with the Canadian and Mexican governments regarding their 
signals crossing the borders of these respective countries before the 
stations can complete their digital facilities. Stations will also need 
to coordinate with cable providers and satellite companies to ensure 
that cable and satellite facilities can receive digital signals when 
the analog signals are turned off; most of those responding to our 
survey indicated that they are coordinating with or are planning to 
coordinate with cable providers and satellite companies. Lastly, 
stations that have to construct broadcast towers or have financial 
constraints might be affected during their transition. According to our 
survey, 47 stations indicated that they need to construct a broadcast 
tower or reinforce an existing tower to build their digital facilities. 
Another 69 stations responding to our survey indicated that due to 
financial constraints, they have not started construction on their 
final digital facilities or that they have not begun broadcasting a 
digital signal. 

Viewers Have Options to Prevent Loss of Service from Low-Power Analog 
Broadcasts, but Concerns Remain About the Clarity of Information 
Pertaining to this Issue: 

Potentially millions of viewers can receive low-power analog 
transmissions, including programming from the major networks (ABC, CBS, 
NBC, and Fox), Spanish language broadcasting, and public television. 
According to FCC data, 296 low-power stations broadcast one of the four 
major networks, 109 low-power stations broadcast a Spanish language 
network, and 45 low-power stations are affiliated with the public 
broadcasting service. Since most low-power stations will not transition 
to digital in February 2009, it is possible for viewers to receive 
programming in analog (from low-power stations) and digital (from full- 
power stations) after the transition date. As previously noted, one of 
the options households have to prepare for the transition is purchasing 
a digital-to-analog converter box. However, such a box could prevent 
the television from receiving low-power analog signals. To have access 
to both analog and digital television signals after the DTV transition, 
viewers could use a special kind of converter box that passes through 
an analog signal and a digital signal, often referred to as analog pass 
through. Absent a converter box with analog pass through capability, 
viewers could obtain a small device called a "splitter."[Footnote 5] 
According to the National Association of Broadcasters (NAB), installing 
the splitter and new wiring is similar to connecting a television to a 
DVD player and VCR.[Footnote 6] 

Currently, converter boxes with analog pass through are available for 
purchase online, and two national retailers indicated the boxes are 
available in their stores now. The remaining national retailers we 
contacted told us they would begin stocking such boxes in mid June 
through early September.[Footnote 7] At least one national retailer we 
spoke with is carrying items (such as the splitter) which would allow 
consumers to view both digital and analog signals without purchasing a 
converter box with analog pass through. The retailers we contacted said 
all of their stores will be selling converter boxes with analog pass 
through, regardless of location or prevalence of low-power stations. 
Some retailers said they are analyzing market data to help them 
understand which markets will have increased need for these boxes. For 
example, one retailer told us that it is analyzing data to determine 
which markets will need and therefore initially receive more boxes with 
analog pass through, with the goal of having boxes with analog pass 
through in all stores later in the summer of 2008. 

Public and private stakeholders have taken steps to educate the public 
about the low-power issue and the options available to consumers. For 
example, FCC issued a consumer advisory which serves as a resource 
guide on low-power television.[Footnote 8] Further, FCC is urging all 
low-power broadcasters to immediately begin educating their viewers 
about this issue. FCC noted that such stations could notify their 
viewers that they are watching a low-power broadcast station that will 
continue to offer analog service after the transition date and viewers 
that plan to purchase a converter box should purchase a model with 
analog pass through. NTIA also developed a resource guide.[Footnote 9] 
According to NTIA, it has provided information to operators of low- 
power stations so they can inform their viewers of the options they 
have regarding the DTV transition. NTIA said it has encouraged 
converter box manufacturers to consider the needs of all viewers, 
including viewers of low-power stations, in the development of 
converter boxes. NAB and others have added information about low-power 
stations to their Web sites and clarified that only full-power stations 
are transitioning in February 2009.[Footnote 10] However, the Community 
Broadcasters Association, which represents low-power stations, believes 
public and private education efforts about the DTV transition focus on 
the end of analog broadcasts and are misleading to viewers. 

While public and private efforts are ongoing to inform the public about 
low-power stations not transitioning to digital, some have expressed 
concerns that the messages intended to explain this issue are instead 
confusing the public. Further complicating matters, many consumers do 
not know the difference between full-power and low-power stations or 
whether the signals they receive are full or low power. We heard from 
advocacy groups for disadvantaged populations that the messages 
intending to explain the low-power issue could be overly confusing. For 
example, one group questioned how those watching low-power stations 
would understand that (1) they are viewing low-power broadcasts, (2) 
these stations are not transitioning to digital, and (3) what actions 
they need to take to maintain the ability to watch low-power 
broadcasts. This group said many Spanish speakers are reliant on low- 
power stations to view Spanish language broadcasts but many in that 
community are not aware of the issue with low-power stations or that 
they are reliant on low-power stations. 

Most People are Aware of the DTV Transition, but Many are Unprepared or 
Have Inadequate Plans: 

Most households will be unaffected by the DTV transition and a vast 
majority have heard of the transition. According to our consumer survey 
results, about 84 percent of the population has heard of the 
transition, but smaller numbers of people have more specific knowledge 
of the transition date and why the transition is taking place. Those at 
higher risk of being affected by the transition--households viewing 
over-the-air television signals--have higher levels of awareness than 
those who will be unaffected. Over half of the population has heard of 
the converter box subsidy program and those in households at risk of 
losing television service who plan to take action are likely to utilize 
the program. However, only a third of those indicating plans to 
purchase boxes and utilize the coupons know how to obtain coupons. 
While general awareness of the DTV transition is high, there are 
indications that some consumers are confused or unknowledgeable about 
the transition, as 45 percent of those households who are at risk plan 
no action or inadequate action to prepare for the transition. 

About 65 Percent of Households Have All Televisions Connected to a 
Subscription Service, but the Remaining 35 Percent are at Risk of 
Losing Some or All of Their Television Service After the Transition: 

Our survey categorized households into varying risk levels of being 
affected by the DTV transition, with most households (65 percent) 
unlikely to lose television service. According to our survey of 
consumers, approximately 15 percent of households are at risk of losing 
television service once the transition is complete because they rely 
solely on over-the-air television signals. We refer to this group as 
"high risk." An additional 21 percent of households have at least one 
television used to watch over-the-air signals. While this group of 
consumers has one or more televisions connected to a subscription 
service such as cable or satellite, they still have at least one 
television used to watch over-the-air television. We refer to this 
group as "medium risk" because unless they take action, they could lose 
television service on the set or sets not connected to cable, 
satellite, or other subscription service. Also, our survey found that 
65 percent of households have all of their televisions used for 
watching programming connected to a subscription service. We refer to 
this group as "low risk" since they are unlikely to be adversely 
affected by the DTV transition. 

Our survey suggests that while most Americans do not believe the 
transition will be disruptive, some do not fully understand the 
ramifications the transition could have on their ability to watch 
television. We asked respondents how disruptive they expected the 
change from analog to digital to be and found that 55 percent expect 
the transition will not be at all disruptive. Only 10 percent of the 
population expects the transition to be very disruptive and even among 
high risk households--those who most likely must take action or lose 
television service--only 20 percent expect the transition to be very 
disruptive. Nevertheless, while most households (69 percent) believe 
the transition will be either not at all disruptive or not too 
disruptive, of this segment of the population, 54 percent had 
inadequate or no plans for the transition despite being at medium or 
high risk of losing television service. 

NTIA and FCC have identified a number of at-risk populations who might 
be more likely to be adversely affected by the transition. These groups 
include seniors, low-income, minority and non-English speaking, rural 
households, and persons with disabilities. Those most likely to be 
affected by the transition are spread across all types of households 
throughout the country, but in some cases, there are particular 
characteristics of note regarding which types of households represent 
the high and medium risk groups. Our survey collected demographic 
information on households and found that certain subgroups of the 
population were more likely to be affected by the transition. For 
example, households at risk of losing all television service--those in 
the high risk group--were more likely to be in urban locations than 
households in the medium risk group. Households in the various income 
categories are spread across the different risk groups; however, the 
lower income group has a larger portion of high risk households. 
Specifically, those with income lower than $50,000 are composed of 19 
percent high risk, whereas 14 percent of households with income from 
$50,000 to $99,999 are high-risk and only 7 percent of households with 
income of $100,000 and above are high risk. 

General Awareness of the DTV Transition is High, but Detailed Knowledge 
is Much Lower: 

Overall, about 84 percent of Americans have heard of the DTV transition 
according to our survey results. To test the survey respondents' level 
of awareness, we asked if they had heard of the DTV transition and if 
they knew when and why the transition was taking place. We found the 
percentage of people with detailed knowledge about the transition 
declines with the specificity of information. For example, 62 percent 
knew the year (2009) that the transition would take place, but only 31 
percent knew the month and year (February 2009). Additionally, only 35 
percent of people who indicated they were aware of the transition--29 
percent of the population as a whole--could explain why the transition 
is taking place. The most common responses on why the transition is 
taking place were related to technology improvements. Twenty percent 
indicated the transition would bring about general technological 
advancements and 30 percent cited better television picture quality as 
the reason for the transition. Much smaller percentages of the 
population indicated the transition was to free up airwaves for a 
variety of reasons, including improved emergency communications. 

Those who may be more seriously affected by the transition have higher 
levels of knowledge about the transition and when it will take place 
than those who will be less seriously affected. To determine the 
awareness of the households that will be most affected by the 
transition, we segmented survey questions by risk group. Our survey 
indicates that consumer awareness was higher, in most cases, across a 
variety of questions, for the medium and high risk groups than for the 
population as a whole. In particular, for the medium risk group--the 
largest block of affected households--90 percent indicated they were 
aware of the transition. In the more detailed indicator of awareness, 
knowledge of the transition date, 40 percent of high risk households, 
37 percent of medium risk households, and 27 percent of low risk 
households were aware of the month and year the transition will take 
place. 

Our survey results indicate that some demographic groups show different 
levels of awareness from the overall population. We examined awareness 
of the transition across demographic factors, such as age, ethnicity, 
income, and disability and examined, additionally, the awareness of 
those households likely to be affected by the transition--the high and 
medium risk groups. 

Age: Across various age categories, there were few differences in 
overall consumer awareness, but people in the middle-age group (45 to 
64) have the highest rates of awareness of the DTV transition, its 
timing, and why it is occurring. Respondents who were 65 and older 
showed slightly lower levels of awareness. When looking specifically at 
awareness of the transition date for age groups, 29 percent of 18-to 44-
year-olds, 36 percent of 45-to 64-year-olds, and 26 percent of those 65 
and older knew the month and date of the transition. As for the reason 
for the transition, 18-to 44-year-olds had the lowest percentage of 
those aware of why the transition was taking place. 

Ethnicity: By ethnicity, those self-described as white or Caucasian had 
higher general awareness (86 percent) than those nonwhite ethnic groups 
(78 percent). This trend in awareness followed for the additional 
specific questions about the transition and is more pronounced for the 
at-risk groups. When high and medium risk households were asked about 
why the transition was taking place, only 16 percent of nonwhite 
respondents were knowledgeable compared with 45 percent in the white/ 
Caucasian group. 

Income: Higher income was associated with greater awareness. For those 
individuals with incomes from $15,000 to $34,000, 84 percent were 
aware; for those with incomes ranging from $35,000 to $49,000, 90 
percent were aware; $50,000 to $99,000, 90 percent were aware; and for 
those making over $100,000, 94 percent were aware. On the other hand, 
69 percent of those making less than $15,000 per year were aware of the 
transition. 

Disabilities: We found that 77 percent of those with disabilities were 
aware of the transition. 

Community type: We found that awareness did not differ significantly in 
different community types. In urban, suburban, and rural/small-town 
groups, awareness was around 84 percent, similar to that of the 
population. There was also little variance by region of the country: 
the Northeast, Midwest, West, and South regions all showed similar 
awareness. 

Our results indicate that, across all risk groups, television is the 
most pervasive source of information about the transition. In 
particular, 82 percent of the population indicated they heard of the 
transition by television. In addition, 45 percent said they had heard 
about the transition by word-of-mouth and 30 percent from newspapers or 
magazines. Many fewer (17 percent) had heard about the transition from 
the Internet and 11 percent heard about the transition from retail 
stores. 

Households Planning to Take Action for the DTV Transition are Likely to 
Utilize the Converter Box Subsidy Program, but Many Household Plan to 
Take No Action to Prepare for the Transition: 

Greater than half of the population is aware of the NTIA converter box 
subsidy program, but more detailed knowledge of the program is much 
weaker. Overall, awareness of the converter box subsidy program is at 
55 percent. The high and medium risk groups have higher awareness, at 
63 percent and 56 percent respectively, than the low risk group at 53 
percent. While general awareness of the subsidy program itself is 
relatively high, of those households who intend to purchase a converter 
box and to request a coupon from the NTIA program, only 33 percent were 
aware of how to obtain a coupon. 

Those households who indicated that they were likely to purchase a 
converter box reported very high rates of likelihood to request the 
coupons. In the high risk group, of those who intend to purchase a 
converter box, 100 percent of respondents said they were likely to 
request a coupon. In the medium risk group, 89 percent of these 
households said they were likely to request coupons. According to NTIA 
officials, the rate of those requesting two coupons is approximately 89 
percent. 

The intention of households to utilize the converter box subsidy 
program if they plan on purchasing converter boxes is clear. However, 
the percent of those who indicated they are likely to purchase a 
converter box in the first place is much lower. In the high risk group, 
49 percent, and in the medium risk group, 32 percent of households are 
likely to purchase a converter box. Additionally, 15 percent of 
households in the low risk group said they would purchase a converter 
box when the transition takes place. This indicates not only that some 
households may be confused or unknowledgeable--low risk households 
should not need converter boxes--but that households with no need for 
converter boxes may utilize the subsidy program. Of the low risk 
households who plan to purchase a converter box, 86 percent said they 
would utilize the NTIA subsidy program. Based on an analysis of our 
survey, we estimate that households will request roughly 30.6 million 
coupons. This estimate assumes that households will follow through with 
their plans to request coupons.[Footnote 11] 

Despite high overall awareness of the DTV transition, many households 
were unprepared for the transition. We describe as unprepared for the 
DTV transition those in the medium or high risk groups who indicated 
that for the transition, they will do nothing, they do not know what 
they will do, or they specified some other action that will not prepare 
them for the transition. Our analysis determined that 35 percent in the 
high risk group were unprepared and 52 percent in the medium risk group 
were unprepared. Overall, these unprepared groups make up 16 percent of 
the total population. Amongst low risk households, 30 percent indicated 
they have plans to ready themselves for the transition--despite the 
fact that no action is required to maintain television service. 

Thank you, Mr. Chairman, that concludes my statement. I will be pleased 
to answer any questions that you or other Members of the Subcommittee 
might have. 

GAO Contact and Staff Acknowledgements: 

For further information about this testimony, please contact Mark L. 
Goldstein at (202) 512-2834. Other key contributors to this testimony 
include Andy Clinton, Colin Fallon, Ronald Fecso, Simon Galed, Eric 
Hudson, Bert Japikse, Aaron Kaminsky, Sally Moino, Karen O'Conor, and 
Andrew Stavisky. 

[End of section] 

Appendix I: Scope and Methodology: 

To obtain information on the technical and coordination issues facing 
broadcast stations, we conducted a Web-based survey of the full-power 
commercial and noncommercial television broadcast stations. We asked 
the broadcasters questions related to their digital facilities, 
construction plans, and issues affecting the digital transition. From a 
total of 1,747 broadcasters, we surveyed 1,682 stations located in the 
50 states and the District of Columbia for which we could obtain 
contact information. We conducted our survey from December 2007 through 
February 2008 and obtained completed questionnaires from 1,122 
stations, for a response rate of 66.7 percent. Of those completed 
questionnaires, 72 percent were from commercial stations and 28 percent 
were from noncommercial stations. 

To obtain information on issues pertaining to low-power television 
stations and how they affect consumers, we reviewed data from the 
Federal Communications Commission and interviewed a wide variety of 
industry and other private stakeholders, such as national retailers, 
industry associations, and consumer advocacy groups. 

To determine the extent of consumer awareness about the transition, we 
commissioned a telephone survey of the U.S. adult population. Our 
objectives were to produce nationally representative estimates of (1) 
knowledge and awareness of the DTV transition and sources of that 
knowledge and awareness, (2) knowledge about the converter box coupon 
program and likelihood to request one or two coupons, and (3) attitudes 
about the impact of the conversion to digital television (e.g. level of 
disruption) Although the survey was designed to measure these issues at 
the population level, our intent was also to focus on several sub- 
populations, including (1) those most at risk of losing their 
television signal, (2) those with lower household incomes, (3) older 
Americans, (4) African Americans and Hispanics, and (5) those with 
disabilities. We analyzed the comparisons between these sub-populations 
and report on differences statistically significant at the 95 percent 
level. Percentage estimates have margins of error of less than 6 
percent. 

This survey of the American public was conducted from March 24, 2008 to 
April 7, 2008 by a private research firm. A total of 1,010 completed 
interviews were collected and calls were made to all 50 states. 

Telephone surveys require assumptions regarding the disposition of non- 
contacted sample households that meet certain standards. For this 
survey the response rates were calculated using American Association of 
Public Opinion Research (AAPOR) Response Rate 3. Based on these 
assumptions, the response rate for the survey is 38 percent. A random 
digit dial (RDD) sampling frame was used that includes both listed and 
unlisted numbers from working blocks of numbers in the United States. 
Technically, it provides a near 100 percent coverage of all households 
with landlines however; the RDD sampling frame approach cannot provide 
any coverage of the increasing number of cell phone only households. 
The 30.6 million estimate for coupon requests (which ranges from 25.6 
million to 35.5 million coupons) does not include 13.1 percent of the 
households that are cell phone only households or 13.3 percent of the 
households for which there was no telephone service or no reported 
telephone status. While we could not substantiate an assumption that 
these households would respond similarly to landline households, if 
they do, this could add another 11 million coupon requests to the 
estimate. Additionally, the number of households that decide to replace 
their television rather than add the converter box could increase, 
which may decrease the demand for converter boxes. 

Because many households contain more than one potential respondent, 
obtaining an unbiased sample from an RDD frame requires the random 
selection of the individual respondent from among all potential 
respondents within the sampled household (as opposed to always 
interviewing the individual who initially answers the phone). This was 
accomplished using the most recent birthday method, in which the 
interviewer requests to speak to the household member aged 18 or older 
who had the most recent birthday. If the selected respondent was not 
reachable after three call attempts, a substitute respondent was 
selected from among household members 18 years of age or older who were 
available at the time of the call, or an appointment was set for a 
household member who was willing to participate at a later time. 

The results of this survey reflect an estimated awareness of the DTV 
transition for the time frame of the survey only. Some questions in the 
survey ask about the respondent's knowledge or awareness of the 
transition and the coupon program. As consumer education about the 
transition and the coupon program increases, the number of people aware 
of the transition and the coupon program will probably increase. 
Additionally, the respondent may not be the person in the household 
responsible for obtaining a coupon or deciding how to handle the 
transition. As a result, the individual response may indicate that the 
person is unaware, but someone else in the household could be planning 
to take care of the issue. As a result, we may overestimate the 
percentage of unaware households. 

Finally, in the survey we asked respondents about likely behavior once 
the transition occurred. Only those who said they were likely to 
purchase a converter box were asked if they would request a coupon and 
then were asked whether they would request one or two government 
coupons. In our calculation of coupon demand we assume that those who 
do not say they are likely to purchase a coupon box will not request a 
coupon. 

[End of section] 

Appendix II: Related GAO Products: 

Digital Television Transition: Majority of Broadcasters Are Prepared 
for the DTV Transition, but Some Technical and Coordination Issues 
Remain. GAO-08-510. Washington, D.C.: April 30, 2008: 

Digital Television Transition: Increased Federal Planning and Risk 
Management Could Further Facilitate the DTV Transition. GAO-08-43. 
Washington, D.C.: November 19, 2007. 

Digital Television Transition: Preliminary Information on Progress of 
the DTV Transition. GAO-08-191T. Washington, D.C.: October 17, 2007. 

Digital Television Transition: Preliminary Information on Initial 
Consumer Education Efforts. GAO-07-1248T. Washington, D.C.: September 
19, 2007. 

Digital Television Transition: Issues Related to an Information 
Campaign Regarding the Transition. GAO-05-940R. Washington, D.C.: 
September 6, 2005. 

Digital Television Transition: Questions on Administrative Costs of an 
Equipment Subsidy Program. GAO-05-837R. Washington, D.C.: June 20, 
2005. 

Digital Broadcast Television Transition: Several Challenges Could Arise 
in Administering a Subsidy Program for DTV Equipment. GAO-05-623T. 
Washington, D.C.: May 26, 2005. 

Digital Broadcast Television Transition: Estimated Cost of Supporting 
Set-Top Boxes to Help Advance the DTV Transition. GAO-05-258T. 
Washington, D.C.: February 17, 2005. 

Telecommunications: German DTV Transition Differs from U.S. Transition 
in Many Respects, but Certain Key Challenges Are Similar. GAO-04-926T. 
Washington, D.C.: July 21, 2004. 

Telecommunications: Additional Federal Efforts Could Help Advance 
Digital Television Transition. GAO-03-7. Washington, D.C.: November 8, 
2002. 

Telecommunications: Many Broadcasters Will Not Meet May 2002 Digital 
Television Deadline. GAO-02-466. Washington, D.C.: April 23, 2002: 

[End of section] 

Footnotes: 

[1] GAO-08-510. 

[2] See appendix II for our related products on the DTV transition. 

[3] NTIA established technical and performance specifications that 
converter boxes must meet to be eligible for the converter box subsidy 
program. 

[4] In addition to low-power stations, there are other low-power 
facilities that are not required by law to transition to digital by 
February 17, 2009. These facilities include (1) Class A television 
stations, which are a type of low-power station that qualify for 
interference protection rights and must satisfy certain requirements; 
(2) television translator stations, which simultaneously rebroadcast 
the programs of a full-power broadcast station in communities that 
cannot receive the signals due to large geographic barriers; and (3) 
television booster stations, which are low-power facilities that 
retransmit programming from full-power stations and are intended to 
serve areas of low signal strength within full-power stations' 
contours. 

[5] Households with digital televisions will also be able to receive 
both digital and analog signals. 

[6] According to NAB, consumers who use an antenna splitter and/or an 
antenna A/B switch can then switch back and forth between analog 
reception directly with the television or digital through the converter 
box. An A/B switch and splitter and additional antenna cables are 
inexpensive and can be found at most consumer electronic retailers. 

[7] We contacted all national retailers who are participating in the 
converter box subsidy program, except for one retailer who was 
unwilling to meet with us. 

[8] The FCC guide is available online at [hyperlink, 
http://www.fcc.gov/cgb/consumerfacts/DTVandLPTV.html]. 

[9] NTIA's resource guide is available online at [hyperlink, 
https://www.dtv2009.gov/lowpower/]. 

[10] NAB's initiative can be found at [hyperlink, 
http://www.lptvanswers.com/]. 

[11] We estimate that households with a landline telephone will request 
approximately 30.6 million coupons, ranging from 25.6 million to 35.5 
million coupons. This estimate does not include non-landline households 
or household where telephone status could not be determined. While we 
could not substantiate an assumption that these households would 
respond similarly to landline households, if they do, this could add 
another 11 million coupon requests to the estimate. 

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