Digital Television Transition
Broadcasters' Transition Status, Low-Power Station Issues, and Information on Consumer Awareness of the DTV Transition Gao ID: GAO-08-881T June 10, 2008The 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.
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 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 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 transition--despite the fact that no action will be required to maintain television service.
GAO-08-881T, Digital Television Transition: Broadcasters' Transition Status, Low-Power Station Issues, and Information on Consumer Awareness of the DTV Transition
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.
This text file was formatted by the U.S. Government Accountability
Office (GAO) to be accessible to users with visual impairments, as part
of a longer term project to improve GAO products' accessibility. Every
attempt has been made to maintain the structural and data integrity of
the original printed product. Accessibility features, such as text
descriptions of tables, consecutively numbered footnotes placed at the
end of the file, and the text of agency comment letters, are provided
but may not exactly duplicate the presentation or format of the printed
version. The portable document format (PDF) file is an exact electronic
replica of the printed version. We welcome your feedback. Please E-mail
your comments regarding the contents or accessibility features of this
document to Webmaster@gao.gov.
This is a work of the U.S. government and is not subject to copyright
protection in the United States. It may be reproduced and distributed
in its entirety without further permission from GAO. Because this work
may contain copyrighted images or other material, permission from the
copyright holder may be necessary if you wish to reproduce this
material separately.
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
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.
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
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 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
transition”despite 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
goldsteinm@gao.gov.
[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.
GAO's Mission:
The Government Accountability Office, the audit, evaluation and
investigative arm of Congress, exists to support Congress in meeting
its constitutional responsibilities and to help improve the performance
and accountability of the federal government for the American people.
GAO examines the use of public funds; evaluates federal programs and
policies; and provides analyses, recommendations, and other assistance
to help Congress make informed oversight, policy, and funding
decisions. GAO's commitment to good government is reflected in its core
values of accountability, integrity, and reliability.
Obtaining Copies of GAO Reports and Testimony:
The fastest and easiest way to obtain copies of GAO documents at no
cost is through GAO's Web site [hyperlink, http://www.gao.gov]. Each
weekday, GAO posts newly released reports, testimony, and
correspondence on its Web site. To have GAO e-mail you a list of newly
posted products every afternoon, go to [hyperlink, http://www.gao.gov]
and select "E-mail Updates."
Order by Mail or Phone:
The first copy of each printed report is free. Additional copies are $2
each. A check or money order should be made out to the Superintendent
of Documents. GAO also accepts VISA and Mastercard. Orders for 100 or
more copies mailed to a single address are discounted 25 percent.
Orders should be sent to:
U.S. Government Accountability Office:
441 G Street NW, Room LM:
Washington, D.C. 20548:
To order by Phone:
Voice: (202) 512-6000:
TDD: (202) 512-2537:
Fax: (202) 512-6061:
To Report Fraud, Waste, and Abuse in Federal Programs:
Contact:
Web site: [hyperlink, http://www.gao.gov/fraudnet/fraudnet.htm]:
E-mail: fraudnet@gao.gov:
Automated answering system: (800) 424-5454 or (202) 512-7470:
Congressional Relations:
Ralph Dawn, Managing Director, dawnr@gao.gov:
(202) 512-4400:
U.S. Government Accountability Office:
441 G Street NW, Room 7125:
Washington, D.C. 20548:
Public Affairs:
Chuck Young, Managing Director, youngc1@gao.gov:
(202) 512-4800:
U.S. Government Accountability Office:
441 G Street NW, Room 7149:
Washington, D.C. 20548:
