Senate Joins House in Approving DTV Bill

UPDATED: The U.S. Senate today finally approved Feb. 17, 2009, as the last day of analog broadcasting in the United States, setting the stage to complete the country's digital television (DTV) transition.

As part of the Deficit Reduction Act of 2005, the DTV transition is expected to raise billions from wireless broadband providers when the Federal Communications Commission (FCC) auctions off the analog spectrum returned by broadcasters.

Part of the returned spectrum will also be used by public-safety officials to improve interoperability between first responders, a key recommendation of the 9/11 Commission.

Although the Senate made no changes to the DTV portion of the legislation, Democrats managed to make some healthcare-related changes that will require House approval before sending the bill on the White House for President Bush's approval.

The House may meet as early as Thursday in a pro forma session to deal with the Senate changes.

"The expected presidential approval of the reconciliation package means that the last hurdle has been cleared."

Hellmann said with a hard date set for the DTV transition, "America's tech companies can move forward with innovation that takes advantage of the available spectrum. The door will finally be open for the development of new technology products and services that provide exciting benefits for consumers and businesses."

The legislation provides $1.5 billion in digital converter-box subsidies for the approximately 15 percent of U.S. households (20 million) that currently receive exclusively over-the-air broadcasts.

Other subsidies included in the bill include $156 million for a national alert system, $43.5 million for a fully enhanced 911 emergency system, $75 million to help low-power television stations upgrade to digital TV standards and $30 million to help New York City's DTV transition.

First responders will also receive $1 billion in grants for interoperable equipment and training.

All of the subsidies will be funded through the returned spectrum auction expected to happen within the next two years.

Left in doubt is the subsidy fate of 39 million households that currently subscribe to analog cable services.

As originally drafted, the DTV bill permitted analog cable companies to "down-convert" high-definition digital signals into standard-definition analog signals, allowing subscribers to receive digital television without purchasing what is expected to be a $60 digital converter box.

However, in the deal cut by Senate and House negotiators over the weekend, the down-convert signal provision was eliminated.

"We are especially encouraged that the legislation thwarts the cable industry's desire to degrade delivery of HDTV pictures to consumers," David Rehr, president and CEO of the National Association of Broadcasters, said in a statement following Monday's House vote.

Under the plan, consumers will have to make an "affirmative request" to receive up to two, $40 converter-box coupons. The coupons can't be combined for the purchase of a single converter box.

The lack of a down conversion provision may prompt lawmakers to push for a second DTV bill that will either include the provision or provide digital converter-box subsidy funding for cable analog subscribers.

The Senate's original proposal set April 17, 2009, as the hard date and allocated $3 billion for a subsidy program. The House's original version called for a Dec. 31, 2008, deadline with a $1.5 billion subsidy.

The DTV bill is part of a much larger budget package that the House and Senate have been wrangling over all year.

Prompted by Republican leadership demands to raise cash to reduce the federal deficit, both chambers immediately eyed the potential $10 billion to $20 billion that the broadcasters' analog spectrum is expected to raise at auction.

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