The act directs FCC to require full-power television  stations to cease analog broadcasting on February 17, 2009. Options  available to these households include (1) purchasing a digital television set  that includes a tuner capable of receiving, processing, and displaying a  digital signal; (2) purchasing a digital-to-analog converter box, which  converts the digital broadcast signals to analog so they can be viewed on  an existing analog set; or (3) subscribing to a cable, satellite, or other  service to eliminate the need to acquire a digital-to-analog converter box. Federal Entities and Other Stakeholders are Facilitating the Transition, but Comprehensive Planning and Risk Management is Limited

FCC and NTIA, in conjunction with other stakeholders, have taken steps  to facilitate the DTV transition. In addition, FCC has conducted periodic reviews to report on  transition progress and held a workshop for interested parties to discuss  transition challenges and issues. NTIA has statutory responsibility for the  converter box subsidy program, and it has issued a contract in preparation  for that program’s development. Private sector industries, including  broadcasters, manufacturers, and retailers have also begun preparing for  the transition. Despite public-private sector interaction designed to help  facilitate the transition, we found that no comprehensive plan exists for  the DTV transition. Progress in Consumer Education on the DTV Transition Has Been Made, But Widespread Implementation Is Not Yet Underway

FCC and NTIA, along with industry and other private stakeholders, have  made progress in educating consumers about the DTV transition. For  example, FCC and NTIA have developed informational materials on the  transition and begun outreaching directly to consumer and stakeholder  groups. To identify the difficulties and challenges to consumer education and  outreach, we convened an expert panel to discuss consumer education  issues applicable to the DTV transition, including potential challenges that  may obstruct efforts and the key planning components of a consumer  education campaign that will help to overcome some of those challenges. NTIA Has Taken Steps to Implement a Subsidy Program for Converter Boxes, but Challenges Remain

NTIA has made progress in implementing the converter box subsidy  program, including soliciting stakeholder comments, meeting with  industry participants, and selecting IBM in August 2007 to administer the  program. The subsidy program’s outcomes depend on the coordination  and participation of NTIA, IBM, converter box manufacturers, retailers,  and consumers. At the time of our review, several retailers we  contacted expressed concerns about the possibility of a redemption  system that would affect their point-of-sale systems, noting that modifying  these systems can be time-consuming, resource-intensive, and expensive,  and can affect their other financial systems. Retailer representatives told  us they will need more information about the contractor’s technical  solution before they could assess the impact on their systems and whether  it would affect their participation. With limited or delayed retailer  participation, consumers might face difficulties in redeeming their  coupons for eligible converter boxes during the designated time period. However, a number of technical and  coordination issues remain, such as antenna replacement and tower  construction. In addition, cable and satellite television providers must  coordinate with broadcasters to ensure that they can continue to receive  and transmit the digital broadcast signals after the transition. While not  required to cease analog broadcasting, some translator stations may  choose to retransmit a digital signal but others will convert the digital  signal to analog and continue to broadcast in analog after February 2009. Cable and Satellite Television Providers Must Coordinate with Broadcasters to Ensure They Continue to Receive Broadcast Signals

Cable and satellite television providers face fewer challenges than  broadcasters with the DTV transition, however, there are technical issues  that need to be resolved to ensure they can provide digital broadcast  signals to their subscribers. Our Future Work Will Focus on the Progress of the DTV Transition

We have work planned to assess the progress of the DTV transition. We plan to report on changes in consumer  awareness over time by conducting surveys throughout the transition  process. Furthermore, we will continue to monitor government and  industry consumer education efforts and will analyze the efforts compared  with key practices for consumer outreach. In addition, we plan to survey  broadcasters to obtain their perspectives on the technical issues that must  be addressed prior to the DTV transition date.
Why GAO Did This Study

On February 17, 2009, federal law requires all full-power television stations in the United States to cease analog broadcasting, enabling the government to reclaim valuable spectrum that the broadcasters currently use for analog broadcasts. This change, often referred to as the digital television (DTV) transition, requires action by broadcasters and consumers to ensure broadcast television signals are still available and viewable. The National Telecommunications and Information Administration (NTIA) created a program to subsidize consumers' purchases of digital-to-analog converter boxes. This testimony provides preliminary information on (1) the progress made by federal entities, and others, to facilitate the transition, (2) the progress in the education of consumers about the transition, (3) the progress made in implementing the converter box subsidy program, (4) technical issues of the transition, and (5) future GAO work on the progress of the DTV transition. GAO interviewed officials with the Federal Communications Commission (FCC) and NTIA. Further, GAO interviewed a wide variety of industry and other stakeholders involved with the transition, including members of the DTV Transition Coalition--a group of public and private stakeholders, and experts on strategic communications. GAO discussed this testimony with FCC and NTIA officials and incorporated their comments.

What GAO Found

FCC and NTIA, in conjunction with other stakeholders, have taken steps to facilitate the DTV transition. For example, FCC has conducted periodic reviews to report on transition progress, and NTIA has issued a contract for administering the converter box subsidy program. In addition, private sector industries have also begun preparing for the transition. Despite public-private sector interaction designed to help facilitate the transition, we found that no comprehensive plan exists for the DTV transition. Without such a plan, meaningful guidance for coordinating responsibilities and measuring progress might not be available to the private or public sector. Several federal and private stakeholders have begun consumer education campaigns. FCC and NTIA have developed informational materials and begun direct outreach to consumer groups. In addition, private industry stakeholders created the DTV Transition Coalition and are voluntarily conducting outreach efforts. However, these efforts are in the planning stages and challenges remain. An expert panel that GAO convened identified potential challenges and key practices for a consumer education campaign. NTIA has made progress in implementing the converter box subsidy program, but the program's outcome depends on the voluntary participation of retailers and manufacturers. Retailers we contacted expressed concerns about the possibility of a redemption system that would affect their point-of-sale systems and stated they would need more information on IBM's technical solution before they could assess the impact on their systems and whether it would affect their participation. With limited or delayed retailer participation, consumers might face difficulties in redeeming their coupons for eligible converter boxes. Most television stations already transmit a digital signal, but technical and coordination issues, such as antenna replacement and tower construction, may present challenges for broadcasters. In addition, cable and satellite television providers must coordinate with broadcasters to ensure that they can continue to receive and transmit the digital broadcast signals. Further, certain stations that retransmit the television signals, known as translator stations, are not required to cease analog broadcasting. These stations may choose to retransmit a digital signal, or they may convert the digital signal to analog and continue to broadcast in analog after February 2009. We plan on reporting on the progress of the DTV transition, including the status of consumer education and awareness about the DTV transition, IBM and NTIA's administration of the converter box subsidy program, and industry technical preparations throughout the upcoming transition period. We will continue to monitor government and industry consumer education efforts and plan to analyze the efforts compared with key practices for consumer outreach. In addition, we plan to survey broadcasters on the technical issues that must be addressed prior to the DTV transition date.