With the switch to all-digital television exactly a year away, vouchers to defray the cost of converter boxes necessary to keep older sets working will begin hitting the mail this week - and officials are urging people to request them early, as they are going fast.
The federal government is offering each family up to two $40 vouchers to purchase the boxes, which will translate digital broadcast signals so they can be viewed on analog TVs.
But the number of requests for the vouchers has been higher than predicted, raising concerns that the $1.5 billion set aside by the government might not be enough to meet consumer demand.
"There is not an unlimited supply of [vouchers] out there," said Shermaze Ingram, a spokeswoman for the National Association of Broadcasters. "If you really think you need one, go ahead and get one. The last thing people want to do is try to get the coupon in late February next year."
Ingram emphasized that owners of TVs connected to cable, satellite or fiber-optic services do not need converters for those televisions, as their providers will continue transmitting analog signals.
The nearly 21 million households that depend completely on over-the-air broadcasts, however, will need to take some action before Feb. 17, 2009, when most TV stations will cease to broadcast analog signals.
Purchasing a digital television - HD or standard definition - will solve the problem. So, too, will switching to cable or satellite service. But the least expensive option is using the government-subsidized vouchers to purchase a converter box.
People can apply for the vouchers by mail, fax, online or through a telephone help line set up by the National Telecommunications and Information Administration. The deadline for filing an application is March 31, 2009, and the agency will begin mailing the coupons to applicants this week. The vouchers are valid for 90 days. Since NTIA began allowing people to apply for the vouchers at the beginning of the year, they've received nearly 5 million requests.
During a congressional hearing on the preparations for the digital transition on Wednesday, NTIA officials said the initial demand was higher than expected. They also received a large number of calls from Spanish-speakers, prompting the agency to hire more translators.
In his testimony at the hearing, David K. Rehr, the president and CEO of the National Association of Broadcasters, said he fears that the government could run out of vouchers.
NAB spokeswoman Ingram, said the $1.5 billion currently set aside will cover about 33 million converter boxes. But about 38 million U.S. households have at least one set that uses an antenna to receive analog transmissions.
Officials are also concerned that consumers will be caught unaware by the switch to digital or be confused about what steps they need to take.
The government has allotted $20 million to fund campaigns to educate people, and Ingram said industry groups are ramping up their own outreach programs. They plan to reach consumers through TV commercials, speeches and appearances by trucks designed to look like televisions.
But Joel Kelsey, a spokesman for Consumers Union, warned that current funding might not be enough - particularly to reach elderly and low-income viewers who will be most affected by the switch.
"It's my firm hope that the DTV transition will go swimmingly," he said. "But we should be concerned that there are some consumers that are not being reached."
A recent survey by Consumers Union found that three out of four households that would be affected by the change didn't know the converter box vouchers were available. Of the families surveyed, 42 percent said they had no plans to do anything to prepare for the change.
"Citizens and consumers didn't ask for the digital transition," Kelsey said. "It's the job of the government to help them sort out some of the noise and understand the lowest-cost path."
One point of confusion is the converter boxes themselves. EchoStar currently offers the cheapest box at $39.99, but boxes can cost upwards of $100.
Some include extra features, such as built-in DVR for recording programs for later viewing, but simpler - and cheaper - boxes will do the job.
A study released last week suggested consumers might want to beware when shopping for the boxes.
The Maryland Public Interest Research Group found that sales clerks at retail chains were misleading broadcast viewers who were trying to prepare for the transition. About half of the clerks tried to "up-sell" consumers by directing them to more expensive products.
The report found that many are confused by the digital transition and might end up buying expensive high-definition digital televisions, when all they need is a standard-definition digital set or a converter box.
Most sets purchased before 2004 were analog TVs that cannot interpret over-the-air digital signals without a converter box. Newer sets may be capable of receiving digital broadcasts without a converter box.
Experts said consumers should also be careful when shopping for antennas. While some companies are labeling their antennas as "digital" or "HDTV," any antenna that can receive both VHF and UHF signals will work for receiving digital signals.
Another concern raised by communications officials is that some converters won't be able to receive analog signals transmitted by so-called "low-power" stations, which will be allowed to continue broadcasting in analog after next February.
They suggest consumers consider boxes that can pass analog signals through to the TV set. Boxes with this capability are noted on the list of converter boxes posted on the NTIA's Web site where consumers can apply for coupons.
Even with a converter box, however, some viewers might find themselves without a picture. Unlike analog signals - which can be watched in varying degrees of clarity, digital signals are all or nothing.
Some people who now receive a poor analog signal will receive a much clearer picture when they switch to digital, while others will see nothing but static.
"We refer to it as the 'cliff effect,'" said Kelly Williams, the senior director of engineering for the NAB. "Your picture remains perfect until you slide off the cliff."
chris.emery@baltsun.com