Obama Asks for Delay in Digital TV Switch

By Jeffry Bartash
MarketWatch
(MCT)

WASHINGTON - The incoming Obama administration on Thursday asked Congress to postpone the nationwide switch to digital television, saying too many Americans would lose their TV signals if the change takes place as planned in mid-February.

John Podesta, co-chairman of Obama's transition team, sent a letter to top lawmakers in the House and Senate requesting the delay until later in 2009. He said the government has not provided enough financial support and consumer information to make the planned switch.

"We have discovered major difficulties in the preparation for the February 17 conversion," Podesta wrote.

On that day, U.S. broadcasters are slated to switch from decades-old analog signals to digital transmission. Customers with older TVs who do not have satellite or cable hookups would lose the ability to receive over-the-air channels unless they connected a converter box to their TVs. The boxes convert digital signals to analog on older TV sets.

The federal government allotted about $1.5 billion for coupons to subsidize the purchase of converter boxes, but it's already run out of the $40 vouchers. More customers requested the coupons than the government expected and consumers have been put on a waiting list.

Converter boxes sell for $50 or more in retail stores. Prices are eventually expected to fall, but it could take a while.

Critics also say the Bush administration has mishandled the transition, leaving millions of consumers in the dark about the planned switch. On Wednesday, the nonprofit group Consumers Union urged lawmakers to postpone the digital transition.

The decision by the president-elect's team to weigh in suggests a delay is increasingly likely. Leading lawmakers in the ruling Democratic Party such as Rep. Ed Markey, D-Mass., have already indicated a willingness to push back the digital switchover.

One alternative is to inject more money into the coupon program, but Consumers Union said there's not enough time ahead of the Feb. 17 date.

Some Republicans immediately voiced objections. "Ditching the deadline and slathering on more millions of taxpayer dollars ... is just panic," said Joe Barton, R-Texas.

Digital broadcasts deliver a superior picture compared to analog and are ideally suited for high-definition televisions. Millions of consumers have purchased HDTVs over the past five years.

Cable and satellite boxes also convert analog signals to digital, so most cable and satellite customers do not need a converter box.

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