# Digital TV program to run out of money



## samhevener (Feb 23, 2006)

That was the headline in a story printed in yesterday's Cleveland Plain Dealer. The story went on to say that the coupon program has hit the $1.34 billion limit set by Congress. The cutoff will come any day now according to the story.


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## HIPAR (May 15, 2005)

'He who hesitates is lost' :nono2:

--- CHAS


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## LarryFlowers (Sep 22, 2006)

Was all that money used for $40 coupons? 
Must not be because that would mean 33.5 million coupons had been issued. Wonder what else they paid for? Or maybe there really are that many "non-digital" TV's (i.e, analog sets not connected to cable or TV) out there. I wouldn't have thought there were.


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## BattleScott (Aug 29, 2006)

LarryFlowers said:


> Was all that money used for $40 coupons?
> Must not be because that would mean 33.5 million coupons had been issued. Wonder what else they paid for? Or maybe there really are that many "non-digital" TV's (i.e, analog sets not connected to cable or TV) out there. I wouldn't have thought there were.


From what I read it included coupons that had been requested but not sent as well so a lot of seems to be typical scare tactics on capital hill.

IMO, this program has been typical government tax dollar waste. It is completely ridiculous that households were allowed 2 coupons. This is suppoosed to be a saftey net to protect the poorest citizens from being disconnected. As such, it should have been 1 box only. After that it should have been a one time tax credit on a qualifying HOH tax return. I would like to see what portion of that $1.34B went to those requesting 2 coupons.

But, what's another $750M...


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## Kansas Zephyr (Jun 30, 2007)

The 700MHz auction raised 19.6B.

So, the government could easily add another 1.34B designated for households with antenna TV only. With this program still "making money".

This program was to help ALL Americans with the transition, not the just "the poorest". 22.25M were for first come, first served. With the final 11.25M for antenna only homes.

I still think additional funds may be put into the coupon program.


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## Stewart Vernon (Jan 7, 2005)

There has also been talk of a lot of people applying for coupons who didn't even need them. Either giving or selling them to others...

Sounds to me like a bad idea compounded by poor running of the program on top of that.

Not to sound like a broken record, but the whole entitlement of coupons thing escaped me. Anyone who needs a converter that can't afford the $40 for the box probably has other needs not being met too.

Older folk who need medical care, need that more than they need the $40 voucher. Ask someone whether they want their TV or their pills!

Meanwhile, in order to actually use the converter folks will need to already have a TV and electricity and a home. And anyone who is affording their home and electricity can certain afford $40 one-time for their TV. Especially given the nature of knowing this was coming, one could have saved up for it over time at less than $3.50 per month.

I'd just rather see the money going to a more needed area than TV.


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## HIPAR (May 15, 2005)

As things have developed in the economic debacle and its attendant trillion dollar bailouts, the money collected from the auctions and spent on the coupons is 'in the noise'. 

--- CHAS


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## mssturgeon (Dec 8, 2004)

We just had a series of articles written on this subject by Rodolfo ... worth a read. Particularly the last part where he talks about coupon usage, etc.

http://www.hdtvmagazine.com/article...lp_part_1_-_transition_reception_and_help.php

Enjoy,

- Shane


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## n3ntj (Dec 18, 2006)

If you haven't obtained the $40 coupon by now (and need one), what the heck are you waiting for? HIPAR is exactly right above.


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## Nick (Apr 23, 2002)

HDMe said:


> ...Older folk who need medical care, need that more than they need the $40 voucher. Ask someone whether they want their TV or their pills...


Hmmm...tough choice!

Thankfully, I can afford cable and satellite, as well as my life-saving meds.

Having had tv for over 60 years now, for me, sad to say, but life without the _boob tube_ would be a PITA and would require a major adjustment on my part. :shrug:

--------------------
More news...

*TV Converter Program Runs Out of Funding*

Consumers with analog televisions who tune in using antennas will need a digital converter box once television stations stop broadcasting in analog...

Full story @ The Washington Post


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## HIPAR (May 15, 2005)

Sam, you're 'still alive' on the DTV changeover delay :eek2:

http://www.broadcastingcable.com/CA6627445.html

--- CHAS


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## txtommy (Dec 30, 2006)

I know a couple people who applied for the coupons and received them who do not need them. It was a case of 'I'm not sure and they're free so I'll get them to be safe." How many millions were sent out that way and will never be used or were used and the boxes just sit by the tv?


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## txtommy (Dec 30, 2006)

HIPAR said:


> Sam, you're 'still alive' on the DTV changeover delay :eek2:
> 
> http://www.broadcastingcable.com/CA6627445.html
> 
> --- CHAS


If they extend the date, the same people who have put off buying the box so far will just delay buying the box until the next deadline. As one who has all digital TVs, I am tired of hearing and seeing notices about this many times every day. For those who have not yet gotten the message, only by shutting down the signal will it sink in that the time to do something is here. They need to start broadcasting hourly notices over the analog signal only that that interrupts the show being watched that 'if you are receiving this notice you have 'x' number of days remaining before you lose your signal'. That will remove any mystery about who needs or doesn't need the box. If you receive the notice, you need the box and you have only 'x' number of days to get it. Start out with a 2 minute per hour notice and increase it by a minute per day so that it becomes more and more annoying as the final date gets closer. Anyone who doesn't get that message by the time the shows are half blacked out will never get the message.

They would also be better served at this point to allow a rebate in addition to the coupon program. Buy the box and then apply for the coupon. Take the coupon and your receipt back to the store for your rebate. This would eliminate the delay for all but those who do not have the $40 to buy the box and wait for a rebate coupon.

There will not be 100% compliance with this problem no matter what the government does until the shutdown actually occurs.


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## dennispap (Feb 1, 2007)

txtommy said:


> If they extend the date, the same people who have put off buying the box so far will just delay buying the box until the next deadline. *As one who has all digital TVs, I am tired of hearing and seeing notices about this many times every day. For those who have not yet gotten the message, only by shutting down the signal will it sink in that the time to do something is here. They need to start broadcasting hourly notices over the analog signal only that that interrupts the show being watched that 'if you are receiving this notice you have 'x' number of days remaining before you lose your signal'. That will remove any mystery about who needs or doesn't need the box. If you receive the notice, you need the box and you have only 'x' number of days to get it.* Start out with a 2 minute per hour notice and increase it by a minute per day so that it becomes more and more annoying as the final date gets closer. Anyone who doesn't get that message by the time the shows are half blacked out will never get the message.
> 
> They would also be better served at this point to allow a rebate in addition to the coupon program. Buy the box and then apply for the coupon. Take the coupon and your receipt back to the store for your rebate. This would eliminate the delay for all but those who do not have the $40 to buy the box and wait for a rebate coupon.
> 
> There will not be 100% compliance with this problem no matter what the government does until the shutdown actually occurs.


I agree. Dont push back the date, and quit making the stations run the info on their digital channels. If you are watching a digital channel you are obviously alright. If you are not ready by now, you arent worried about it.


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## cweave02 (Oct 12, 2007)

BattleScott said:


> From what I read it included coupons that had been requested but not sent as well so a lot of seems to be typical scare tactics on capital hill.
> 
> IMO, this program has been typical government tax dollar waste. It is completely ridiculous that households were allowed 2 coupons. This is suppoosed to be a saftey net to protect the poorest citizens from being disconnected. As such, it should have been 1 box only. After that it should have been a one time tax credit on a qualifying HOH tax return. I would like to see what portion of that $1.34B went to those requesting 2 coupons.
> 
> But, what's another $750M...


Shouldn't the $40 only be counted when the coupons are redeemed, not when they are mailed out?


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## Stewart Vernon (Jan 7, 2005)

cweave02 said:


> Shouldn't the $40 only be counted when the coupons are redeemed, not when they are mailed out?


Technically, yes... just like when I write a check for $40, the money stays in my bank account until the other person cashes it. BUT, I can't just keep writing $40 checks and hope they don't all get cashed.

Thus, once they mail out a voucher, the government has to assume it will be redeemed since it can be... so they can't just mail out more coupons than they have cash in the bank to cover.


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## samhevener (Feb 23, 2006)

HIPAR said:


> Sam, you're 'still alive' on the DTV changeover delay :eek2:
> Yes I am. Check out the new thread posted yesterday, "Feb 17 DTV date may have to move".


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## cweave02 (Oct 12, 2007)

HDMe said:


> Technically, yes... just like when I write a check for $40, the money stays in my bank account until the other person cashes it. BUT, I can't just keep writing $40 checks and hope they don't all get cashed.
> 
> Thus, once they mail out a voucher, the government has to assume it will be redeemed since it can be... so they can't just mail out more coupons than they have cash in the bank to cover.


Once the 90 days to use expires, do they "void" the checks and add the $40 back in? I suspect a lot of folks may have ordered 2 coupons and will only use one and save the other, sort of like today's version of the WWII Ration coupons!?!

I ordered 2 for my parents just to appease them when my mother declared that their 6 year old TV is analog and did not pass the 'test' run by a local station, despite the fact that they are on D* and cable. I live 6 hours away and do I really think my Dad is going to redeem one? Miracles will occur, but I a not holding my breath.


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## Mark Holtz (Mar 23, 2002)

The coupons expire 90 days after the mailing date. Once they expire, the money goes back into the poll, and someone else on the waiting list will get a coupon.


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## durl (Mar 27, 2003)

The new administration wants to postpone the transition because the coupons have run out.

http://www.foxnews.com/story/0,2933,478005,00.html

I would venture to guess that the transition will now be postponed indefinitely. At least until enough money is approved to buy every household a converter box.


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## James Long (Apr 17, 2003)

durl said:


> The new administration wants to postpone the transition because the coupons have run out.


Which is being discussed in its own thread.



> I would venture to guess that the transition will now be postponed indefinitely. At least until enough money is approved to buy every household a converter box.


There are less than a million waiting for a coupon, 10 million valid coupons in circulation ... and 13 million of the 47 million coupons issued have expired.

Of course on February 18th the 7.8 million homes that have not converted will probably just want a box mailed to them instead of a coupon.


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## samhevener (Feb 23, 2006)

James Long said:


> Which is being discussed in its own thread.
> 
> There are less than a million waiting for a coupon, 10 million valid coupons in circulation ... and 13 million of the 47 million coupons issued have expired.
> 
> Of course on February 18th the 7.8 million homes that have not converted will probably just want a box mailed to them instead of a coupon.


There have been 13 million coupons that expired wihout being used. If those 13 million coupons were used, the coupon program would have run out money 2 or 3 months ago. The expired coupons delayed the waiting list.


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## HIPAR (May 15, 2005)

It's more like the coupon program has run out of time .. not money.

--- CHAS


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## James Long (Apr 17, 2003)

samhevener said:


> There have been 13 million coupons that expired wihout being used. If those 13 million coupons were used, the coupon program would have run out money 2 or 3 months ago. The expired coupons delayed the waiting list.


There is a lot that would be different "if" ... I wonder how many of the 13 million expired are in the hands of the ~7% who are not converted that will be paying full price for their converters?

At least the expiration clears the books ... 13 million more coupons were able to be sent out without committing more money because those coupons expired. If the redemption vs expiration rate stays the same on the 10 million outstanding there should be 2.7 million more coupons expiring (worth $110 million).

Perhaps the best solution would be to loan money for the last coupons to be sent? With less than a million on the waiting list and likely 2.7 million coupons expiring the program may still make it under budget. Of course, that is wishful thinking since I expect the ~7 million unconverted will all want boxes.


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