Majority Statement

• Daniel K. Inouye

  Senator
  Read statement

  Majority Statement

  Daniel K. Inouye

  A revolution is coming to television sets across this country. In fewer than 500 days, television broadcasters will switch from analog to digital signals. This change holds tremendous promise.  Viewers can expect sharper pictures, crisper sounds, and whole new channels through multicasting. The switch to digital also means more spectrum for our nation’s first responders. 

   

  These are all good things. Like with any revolution, however, these rewards come with an undercurrent of risk. As many as 21 million households rely exclusively on over-the-air television. If their sets go dark, they will be disconnected from news, public safety announcements, and community information. 

   

  To prevent this from happening, we have task forces, expos, workshops, and industry-led publicity campaigns. Despite these efforts, the American public is still not well educated about the transition, the coupon program, where to find boxes, and how to attach them to their sets. In too many ways, our transition from analog can go askance.  Instead of a digital revolution, we may find ourselves with a digital disaster.

   

  The time has come to manage the mechanics of the DTV transition with the American public in mind. First, we must develop a federal interagency DTV task force to marshal resources across the government and maximize our chances for a smooth transition.  

   

  Second, we need to recognize that national messages will only take so us so far. What works in Houston may not work in Honolulu. Questions about the impact of tower construction and the presence of translator stations require local answers.  We need the equivalent of DTV “block captains” who are ready, willing, and able to provide this information in every designated media market in this country.

   

  Finally, we must identify ways to measure our progress in each market in this country. Then we must use this data to determine what further efforts are needed. 

   

  I look forward to working with our witnesses to ensure that in the digital revolution of our time no citizen is left behind. 

Minority Statement

• Ted Stevens

  Senator
  Read statement

  Minority Statement

  Ted Stevens

  Thank you very much Mr. Chairman. We welcome our witnesses and I thank you for holding this very important hearing.  The Digital Transition bill will be a very positive milestone for this country.  Up our way, we call them mile post so we can see them in the wintertime.  But as this mile post of February 17^th, 2009 approaches, it’s critical that Congress maintains an active oversight role to ensure the consumers are properly educated about this transition and know how to avail themselves of the converter boxes under the program.  This transition will reap important benefits for all Americans, especially with respect to public safety because public safety, well as you said, received much of the needed spectrum.  The 24 Megahertz Act initially proceeds from the auction of the remaining spectrum, will be vital to various programs, such as $1 billion dollars for interoperability grants, $1.5 billion for the converter box program, and over $7 billion for deficit  reduction, and if it is still there $43. 5 million for 911.  This hearing, I hope, will focus on how the governed industry can work together, to educate the public about the transition.  The announcement, first, from the cable industry and now from the broadcasters regarding their education outreach program is very positive news, I think.  I am also encouraged to hear that NTIA has been moving along with an aggressive schedule to administer the converter box program.  It’s my understanding that two models of these converter boxes have already been certified as eligible to participate in that program.  And we look forward to hearing how the witnesses will work together to ensure these converter boxes make their way to all who will need them, especially vulnerable consumers like senior citizens and people in remote areas.  I assure you that none are more remote than my Alaska villages, so we’re hopeful you will comment upon that.  Thank you very much

Testimony

• The Honorable Jonathan S. Adelstein

  Administrator

  Rural Utilities Service, U.S. Department of Agriculture
  Download Testimony (34.71 KB)

• The Honorable John Kneuer

  Assistant Secretary of Commerce, Communications and Information

  National Telecommunications Information Administration
  Read statement

  Testimony

  The Honorable John Kneuer

  Testimony of John M. R. Kneuer

  Assistant Secretary for Communications and Information

  National Telecommunications and Information Administration

  U. S. Department of Commerce

   

  Before the

  Committee on Commerce, Science and Transportation

  United States Senate

   

  Hearing on

  The Digital Television Transition

   

  October 17, 2007

   

   

  Mr. Chairman and Members of the Committee, thank you for this opportunity to testify before you today.  I am pleased to report that the National Telecommunications and Information Administration (NTIA) is making great strides in accomplishing the tasks laid out by Congress in the Digital Television Transition and Public Safety Act of 2005 (“DTV Act” or “Act”).  The Digital-to-Analog Converter Box Coupon Program has been established, consumer education efforts are increasing daily, and our collaboration with public and private sector organizations is expanding to ensure that all Americans will be prepared for the digital transition.

   

  NTIA Continues to Make Significant Progress in Fulfilling the Requirements of the DTV Act

   

  As you know, the DTV Act required NTIA to establish and implement a program allowing eligible U.S. households to obtain up to two coupons of $40 each to be applied toward the purchase of digital-to-analog converter boxes that will convert digital broadcast signals for display on analog television sets.  NTIA is on schedule to meet its obligations under the Act.  Beginning January 1, 2008, and continuing through March 31, 2009, consumers will be able to request up to two $40 coupons per household to purchase an approved DTV converter box.

   

  The application process will be simple and straightforward, and will respect individual privacy.  The coupon application asks for only the information necessary to fulfill the request, i.e., the requestor’s name, address, and the number of coupons requested.  The only other question NTIA will ask is whether the household receives an over-the-air signal or subscribes to a pay service.  Applications will be widely available.  Consumers can request them online, over the phone, via fax, or through the mail.  In addition, participating libraries will stock the applications, and library employees will help patrons fill them out.

   

  While much work remains to be done, NTIA has nevertheless made great strides toward ensuring the success of the Coupon Program and with it, the success of the DTV transition.  As detailed more fully below, we have awarded and are currently implementing a major contract for Coupon Program operational support.  We have also built the infrastructure to ensure that technically-reliable, coupon-eligible converter boxes are available to consumers when coupon issuance begins.  NTIA is also working in collaboration with our partners in the public and private sectors, and we have made great progress in planning and beginning to implement the campaign to educate consumers about the DTV transition and the Coupon Program.

   

  A Strong Foundation for Program Support has been Established

   

  To procure the expert assistance needed to administer the diverse operational elements associated with the Act’s requirements, on August 15^th, NTIA awarded a contract to IBM to manage three broad, functional aspects of the Coupon Program:  (1) systems processing (e.g., determining consumer eligibility, distributing and activating coupons, certifying retailers, and providing training materials); (2) financial processing (e.g., administering the processes to authorize coupons for redemption and ensure payment to retailers, and performing independent auditing); and (3) consumer education and communications.  Under the contract, IBM is leading a team of partners that includes Corporate Lodging Consultants, which is responsible for retailer management, coupon redemption and payment; Epiq Systems, which is handling coupon distribution and consumer support; and Ketchum, Inc., a global public relations firm that is leading the consumer education program.  Each of these companies has extensive experience in its functional areas and has successfully implemented large and complex national programs.

   

  The contract is performance-based.  NTIA has specified Program requirements while allowing IBM to determine how best to achieve those outcomes.  Payments are tied to IBM’s satisfactory accomplishment of certain milestones.  NTIA is working in close coordination with IBM’s team to ensure that Program goals are met in a timely manner and according to agreed upon quality standards.  The total contract amount is $119,986,468, which includes $84,990,343 for the initial phase and $34,978,125 for a contingent phase provided for in the DTV Act.

   

  NTIA and IBM are working diligently to ensure that the Program is operational and ready to accept consumers’ applications for coupons on January 1, 2008.  In addition, as discussed below, we are also working closely with broadcasters, consumer electronics manufacturers, retailers, and the Federal Communications Commission (“FCC” or “Commission”) to ensure that consumers will have access to reliable converter boxes when coupons become available.

   

  The Framework to Ensure Availability of Converter Boxes is in Place

   

  Testing and Certification

   

  NTIA has adopted rules to provide guidance to converter box manufacturers regarding the submission of test results and sample equipment for evaluation and certification.  Those rules require manufacturers to provide notice of their intention to provide converter boxes for review and certification.  Upon receipt of such a notice, NTIA accepts test results from each manufacturer to evaluate whether the manufacturer’s testing meets NTIA’s specifications.

   

  Pursuant to a Memorandum of Understanding between the agencies, the FCC is providing testing services to evaluate the converter boxes prior to their certification by NTIA.  Once NTIA has determined that a manufacturer’s own testing meets our specifications, the manufacturer submits a sample converter unit for independent testing by the FCC laboratory, which assesses the equipment against all twenty-four of the specifications in NTIA’s Final Rule.  This process is modeled on the recommendations of consumer electronics manufacturers along with broadcasters who want to make sure viewers have reliable television service using converters.

   

  NTIA last month certified two digital-to-analog converter box models to be manufactured by Digital Stream Technology, Inc., and equipment from other vendors is presently being evaluated.  I am pleased with the number of manufacturers that have filed Notices of Intent and test submissions, and I expect more boxes will be certified over the weeks leading up to the transition.  A list of certified converter boxes, including make and model numbers, will be maintained by NTIA and will be distributed to participating retailers and available to consumers.

   

  Pursuant to NTIA’s regulations, certified converter boxes will possess performance features based on industry-accepted DTV standards as well as some of the FCC requirements for television products.  The regulations require, for example, that NTIA-certified converters comply with the FCC’s parental control or V-Chip rule, emergency alert system rule, and closed-captioning requirements for converters.  NTIA’s rules for the Program also permit (but do not require) converter boxes to include certain features that might improve converter performance in certain conditions or for certain segments of the audience (e.g., a “smart antenna” port to enable consumers to connect an electronically tuned antenna for better reception; “pass through” of the analog signals that television translator stations will continue to broadcast in rural areas; and inclusion of a patented BTSC audio feature that enhances audio and supports new services such as video description).  Software downloads and compliance with ENERGY STAR standards are also encouraged as permitted features.

   

  Retailers

   

  NTIA has also worked diligently with retailers to ensure that consumers will be able to easily obtain converter boxes during the transition period.  At our Public Meeting and Expo on September 25^th, RadioShack – with 4,400 company-owned stores and 1,600 franchisees – announced that it intends to participate in the Coupon Program and that it will likely be ready to serve consumers on January 1^st.  In addition to stocking the converter boxes, RadioShack will train its sales associates on the transition and the Coupon Program, as well as engage in consumer education efforts both in stores and on its websites.  As with manufacturers, I expect other retailers to follow RadioShack’s lead and sign up to participate in the Coupon Program.

   

  NTIA is actively working to make the Program accessible and attractive to a full range of retailers in order to gain participation not only from large chains, but from regional outlets and small, independent local stores as well.  The Coupon Program will offer a choice of six different coupon redemption alternatives that will enable even the smallest retailers to participate.  The options allow authorization and redemption to take place through existing credit card systems, online, or by phone.  While some retailers have indicated that they would not be able to modify their sales systems or change inventory until after the end of the holiday season in mid-January, with the announcement by RadioShack, I am hopeful that other retailers will also find it in their interests to join the Program now, order inventory, and be ready to serve customers in early 2008.

   

  Certifying retailers is an important step in preventing waste, fraud, and abuse in the Program.  Accordingly, NTIA’s contract with IBM requires IBM to monitor retailer involvement in order to minimize waste, fraud, and abuse.  IBM will provide NTIA with timely information about coupon distribution, redemption, and retailer payment activities to be able to detect anomalous consumer or retailer behavior and other “red flags” in the operations. 

   

  Consumer Education Initiatives Are Well Underway with Strong Support from Public and Private Sector Partners

   

  General Education Efforts

   

  As I have said before, the success of the transition will be judged by how smoothly and efficiently it occurs, which will depend to a critical extent on effective outreach to consumers.  NTIA has begun its efforts to educate consumers about the transition well ahead of the January 1, 2008, start date for the Program.

   

  To maximize the value of the $5 million in consumer education funds provided for in the Act, NTIA has been working through partnerships to leverage support from a diverse range of stakeholders.  In this regard, I would like to acknowledge the support NTIA has received from its many nonprofit, industry and government partners that have stepped up to the plate to help inform consumers about the digital transition.

   

  In particular, the industries most directly affected by the transition — the broadcast, cable and consumer electronics industries — are actively informing their viewers, subscribers and customers about the February 17, 2009, transition date and the variety of options consumers have to respond to it.  Last month, the National Cable and Telecommunications Association (NCTA) announced a $200 million campaign to raise consumer awareness.  On Monday, the National Association of Broadcasters (NAB) launched its marketing campaign.  The Consumer Electronics Association (CEA) has also been running radio spots and has developed consumer-friendly tools, including a video that helps consumers understand their options to make the transition.

   

  As reflected in the discussion of our partnerships that follows below, many other organizations are also contributing to the transition education effort in personnel time and other resources.  Thus, this combined NCTA and NAB investment represents only a subset of the total private sector contribution going to support the DTV transition. 

   

  These industry leaders, as well as the Association of Public Television Stations (APTS), AARP, and the Leadership Conference on Civil Rights, among others, came together in February to launch the DTV Transition Coalition.  NTIA has worked actively with the Coalition since its inception.  Now over 160 members strong, the Coalition is working to ensure that no consumer is left without broadcast television due to a lack of information about the transition.  The Coalition website (www.dtvtransition.org) includes a DTV Quiz to help consumers sort out whether they need to take any action before February 17, 2009, and, if so, the choices available to them.

   

  NTIA Education Efforts

   

  On September 25^th, NTIA hosted a DTV Public Meeting and Expo to discuss progress in educating the public about the Coupon Program.  The Public Meeting focused on NTIA’s partnerships in the digital transition and featured two CEO-level panels from the affected industries and leading stakeholders in the transition.  The technology Expo included exhibits and demonstrations from over a dozen companies and organizations featuring products and services to enable consumers to make a smooth digital transition.  Attendees had the opportunity to see first-hand that the sharper picture, multicasting, and basic channel guide available with digital television deliver a richer viewing experience to over-the-air broadcast consumers than they currently receive from analog service.

   

  While some viewers will purchase new digital television sets to take advantage of these features, NTIA recognizes that many other consumers will want or need to keep their existing analog televisions and continue to receive free over-the-air broadcast programming.  For this group, the Expo was their first opportunity to view the converter boxes, and the response was very positive.  NTIA will continue to focus its consumer education efforts on households that rely on over-the-air television, to inform them about the government assistance available to defray the cost of digital-to-analog converter boxes.

   

  Targeted Education Activities

   

  As we reported to the Committee in July, NTIA has identified five target groups for particular consumer education efforts: (1) seniors; (2) the economically disadvantaged; (3) rural residents; (4) people with disabilities; and (5) minorities.  These groups depend on over-the-air television to a greater extent than does the general population, and NTIA will carefully design and market-test its consumer education materials to ensure that the materials are accessible to, and can be easily understood by, these target communities.

   

  NTIA is working in partnership with trusted intermediaries for these groups in order to get the word out and to provide help in obtaining and installing converter boxes.  In addition, as I mentioned, the global public relations firm Ketchum will develop and implement the consumer education program to drive awareness of the Coupon Program.  Ketchum’s recent work informing vulnerable communities about key Federal programs has given it deep experience working with many of our target populations.

   

  Seniors

   

  America’s seniors make up a large percentage of consumers served by governmental, social service, commercial, and non-profit organizations.  NTIA is leveraging relationships with these organizations to reach the senior constituencies that they serve.  For example, NTIA is in discussions with the Administration on Aging (AoA) of the U.S. Department of Health and Human Services (HHS) to capitalize on the agency’s credibility and reputation for meeting the needs of seniors and their caregivers through a variety of home and community-based services.  These discussions focus on a variety of activities to ensure that seniors, especially those with language barriers or located in remote or rural locations, know about and understand the Coupon Program.  They also encompass various outreach strategies that include working in partnership with AoA’s national aging services network, which reaches into every state, tribe and community in the United States.

   

  For almost a year, NTIA has also been collaborating very closely with AARP.  Last month, NTIA participated in the AARP Members Convention in Boston, and AARP is highlighting the Coupon Program in its publications and online newsletters, which reach millions of its members.  NTIA is also working with Retirement Living TV, a cable channel dedicated to entertaining, educating and empowering seniors.  Early next year, Retirement Living TV will begin its nationwide, mobile “Retired & Wired: RLTV Digital Tour” to educate seniors about their digital television options including the Coupon Program.  In partnership with the American Library Association, NTIA is distributing posters and coupon applications to participating libraries and training librarians to help patrons, especially seniors, fill out coupon applications.

   

  In addition to these groups, NTIA also has reached out to establish partnerships with other organizations including SeniorNet, an organization that supports about 200 senior learning centers across the country; the National Caucus and Center of Black Aged, Inc.; and the National Indian Council on Aging.  At the end of October, NTIA will participate in the National Hispanic Council on Aging Conference and distribute Spanish-language materials about the transition.  Finally, last month at our DTV Public Meeting and Expo, Best Buy and Family, Career and Community Leaders of America (FCCLA) came together to announce a partnership in which students in 7,000 chapters across the country will be awarded prizes to develop creative ways to assist elderly and rural populations to apply for coupons.  These voluntary efforts will likely proliferate as the transition date approaches.

   

  The Economically Disadvantaged

   

  NTIA is working with the HHS’s Administration for Children and Families to reach over 900 community agencies serving low-income families to alert them about the Coupon Program.  Other non-profit community and social service organizations, including Catholic Charities, the Salvation Army, and Community Action Partners are already working with the Internal Revenue Service (IRS) to inform their constituents about the IRS’s Earned Income Tax Credit, and these organizations have agreed to allow NTIA to use their existing communications channels to distribute information about the Coupon Program.  Finally, NTIA is also in discussions with U.S. Department of Agriculture’s (USDA) Food and Nutrition Service (FNS) to include Coupon Program materials in communications that go to prospective Food Stamp recipients.

   

  Rural Residents

   

  NTIA will collaborate with the Appalachian Regional Commission to distribute information packets about the transition to 70 councils of government and local development districts representing 23 million people in 410 counties (42 percent rural).  This month, NTIA will participate in the Rural Telecommunications Congress Conference in Springfield, Illinois and will conduct a workshop for rural community leaders so they can spread the word about the Coupon Program locally.  NTIA has also reached out to the USDA’s Cooperative State Research, Education, and Extension Service to distribute information to extension offices nationwide, and we are in discussions with 4-H to enlist young people to volunteer in rural communities to assist people who may need this government assistance.

   

  People with Disabilities

   

  NTIA has been working with organizations such as the American Association of People with Disabilities (AAPD), Easter Seals, and the Northern Virginia Resource Center for Deaf and Hard of Hearing Persons (NVRC) to ensure the Program is accessible to Americans with disabilities.  As noted above, NTIA’s Program rules require that eligible converter boxes support closed-captioning services as mandated by FCC regulations.  NTIA Program staff have met with a handful of disability groups, the FCC, and several converter box manufacturers to describe these closed captioning features and how to access them (either via a “cc” button on the remote control or via a menu feature).  NTIA recently participated in the Telecommunications for the Deaf and Hard of Hearing conference in San Francisco on August 24, 2007.

   

  To reach the home-bound and those with special needs, NTIA will continue to reach out to private and public organizations that provide home health care, meals on wheels, senior day care, and other elder care services.  At the DTV Public Meeting and Expo last month, the U.S. Department of Veterans Affairs (VA) announced that it would work with NTIA to ensure that digital transition information and Coupon Program applications are available in 155 VA hospitals and its 1,000 clinics.  In addition, the VA will inform its 240,000 employees, 1 million volunteers, and more than 1 million veterans not served by the VA about the transition and Coupon Program.

   

  Minority Communities

   

  NTIA continues to expand its outreach efforts into minority communities.  The NAACP and the Rainbow Push Coalition are together planning an extensive outreach strategy to the African American community, and last week, NTIA participated on a panel at the Congressional Black Caucus Telecommunications Issues Forum, “Navigating the Digital Era.”

   

  As I noted earlier, NTIA will participate later this month in the National Hispanic Council on Aging Conference and will distribute Spanish language materials about the transition.  Last month, NTIA participated in the United States Hispanic Chamber of Commerce’s Annual Convention in San Juan, Puerto Rico, and informed Hispanic retailers about how they might participate in the Program and assist NTIA in raising awareness among their predominantly Hispanic customers.  I applaud Univision for announcing on October 1 its national campaign to educate Hispanic viewers about the transition.  Univision reaches 99 percent of Hispanic homes and will use both television and grassroots events and street fairs to educate Hispanics about the Coupon Program.  Entravision Communications Corporation will also use its Spanish-language media assets, including TV and radio stations and outdoor billboards, to reach nearly 70 percent of Hispanics about the digital transition in 51 primary television station markets across the United States.

   

  NTIA also has printed brochures and other information in five languages, in addition to English.  Partnering with Panasonic and the Southeast Asia Resource Action Center, NTIA has translated Coupon Program information for distribution in Chinese, Korean, Vietnamese and Filipino communities.  The Center will distribute information and will encourage the Cambodian-American, Laotian-American, and Vietnamese-American communities to use the Government’s multilingual call center to apply for coupons.  NTIA is pursuing partnership opportunities with Koahnic Broadcast Corporation to disseminate coupon information to Alaskan Native villages, as well as with Native Voice One to reach tribal reservations through radio communications.

   

  Moreover, NTIA has extended this multi-lingual approach beyond its consumer education activities into the core of Program operations.  Significantly, through an established partnership with the Language Line, the call center that will support the coupon application process will be staffed by permanent employees possessing fluency in 23 languages and depth-of-language in more than 70 other languages.

   

  Government Partnerships

   

  NTIA has reached out to over 14 Federal government departments and agencies and is committed to leveraging the relationship these groups have with our target audiences to maximize the value of the Federal investment in this Program.  As outlined above, we are already either actively collaborating or in discussions with the HHS, USDA, VA, and the IRS.  Many of these contacts have resulted in clearly defined strategies to reach constituents served by these agencies.  For example, NTIA is partnering with other government departments and agencies to use existing publications and electronic newsletters to insert coupon information in scheduled mailings, link to the coupon application form from their websites, and place coupon application forms at local social service offices.

   

  In addition to these partnerships, NTIA will also leverage our relationships with other governmental agencies to extend the reach of our message.  In particular, we will work with agencies that target the five target populations discussed above.  NTIA is presently in discussions with the Social Security Administration; the White House Office of Faith-Based and Community Initiatives; the General Services Administration; and several agencies within the Department of Commerce.

   

  Finally, as noted above, NTIA is also working in cooperation with the FCC to implement significant measures to increase awareness among the general public about the DTV transition and the Coupon Program.  Both the www.DTV.gov webpage and NTIA’s website, www.ntia.doc.gov/otiahome/dtv/index.html, provide significant information about all aspects of the transition.  To assist consumers who do not have Internet access, who are hearing impaired, or who simply prefer to receive information about the Coupon Program over the telephone, NTIA has also established a toll free number, 1-888-DTV-2009.

   

  I encourage the Members of this Committee, and all of Congress, to help us in this important effort by linking your own websites to these consumer education materials.  Moreover, NTIA has also distributed copies of Coupon Program brochures – in both English and Spanish – to every member of the House and Senate.  We have distributed these materials widely to community organizations, constituency groups, and industry stakeholders.  We hope they will assist you in keeping your own constituents informed about the transition and the Coupon Program.

   

  Conclusion

   

  NTIA recognizes the risks and potential pitfalls associated with a consumer education campaign of this magnitude; but the solution is not the establishment of a single digital transition authority or single, government-mandated message.  Broadcasters, cable and satellite service providers, consumer electronics manufacturers and retailers, and consumer advocates have as important a role to play in educating consumers as any government agency does, and as great an incentive to become involved.  A multiplicity of messages and sources of information is critical to a well-informed consuming public.  The stakeholders in the transition are in the forefront of the education effort through their individual commitments as well as collaborations like the Digital TV Transition Coalition.

   

  In conclusion, I want to thank the Committee for the opportunity to testify before you again today.  I will be happy to answer your questions.

Witness Panel 2

• Mr. Jon Gieselman

  Senior Vice President, Advertising and Public Relations

  DIRECTV, Inc.
  Read statement

  Witness Panel 2

  Mr. Jon Gieselman

  Written Testimony of

  Jon Gieselman,

  Senior Vice President of Advertising and Public Relations, DIRECTV, Inc.

  Before the Senate Committee on Commerce, Science and Transportation hearing - The Digital Television Transition: Government and Industry Perspectives

  October 17, 2007

   

   

  Chairman Inouye, Co-Chairman Stevens and members of the Committee, I am Jon Gieselman, Senior Vice President of Advertising and Public Relations for DIRECTV, Inc. (DIRECTV).  Thank you for inviting DIRECTV to discuss the steps we are taking to support the transition to digital television. 

  First, the satellite industry is proud of its leadership in digital television.  Our industry has always been about driving competition and choice in the video marketplace and a big part of our value proposition has been our commitment to digital television. Indeed, we are pioneers in this area.  From the first day of service, both DIRECTV and DISH Network were built as all-digital platforms.  That choice, made on behalf of consumers over a decade ago, has positioned the satellite industry as leaders in the digital revolution. 

              Second, as a result, of our commitment to digital television, February 17, 2009 will just be another day on the calendar for DIRECTV and DISH Network subscribers. Their service will not change.  The only snow satellite subscribers may see on February 17, 2009 could be that falling outside their windows.  Their satellite picture will continue be digital and crystal clear.

              Third, DIRECTV is extending our commitment to customer service by working to educate our customers and also assist over-the-air television households through the digital television transition.  We will provide information about the digital television transition including how they may continue to receive local television programming over the air and how they may choose to become DIRECTV subscribers.

   

  *          *          *

   

  Mr. Chairman, for DIRECTV the digital television revolution began when Cowboy Malone’s, a local retailer in Jackson, Mississippi signed up and installed our first customer on June 17, 1994.  DIRECTV has been all-digital ever since and over 16 million households and small businesses have joined the digital television revolution with DIRECTV.  They enjoy superb picture quality, unmatched programming choice and award winning customer service. 

   When combined with subscribers of DIRECTV’s competitor DISH Network, this is even more impressive.  Today, 31 million subscribers have chosen satellite’s 100% digital pictures and sound.  This means that roughly 31 million satellite subscribers have already made the digital conversion.  They need to do nothing when analog broadcasting ends.  This is because the satellite industry has invested billions of dollars to bring the digital television revolution to households and small businesses across America. Indeed, this effort goes beyond simply offering digital pictures and sound.  DIRECTV is now the leading provider of high definition (HD) television service. 

  HD content is changing the viewing experience for millions of DIRECTV subscribers.  HD is creating a new world of entertainment, information and education; a world of startling picture and sound quality; a world of excitement and engagement; and a world of programming choice and diversity.  It is a world that DIRECTV is bringing to our subscribers through our billion dollar investment in HD content and delivery infrastructure.  It is a world that Congress envisioned when it passed legislation ushering in the DTV conversion.  So while Senator McCain could then only “[i]magine last night's All-Star game broadcast with such stunning clarity that you seem to be watching it through a window rather than on a screen,” he can now see that game on DIRECTV.[1]  And while Senator Hollings then thought that “high-definition television, not digital television, but digital, high-definition television [would be] to the next century what color television was to the '50s and '60s,” that day is already here for DIRECTV subscribers.[2]  So it is no longer true that Americans would someday have “brilliant, crystal clear video, CD quality surround sound, and wide-screen picture that creates a ‘night-at-the-movies’ sensation right in one's own living room.”[3]  DIRECTV subscribers have all of this today.

  DIRECTV is thus a big part of the highly competitive pay television marketplace that is delivering on the goals and expectations of Congress and this Committee.  Although DIRECTV subscribers enjoy over 250 channels of 100 percent digital picture and sound, including local HD broadcast signals in 61 U.S. cities, we plan to do more to expand our HD services.  We recently launched one new satellite which allows us to offer a wider range of HD channels and services.  By year end, DIRECTV will retransmit local network HD stations in up to 75 markets.  By the end of 2008 with the launch of a second HD satellite, we will have the capacity to provide 1,500 local HD channels and 150 national HD channels.  And our national lineup of 72 HD channels already includes nearly every major HD channel from Animal Planet HD, Bravo HD and CNBC HD to Universal HD, Versus HD and the Weather Channel HD (complete list and press release attached).

   Mr. Chairman, DIRECTV is proud of our record of competing in the marketplace.  We are particularly proud of the fact that our competitive position is based largely on our hard-earned reputation for superior customer service.  At this critical moment of transition for our industry and the country, DIRECTV will continue to serve consumers diligently by doing everything necessary to ensure that our subscribers are ready for the analog-to-digital transition on February 17, 2009.  DIRECTV subscribers who rely on over-the-air television stations will also be ready.  Just as they do today, this small subset of our subscribers will use a seamless, integrated over-the-air tuner that is built into their set-top box.  Every DIRECTV subscriber who needs a set top box to view local digital programming will have one.  Because we are taking care of all of our customers with the necessary equipment, the National Telecommunications and Information Administration’s (NTIA) digital-to-analog converter box coupon program will be available to the over-the-air households that truly need it.

  With this overview of the satellite industry and DIRECTV as a backdrop, we intend to ensure our subscribers know that they have already made a seamless transition away from analog broadcasting.  Toward this goal, we plan several outreach initiatives. 

              To help minimize consumer confusion, we will broadcast a clear message to our consumers that they should sit back and continue enjoying their DIRECTV service through the transition period.  We will deliver this concise message using nearly every point of contact we have with our customers including; customer service agents, retailers, installers, on-air announcements, bill-stuffers, our website and email.  We will make certain our customers are aware that they did everything they needed to do to prepare for the digital transition the day they signed up with DIRECTV.  The message will reassure DIRECTV subscribers that the only decisions they have to make as their local television stations go all-digital, is whether to watch their favorite sitcom, nature program or sporting event in 100% digital picture and sound. 

  No matter if they own a 72-inch plasma, a 46-inch LCD or the latest DLP, DIRECTV customers will be set for the digital age.  Whether their television delivers 1080p, 1080i, 720p or 480i, they are set for the coming switchover – and the same goes for those who may have a recently purchased a 4:3 aspect ratio television with a digital tuner or have an older analog television.  When our customers signed on to DIRECTV and subscribed to our services, they in turn joined the digital television revolution. 

  Communicating this concise message during the transition period should all but eliminate demand from DIRECTV customers for the NTIA’s digital-to-analog converter box coupon program.  Since DIRECTV subscribers do not need to purchase digital-to-analog converters, the only requirements they must contend with is to surf between channels until they find their favorite programming on DIRECTV.  Our customers will sit back and continue enjoying DIRECTV service through the transition period.  They will not need to make a retail purchase of a converter box, nor apply for a NTIA digital-to-analog converter box coupon.  We will use e-mail, customer service representatives, installers, retailers, bill inserts, our web site and on screen messages and programming to make sure DIRECTV subscribers know that that they are set for the digital television transition.  In other words, if our comprehensive education efforts are successful, DIRECTV customers will not clog the system nor add to the demand encountered during the switchover.

  Mr. Chairman, DIRECTV is also committed to doing its part to assist the estimated 18 million households that do not subscribe to satellite or cable television service.  These households rely on over-the-air (OTA) reception for local network programming.  As you are aware, OTA households that have an analog television will need to purchase and install a converter box to receive television programming beginning February 17, 2009 or purchase a new digital television.  DIRECTV will support efforts to educate these households about the digital television transition.

  As a part of this outreach, DIRECTV is a member of the Digital Television Transition Coalition (DTTC).  DTTC members are working to make the digital transition as smooth as possible for consumers.  DTTC will support coordinated efforts to inform viewers of their options in advance of the transition.

  DIRECTV is also planning its own independent public relations, advertising, and promotional campaigns that will begin early next year and run through early 2009.  These campaigns will discuss the benefits of DIRECTV, offer special subscription opportunities for those who currently do not subscribe to DIRECTV, and help those who wish to continue to receive OTA broadcasts to take only those steps necessary to stay tuned to their local broadcasters.

  DIRECTV plans to begin its outreach efforts early next year with two public service announcements (PSAs) geared toward our existing customer base.  The first PSA will inform DIRECTV customers about the seamless digital transition they will undergo as a DIRECTV subscriber.  The second PSA will encourage our customers to check on their elderly parents, grandparents, neighbors and friends, including those that are not DIRECTV subscribers.  This effort will help educate this group about the upcoming digital transition and the steps they need to take to stay tuned in to their favorite television programming. 

  DIRECTV will also incorporate the ideas from both of these PSAs into a 30-minute long-form program that we will produce and air continuously on DIRECTV’s “Customer Support Channel” beginning in April 2008.  The program will celebrate DIRECTV’s 13 years of digital service, highlight our commitment to HD service, and let our subscribers know that they are set for the digital transition.  We will help our customers guide their family and friends through the digital television transition with information about the NTIA digital-to-analog converter box program and information about DIRECTV’s low-price offer for households who may use the transition to consider a pay television provider.

  We are also creating an interesting and entertaining educational tool to inform DIRECTV customers about the digital television transition.  Since DIRECTV customers are already treated to cutting edge and high-quality programming, we’ve taken that idea to a whole new level – and created a new addition to the DIRECTV family. 

  Our DIRECTV Web site now features a virtual customer service representative named Diane, and she will guide our subscribers and anyone who visits our website, DIRECTV.com, through the digital television conversion.  Diane currently gives DIRECTV customers information about DIRECTV’s services and packages.  We will create a whole new Diane, complete with a wealth of knowledge and information about digital television, HD programming and the 2009 digital television transition.  Diane will become DIRECTV’s virtual online educational platform for the digital transition.  We plan to drive consumers to the DIRECTV website using PSAs and our Customer Support Channel so they may view Diane and hear what she has to say about the upcoming transition.  We will also promote Diane through a substantial email campaign to our customers and through social networking sites.   

  DIRECTV is very supportive of your efforts to ensure that consumers have all the information they need regarding the digital transition.  DIRECTV has every incentive to not only assuage any anxiety that our current customers may feel when they hear or read about the coming switchover, but to also help viewers currently receiving only over-the-air broadcasts.

   

  *          *          *

   

  DIRECTV is set to not only begin an aggressive education and outreach campaign toward our current customer base, but we hope to engage other consumers as the digital transition draws nearer.  As I’ve stated throughout this testimony, DIRECTV customers will not be affected by the digital transition. This is the most important message we can continue to deliver.  But there is much work to be done and we welcome the opportunity to be part of the process. This is an exciting time for our industry and we want consumers to embrace the possibilities – not shy away from them. Mr. Chairman, Co-Chairman Stevens and members of the Committee, thank you for allowing me to speak on this important issue today and to talk about DIRECTV’s contribution to the educational and outreach efforts tied to the forthcoming digital transition. I am happy to take your questions.

  
  

  (Attachment)

   

   

   

  Contact:        Robert Mercer                                               Darris Gringeri

                          DIRECTV, Inc.                                              DIRECTV, Inc.

                          (310) 964-4683                                             (212) 462-5136

   

  DIRECTV HD™ Revolution Begins

   

  DIRECTV Customers Now Have Access to Over 70 National HD Channels – Significantly More Than Any Other Television Provider In The Nation

   

  EL SEGUNDO, Calif., Oct. 15, 2007 – DIRECTV, the nation’s leading satellite television service provider, is now offering 72 national HD channels – significantly more than any other television provider in the nation. This is the first wave in DIRECTV’s unprecedented expansion of HD services that is building towards up to 100 HD channels by year-end*.

   “If you own a high-definition television, or are thinking about buying one, you can now watch your favorite channels in crystal-clear DIRECTV HD™,” said Derek Chang, executive vice president, Content Strategy and Development, DIRECTV, Inc. “The DIRECTV HD programming expansion that consumers have been waiting for has become a reality.  We overwhelmingly lead the industry in terms of both quantity and quality of HD programming. There simply isn’t a better television experience on the planet.” 

  The full DIRECTV HD programming lineup, including the new channels, and details on receiving equipment needed for the new DIRECTV HD services, are available by calling 1-800-DIRECTV or visiting directv.com.

  -more-

   

   

  DIRECTV HD Revolution Begins

  Page 2

   

  DIRECTV’s current HD lineup includes:

  A&E HD	The History Channel HD
  Animal Planet HD	HGTV-HD
  ABC HD NY **	MGM HD
  ABC HD LA **	MHD
  Big Ten Network HD	National Geographic Channel HD
  Bravo HD	NBC HD NY **
  Cartoon Network HD	NBC HD LA **
  CBS HD NY **	NESN HD
  CBS HD LA **	NFL Network HD
  Cinemax HD East	Sci-Fi Channel HD
  Cinemax HD West	SHO Too HD
  CSN Chicago HD	Showtime HD
  CSN Mid-Atlantic HD	Showtime HD West
  CNBC HD+	Smithsonian Channel HD
  CNN HD	Speed Channel HD
  Discovery Channel HD	SportsNet New York HD
  ESPN HD	Starz Comedy HD
  ESPN2 HD	Starz Edge HD
  Food Network HD	Starz HD East
  Fox HD NY **	Starz HD West
  Fox HD LA **	Starz Kids & Family HD
  Fox Business Network HD	TBS in HD
  FSN Detroit HD	The Movie Channel East HD
  FSN Prime Ticket HD	The Science Channel HD
  FSN Southwest HD	The Weather Channel HD
  FSN West HD	TLC HD
  Fuel TV HD	TNT HD
  FX HD	Universal HD
  HBO HD East	USA Network HD
  HBO HD West	Versus HD/Golf Channel HD
  HD Theater	YES HD
  HDNet	HD PPV (8)
  HDNet Movies

   

  DIRECTV HD customers will continue to pay only a $9.99 access fee,  allowing them to receive DIRECTV’s premier HD technology and all channels broadcast in HD that are tied to their particular base programming package.

  Customers who want the ultimate HD experience can subscribe to the DIRECTV^® HD EXTRA PACK for an additional $4.99 per month.  This new addition of HD-only channels is for the true HD fan and includes:  HDNet, HDNet Movies, Universal HD, MHD, Smithsonian HD and MGM HD.

  -more-

  DIRECTV HD Revolution Begins

  Page 3

   

  In addition to the national HD channels listed above, DIRECTV also offers 245 local HD channels across 61 cities, representing more than 70 percent of U.S. TV Households.

  The DIRECTV 11 satellite will be launched early next year to support further HD expansion.  With the two satellites, DIRECTV will have the ability to deliver 150 national HD channels and 1,500 local HD and digital channels in addition to new advanced programming services for customers.

   

  * Number of HD channels subject to available HD programming and varies by base package selection.

  ** Eligibility required.

  *** 2007 American Customer Satisfaction Index, University of Michigan Business School.

   

  About DIRECTV

  DIRECTV, Inc., the nation’s leading satellite television service provider, presents the finest television experience available to more than 16.3 million customers in the United States, through exclusive content, industry-leading customer satisfaction (which has surpassed cable for seven years running) and superior technologies***.  Each day, DIRECTV subscribers enjoy access to over 250 channels of 100% digital picture and sound, exclusive programming and the most comprehensive collection of sports programming available anywhere, including NFL SUNDAY TICKET™ and MLB EXTRA INNINGS®.  DIRECTV (NYSE:DTV) also leads the digital television technology revolution with exclusives such as NFL SUNDAY TICKET SuperFan™, US Open Interactive and YES Network Interactive and will soon have the capacity to offer over 150 national HD channels*.  For the most up-to-date information on DIRECTV, please visit directv.com.

  ###

   

   

  
  

  ---

  [1]       Transition to HDTV: Hearing on the Transition to Digital Television Before the S. Comm. on Commerce, Science and Transportation, 105th Cong. (1998) (statement of Sen. John McCain).

   

  [2]       Transition to Digital Television, Hearing of the Senate Comm. on Commerce, Science and Transportation, 105th Cong. (1997) (statement of Sen. Ernest Hollings) (internal quotation marks and citation omitted).

   

  [3]       Transition to HDTV: Hearing on the Transition to Digital Television Before the S. Comm. on Commerce, Science and Transportation, 105th Cong. (1998) (statement of Thomas B. Patton, Vice-President, Philips Electronics North America Corp.).

   

   

• Mr. John Lawson

  President and CEO

  Association of Public Television Stations
  Read statement

  Witness Panel 2

  Mr. John Lawson

  United States Senate

  The Committee on Commerce, Science, and Transportation

   

  Testimony of John Lawson, President and CEO

  The Association of Public Television Stations

  Washington, DC, October 17, 2007

   

   

  Overview

   

  Public Television strongly supports the digital transition, as we have by word and deed from the very beginning. Public Television stations have spent a decade educating state and local governments, the federal government, local donors and our viewers nationwide about the benefits of digital television and its impact on the citizens we serve. This effort raised over $1.3 billion for the digital conversion of our facilities, enabling Public Television stations to roll out a new generation of consumer friendly channels and services.

   

  Public Television is committed to a vibrant transition and our stations are doing all they can to ensure a successful transition. To that end, this past Monday, we announced our commitment to a consumer education campaign that dedicates airtime, as well as print and internet resources. This campaign includes DTV action spots across daytime, prime time and weekend time periods. This campaign represents a $50 million commitment by Public Television and will result in 3 billion impressions on the American public. Additionally, our stations will produce long form programming and disseminate information on their websites and in their program guides. Given Public Television’s very limited number of non-programming minutes, this commitment represents a significant percentage of available time. With adequate resources, Public Television stations and our not-for-profit partners are uniquely positioned to go beyond this on-air commitment to provide direct, on-the-ground educational outreach to the American public to guide them through this transition.

   

  We believe that developing and promoting the consumer benefits of DTV is the best way to drive the transition and preserve free, over-the-air television. The message needs to be clear that digital television provides a future of expanded programming and services to benefit all consumers. Simply highlighting the potential loss of service if consumers do nothing will not drive the kind of enthusiasm and momentum needed to ensure a smooth transition that the American public fully supports. No sector of the communications industry has embraced the promise of DTV more robustly than Public Television. An investment in the new generation of digital content and services from Public Television is a very effective way to increase value for the consumer and move the transition forward, as we have seen in other countries, notably the United Kingdom.

   

  However, we believe the success of this transition faces unnecessary risk. Time still remains to address and mitigate the factors that are contributing to this risk, but with only 16 months and effectively one federal budget cycle remaining before analog television broadcasting is mandated to end, the window for action is closing. Our latest survey research indicates that more than 50 percent of Americans have no idea that the transition is occurring. Additionally, the majority of recent survey participants said the federal government is on the “wrong track” when it comes to the transition. That distrust is even greater among people who have the least awareness of the transition.

   

  When Congress enacted the recent Medicare prescription drug benefit, the Department of Health and Human Services obligated approximately $109 million to advertise, educate and inform beneficiaries about the Medicare Part D program. This equates to approximately $3.11 per senior. In comparison, Congress has set aside only $5 million for DTV transition consumer education, and that is narrowly limited to education about the NTIA set-top box coupon program. This equates to approximately $0.08 per over-the-air individual. This funding is woefully inadequate, especially when one factors into account the $12.5 billion the federal government is expected to receive in revenue, at minimum, from the spectrum auction.

   

  We are requesting, as we have since 2005, that the federal government invest meaningfully in a comprehensive consumer education campaign. The analog switch off is not exactly market driven. Despite the enormous sums spent by industry stakeholders on the development and rollout of digital television, there is no dispute that for the past 20 years, the DTV transition has been a matter of industrial policy. Now, the federal government, as a primary beneficiary of the transition, must ensure that the transition is completed successfully. This requires that additional, meaningful federal resources are invested in consumer education. At an absolute minimum, we believe that an additional $20 million in federal funding is needed for community outreach where seniors, non-English speaking people and other vulnerable populations reside.

   

  We also believe that it makes enormous sense for the high-technology companies that have pushed relentlessly for a national “hard date” and who will have massive investments in the spectrum at stake to assume some responsibility in educating Americans about the conversion deadline. They need to help us ensure that February 17, 2009 is nothing more than “just another Tuesday.” After all, if the transition is not successful—and multitudes of Americans experience a Tuesday they will never forget—all these investments will be put at great risk.

   

  Finally, it is essential that the transition preserves and protects high-quality local media, programming and services. We already have a landmark agreement with the cable industry to carry our new digital signals. We need the same with direct broadcast satellite companies. And it is very important that consumers are protected from harmful interference to their DTV reception by the premature introduction of unlicensed devices into the broadcast band.

  
  

  Public Television’s Consistent Support of the Transition

   

  Even though my remarks today advocate changes in the federal government’s approach to the transition, nothing in my testimony should be interpreted as opposition to the “hard date” to end analog broadcasting. In fact, our recommendations are all intended to increase the odds that the transition, as scheduled, will be successful. Our call for a much greater investment in consumer education is nothing new. For example, in my testimony to the Commerce Committee in July 2005, we supported a hard date and called for a “Y2K-level” effort around consumer awareness for a successful transition. I also pointed to the unsuccessful attempt in the 1960’s and 70’s to convert America to the metric system as a reminder that consumer education campaigns can, and do, fail.

   

  So, I want to reiterate Public Television’s support for the hard date to terminate analog broadcasting in February 2009. Stringing out analog broadcasting would be highly detrimental to Public Television. Currently, our stations are spending $32 million annually just for electricity to run their analog transmitters, and another $20 million to maintain them. This is money that should be going to programming and services, not to the power bill and the production of more greenhouse gases.

   

  Public Television has supported a successful transition because of the tremendous service opportunities digital television broadcasting has created. DTV is enabling public broadcasters to rollout a new generation of programming and services for the American public and, in effect, reinvent public service media for the digital age. We are already beginning to realize this tremendous potential as local stations provide not only high-definition programming, but multiple new standard definition channels and new datacasting services, all simultaneously.

   

  Public Television stations have embraced the opportunities presented by digital, offering new digital channels such as World (an aggregation of public affairs programs), Create (lifestyle and how-to-programs) and V-Me (our first Spanish language Public Television channel). In addition, new localized content is being produced by Public Television stations to meet the interests and needs of their local communities.

   

  We are also using DTV to enhance public alert and warning. In April 2007, APTS and the Department of Homeland Security/FEMA began the national deployment of the Digital Emergency Alert System (DEAS). Once fully implemented, Public Television’s digital television infrastructure will facilitate the delivery of Presidential emergency alert messages to digital televisions, radios, cell phones, PDAs and computers.

   

  This DEAS deployment is a testament to the wide-range of expanded opportunities digital transmission presents, and we look forward to working with Congress to find other opportunities to expand the successful DEAS model in addressing disaster and homeland security needs throughout the country. In particular, I would like to commend Senator DeMint for his leadership in authoring the WARN Act, which laid the groundwork for an expansion of the emergency alert system to commercial mobile service providers.

   

  Recent breakthroughs also allow for the delivery of video programming on mobile devices using local stations’ DTV signals. Public Television has been a full partner in developing this new platform, including our membership in the newly-formed Open Mobile Video Coalition.

   

  These new digital services are the future of noncommercial, public service media in America, and our stations are eager to phase out our legacy analog services and focus on this digital future.

   

  Polling Data: 21.5 Million Households at Risk

   

  Public Television is fully committed to the digital future. However, we are gravely concerned that many of the 21.5 million American TV households who depend upon over-the-air broadcasting to receive our programming will be stranded if we proceed with an under-funded consumer education campaign and an unmanaged transition process.

   

  Beginning in November 2006, APTS commissioned the polling firm CENTRIS—which specializes in tracking consumer use of electronics products and services—to conduct scientific surveys of American television consumers to guide us in our transition efforts. I am happy to share our latest findings from the third quarter of 2007 with the Committee this afternoon:

   

  • More than half of all surveyed Americans (51 percent) say they have “no idea” the transition is taking place. This is a 10 percentage point improvement from the last quarter of 2006, but it is still unacceptable.
  • Only 7 percent of survey respondents, when asked when the transition would end, could accurately answer “between one and two years.”
  • There is great confusion about what consumers will do to deal with the transition. More than half of all respondents (54 percent) say they either “don’t know” what they will do or will “do nothing” to receive television after the transition.
  • Every federal office holder has a stake in the success of the DTV transition. Of those surveyed, 55 percent of participants said the government was on the “wrong track” with the transition.
  • The more consumers reported knowing about the transition, the more likely they were to say the government was on the “right track.” Of those who were “aware” 22 percent said the government was on the “right track.” Only 7 percent of “unaware” said the government was on the “right track.
  •  The CENTRIS data confirms that older Americans are at a disproportionately greater risk of being left behind when the conversion occurs. Older Americans (24 percent) are more likely to receive their signals via an over-the-air antenna than are Americans under 65 (19 percent).
  • Over the past three years, older Americans (41 percent) have bought newer TV sets at a much slower pace than Americans under 65 (55 percent), which puts them at a disadvantage of having little exposure to newer digital technology and point-of-sale information.
  • The number of over-the-air households has changed little since 2004. It currently stands at approximately 21.5 million households, which represent approximately 61 million individuals.

   

  Recommendations for Action in Time Remaining

   

  Based upon this survey data and other findings, we recommend the following actions by Congress and other key players in the DTV transition.

   

  1.      Congress must provide a real financial investment in consumer education. It is clear that the Administration will never allocate, nor even request, funding for this basic necessity of a national DTV consumer education campaign. As such, we call on Congress, as we have for infrastructure conversion funds, to allocate resources for consumer education. We are not talking about a new, permanent federal program, but a one-time, substantial outlay in basic public education activities.

   

  I have outlined how Public Television, along with our commercial colleagues, will invest significant resources in DTV consumer education. However, our efforts alone will not be enough. I’m not aware of a single Member of Congress who was elected through TV spots alone. Direct mail, town meetings, events at senior centers, phone banks and similar tactics are all necessary components of a successful campaign. The government itself is a major stakeholder and must provide additional funds for a comprehensive grassroots campaign.

   

  To fund the appropriate level of activities needed to undertake the campaign, we ask Congress to invest a minimum of $20 million for grassroots consumer education and outreach. These funds would be distributed through our local public stations and our not-for-profit partners in the community.

   

  Public Television is perfectly suited to undertake this endeavor, as we have been at the frontline of educating elected officials, corporations and our viewers about the transition for the past decade. Additionally, by virtue of their educational mission to address underserved populations through broadcast media and person-to-person outreach, local Public Television stations have deep and effective ties to the many local institutions, organizations, advocacy groups and service providers that directly communicate with these constituents.

   

  Public Television stations also possess an unparalleled universal broadcast coverage (99 percent of American households in analog and currently 96 percent in digital), a local presence in each community, a nonprofit educational mission and a history of effective outreach projects that bring information and guidance to Americans beyond the television screen. It is also clear that Public Television has America’s trust, as reflected by four consecutive years of Roper polls, which ranked Public Television as the most trusted institution in our country.

   

  This combined experience and high level of public trust provide us with the expertise and tools necessary for managing a national grassroots consumer education campaign. We are prepared and eager to undergo this campaign, but it will take a commitment by Congress to make adequate investments in consumer education to ensure that no viewer is left behind.

   

  2.      We call on Congress to ensure digital carriage of local Public Television stations by direct broadcast satellite (DBS) companies. Localism is at the heart of public broadcasting, but the multitude and diversity of local voices are threatened by a transition to digital that does not guarantee carriage by DIRECTV and EchoStar, which together serve nearly 30 million customers.

   

  In FCC filings, both DIRECTV and EchoStar have questioned the Commission’s authority to require satellite carriage of digital stations, and have made clear their preference to carry, at the most, a single SD stream instead of HD and multicast programming. This is unacceptable.

   

  In 2005, Public Television negotiated a historic agreement with the National Cable and Telecommunications Association to ensure HD and multicast carriage on major cable systems. In August 2007, we finalized a similar agreement with the American Cable Association, which is pending ratification by ACA members. An agreement has also been reached with Verizon.

   

  To better compete with the growing array of digital programming offered by cable systems throughout the country, DBS providers have introduced both national and local digital programming in numerous markets. DIRECTV and EchoStar have aggressive plans to expand the carriage of local digital stations to new markets in the near future.

   

  However, in those markets where local digital signals are being carried, neither DIRECTV nor EchoStar is carrying the HD signals of a single Public Television Station. In these markets, both companies are carrying the local HD signals of NBC, CBS, FOX and ABC.

   

  Mr. Chairman and Mr. Vice Chairman, there is a gaping hole in guaranteed digital carriage of our local stations when it comes to satellite. Yet, we know that many communities rely on satellite as their only available source of subscription television services and, in some cases, is the only way they can get any local TV service. Without guaranteed carriage of our Public Television stations in the communities served by DBS providers, consumers in those communities are at risk of losing local television service and missing out on the expanded digital services Public Television stations are offering.

   

  We would prefer a privately negotiated carriage agreement, but we are running out of time. Although we have made some progress with DIRECTV, we still do not have an agreement. Our negotiations with EchoStar have gone nowhere.

   

  In an era when media ownership is concentrated in fewer and fewer hands, Public Television stations are the last locally owned and operated media outlets in many communities across America. We call on Congress to help us ensure that these local stations are carried on satellite services, so that all Americans, no matter how they receive their television signals, are able to watch the programming they helped fund.

   

  3.      Similarly, protecting the consumer’s ability to receive high-quality local television transmissions is essential to ensuring a vibrant transition to digital. As the FCC continues to conduct testing of unlicensed devices intended for operation in the broadcast “white spaces,” Congress must conduct vigilant oversight. No unlicensed devices should be deployed until there is certainty that they will avoid harmful interference to DTV broadcast services. The middle of this digital transition is exactly the wrong time to introduce thousands of devices that have the potential to destroy the pictures that consumers see on their DTV enabled sets. The planned transmission of video to mobile devices through DTV transmission raises the requirements for non-interference even higher.

   

  4.      We call on Congress to ensure that the FCC expedites rules for digital translators. Mr. Chairman and Mr. Vice Chairman, there is an untold story when it comes to viewers served by translators. Without channel assignments and final rules for the conversion of these translators, which relay television signals to rural and mountainous areas, many of our stations are in limbo with regard to serving all of their viewers. Some stations are planning on down-converting their signals while others plan on a “flash-cut” to digital, but stations lack clear guidance on how to deliver broadcast signals to viewers dependent on translators. In addition, this is another area where consumer education is critical.

   

  5.      Finally, we urge Congress to continue to support Public Television in creating the new content and services that will drive consumer demand for DTV. We believe that stressing the consumer benefits of DTV is the best way to move the transition forward and preserve free, over-the-air television. An investment in the new generation of digital content and services from public digital television is an extremely effective way to increase consumer benefits, as we have seen in other countries.

   

  We applaud Congress for preserving advance funding for the Corporation for Public Broadcasting (CPB) in the House and Senate Budget Resolutions, as well as the Labor-HHS-Education bill as reported by the Appropriations Committees in both chambers and passed by the House. This has provided the first increase in the regular CPB appropriation in four years. But our funding since 2001 has not kept up with inflation, let alone provided for the new digital content that will help drive the transition for television viewers nationwide. We hope that Congress can continue to grow CPB funding in future years.

   

  We also applaud Congress and the members of this Committee in particular for your foresight in recognizing the value of new digital programming and services for your constituents. As such, you made a significant investment in Public Television’s infrastructure that will help to ensure those services are delivered into every home in America. As stations’ digital infrastructure needs ramp down, a new challenge beckons. We call on Congress to make the same commitment to the future of digital services by transitioning its investment in infrastructure into an investment in new digital public broadcasting content.

   

  Congress took the first step in this direction by endorsing the American Archive, an initiative to preserve, digitize and make widely available public broadcasting content from the past half century, as well as new digital content created today. The American Archive will ensure that the truly amazing amount of public broadcasting programming that Americans have paid for does not sit locked away, deteriorating, on aging tape and film. This programming represents the most comprehensive chronicle of our nation’s history, our people, our culture and our democracy. It has enormous continuing value to current and future generations and must not be left to fade away.

   

  Preservation of Free, Over-the-Air Television

   

  As one of the last locally owned and operated media outlets in the country, we believe that preservation of free, over-the-air television should be a cornerstone public policy goal of Congress and the FCC. Over-the-air broadcasting is essential to the health of this nation’s media marketplace and our democracy. It provides a powerful tool for consumers against the rising cost of cable and satellite. It offers an outlet for local voices in diverse communities throughout the nation. Over-the-air television service is freely available to every American no matter their income level and is not limited by the carriage decisions of cable or satellite. From our perspective, the fundamental policy goal of the digital television transition is preservation of free, over-the-air television, available now in an exciting, new digital format.

   

  Mr. Chairman and Mr. Vice Chairman, we appreciate your lifelong support of Public Television and Radio in our country. We also share your desire for a successful digital television transition. Our recommendations today are delivered in the spirit of making this transition successful. I appreciate this opportunity to testify, and I look forward to your questions.

  
  

   

• Mr. Kyle McSlarrow

  President and CEO

  National Cable & Telecommunications Association
  Download Testimony (32.57 KB)

• Mr. Mark A. Pearl

  Executive Director

  Consumer Electronics Retailers Coalition
  Download Testimony (1.54 MB)

• Mr. David Rehr

  President and CEO

  National Association of Broadcasters
  Download Testimony (182.22 KB)