Sen. McCain Seeks $1 Billion to Speed Digital TV Shift

[Gregg Lengling]

By Jeremy Pelofsky
WASHINGTON (Reuters) - U.S. Senate Commerce Committee Chairman John McCain is pushing for up to $1 billion in aid to ensure consumers are not left in the dark when television stations broadcast only new, crisp digital signals, according to draft legislation obtained on Sunday.

McCain's measure would require broadcasters to air only digital television signals by 2009 and help consumers who rely on traditional television sets buy a device that would convert digital back into a format that they could watch.

"Consumers who rely on over-the-air television, particularly those of limited economic means, should be assisted," according to the draft obtained by Reuters.

The government is eager to get its hands on the airwaves that broadcasters use now because they will likely auction it for commercial wireless services, which could rake in billions of dollars according to some estimates. Under the measure, the $1 billion would come from the auction proceeds.

Moving the broadcasters off the old spectrum would also free up airwaves for public safety groups that are scrounging for more so they can better communicate during emergencies. Poor communications was a major problem during the Sept. 11, 2001, attacks.

"The nation cannot risk the further loss of life due to public safety agencies' first responders' inability to communicate effectively in the event of another terrorist act or national crisis," the draft legislation said.

A representative for McCain, an Arizona Republican, was not immediately available for comment.

Current law only requires broadcasters to give up their current airwaves by 2007, or when 85 percent of the nation can receive the new digital signals, whichever comes later. Most predict that could take a decade or more.

Many stations already broadcast both digital and analog signals, but few Americans own digital televisions, which are substantially more expensive than traditional sets.

It was not clear whether the legislation, scheduled to be considered by the committee on Wednesday, would advance far this year since Congress is trying to adjourn by early October and the U.S. House of Representatives has not acted either.

Consumers who do not have a digital television set could also seek to tap the $1 billion in aid for the installation of pay television service that would either offer them the new signals or a converted signal they could see.
McCain's draft legislation would give priority for the subsidies to those households that rely solely on over-the-air television, particularly lower-income homes.
Meanwhile, the Federal Communications Commission staff has developed a plan that calls for the switch to digital also by 2009. It would include those who get their television via cable or satellite services as part of the 85 percent threshold.

Since roughly 85 percent of U.S. consumers already watch television through those services, that threshold could be met almost immediately in many major markets, forcing the broadcasters to return their analog spectrum for auction by the government.

FCC Chairman Michael Powell has embraced the plan and it may be considered by the full commission this fall.

But television broadcasters are concerned about seeing their signals switched back into analog after they have spent millions of dollars upgrading their facilities to offer digital. They are also concerned about potentially ceding even more territory to rival pay-television services.

A spokesman for the National Association of Broadcasters, which represents most local television stations, was not immediately available for comment.