The National Telecommunications and Information Administration (NTIA) has reported an increase in DTV coupon requests in some markets affected by the retransmission consent dispute between LIN TV and Time Warner Cable. That could mean there will be a shortage of set-top converter box coupons.
In an attempt to gain negotiation leverage and higher retransmission fees from a cable provider, LIN TV blacked out 15 of its stations to as many as 2.7 million homes in 11 markets this past week. It has been reported that NTIA, the government agency responsible for distributing DTV convert coupons and certifying set-top boxes in preparation for the Feb. 17, 2009 transition from analog to digital television signals, has seen an increase in the number of coupon requests in Austin, Ft. Wayne, and Springfield -- three of the markets affected by LIN TV's disruption of service.
"News that LIN TV's decision to pull stations from as many as 2.7 million Time Warner Cable subscribers in 11 markets may be causing a run on DTV coupons is troubling," said ACA President and CEO, Matthew M. Polka. "But it is even more disconcerting to think that many of these requests are coming from customers who do not need converters and who otherwise would not have requested these coupons. LIN TV's decision to pull its signals is not only causing confusion, but it's also eating up limited resources for the DTV coupon program. We urge the chairman to immediately issue the retransmission consent quiet period rulemaking that will guard against these threats to a successful transition," continued Polka.
As recently as Wednesday, Martin raised the possibility that the DTV-to-analog converter box coupon subsidy program could be running out of money. In an Oct. 7 letter to House Energy & Commerce Committee Chairman John Dingell (D-Mich.) and Telecommunications & Internet Subcommittee Chairman Ed Markey (D-Mass.), Martin voiced his concern that the NTIA may have underestimated the number of coupons it needed.
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