NTIA Wants Additional DTV Coupon Funds

The National Telecommunications and Information Administration is asking Congress for access to more administrative funds to be able to send out more digital-TV-to-analog converter-box coupons if necessary. The NTIA thinks that might be necessary given that it is getting about 110,000 coupon requests per day, with a redemption rate of 49%. The NTIA said it will not use more that the total $1.5 billion allocated to the program, which was divided into $160 million for administrative expenses and $1.34 billion to cover the value of the coupons -- $40 apiece, up to two per eligible household. So far, only about one-half of the coupons requested are being redeemed, and when they expire after 90 days, that money then goes back into that $1.34 billion pot. To have the money to administer the reissuing of coupons -- technically the issuing of coupons made possible by the additional money -- the NTIA wants to tap into that $1.34 billion, since it now estimates that it will only need about $1 billion of that. The NTIA is asking for $7 million to be freed up for administrative funds, with an option to get more if it needs it.