GAO worries that retailers won't keep up with DTV schedule

GAO WORRIES THAT RETAILERS WON'T KEEP UP WITH DTV SCHEDULE
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
The Government Accountability Office (GAO) released a letter warning that the U.S. analog-to-digital TV or "DTV" transition schedule "faces challenges that could affect the outcome of the program." Specifically, the GAO says that TV retailers may not be able to start selling converter set top boxes to the public by January 1st, 2008, as planned. "Retailers told us that March or April of 2008 -- 3 to 4 months after consumers can begin requesting coupons—is a likely time frame for retailers to be ready to participate in the program," the document explains. GAO says that retailers told the agency that "participating in the converter box subsidy program could require a considerable amount of effort for a one-time program with a product that has a limit shelf life and a low profit margin." The retailers also said that: 1) since retail participation in the program is voluntary, consumers may be not be able to find retailers willing and able to coupon-quality stock converter boxes, 2) uncertainty about the demand for the set top boxes could impact the quantity manufactured for retail sale, and 3) they were concerned "about the possibility of a coupon redemption system that would affect their point-of-sale systems, noting that modifying these systems can be time-consuming, resource-intensive, and expensive, and can affect other financial systems."
http://www.lasarletter.net/drupal/node/517

* Digital Television Transition: Questions on the DTV Converter Box Subsidy Program and a DTV Inter-Agency Task Force. (GAO-08-297R)
http://www.gao.gov/cgi-bin/getrpt?GAO-08-297R