NTIA: DTV Coupon Funds Could Run Out Before Analog Shutoff

In a letter to Congress, acting National Telecommunications and Information Administration chief Meredith Attwell Baker says the administration's digital-TV-to-analog converter-box-coupon program could well run out of funds to process those coupons by the end of January unless Congress frees up more money. That would be 17 days short of the DTV-transition date and almost seven weeks short of the March 31 end date for applying for the coupons. That shortfall could be a problem if there is an anticipated spike of coupon requests from procrastinators as the Feb. 17, 2009, date nears. "NTIA has placed orders with IBM to distribute up to 44.5 million coupons," Baker said in the letter. "Assuming steady demand and an increase for the months of November, December and January, as well as a redemption rate consistent with that realized to date [49%], NTIA estimates that the coupon program will be able to honor requests for 44.5 million coupons through the end of January 2009 within existing administrative funds." She added the caveat that there may be cost savings of up to $6 million that could add several weeks to that end-of-January date.