Statement of U.S. Representative Edward J. Markey (D-MA)
Chairman, House Subcommittee on
Telecommunications and the Internet
Hearing on the Status of the Digital Television Transition

Good morning. This is the Subcommittee’s second in a series of oversight hearings on the status of the digital television transition (DTV). Unfortunately, prior oversight hearings have left this Subcommittee with a DTV picture that is fuzzy at best. Our goal going forward will be to get better reception from the federal government, industry, and community groups about how they might better work in concert to ensure that millions of Americans do not lose free, over-the-air television after the transition from analog to digital broadcasting on February 17, 2009.

I’m encouraged by some recent government efforts to help consumers navigate the transition successfully. After our last hearing, the Commission required retailers to inform consumers when television equipment only has an analog tuner by displaying a government-mandated “consumer alert” near the device. Not only does such a notice assist consumers in making fully-informed decisions before bringing home an analog-only TV, it also serves to educate consumers about the DTV transition itself. The Commission has rigorously enforced this rule – seven retailers are facing almost $3 million in fines. In addition, the Commission also has assessed penalties against manufacturers for importing TVs lacking digital tuners. I commend FCC Chairman Martin for sending a strong message that the government will not tolerate the TV equivalent of war profiteering.

I encourage the Commission to vigorously monitor and assess the transition as it proceeds. For instance, the FCC could send employees into participating stores to make sure that retailers are sufficiently stocking and selling the converter boxes subsidized by the coupon program, and not just hawking the $500 digital TVs. The Commission should also spot-check digital devices, including converter boxes, to make sure they include mandatory, pro-consumer technologies, like the V-Chip and closed captioning and that these features actually function properly for consumers.

I also want to applaud Assistant Secretary John Kneuer for NTIA’s decision to hire IBM to manage the Digital-to-Analog Converter Box Coupon Program. IBM and its subcontractors appear to have the expertise and pro-consumer orientation necessary to implement a successful coupon program if other elements and entities in the transition work in concert and do their part.

The most critical component of a successful DTV transition is consumer education. Ultimately, the Federal government is responsible for making sure that more than 300 million Americans are adequately informed -- not the industry or consumer groups. It is, after all, government mandates that will render obsolete millions of analog TVs.

Both the FCC and NTIA have been preparing consumer advisories, creating web sites, holding forums, and meeting with public and private sector groups. The current plan relies heavily on the good graces of industry and the voluntary efforts of committed consumer and community groups to get the job done, however, because the amount of money available to the Commission and to NTIA for consumer education for their respective aspects of the transition is highly limited.

Affected industries appear to be stepping up to fill the some of the void. Thus, recent commitments by the cable industry, broadcasters, and public television to air millions of dollars worth of messages about the transition on TV will be critical to the success of this effort. But all of these efforts are purely voluntary.

As Chairman Dingell and I suggested to Chairman Martin earlier this year, there is value in mandating a minimum level of compulsory consumer education on the part of industry, particularly given that these requirements can be monitored and enforced. I am pleased that Chairman Martin took our suggestion to initiate a rulemaking and I hope he adopts those rules expeditiously, as the deadline draws near.

This leads me to the aspect of the DTV transition that needs greater clarity and coordination. According to the report being prepared at my request by the Government Accountability Office (GAO), no single organization has assumed responsibility for the overall transition.

It’s as if we have a team of able running backs and receivers running around the field searching for the end zone, but no quarterback running the plays. Indeed, according to the GAO, there is no comprehensive DTV transition plan, no monitoring, and no contingency plan. I want to commend the GAO for their excellent work in preparing for today’s testimony, which provides us with an “emergency broadcast system” alert about challenges ahead with sufficient time to take corrective action.

It is my firm belief that while NTIA has responsibility for the consumer coupon program, the FCC has primary responsibility for the overall digital transition. Chairman Martin, I think that makes you Tom Brady for our DTV purposes. You are the Nation’s DTV quarterback, and we will be counting on you and the Commission for the leadership to coordinate the various aspects of the transition, which is so important for public safety, economic growth, innovation, consumer welfare, and the future of television itself.

I look forward to hearing from today’s witnesses.


FOR IMMEDIATE RELEASE
October 17, 2007

CONTACT: Jessica Schafer, 202.225.2836