Federal Government Runs Out Of Cash For Digital Converter Boxes Coupons

January 6, 2009 7:38 a.m. EST

Washington, D.C. (AHN) - With the Feb. 17 date to convert to digital transmission of television broadcast fast approaching, more Americans joined the rush to secure the $40 coupon to purchase digital converter boxes. Because of the 7.2 million coupons the National Telecommunications and Information Administration issued in December, the federal government has run out of coupons.

Meredith Baker, acting head of the NTIA, said those who requested for coupons beginning January will be placed on a waiting list along with 103,000 already in the roster. Baxter admitted in a press conference there is no timetable yet when will those in the waiting list get their coupons.

Rep. Edward Markey, chairman of the House Telecommunications and Internet subcommittee, blamed the NTIA for the coupon shortage because the committee had asked the administration if it needed more money, but Baker sent a letter warning of cash shortage only on Dec. 24 when Congress was in recess for the holiday break.

The coupon have a 90-day lifespan, but only 52 percent has been redeemed, which means the NTIA could reissue some of the coupons that have not been used yet. When the switch occurs, over 70 million households with analog TV sets will require converter boxes to receive broadcast signals.

Baxter said the NTIA expects to receive 4 million more requests for converter box coupons.