Government OKs $1.5 billion TV plan

WASHINGTON -- Best Buy, Wal-Mart and six other retailers will sell equipment enabling owners of analog television sets to continue to view programming after the 2009 nationwide switch to digital broadcasting, the federal government said Tuesday.

Starting Jan. 1, an estimated 13 million to 21 million households that rely on an antenna to watch TV can contact the government to receive two coupons worth $40 each to buy converter boxes.

The $1.5 billion program -- which is enough to fund 33.5 million coupons -- ends March 31, 2009.

Retailers will begin selling the devices, which translate the digital signal for such TV sets, in mid February.

The other major retailers include Circuit City, Target, Sears and its Kmart outlets, and RadioShack. Wal-Mart's Sam's Club stores will also sell the devices.

"We have nationwide coverage with over 14,000 brick and mortar stores involved as well as with online participation," said Meredith Baker, who is the acting administrator of the National Telecommunications and Information Administration, which is overseeing the coupon program.

Baker added that that the $1.5 billion should be enough to cover all affected households and didn't think the funds would run out.

The nation's broadcasters on Feb. 17, 2009, will be turning off their analog over-the-air broadcasts. Congress ordered the switch to digital television because it will free up valuable airwaves for other uses, such as for police and fire departments and because it will lead to improved picture and sound for TV viewers.

However, Congress Tuesday criticized the government for not having a comprehensive plan to ensure a smooth transition to digital TV.

U.S. regulators have "no comprehensive plan" for preparing TV viewers for the approaching switch to digital television, a congressional study released Tuesday said.

The study by the Government Accountability Office took issue with the Federal Communications Commission for lacking an overall strategy for the switch.

"Despite efforts by the public and private sectors and ongoing coordination, we found that no comprehensive plan for the transition exists," the GAO said.

The agency's chairman, Kevin Martin, responded in a letter to the GAO, saying he had "significant reservations and concerns with the report's approach and conclusions."

Martin also issued 99 pages of "comprehensive plans, goals and achievements" that the FCC had drawn up to address the digital TV transition.