The long wait is finally over. Federal vouchers are coming!
Before you get too excited, however, I have to inform you that the vouchers are not for education. You can’t use these vouchers to send your child to the school of your choice.
Instead, because of the government-mandated switch for broadcast TV from analog to digital bandwidths, set for Feb. 17, 2009, upwards of 20 million television sets will be obsolete, only able to receive the then-defunct analog signals.
“To avoid a consumer revolt, Congress has set aside about $1.5 billion to smooth the transition. Owners of outmoded TV sets will be eligible for two vouchers, worth $40 each, to help buy converter boxes that will enable today’s analog TV sets to receive digital signals,” Fortune magazine reports.
The government argues that the move will open up huge new areas of bandwidth for greater technical innovation and delivery. Once broadcast TV is moved to the digital spectrum, the old analog bandwidths will be auctioned off, and the government stands to make a pretty penny on the deal. “The sale of this valuable, scarce real estate is expected to bring in about $10 billion, maybe more. That will help reduce the federal budget deficit,” writes Marc Gunther.
Of course, those companies buying up the newly-opened space will be better off too: “With the new auction, we will finally become a broadband nation,” says Blair Levin, a Washington analyst with Stifel Nicolaus. “Google, Yahoo!, Microsoft, Intel, Dell — these companies will all benefit. The more broadband pipes you have, the more applications will come along, the more often you will upgrade your device.”
The interesting thing about these digital tuner vouchers is that one argument for their issue is that the poor will be disproportionately affected by the switch. Gunther writes, “But for consumers with one of those 70 million sets — many of whom are likely to be poor, elderly or uneducated, being forcibly switched from one technology to another will be a nightmare.”
Gunther goes on to describe the “nightmare scenario,” in which “people who depend on free, over-the-air TV for news and entertainment will lose their access, or have to pay more for it, so that the rest of us can get faster service on our Blackberries and ESPN on our cell phones.”
Last I checked, news and weather information on which people depend is still freely available over the radio. And maybe some of us would be better off with less access to TV. AC Nielsen reports (PDF) that “During the 2004-05 TV season (which started September 20, 2004 and just ended September 18, 2005), the average household in the U.S. tuned into television an average of 8 hours and 11 minutes per day.”
We’ve all heard the stories about families on federal assistance in the inner city with big screen TVs, or living in trailer parks with satellite dishes. Nowadays, Marx might say that TV is the opiate of the people rather than religion, or better yet, that TV has become the religion of the people.