[opendtv] Re: Converter shortages, reception issues plague transition

  • From: Tom Barry <trbarry@xxxxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Wed, 06 Aug 2008 18:26:49 -0400

Here in Gainesville the local CBS affiliate WGFL completed its transition and shut off analog a few weeks ago. And I don't think it even made the news. It just happened.


- Tom


Manfredi, Albert E wrote:
In spite of the alarmist headline, it seems like the DTV conversion is
proceeding without the sky falling. It seems that reception problems are
not a big deal, in general, and that boxes are not being returned in
numbers greater than any other consumer product.

They do mention that some consumers need to be educated on antenna
placement. That's been my pet peeve about most of the online DTV
information sites.

The Centris study mentioned at the bottom is the one where antennaweb
results were used to predict the success of DTV reception throughout US
TV markets.

Bert

------------------------------
http://www.tvtechnology.com/pages/s.0082/t.14897.html

Signal Trouble
Converter shortages, reception issues plague transition

by John Merli, 8.06.2008

John Merli is a News Correspondent for TV Technology Magazine.

WASHINGTON

While much attention on the digital transition lately has focused on the
federal government's coupon campaign for converter boxes, one looming
issue that may not be fully realized until Feb. 18, 2009-the first full
broadcast day of the transition-could be the effectiveness of those
analog-era antennas that are coupled with those boxes. Although
broadcasters continue to reassure viewers that their old antennas will
do just fine, others are predicting heartache ahead.

That trouble may also extend to converter box distribution. While
several million consumers have applied for $40 government coupons,
barely more than 40 percent of those coupons had been redeemed by
mid-summer. At the same time, there have been numerous reports of
periodic box shortages at several major retailers around the nation, an
inventory dilemma further complicated by 90-day coupon expiration dates.

"By my count, about 70 million [analog] sets will be impacted in some
way," said analyst Bruce Leichtman of Leichtman Research Group in
Durham, N.H. "Do you need a box or antenna or both? Or do you not need
one? A lot of people still don't seem to know."

One retailer-well known and well regarded for providing help to
A/V-challenged consumers-acknowledges the problems with converter box
availability.

"We are aware some consumers have expressed frustration by not being
able to find converter boxes," said Charles Hodges, a spokesman for
RadioShack Corp. Hodges said the periodic shortages also affect those
consumers who want analog pass-through so they can watch low-power
stations and via translators that are not making the switch to digital
in 2009. (The pass-through boxes are supposed to become more widely
available by mid-August.)

CONSUMER CHALLENGES

While no retailer would release information on return rates on converter
boxes (they don't release such data on any products), neither RadioShack
nor Best Buy said they knew of any anecdotal information where consumers
were returning boxes in high numbers.

"In our experience, consumer issues with converter boxes have been no
greater than other consumer electronics," Hodges said. "Challenges faced
by consumers tend to be related [more] to such things as digital signal
strength from stations [or] the discovery that they may need a new
indoor or outdoor antenna to get reception."

Best Buy spokesman Brian Lucas said his chain has been diligent at
making sure boxes are in stock, but conceded some bumps along the way
this summer when the big-box CE retailer transitioned from its own
Insignia-brand unit to two new boxes (from Insignia and Apex).

"That transition [of] selling out the old boxes and bringing in the new
ones left some stores with inventory issues," Lucas said. Best Buy set
up a toll-free hotline for sales, but this approach also was having some
supply problems because retailers are not certain how much inventory to
carry for this unique, one-time only product distribution.

"A lot of people got two coupons, which was as easy to get as one, and
then for a variety of reasons decided they only need one of them, if
that," said Robert Schwartz, general counsel for the Consumer
Electronics Retailers Coalition, a non-profit association that counts
Circuit City, Target, Wal-Mart, Amazon among its members. "Retailers are
just very nervous over [predicting] proper inventory levels for the
boxes. This is all unprecedented, so we may not know about how all this
goes down until the transition deadline itself."

By mid-July more than 20.5 million converter box coupons had been
requested according to the National Telecommunications and Information
Administration, the government office overseeing the coupon program.

NTIA sees this as signifying success-but as for the low redemption rate,
"Maybe they decided to get cable, or went out and bought a DTV set, or
they let the coupon expire [after 90 days]," said Todd Sedmak,
communications director for the agency. "But 41 percent redemption
doesn't say that's a problem. People who say that do not understand the
program we're out to implement."

Lucas said what relatively few complaints at Best Buy have been made
"seem to be less about the box and more about reception issues. We're
trying to educate people about antennas, like where to place them, and
what kind to use... but if customers tell us their converter box isn't
working, it usually means they are not getting a good signal from their
antenna."

That would be good news for the nation's largest cabler, which is
apparently counting on a few million antennas and/or converter boxes
performing poorly. Comcast Chief Operating Officer Steve Burke told a
trade meeting this summer the February transition will prove to be a
growth opportunity for all pay-TV providers. And one analyst, Craig
Moffett of Sanford Bernstein, recently concluded, "The digital TV
transition could represent a once-in-a-generation catalyst for cable
stocks."

DBS firms, on the other hand, are selling converter boxes for their
subscribers' off-line OTA sets. Dish Network said its DTVPal box is the
only basic converter (priced at about $60 before coupons) that it was
selling, while EchoStar was planning to sell another model (TR-40) by
late this summer. (At press time, Sears announced that it was selling
DTVPal at 511 of its 935 full-line stores.)

MAXIMIZATION

While some engineers may have held back in pushing out their maximum DTV
power early in the transition because it saved money, among other
things, NAB said FCC rules now provide stations with protection from
interference only within the service area of their actual transmitting
power-not their allotted power-if, for example, a new broadcaster went
on the air or another wanted to increase its power.

NAB chief spokesman Dennis Wharton said "there aren't too many new
broadcasters out there [not operating at full power], but there are over
500 applications for 'maximization' that have been recently filed at the
FCC, which could affect those broadcasters who didn't build out to their
full allocated power." So it would appear to be in the best interest of
broadcasters to maximize their allotted power, which would also be
welcome news for converter box/antenna users. (The FCC would not
comment.)

"It's great to get the converter box, but you're going to have to pay
attention to your [type] of antenna, especially if you have not been
using one before," said Shermaze Ingram, NAB senior director for the
digital transition. "Rabbit ears without UHF capabilities, for example,
will not pick up those stations that have been repositioned. Most
stations, remember, will go from VHF to UHF."

CERC's Schwartz said for many retailers, antennas weren't even in the
game until recently. "In fact, our own consumer guide didn't say
anything about antennas because the assumption was that people already
have them and they would work fine. After the Centris study came out, we
added a paragraph to our CERC guide that mentions that their antenna
would probably be fine, but that some concerns had been raised,"
Schwartz said.

Schwartz is referring to a study released in early 2008 that caused an
uproar when it concluded, in part, that many homes in outlying areas may
not be able to adequately pull in DTV signals using their analog
antennas. The study was done by Centris, a Los Angeles-based market
research and information company specializing in gathering and analyzing
consumer electronics data. Broadcast advocates denounced the report.

"It is not a scientific study," said David Donovan president of the
Association for Maximum Service Television (MSTV). "Our spectrum
studies, which were based on actual reception testing, demonstrated that
DTV provides a superior picture at greater distances than analog
transmissions...This is a PR and marketing campaign, not science."

Dr. Barry Goodstadt of Centris disagrees, especially with the charge
that his report relied too heavily on indoor antennas. "It does not-that
was a misreading on their part," he said. "All our analysis of the areas
we say have poor reception is based on the assumption of having an
outdoor antenna that is a small or medium omnidirectional unit...[but]
75 percent of antenna households use indoor antennas. I can assume
reasonably well that when [others] do measurements with the truck, they
do it at 30 feet. Many outdoor antennas are not 30 feet high-and about a
third of homes are only single-story."
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Tom Barry                  trbarry@xxxxxxxxxxx  



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