By Todd Shields
Bloomberg News
Friday, January 4, 2008

More than 850,000 people requested $40 coupons for converter boxes with which old television sets can receive digital signals after the United States abandons analog broadcasts next year.

Each household is entitled to two coupons, bringing the total requested to more than 1.6 million, said Todd Sedmak, a spokesman for the National Telecommunications and Information Administration. The program started Jan. 1.

Commerce Secretary Carlos M. Gutierrez, who runs the NTIA, said he was "pleasantly surprised" at the number of people seeking coupons. "What it says is that we are breaking through," Gutierrez said in an interview. "People are aware of the program."

The $1.5 billion program is designed to prepare the United States for the end of analog TV on Feb. 17, 2009. Digital TV offers clearer pictures and more programming and frees airwaves for wireless communications.

"The initial response from consumers raises questions about whether enough funds have been set aside," said Rep. John D. Dingell (D-Mich.), chairman of the House Energy and Commerce Committee. "I strongly urge retailers to maintain an adequate stock of converter boxes to meet the high demand."

The NTIA will begin mailing coupons Feb. 17, when it expects retailers to have converter boxes in stock, Sedmak said in an e-mail.

Wal-Mart Stores, Best Buy and more than 100 other retailers will accept the coupons for converter boxes, which may cost $60 to $70.

"Our plan is to have them in stock in our stores right after the government mails the coupons," Brian Lucas, a spokesman for Best Buy, said in an interview. "We feel good that we're going to meet that deadline."

The 33.5 million coupons are available by request online, by mail and over the phone.

Only people who rely on over-the-air TV reception will need the converter boxes. About 21 million U.S. households get TV signals that way, according to the Government Accountability Office. About 113 million U.S. households own television sets, according to research company Nielsen.