Congress Delays Switch To Digital TV

Congress has approved a four-month delay for the switch to digital television. If the legislation is signed by President Obama, the U.S. won't make the digital television switch until June 12.

The bill was passed by the Senate last week, and was passed by the House of Representatives in a 264-158 vote.

Due to concerns about 20 million households not ready for the switch, Obama had supported the delay, Reuters reported.

The digital TV switch will only affect TVs currently receiving analog transmissions. Consumers who purchase cable or satellite TV won't be affected.

"We believe it is irresponsible to ask mostly rural or elderly consumers to reach into their own pockets to deal with this transition when many folks, including the federal government, are making a profit," said Joel Kelsey, a policy analyst at Consumers Union, Reuters reported.

While government coupons covering the cost of the $40 converter box had been made available to consumers, demand for the coupons far outstripped the supply, and last month the government ran out of coupons. Consumers Union estimates about 13 million people hold expired coupons. Additionally, there are millions of unfulfilled coupon requests.

AT&T and Verizon will be seriously impacted by the switch delay, as these two companies purchased most of the rights to the to-be-vacated airwaves from the government in an auction for $19 billion. Both companies have agreed to a one-time postponement and will have their licenses extended by four months to accommodate the delay.

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