Save Our Sets has proposed a solution - at no cost to consumers or government - to prevent millions of Americans from losing the value of their analog TV sets. The SOS solution would enhance the current federal voucher program. Here's how:

Current Law

• Provide consumers with up to two $40 vouchers (assuming program is policed and administered) toward the purchase of approved digital to analog conversion equipment starting in January 2008. A maximum of 33.5 million vouchers will be issued on a first-come, first-served basis. It is estimated that there are over 20 million households that rely exclusively on over-the-air broadcast TV signals and that there are over 70 million analog television sets that are not hooked up to a cable or satellite provider.
  
  The approved digital to analog conversion equipment will have limited functionality and will only be able to be used on a single television set. As a result, the voucher program as proposed will not ensure that all analog TV sets in millions of households will be able to receive local television broadcast signals without significant investment by consumers after the signal transition date.

Save Our Sets Proposed Enhancement to the Voucher Program:

• At the request of a household with a voucher - and in lieu of using the voucher to obtain approved equipment -- allow a multi-channel video provider (e.g. cable television, Direct to Home Satellite, etc) ('Video Provider'), on a voluntary basis, to connect consumers not currently connected to a Video Provider and deliver the ANALOG signals of the primary program feed of all local broadcast stations to the consumer free of charge for seven years.

  Customers currently connected to a Video Provider can trade in their voucher to have all analog sets in their homes connected to analog service for no additional charge. No Video Provider will be required to provide free local analog TV service to existing customers.

  Video Providers that participate in the program and agree to carry the digital multi-cast signals of the local TV stations will be relieved of all retransmission consent obligations they might otherwise have to the local stations.

  Video Providers that participate in the program will receive no federal dollars in exchange for returned vouchers.

• BENEFITS TO CONSUMERS AND SOCIETY
  Continued Ability to Use Investment in Analog Sets
  Consumers and society continue to enjoy the benefit of the past investment in analog equipment in their homes until a natural and gradual transition can be made to digital equipment.

  On-Going Technological and Economic Benefits of the Transitional Investment
  Since Video Provider connections generally are capable of delivering both analog and digital signals at the same time the resources expended initially under this enhanced program to provide these new connections will continue to have on-going technological and economic benefits well into the future when a consumer upgrades to digital TV equipment.

  In contrast, the time and expense of deploying specialized equipment as envisioned in the current plan will immediately be wasted once consumers upgrade to digital TV - a massive economic investment without any long-term future technological benefit to society or the consumer. It is unlikely that the approved equipment will be manufactured in the US, so the $1.5 billion investment in this equipment will contribute to the nation's trade deficit.

• BENEFITS TO BROADCASTERS
  Maintenance of Total Audience
  Broadcasters' signals are able to continue to reach consumers with analog sets, thus a station's total audience level is maintained - which in turn maintains a station's advertising rates, etc. which are generally based on the number of 'eyeballs' a station reaches with its broadcast.

  Digital Multi-Cast Carriage
  Video Providers that participate in the program will carry broadcasters' non-premium digital multi-cast services, increasing the diversity of programming to consumers and providing broadcasters with potential new sources of revenue.

  Reduction in Digital Cliff
  The FCC estimates that 25% of Television Broadcast stations will lose coverage of television households when they switch to a digital signal because their digital signal will not reach as far as their analog signal. Video Providers will be able to deliver the local broadcast signals to all homes in the service area.

• BENEFITS TO MULTI-CHANNEL VIDEO PROVIDERS
  Establish an Initial Connection to Potential Future Paying Customers
  While Video Providers would pay the cost of connecting consumers to their systems and provide the primary analog broadcast signal at no cost for seven years, consumers would pay for analog or digital services if they request service beyond the free analog broadcast service obtained with a voucher.

  Gain Relief from Retransmission Consent Obligations for Broadcast Signals
  Video Providers providing consumers with free analog local broadcast signals and carrying digital multi-cast services would be relieved of all retransmission consent obligations they might otherwise have to the local stations.

• BENEFITS TO FEDERAL GOVERNMENT
  Cost Free Enhancement of Current Voucher Program
  It is unlikely that the current funding levels for the voucher program will be adequate to cover the total cost of providing vouchers to all eligible households - even without the possible added costs of the program due to fraud, abuse, and gaming of the program. This proposal would continue to provide primary analog television broadcast service to millions of households, but at no cost to the federal government.

  Provides Service to Households Not Helped by Voucher Program
  The current voucher program does not address the lack of access to over-the-air television in extreme rural areas or in any areas with reception difficulties where adequate digital signal strength is going to be an even greater problem after the transition. The enhanced proposal addresses and solves that problem for millions of consumers.

  Expand the Voucher Program to Reach More US Consumers or Save Federal Dollars
  Participating Video Providers will return vouchers to the federal government, but will not be reimbursed. Thus, the vouchers can either be reissued to other US consumers without an increase in the program's budget or be 'retired' with a resulting savings to the federal government.