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The End of Analog The Beginning of the
Coupon-Eligible Converter Box Program and an
Opportunity to Approach Recycling Responsibly
Metropolitan Washington COG Recycling
Committee March 20, 2008

• Marc Pearl CERC Executive Director

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Consumer Electronics Retailers Coalition

• CERC formed 10 years ago to represent CE and
  general retailers who sell CE on their public
  policy agenda and help coordinate their voice
• Primary role to educate, advocate and instill
  consumer and market confidence in CE policy
  issues.
• Cable Box DTV Transition Theft of Service IPR
  and Recycling.
• Represent a wide range of national CE companies
  and related trade associations including
  Amazon.com, Best Buy, Circuit City, RadioShack,
  Sears, Target, Wal-Mart.
• Retail Industry Leaders Association (RILA) North
  American Retail Dealers Association (NARDA) and
  the National Retail Federation (NRF) and work
  closely with all the state retail associations.
• Consumer Education CERC members are the face
  consumers see when purchasing CE and to find out
  about opportunities to return those that have
  reached their EOUL.
• Advocacy Position How best to incorporate a
  true Product Stewardship Shared
  Responsibility Approach involving ALL of the
  affected stakeholders.
• Our nation needs a national solution and cannot
  afford a patchwork of divergent state laws on the
  handling of CE devices.

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Why America is Switching to Digital Television
(DTV)

• Digital is a more efficient way to broadcast,
  which will free up the airwaves for other
  services, such as public safety.
• DTV also results in clearer pictures and more
  programming channels, and enables over-the-air
  high-definition television (HDTV) for consumers
  with HD television sets.

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Who is Affected?

• Disproportionately Affected Groups
• Seniors
• Minorities
• Low Income
• Rural Areas
• Who is not Affected?
• Any TV that already has a digital (ATSC) tuner
  and/or is connected to a cable, satellite or
  teleco service.

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U.S. TV Reception ProfilePercentage of U.S.
Households
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How Does One Receive a DTV Signal?

• Purchase a DTV converter box beginning
  mid-February 2008.
• Purchase a new television set with a built-in
  digital tuner recently and going forward DTV or
  HDTV
• Subscribe to a pay TV service i.e. cable,
  satellite or a telephone company video service
  provider providers probably will continue to
  send an analog signal to their subscribers for at
  least another 3-4 years.

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Past Key Dates/Timelines

• March 1, 2007 Tuner Mandate Last date
  manufacturers could import any device with an
  analog tuner ONLY
• Therefore, most consumers who have already
  purchased a new device will have an ATSC tuner
  inside, so they will not need a converter box if
  they use an antenna
• May, 2007 FCC mandated that retailers label (on
  shelves and website) any/all remaining
  analog-only TV receivers.
• August 15, 2007 NTIA announce choice of IBM
  Consulting as the Turn-key Program Contractor
  for 1.5b Coupon-Eligible Converter Box
  (CECB) Program.

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Going Forward Key Dates

• January 1, 2008 Households have begun to apply
  to the NTIA for up to two (2) 40 coupons
  Coupons mailed out beginning mid-February.
• Early 2008 CECBs have begun to be distributed
  to participating retailers and on shelves ready
  for coupon redemption.
• March 31, 2008 Last day retailers have to
  Register Qualify for the program.
• Willingness ability to accept the
  government-issued coupon towards payment of a
  CECB.
• February 17, 2009 Last Analog OTA Broadcasts
• March 31, 2009 Last day for a household can
  apply for their 49 coupons
• Around July 10, 2009 Last coupon expires

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Some Background Statistics

• 1.5b for total program (40/coupon no more
  than 2 per household address administration
  marketing consumer education)
• Enough for about 33.3m coupons
• 2.8 TVs per household
• About 17 of households (about 20m) are 100 OTA
• Additional 35-50m TV sets are untethered
• Some are being used for DVDs games only (30)
• NAB survey data indicates that by February 2009
  more than 25 of OTA households and 33 of those
  with untethered sets will have purchased a new
  DTV or HDTV receivers.

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Retailer Participation/Certification

• Voluntary
• No compensation to participate
• Need to complete a Central Contractor
  Registration (www.ccr.gov) to receive timely EFT
  payment (this should not make you a government
  contractor, as such registration is only a first
  step for those who wish to become one)
• Certification by NTIA based on
• Ability to redeem expeditiously and efficiently
• Established distribution channels
• Ability to enforce restrictions on use of coupons
• Previous experience in selling CE products

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The Market for CECBsQuestions all the Interested
Parties Have to Face

• Statistics differ as to how many households
• Rely exclusively on antennas
• Have untethered TVs
• Watch OTA broadcasts on untethered sets
• Will want CECBs

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Retailer Role in Consumer Education

• In store now on remaining analog-only products
  (FCC imposed a labeling program)
• Answering previous customer questions on sets
  sold over past years
• Customers may ask Do you plan to offer basic
  converter boxes? Will you offer more choices?
• Coupon Program eligibility, application process
  certification of eligible boxes
• Concerns surrounding upselling
• CERC Guides and Information
• Active participation in DTV Transition Coalition

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Who Will Make the CECB?

• At least 61 converter boxes have already been
  certified
• Expected MSRP before the 40 coupon is applied
  39.99-70 per box

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Consumer Electronics Retailers CoalitionResources

• CERC has published a CONSUMER GUIDE to the DTV
  Transition and the NTIA Program, at
  http//www.ceretailers.org
• Visitors can find links to NTIA, FCC, and DTV
  Transition Coalition
• Look for updates to the CERC Guide as more
  information becomes available Spanish version
  also
• CERC posts NTIA-related guide information
• Government Resources
• www.dtv.gov FCC
• http//www.ntia.doc.gov/dtvcoupon/index.html -
  NTIA

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DTV Education
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• Founded on February 28, 2007 with 8 members now
  with more than 200!
• CERC is a Founding Member
• The Coalition is comprised of business, trade and
  industry groups as well as consumer organizations
  that share a vital interest in a smooth
  transition. 
• Coalitions Mission
• No consumer should lose free over-the air
  television reception in February 2009 due to a
  lack of information about the DTV transition.

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But What About the OLD TVs?

• Will people throw out more than usual? Not sure
• Why should they? The analog-only tuner TV is
  still good and will work with DVDs, VCRs, Games,
  on Cable, through a CECB.
• A number of options will still exist

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What To Do With Unwanted TVs

• Are old TVs unusable or merely unwanted?
• Where can strong Consumer Education play a
  role?
• Go to www.MyGreenElectronics.org
• Plug in zip code and learn where to recycle
• Encourage Goodwill and other groups to provide
  analog TVs to consumers with links to CECBs

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Voluntary Efforts Must Continue, Be Encouraged
and Expanded

• Recyclers, Retailers, Manufacturers,
  Municipalities and Charitable Organizations must
  cultivate and develop nurturing partnerships to
  encourage active voluntary efforts.
• Voluntary/Marketplace Examples Abound
• Plug-In-To-Recycling Pilots and Collection Events
• E.g., Best Buy, Staples, Office Depot, HP, Dell,
  Apple
• Retailers have installed in-store recycling
  kiosks that take-back batteries, ink cartridges
  and/or cell phones, etc.
• Additional retailers either sponsor mail-back
  programs or on-site collection events.

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Thank YouWe Look Forward to Continuing to Work
Closely with the COGBut in the meantimePlease
Join the DTV TRANSITION COALITION!!

• Marc Pearl CERC Executive Director
• info_at_ceretailers.org
• http//www.ceretailers.org