2008 Speeches:
Consumer Electronics Association Keynote Address

Thursday, April 13, 2008
Washington, DC

Meredith Attwell Baker
Acting Assistant Secretary for Communications and Information, U.S. Department of Commerce

Thank you, Gary, for that kind introduction.  It is a great pleasure for me to be here, and to meet with you all, the leaders of the consumer electronics industry.

There is no doubt that your industry inspires tremendous excitement and enthusiasm among consumers here in the United States and, indeed, around the world… and especially at my house.  There are few industries that generate as much passion among people from all walks of life.

The growth rate of the consumer electronics industry is impressive, with expected sales in 2008 to exceed $171 billion, six percent above last year, with 15 million new jobs created in 2007, both directly and indirectly related to the industry. 

I know you heard yesterday from my boss, the Secretary of Commerce, Carlos Gutierrez, about the importance of the consumer electronics industry to the nation’s economic growth, to job creation, and to our global competitiveness.

I know he also mentioned the importance of the digital television transition, the subject of my talk today.  The Secretary has great interest in, and shown tremendous leadership informing Americans about the DTV transition and the TV Converter Box Coupon Program.  He might be one of the few people in Washington who has actual experience in coupons, and he is putting that experience to work!  He has given over 30 interviews on this topic and his is quite adept at holding this coupon up!

I know he thanked you for your efforts, but before I delve into detail on the Coupon Program, I want to take this opportunity to underscore how grateful we are for your leadership and partnership in helping the nation make this historic transition to digital television. 

Most of all, I applaud CEA’s efforts to educate millions of Americans about the benefits that the transition to digital television is bringing to consumers- from better picture quality and sound to more program channel options.

CEA outreach has included:  the launch of a major nationwide media campaign; the creation of a consumer website -digitaltips.org; the availability of valuable tools, such as a video and “Quick Start Guide” so consumers can easily install their converter boxes; and a joint effort with the National Association of Broadcasters to create the online antenna mapping program AntennaWeb.org. 

And personally CEA has also taught me a lot -  Julie has taught me grace under pressure and to never give up, Megan has taught me to wear jewel tones when on camera and that fake eyelashes really do make you look better, and whatever I can say that’s clever, Jason Oxman can say it that much better.

Seriously, I want to thank the industry for its responsiveness, in particular to me and to the talented and dedicated program staff at NTIA - Bernie, Anita Walgren and Tony Wilhelm.   The work in partnership from the beginning has ensured the success of this transition.  From the joint filing on the specifications of the converter box, to the innovation, engineering and manufacturing of the varied digital to analog converter box models… These boxes have been created, built, certified, and are on the market in under a year.  This industry deserves congratulations.

I remember the first prototypes that we saw which were as big as an old VCR player and emitted enough heat to roast a marshmallow on!  And now the boxes we see now are sleek, energy efficient, easy to install and provide a terrific picture.  It is amazing, but it is what this industry is so good at. 

And that’s just the converter box!  I’ll leave the new television models and their ever more affordable prices to other speakers, but suffice it to say, over-the-air consumers have many choices looking toward February 17, 2009, and we thank you.

When I talk about the Coupon Program with groups of all kinds, with the press, and in testimony I’ve given before Congress, I speak about the effectiveness of our public-private partnership - although sometimes I have trouble saying it - public private partnership, historic public private partnership, unprecedented public private partnership - the consumer electronics industry is definitely top of mind.  Because Congress gave us a floor of $5 million for education, industry has stepped up and it is very confidence inspiring.  People ask me all of the time, “Is this really going to happen?”  Absolutely - due in large part to your contributions and we are grateful. 

As we continue to work together, with numerous other stakeholders, I am confident that when February 18, 2009 arrives, it will seem like any other winter day in America.  There will be snow only in the usual places, and not on anyone’s television screen.  At least not because they had not heard about how to prepare for the DTV transition.

Much Work Lies Ahead

We still have much work to do over the next nine and a  half months to get us there.  But we are making progress.

According to our website, DTV2009.gov, and your shot clock, we are 320 days away from the historic change in full power broadcasting.  Hardly a day goes by that when I wake up in the morning, I’m not thinking about how NTIA can make our program as consumer friendly as possible.

As Congress told us to, we began accepting applications for coupons on January 1, 2008.   We have worked hard to make it consumer friendly - we did 17 focus groups across the nation… the cards are like gift cards, people like red, they like the Dept of Commerce logo on it… and the applications are simple to fill out.  And consumers seem to be responding.

As of today that the TV Converter Box Program has passed the 9 1/2 million mark in the number of coupon requests.  The program runs through March 31st, 2009, a month and a half after the February transition, and we anticipate that we will continue to have a steady rate of applications throughout the better part of the year.

NTIA and our Coupon Program partner IBM have effectively handled the constant demand level, as well as the spikes we experienced during the Program’s first week, and around the one-year out February 17 timeframe.  I am confident we are well prepared to handle the volume going forward and the anticipated rise in applications at the end of this year and into 2009.

We began mailing the coupons out in mid-February, at a time when we were confident that certified boxes were available in sufficient volume at participating retailers.

Because the first coupons distributed will not expire until mid-May, solid redemption data is still several weeks off.  But we do know that coupon redemption rates are increasing each week.  As of April 1, the total number of coupons redeemed was 209,929, out of the 3.5 million coupons that we have mailed.

Consumer Reaction

We are also beginning to hear from consumers who are astounded at the crisp picture they are able to receive with a low cost converter box.  With the converter box in particular, and digital television in general, seeing is believing.

And consumers who had become accustomed to the snow and ghosts of analog technology are now enamored of the much improved reception they are receiving.

From the March 20th “Fast Forward” blog of the Washington Post:

Atlanta, Ga:  Hi Rob!  My $40 coupon arrived in the mail, so I used it and $24 in cash to purchase a converter box from my old color television.  I’m really amazed by how well it works.  I’m picking up 20 over-the-air channels using just the regular TV antenna that came with my old TV.  The reception is great, being just as good as cable or satellite.  This purchase was the best $24 I’ve spent on electronics.

We are also encouraged by the robust participation of consumer electronics retailers in the Coupon Program.  We have 630 participating retailers with more than 11,000 participating retail locations.  These are stores that have trained staff, inventory, and are ready to accept the Coupon card.

In addition to many of the largest retailers - Best Buy, Circuit City, Radio Shack, and Wal-Mart - hundreds of regional and local retailers are participating.  This is very good news.  We have nationwide coverage with brick-and-mortar stores as well as with online and phone participation from several outlets.

We also have certified 64 converter boxes, working closely with our FCC colleagues to ensure the devices meet the specifications detailed in our regulations.  The list is available on our website DTV2009.gov.

Prices for converter boxes range from $40 to $70.  At least 7 of the models have analog pass-through capability to help those who receive low-power TV service.  These pass-through models are available online as well as through a toll-free order line.

Consumer Education

Our consumer education activities are driving demand for coupons.  Led by Secretary Gutierrez, our agency officials have done well over 100 media interviews since the beginning of the year.  News coverage has generated over 180 million print and broadcast media impressions on the Coupon Program.

We are working “on the ground” to develop strong partnerships in communities.  As I have talked to other federal agency officials, not-for-profit leaders, and private-sector partners, I have experienced a strong willingness to pitch in and help from one and all.

The industries most directly affected by the transition see enormous opportunity in enabling Americans to transition successfully and have undertaken significant educational efforts to ensure that no one wakes up and is caught by surprise on February 18, 2009.  We thank the industries for their efforts and look forward to seeing them continue to ramp up as the year progresses.
       
NTIA is working closely to leverage the communications channels of the Federal government.  We are working closely with the FCC to see how we can use existing communications vehicles spread across dozens of agencies to get the word out.

We’ve had a tremendous response from agencies who interact with vulnerable communities and have committed to leverage their networks - such as Dept. of Veterans who touch 24 million veterans, the Dept. of Agriculture who will work through their food stamp and school nutrition programs, and HHS who will be activating the Administration on Aging. 

Working with federal agencies and over 130 social service and community organizations, NTIA is reaching out to trusted institutions, such as the NAACP, AARP, and the Native American Journalists Association to touch populations most affected by the transition- esp. low income, seniors, rural residents, minorities and disable Americans.

Consumer Choices

Over the next 320 days, consumers with analog televisions using antennas have several options to consider.  They can: 1)  keep their analog TV and buy a converter box to keep their TV working, 2) replace their analog TV with a digital television, or 3) connect the TV to cable, satellite or another pay service.

We know that consumers are savvy, and once they become more aware of the transition and begin to do their homework, they will identify the best option for their household.

A survey released about 10 days ago on the DTV transition caught my eye.  It was sponsored by the Association of Public Television Stations.  They reported finding that in well over half of all over-the-air households - 62 percent - consumers will either buy a converter box or a new digital television before next February 17, 2009, with only a small percentage (10 percent) saying they would subscribe to cable, satellite or other subscription television service.

Those who choose to purchase a converter box using a $40 Coupon will find the U.S. Department of Commerce ready to assist in making this process as seamless as possible.

Call to Action

I’d like to close with a call to action for all of you.  Television is a very personal.  When I speak to groups, particularly the vulnerable groups, I run through the program and the options, and at the end, tons of hands shoot up… “I have cable, do I need a converter box?”  Please, talk about the transition at the dinner table, at your church groups, at your kids schools.  Help your parents and your neighbors.  We need everyone to help spread the word. 

Thank you again for all your good work and for the opportunity to be here today.  I would be happy to answer any questions.