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More Money Sought For Coupon Plan

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The Tampa Tribune

Published: September 20, 2008

WASHINGTON - Costs to run a coupon program that is helping people shift to digital television are about to exceed a congressionally mandated cap and the Bush administration is asking for more money.
Administrative costs for the program are capped at $160 million. The program provides two $40 coupons per household to consumers who will need converter boxes when full-power television stations shift to digital-only broadcasting in February.

The boxes retail for between $40 and $70.

Without legislative action, the Commerce Department's National Telecommunications and Information Administration says it may run out of money to administer the program by the end of January, according to a letter delivered to Congress on Thursday.

Federal law allocated $1.5 billion toward the coupon program with a maximum of $160 million to be used toward administrative expenses. So far, the NTIA has committed $157.2 million to IBM, the coupon program's contractor - nearly $40 million more than the initial contract award.

The Associated Press

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