Teresa McUsic 
Cable subscribers could face more change than expected when TV airwaves go digital
Special to the Star-Telegram
Americans are starting to catch on to the fact that the national conversion to digital programming, now 10 months away, will force those with analog televisions and over-the-air programming to get a conversion box -- or face snow on their sets.
But some cable subscribers will be affected by the change as well. Whether those changes could also come with higher fees for subscribers is still up in the air, but digital service now costs more than basic cable programming.
Cable companies have the option of going to an all-digital format now or in the future, according to a ruling by the Federal Communications Commission last fall. The ruling doesn't clearly address who would bear the cost of the conversion.
Although Charter Communications and Time Warner local representatives say they have no plans to make that conversion at this time, OneSource Communication in Keller made the switch to all-digital in October.
"Analog channels consume a lot of capacity," said Andy Slote, general manager for OneSource. "If you can remove analog and replace it with digital, you can increase capacity."
By removing the analog channels, OneSource was able to add more programming, including 63 high-definition channels, Slote said.
"One of the big advantages to going digital was being able to add those channels," he said. "We know HD is important to people. It's certainly the wave of the future."
OneSource is the cable-television provider for Keller, Southlake, Haslet, Westlake, Watauga and parts of Fort Worth. In some places it is a competitor to Charter, while other cities carry it alone, Slote said.
Going from an analog option to digital required all of the company's customers to get a set-top box, Slote said. The cost of the standard box is an additional $3.95 a month per television. OneSource gave the first box to its customers at no additional charge, and most customers picked up the boxes at the office and installed them themselves, Slote said.
"We did not get a large negative reaction to the change," he said. "We're a small company, and customers could get to me fairly easily. There was very little push-back."
Other plans
Charter, which serves most communities in Tarrant County, does not plan to move to an all-digital format during the national digital switch Feb. 17, 2009, said Kevin Allen, director of government relations for the company. Charter will convert the digital-television programming back to analog for its analog customers, he said.
"The vast majority of our customers have digital already," he said. Options like digital video recorders, high-definition and music programming, pay-per-view and video on demand have attracted customers to the digital format, he said.
"The direction the industry as a whole is moving is toward higher video/audio quality and advanced services," Allen said.
Likewise, Time Warner, which provides cable service to Arlington and parts of Northeast Tarrant County, will not be converting to all-digital anytime soon, said spokesman Gary Underwood.
"About 60 percent of our customers [nationally] are digital, but we're not going to arbitrarily make a switch," Underwood said. "We're not going to leave any customers behind."
Higher costs
Both companies are actively pitching bundles of digital cable television, Internet and telephone services to their customers.
For those households in Charter's territory who want to upgrade to digital, the cost for the set-top box is an additional $5 a month, Allen said.
Right now, Charter is offering its Digital Home service, which includes basic and expanded basic programming, a standard digital receiver and digital music channels for $57.99 per month. There is a $35 charge for professional installation, or customers can pick up the box at one of their retail locations.
Time Warner's lowest-priced digital cable package costs $42.95 a month, according to its Web site.
Looking ahead
Cable subscribers could be able to stave off the inevitable conversion for a good long time. At least for now, it's in the interest of the large cable companies not to switch completely to all digital, said Bruce Leichtman, principal analyst of the Leichtman Research Group in Durham, NH.
"They have to serve the needs of a large customer base," he said. "If 40 percent of their customers don't feel that digital is necessary and don't want to pay for it, they aren't going to want to give that group up."
DO YOU NEED A CONVERTER BOX?
Residents who still use antennas or rabbit ears will need a conversion box to watch television once the airwaves are converted from analog to digital signals Feb. 17, 2009.
A federal coupon program to help consumers offset the cost for the conversion boxes reached a milestone last week when it received its 10 millionth request.
More than 5.6 million Americans have ordered the $40 coupons (up to two coupons are allowed per household), including nearly 880,000 Texans, according to the National Telecommunications and Information Administration, which administers the program.
But most who have ordered have yet to receive them. Because of the large response, just 280,000 coupons have been redeemed at retailers since early April. The NTIA began shipping out coupons in February.
There's still ample funding in the $1.5 billion coupon program, which can bankroll up to 33.5 million coupons, Forbes said.
Tips for converting
You don't need the coupon unless you have an analog television set that gets over-the-air programming with an antenna. Households with a paid television service provided by cable, satellite or telephone companies do not need the conversion box. Owners of digital televisions do not need the conversion box.
The coupon has a 90-day expiration date, so once you get it, be sure to use it in the next three months. Conversion boxes are available at many electronics retailers, including Wal-Mart and RadioShack, and cost about $50 to $60.
Be patient. Don't try to request coupons again just because you have not yet received them. The program will only accept two coupons for each street address, Forbes said. Remember that you still have time: The digital conversion is not set until Feb. 17, 2009.
Another option is to buy a digital television -- but make sure you are actually buying a digital set. Last week, the Federal Communications Commission fined seven retailers a total of $3.9 million for not properly labeling their analog television sets, which can no longer be imported into the U.S. The retailers included Wal-Mart, Sears, Circuit City, Target, Best Buy, Fry's and CompUSA.
To order the coupons, call the NTIA coupon consumer hot line at 888-388-2009, or go online to www.dtv2009.gov.
tmcusic@savvyconsumer.net
