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Senate Digital TV Bill To Include $3 Billion Converter Subsidy
By Brian Blackstone, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- A Senate bill, scheduled for committee vote Thursday setting an April 2009 digital television transition date, will include a $3 billion subsidy program for digital converter boxes, Senate Commerce Committee Chairman Ted Stevens, R-Alaska, said Wednesday.
The subsidy will cover "everyone who has a TV who needs a box," Stevens said at a luncheon speech sponsored by the Free Enterprise Fund.
The $3 billion will come out of the roughly $10 billion in proceeds expected from sale of the block of 700 megahertz spectrum currently occupied by broadcasters that will be freed up with the switch to digital TV signals.
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The subsidy program outlined by Stevens assumes that set-top converter boxes - which allow analog TV sets to receive digital signals - will cost about $50 each. The subsidy requires a $10 co-payment per box.
The Senate digital TV bill also includes funds for emergency 911 service and interoperability grants. Some of the freed-up spectrum would be set aside for use by emergency first responders, whose communications difficulties were highlighted by Hurricane Katrina.
The bill would direct $4.8 billion in spectrum auction proceeds for the