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The End of Analog; The End of Analog; The Beginning of the Coupon-The Beginning of the Coupon-

Eligible Converter Box Program; Eligible Converter Box Program; and an Opportunity to Approach and an Opportunity to Approach

Recycling ResponsiblyRecycling Responsibly

Marc Pearl – CERC Executive Director

Metropolitan Washington COG Recycling CommitteeMetropolitan Washington COG Recycling CommitteeMarch 20, 2008March 20, 2008

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Consumer Electronics Retailers CoalitionConsumer 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.

o 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 Why America is Switching to Digital Television (DTV)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?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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62%

22%

3%

13%

CableSatelliteSat/CableOTA/Antenna

U.S. TV Reception ProfileU.S. TV Reception ProfilePercentage of U.S. Households

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How Does One Receive a How Does One Receive a DTV Signal?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/TimelinesPast 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 DatesGoing 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, 2009February 17, 2009 – Last Analog OTA Broadcasts – 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 StatisticsSome 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/CertificationRetailer 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 CECBsThe Market for CECBsQuestions all the Interested Parties Have to Face

Statistics differ as to how many households –Rely exclusively on antennasHave “untethered” TVsWatch OTA broadcasts on untethered

setsWill want CECBs

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Retailer Role in Consumer EducationRetailer 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?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 CoalitionConsumer Electronics Retailers CoalitionResourcesResources

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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.com.com

DTV EducationDTV 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. 

Coalition’s 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 What To Do With UnwantedUnwanted TVs TVs

Are old TVs “unusable” or merely “unwanted”?

Where can strong “Consumer Education” play a role?

Go to: www.MyGreenElectronics.orgPlug 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 YouThank YouWe Look Forward to Continuing to We Look Forward to Continuing to Work Closely with the COGWork Closely with the COG

But in the meantime…But in the meantime…Please Join the Please Join the DTV TRANSITION COALITION!!DTV TRANSITION COALITION!!

Marc Pearl – CERC Executive Directorinfo@ceretailers.org

http://www.ceretailers.org