The House Energy and Commerce Committee will vote next Wednesday on whether to push back the upcoming digital TV transition to June 12.
That word comes a day after Sen. Jay Rockefeller, D-W.V., incoming chairman of the Senate Commerce Committee, which has telecom oversight, filed a bill calling for the delay.
Henry Waxman, D-Calif., chairman of the House committee that also oversees telecom matters, agrees with the proposal and plans to have committee members vote on it next week.
Both lawmakers side with President-elect Barack Obama in saying too many consumers still don’t understand and haven’t prepared for the transition from analog to digital TV signals. Plus, there’s the added problem of the government having run out of coupons for people to buy digital converter boxes.
“Our sense continues to be that Congress is likely to pass some sort of delay, given lawmaker concerns about likely disruptions to some TV viewers and a possible backlash, though opposition remains and the legislative process and timetable are challenging,” wrote telecom analysts for investment bank Stifel Nicolaus in a client memo on Friday.
If the delay goes through, 700MHz spectrum holders will have to revamp their plans for those airwaves, but Stifel analysts doubt that would present “a significant setback for Verizon Wireless and AT&T Mobility, which want to use their (reclaimed) broadcast spectrum in the 700 MHz band to expand their 4G wireless services.”
They added: “Clearwire could benefit if Verizon and AT&T's 700 MHz wireless broadband plans are slowed (they already paid over $16 billion for the spectrum).”
