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Friday, June 12, 2009

Transition day

NEW YORK — It’s not just TV viewers who will be relieved when analog broadcast signals are shut down today, sparing them from incessant reminders about converter boxes. Some business are eagerly awaiting the end of a process that began in 1987, when the shift to digital broadcasts was proposed.

"We’re really excited that this is finally behind us,” said Bill Stone, president of Qualcomm Inc.’s FLO TV service.

FLO TV, which broadcasts digital TV to specially equipped cell phones, spent $558 million two years ago for the rights to use UHF Channel 55 around the country. Qualcomm counted on being able to use that frequency right after Feb. 17, when U.S. full-power TV stations were originally scheduled to end their analog broadcasts.

The delay of the analog shutdown to Friday forced Qualcomm to postpone the launch of FLO TV service in new markets, costing the company tens of millions of dollars, Stone said.

Qualcomm will activate FLO TV service in 15 markets this weekend, including Boston, Houston, Miami, Fla., and San Francisco. More markets will launch later this year, bringing FLO closer to its goal of nationwide coverage.

Cellular carriers Verizon Wireless and AT&T Inc. paid a combined $16 billion for spectrum to be vacated by TV broadcasters, but the delay has had little effect on them, since the wireless broadband equipment they plan to deploy is still in development. Verizon Wireless plans to turn it on next year.

The shutdown also helps TV broadcasters, which have suffered greatly because of declining advertising rates in the economic downturn. After Friday, broadcasters will be freed from having to maintain expensive analog antennas. The vast majority of them already are broadcasting digitally, so there is no new cost coming for replacement broadcasts.



by the associated press

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