U.S. Department of Commerce National Telecommunications and Information Administration

1. COUPON PROGRAM PHASE TWO U.S. Department of Commerce National Telecommunications and Information Administration

2. Program Overview • The Deficit Reduction Act of 2005: • Directed FCC to require full-power television stations to cease analog broadcasting no later than February 17, 2009 • Directed NTIA to create the Digital to Analog Converter Box Coupon Program • Consumers may obtain up to two coupons that can be applied toward the purchase of digital-to-analog converter boxes • Provided $1.5 billion in funding • The DTV Delay Act, February, 2009 • Postponed the date to require full-power television stations to cease analog broadcasting to no later than June 12, 2009 • Extended coupon request period to July 31, 2009 and allowed replacement coupon for each coupon that was issued to households and expired without being redeemed • Changes to eligibility only to take effect upon enactment of additional budget authority • The American Recovery and Reinvestment Act of 2009 provided $650 million in additional funding • For additional consumer outreach • For distribution and redemption of additional coupons

3. Program Schedule FY10 FY09 FY08 Major Milestones: 2/17/09 7/31/09 2/4/09 11/15/09 1/31/10 1/1/08 Coupon Ordering Started DTV Delay Act ARRA Last Coupon Ordering Day Last Coupon Redemption Day Program Complete Program Functions: CONSUMER EDUCATION COUPON DISTRIBUTION COUPON REDEMPTION CLOSEOUT 3

4. Program Description Program consists of three functions: • Consumer Education and Communications • System Processing • Call Center Services • Coupon Fulfillment • Retailer Certification and Training • Financial Processing • Coupon Redemption • Retailer Payment Settlement • Audits and WFA

5. STIMULUS FUNDING • $490m 12.25 million coupons • $38m Coupon Distribution • $32m 4 month extension, process enhancements • $90m FCC/NTIA consumer services

6. Current Status—April 22nd • 56,358,855 Coupons Requested • 20,650,072 Coupons Expired • 7,023,020 Coupons Active • 55.9% Average Redemption Rate • 117,906 Average Daily Orders

7. NEW CONSUMER FOCUS • Search and rescue • Focus groups of unready households • Merge NTIA/FCC target markets • More service, live agent support, hands-on help • New messaging, revise materials • Don’t wait until June 12, 2009 • Emphasize ACTION • Apply, Buy, WATCH DTV NOW

8. IMPROVED PROCESSING • 11/2 weeks from request to receipt • Expanded call center for more requests and live agent calls • Integrated call center with FCC and others for “one-call assistance” • First class postage • Re-issue of expired coupons

9. MORE COUPONS • 12.25m new coupons from stimulus • 1.5m to 3m from expirations • Continued DMA and zip code data for retailers and manufacturers • Retailers website link to FCC data on station by station transition dates • Challenge to coordinate coupons, inventory and consumer service

10. Consumer Education Strategy • Focus group research • Further define the households that are not prepared and why they have not taken action • Use results to inform future activity and messaging • Refine messages and develop new materials • Conduct earned media outreach focused on key target audiences • Encourage coverage of the transition via interviews • Garner participation of local media in local events (mobile assistance teams, retail teams) • Drive attendance at local events • Leverage grantees, partners and contractors to provide on-the-ground education and support

11. Coupon Program Messaging • Message Theme: Act Now.Top priority is to move remaining unready households to take action • Highlight the three options consumers have to prepare, including purchasing a converter box with or without a coupon • Extend “Apply. Buy. Try” campaign messaging, with focus on buying converter box as soon as coupons received in mail and the importance of troubleshooting (antenna and reception issues, installation instructions such as re-scanning, etc.) • Encourage consumers who have already prepared to make sure their friends, family and neighbors are also ready • Reinforce transition date and information resources in all communication

12. Consumer Education Activities • Paid and public service advertising to reach target populations through radio and print outlets • Public service advertising on transit systems in key markets • Paid advertising through ethnic media partner organizations and outlets that are highly consumed by target audiences • Engage existing partners to educate and support constituents in preparing for transition by providing materials, training and technical assistance • Supply partners with information to distribute directly to constituents • Establish brief training module offered regularly for all partners, grantees and other entities to ensure consistent and accurate dissemination of information • Establish mobile unit transition assistance teams (i.e., mobile assistance centers) for help in applying for a coupon and instruction on installing a converter box • Complement mobile assistance teams with retail event teams to conduct similar outreach at participating retail locations • Supplement funds to LCCREF & n4a to help vulnerable communities apply for the coupon and purchase and install converter boxes and provide post transition assistance

13. Phase 2 Hot Spots Red=FCC priority Blue=NTIA priority Black=Joint FCC/NTIA • LOS ANGELES, CA • LOUISVLLE, KY • MEMPHIS, TN • MIAMI, FL • MINNEAPOLIS ST PAUL, MN • MILWAUKEE, WI • MONROE EL DORADO, LA-AR • MONTEREY SALINAS, CA • NASHVILLE, TN • NEW YORK, NY • ORLANDO, FL • PHILADELPHIA, PA • PHOENIX, AZ • PITTSBURGH, PA • PORTLAND, OR • SACRAMENTO STOCKTON MODESTO, CA • SALT LAKE CITY, UT • SAN JUAN, PR • SAN FRANCISCO OAKLAND SAN JOSE, CA • SEATTLE TACOMA, WA • SPRINGFIELD, MO • ST LOUIS, MO • TULSA, OK • WASHINGTON, DC • ALBUQUERQUE-SANTA FE, NM • ATLANTA, GA • ANCHORAGE, AK • BALTIMORE, MD • BIRMINGHAM, AL • BOISE, ID • BOSTON, MA • CHARLESTON, WV • CHICAGO, IL • CINCINATI, OH • CLEVELAND-AKROM (CANTON, OH • COLORADO SPRINGS PUEBLO, CO • DALLAS FT. WORTH, TX • DAYTON, OH • DENVER, CO • DES MOINES AMES, IA • DETROIT, MI • FRESNO VISALIA, CA • HARLINGTON MCALLEN BROWNSVILLE, TX • HOUSTON, TX • INDIANAPOLIS, IN • JACKSONVILLE, FL • JOPLIN PITTSBURGH, MO-KS • KANSAS CITY, MO • LAS VEGAS, NV