Gov't running out of stamps for DTV converter coupons

Just about everything seemed to be in place for next year's looming analog TV shutoff: Commercials warning about the impending transition were running, bargain-priced DTV converter boxes went on sale, and the government began issuing coupons to make the converters even cheaper. But something was missing ...

Oh, right—stamps.

OK, to be totally fair, it's not like government officials hadn't stocked up on postage before launching the DTV coupon program, which guarantees up to two $40 coupons per household for DTV converter boxes (which typically cost about $50 or so). The converter boxes will ensure that analog TVs receiving over-the-air signals will continue to work after the planned transition to all-digital TV broadcasting on February 17, 2009.

It's just that (according to Reuters, via Engadget HD) the government hadn't anticipated that so many people would apply for—but not redeem—their coupons, which expire after 90 days.

And that means the DTV converter program will have to send out replacement coupons—a lot of them—and that, in turn, means more stamps, and more money, as Commerce Department officials explained during a recent hearing before Congress.

The Reuters story doesn't say how much cash the National Telecommunications and Information Administration, which is administering the $1.5 billion coupon program, will need to send out replacement coupons.

That figure might arrive until next month, when the agency gets "further redemption information"—and at that time, officials will probably ask Congress for additional funding. (And let's hope they get it, for the sake of those analog TV viewers who haven't requested coupons yet.)

So, why are people applying for the coupons but not redeeming them? (Reuters reports that a whopping 58 percent of the coupons already issued expired before they were used.) Engadget HD speculates that many are still unsure which converter box they want to buy. Sounds plausible.

But here's another question: Why the 90-day expiration policy? Isn't that causing more headaches than it's curing? That's not a rhetorical question—those of you who understand the coupon business, please enlighten us. If there's a good answer, I might feel a little better about our tax dollars (I shudder to think how many) going toward duplicate coupon mailings.

Related:
U.S. could face glitch in TV converter box program [Reuters, via Engadget HD]
A few more things you should know about the DTV transition [Yahoo! Tech]