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FCC to Pay Integrators $84M for DTV Installations

Government to pay integrators to install DTV converter boxes and antennas across the nation for the disabled, needy, minorities, non-English speakers, seniors, and those in rural areas and tribal lands.


hdtv_antenna
The FCC has issued six separate regional Requests for Quotation (RFQ) inviting installation companies across the country to be paid to install DTV converter boxes and antennas for the disabled, needy, minorities, seniors, non-English speakers, and those in rural areas and tribal lands.

The six regions each have $14 million designated for the DTV services. The regions are:
  • Pacific (AK, AZ, CA, ID, NV, OR, UT, WA)
  • West Central (CO, IA, IL, KS, MO, MN, MT, NE, ND, SD, WI, WY)
  • Southwest (AR, LA, NM, OK, PR, TX)
  • Southeast (AL, FL, GA, MS, NC, SC, TN, VA)
  • East Central (IN, KY, MI, OH, WV)
  • Northeast (CT, DC, DE, MA, MD, ME, NH, NY, NJ, PA, RI, VT)
The FCC has also identified 49 “hot spots” in the country where it anticipates a flood of potential problems with the DTV transition (see "Geographic Hot Spots" chart). It also lists 14 areas where “whole market transitions” have taken place (see "Whole Market Transitions" chart).

The FCC is actually looking for assistance in two areas: “expert in-home digital transition services” and “installation services.”

The RFQ for expert in-home digital transition services says:

“Such services include, but are not limited to, the following elements – connecting up to two of a household’s existing coupon-eligible digital-to-analog converter boxes to existing broadcast antenna(s) and analog TV(s); making significant adjustments to and movement of existing antennas; scanning and rescanning converter boxes to locate the maximum number of digital broadcast channels available; integrating an existing VCR into the installation; and providing guidance to the consumer on the operation of his or her converter box(es), including the use of closed captioning features. Such services may include integrating two existing coupon-eligible digital-to-analog converter boxes and an existing VCR into the installation so that the consumer can watch one broadcast program while recording another.”

The RFQ for installation services says:

“This request for quotation (RFQ) seeks proposals for basic, in-home digital-to-analog converter box installation services. Such services are composed of the following elements: connecting up to two of a household’s existing coupon-eligible digital-to-analog converter boxes to existing broadcast antenna(s) and analog TVs, providing a basic level of orienting/reorienting the household’s antenna(s) and scanning/rescanning the converter box(es) in order to receive digital broadcast TV stations in the area, and providing basic guidance to the consumer on the operation of their converter box(es).”

The period of performance on these RFQs is from May 2009 to July 31, 2009. Integrators are actually restricted in terms of their ability to modify any part of the installation contract. Weekly invoices will be accepted from small businesses and payments will be made on the 30th of each month.

By the way, I love this clause in the contract:

“Contractor shall be paid only for installations performed, whether successful or unsuccessful, and limited to one visit per household within its proposed demographic and geographic areas. Payment will be made in accordance with the unit price in the contract.”

How would you like to put a clause in your contract that says you will be paid even if the installation is “unsuccessful”?

Well, what are you waiting for! Here’s some money on a silver platter for your integration business. Granted, there may be little potential for upselling to these particular clients, but now is not the time to be picky. Apply today!

Geographic Hot Spots
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Whole Market Transitions
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Article Topics

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About the Author

Jason Knott, Editor, CE Pro
Jason has covered low-voltage electronics as an editor since 1990. He joined EH Publishing in 2000, and before that served as publisher and editor of Security Sales, a leading magazine for the security industry. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He is currently a member of the CEDIA Education Action Team for Electronic Systems Business. Jason graduated from the University of Southern California.

6 Comments (displayed in order by date/time)

Posted by kevinmikelonis  on  04/07  at  10:13 AM

In region 21, 35, and 52 the winning bidder is (insert drum roll here…) Bob’s TV and Video at $59.00 per installation - Congratualtions Bob!

Posted by Phil  on  04/07  at  05:57 PM

What a great waste of money! I’m glad I work so hard so my can money is being spent so everyone can watch TV.

Posted by Kilroy  on  04/07  at  09:19 PM

I can understand the need for a program like this for senior citizens and the disabled.  What I can’t understand is the need to make this available to the needy, minorities and non-English speaking individuals.  I guess I missed the part in the U.S. Constitution where is states that television is a mandatory right for every U.S. citizen and shall be paid by tax payer dollars should the U.S. citizen be unable pay for it.  The government must feel you cannot survive without TV.  Since that is the case, I am off to write my congressman to suggest that he write a bill to pay for my monthly cable bill.  No wonder this country’s deficit is as big as it is.

Posted by Jason Knott  on  04/08  at  05:24 AM

Just to clarify for everyone, the FCC is not setting the installation price level, so that $59 per installation price from Bob’s TV and Video must have been his “winning” bid. Also, the RFQ does state specifically that once the installer accepts the contract, he does not have the ability to alter the price of the installation. HOWEVER, it doesn’t say that an installation company, like Bob’s TV, cannot engage in a separate contract directly with the homeowner for additional services. Let’s hope that’s what Bob is doing.
To look at it positively from his perspective, if he’s a good upseller, (which could be difficult with this level of consumer), he is getting paid $59 to get inside of potentially thousands of homes to try to sell services. That may not be so bad if you look at it that way.

Posted by Ranger Home  on  04/08  at  09:16 PM

Hmmm, my TV is only 58” and I am in “needy” of a 60”. Are you taxpayers willing to pay for it for me? I cant work, well I mean I dont want to. Why should I? Socialism is the best thing in the world for my worthless self that WONT take the initiative to make it on my own, work hard for what I want, EARN my keep. Keep the liberals in power! The more they promise the more I will take and the less I will work, the less I will want to do anything except have my hand out. Keep handing it out so you can get my vote. Thats the only way to keep your power! GIMME GIMME GIMME and you will get not only my vote but all my worthless friends. 

Hey, will you throw in a blu-ray too? I hear they are the best and I only deserve the best!

Posted by Kilroy  on  04/08  at  09:33 PM

Jason,  I am sure he will have potentially thousands of “customers” to offer additional services.  I am also sure that they will be happy to take advantage of every one of them that is in their price range.  Which, I believe is at a cost of $0 or less.

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