Demand for digital TV converter box coupons is up--and while that signals an increased awareness of the impending DTV conversion next February, the surge might require an additional $330 million in government funds, according to the Commerce Department.

The National Telecommunications and Information Administration (NTIA), which is housed within Commerce, projects that it will receive 6.5 million requests for DTV converter box coupons in December, which is a significant jump from previous months.

If requests continue at this pace, the department could receive up to 60 million coupon requests by March, 2009. One problem: NTIA has only enough money for 51.5 million coupons, according to a letter the agency sent to Rep. Edward Markey of Massachusetts, chairman of the House Telecommunications and the Internet Subcommittee.

Broadcasters are required by law to switch from analog to digital signals by February 17, 2009. TV viewers with digital TVs or sets that are hooked up to cable will not notice a difference, but people with over-the-air TVs, or rabbit ears, will see no picture come February 18, 2009, unless they hook their TVs up to DTV converter boxes.

The government is providing each U.S. household with two $40 converter box coupons. Congress allocated $1.34 billion to cover the cost of the coupons, plus $160 million for administrative costs.

Meredith Baker, NTIA's acting assistant secretary for communications and information, told Congress and attendees at an April forum sponsored by the Consumer Electronics Association that "we don't need any more money" for coupons, but that does not seem to be the case any longer.

"If coupon demand continues through February 17, 2009, at the rate experienced in December, a total of approximately 60 million coupons would be requested through March 31, 2009," Baker wrote to Markey. "Under this scenario, the program would require an additional $330 million, of which $20 million could be required for additional administrative expenses, assuming that IBM is willing and able to expand its capacity to timely meet requests for coupons."

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