House OKs increase in digital transition funding

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http://news.yahoo.com/s/ap/20080924/ap_on_go_ot/digital_tv

WASHINGTON - The House on Wednesday voted to raise a cap on administrative costs for a government coupon program that helps consumers make the transition to digital television broadcasting.

The National Telecommunications and Information Administration had sought help from Congress with administrative costs, which were capped by law at $160 million. Congress approved an additional $20 million as part of an appropriations bill approved Wednesday.

The coupon program provides two $40 coupons per household to consumers who will need converter boxes when full-power television stations shift to digital-only broadcasting in February.

Federal law allocated $1.5 billion toward the coupon program with a maximum of $160 million to be used toward administrative expenses. So far, the NTIA has committed $157.2 million to IBM, the coupon program's contractor — nearly $40 million more than the initial contract award, The Associated Press reported last week.

The agency sought approval for the increase to ensure coupons will continue to be distributed throughout the transition.