DTV deal would extend Verizon, AT&T licenses

WASHINGTON (Reuters) - A proposed Senate compromise to delay the nationwide switch to digital TV would extend the licenses of AT&T Inc and Verizon Communications Inc, which are waiting for the airwaves to be vacated when all TVs convert.

The proposal, announced late Thursday night by Democratic Sen. John Rockefeller and Republican Sen. Kay Hutchinson, would postpone the transition date to June 12 from the planned February 17, on worries that consumers are not ready.

It would also allow consumers with expired coupons, made available by the government to offset the cost of a $40 converter box, to request new ones. The government ran out of coupons earlier this month and about 2.5 million Americans are on a waiting list for them.

Many lawmakers fear an estimated 20 million mostly poor, elderly and rural households are not ready for the congressionally mandated switch, requiring owners of older television sets receiving over-the-air signals to buy a converter box or subscribe to cable or satellite TV.

The companies, which paid $16 billion for the public airwaves in an auction last year, would get 116 extra days on their licenses under the proposed legislation, expected to move to the Senate floor next week.

CTIA, the wireless trade association, has said a delay could hurt confidence in the FCC's spectrum auctions.

Momentum had been building for a delay since President Barack Obama backed it earlier this month.

One company definitely not happy about a delay is Qualcomm Inc, which bought public spectrum from the government for about $550 million to roll out a mobile video service.

The company wants an exception for two channels in the four big markets where they have not rolled out their service yet -- Boston, Miami, Houston and San Francisco.