Reality
There is a lot of misinformation running around about the required change to digital...
The reality is this (not in any particular order of importance):
1) The FCC started auctioning off frequencies in the early 90s. Along about '92/'93 the FCC made a few billion off of a few frequecy auctions. Congress then started seeing the FCC as an income source and pressured the FCC to do more auctions. (Up until then the FCC often let people use certain frequencies just for a nominal filing fee -- sometimes as little as a few hundred dollars.)
2) The FCC has allocated new frequecies for over air transmission of digital video. These are separate from the older frequency allocations for use with analog video. Currently broadcasters can use either or both allocations.
3) Congress wants the FCC to close out the broadcast use of the frequencies used for analog transmissions so the FCC can auction them off to other users (and set aside a very, very small slice for government emergency responders). The auctioning off of these frequencies could net the U.S. government billions and billions of dollars (my apologies to Carl Sagan).
4) The date at which all over the air broadcasters must stop using the frequencies allocated for analog transmission has been set at 19 February 2009. (Don't ask me why that odd date was picked. It was the end result of a LOT of political give and take.)
5) The change over has absolutely nothing to do with SD versus HD TV transmissions. Legally, the broadcasters could transmit 480i and still be compliant. (Will they? I extremely doubt it. But legally they could.)
6) The required change over has virtually nothing to do with cable TV providers or users. (I say "virtually" because if all the broadcasters go to 720p or 1080i over the air transmissions then the cable providers won't be able to provide anything but 720p or 1080i because there will be no sources for any low resolution content.)
7) The required change over has absolutely nothing to do with what you get out of your DVD, HD-DVD, Blu-ray or even your VHS player.
8) As a part of the required change over, money will be set aside from the income from the auctions to help certain classes of individuals buy a converter if they can't afford to buy a new digital TV. The converter will take the received, over-the-air digital signal and convert it to the old analog NTSC standard which can be viewed by the old analog TVs. (I said "certain classes of individuals" because I don't remember the criteria to get government financial support, and I'm too lazy to look them up.)
8) The required change over has nothing to do with satellite TV either. If you have an old C-band dish receiveing analog signals and are still able to use it on 18 February 2009 (assuming the broadcasters have not moved everything to Ku-band by then), then it will still be funtional on 19 February 2009 and later.
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