Taxpayers paying $99 per ‘free’ Geek Squad DTV installation
May 29th, 2009, 2:55 pm · 13 Comments · posted by Tamara Chuang, a.k.a. The Gadgetress
As I suspected, somebody is paying for Geek Squad’s amazing promotion to offer the nation free installation of digital converter boxes: You!
Geek Squad, Best Buy’s in-home tech-support group, is offering free help as the nation switches to digital TV broadcasts on June 12. Those with older, analog TVs who rely on antennas to watch must either buy a digital TV, subscribe to a paid TV service or, the cheapest option, buy a digital converter box. Geek Squad promises to help the first 10,700 people who request that help — and they’ll even hook it up to a VCR!
But while the Geek Squad service is free to customers, the Federal Communications Commission is footing the bill — averaging $99 per installation. Geek Squad normally charges $99.99 to set up a TV and video equipment.
According to FCC documents, Best Buy will get $1,069,893 to help consumers install a converter box. Here are the numbers:
| FCC funding for Best Buy installs: | |
|---|---|
| PUR09000318 award to Best Buy Co. Inc. (Pacific Region) | $419,958 |
| PUR09000326 award to Best Buy Co., Inc. (West Central Region) | $329,967 |
| PUR09000367 award to Best Buy Co., Inc. (Northeast Region) | $319,968 |
| Total: | $1,069,893 |
From past response, Orange County readers are prepared for the big transition. In fact, many have voiced their disgust with the delay from the originally planned Feb. 17 deadline. Nielsen Ratings, meanwhile, believes 3.3 million households — or in our area, 4.69 percent as of May 10 – aren’t ready.
It is a huge task to move a nation to a new way of watching TV. Millions are being spent by the government on advertising and marketing campaigns. PR agency Burson-Marsteller apparently nabbed the $3.5 million contract to let Americans know about the switch on June 12. Lots of other government-funded awards are listed below.
Best Buy isn’t the only one getting money from the FCC to install converter boxes. According to the FCC, it awarded $4.9 million to professional companies to help install converter boxes. Check out this list:
| DTV Expert In-home Converter Box Installation Services | Awarded |
|---|---|
| PUR09000288 award to Apollo Industries, Pacific (Region 1), 6,000 each, Total $300,000. | $300,000 |
| PUR09000287 award to Apollo Industries, West Central (Region 2), 3,500 each, Total $105,000. | $105,000 |
| PUR09000291 award to Hernandez Consulting, Southwest (Region 3), 4,000 each, Total$302,800. | $302,800 |
| PUR09000289 award to Hernandez Consulting LLC, Southeast (Region 4), 1,500 each, Total$113,550. | $113,550 |
| PUR09000292 award to R & D Training & Technical Services, East Central (Region 5), 1,500 each, Total $127,500. | $127,500 |
| PUR09000290 award to Apollo Industries, Northeast (Region 6), 3,000 each, Total $126,000. | $126,000 |
| PUR09000346 award to Koring Group, Pacific (Region 1), 5,000 each, Total $492,500. | $492,500 |
| PUR09000370 award to Deployment Essentials, Pacific (Region 1), 2,000 each, Total $270,000. | $270,000 |
| PUR09000347 award to Pierce Electric, West Central (Region 2), 250 each, Total $25,000. | $25,000 |
| PUR09000348 award to Green Planet Construction, West Central (Region 2), 750 each, Total $48,750. | $48,750 |
| PUR09000349 award to KMAD Business Service, Inc., Total $140,000. | $140,000 |
| PUR09000345 award to AVO General Services, West Central (Region 2), 500 each, $58,750. | $58,750 |
| PUR09000312 award to KMAD Business Service, Inc., Southwest (Region 3), 1,000 each, Total $50,000. | $50,000 |
| PUR09000307 award to Deployment Essentials, Southwest (Region 3), 3,000 each, Total $405,000. | $405,000 |
| PUR09000342 award to Primex Technology, Southeast (Region 4), 1,000 each, Total $78,000. | $78,000 |
| PUR09000343 award to i-Zone-3 Technologies, Southeast (Region 4), 1,000 each, Total $77,000. | $77,000 |
| PUR09000344 award to Green Planet Construction, Inc., East Central (Region 5) 2,000 each, Total $200,000. | $200,000 |
| PUR09000306 award to Deployment Essentials, Northeast (Region 6), 1,000 each, Total $135,000. | $135,000 |
| PUR09000318 award to Best Buy Co., Total$419,958. | $419,958 |
| PUR09000326 award to Best Buy Co., Total$329,967. | $329,967 |
| PUR09000329 award to Installs Inc., Southwest (Region 3), 3,500 each, Total$346,500. | $346,500 |
| PUR09000328 award to Installs Inc., Southeast (Region 4), 2,000 each, Total$198,000. | $198,000 |
| PUR09000327 award to Installs Inc., East Central (Region 5), 2,000 each, Total$198,000. | $198,000 |
| PUR09000367 award to Best Buy Co., Northeast (Region 6), 3,200 each, Total $319,968. | $319,968 |
| TOTAL | $4,867,243 |
The digital TV transition has not been cheap, as we are all finding out. In addition to paying for some households to get a digital converter box installed, taxpayers are also funding the following:
- $54,000: DTV Transition Maps awarded to Hammett & Edison 470 3rd St. SW, Sonoma, CA, 95476. Base Period of Performance from April 29, 2009 through July 31, 2009.
- $12 million: Digital Television Transition (DTV) Call Center Support Services awarded to IBM Corp., 6710 Rockledge Drive, Bethesda, MD, 20817 on Jan. 16, 2009 for a one-week base period covering Feb. 12, 2009 through Feb. 21, 2009 with seven, two-week option periods.
- $1.3 million: Magazine (DTV) Advertising for Elderly and Persons with Disabilities
- $1.5 million: FCC Digital Television (DTV) Consumer Education Support Services awarded to Ketchum, Incorporated, 2000 L St. NW, Suite 300, Washington, DC, 20036-4923 on Feb. 13, 2008 for a twelve-month base period and two, four-month option periods. Total contract price is $1,483.262.90.
- $3.5 million: Awarded to Burson-Marsteller for public relations and advertising for a base period of two months covering May 5, 2009 through July 12, 2009 with two, one-month option periods. Initial contract price is $3,500,000.00.
- More listed HERE and HERE.
More digital TV transition news:
Check out the Gadgetress Guide to the Digital TV transition
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Here's a list of TV/mobile companies helping consumers one tweet at a time. 
if you dont have enough braincells to figure out how to set it up yourself, then maybe you shouldnt be allowed to watch tv. yet again the taxpayers paying for other peoples incompetence. this is just another revolving door set up by the government so that the intelligent people will pay for the inept and lazy people do have things done for them.
Subsidizing these boxes is the worst decision possible. We’re in a recession folks and have a spending deficit, stop giving out freebies to people who are still living in 1981.
LGT,
Do you understand how this works? The reason they are subsidizing these boxes is because they want people off the spectrum. Right now they are broadcasting every channel in 2 frequencies… HD and SD. The FCC is not making extra money for that. The SD frequencies are very inefficiently used because it is based on very outdated technology.
The government is paying to get people off normal analog TV because they will make money off the conversion. When people of switch to HD and they free up the older spectrum, it will (and has been) auctioned off for several billion dollars. The government paid barely a billion dollars in subsidies. It was a profitable transaction for the government.
This doesn’t even count that for each $1 spent in subsidies does not cost the government $1, because they will get sales tax, payroll tax, income tax, etc off the transactions. This includes from the retailer, the installer, the box manufacturer, and the companies which made the components in the box.
Not quite High Definition vs Standard Definition. Ending older analog transmissions will clear up space. The new transmissions are digital, in both HD and SD.
LoL. How frustrating that we have to foot the bill for this. All I can do is laugh in frustration. *sigh*
The people voted for the clowns that redistributes wealth. Look at Sacramento, same type of clowns as national, and their in complete control. What’s a trillion here and a trillion there, every year in debt spending.
I agree with Hunterr.. There is no justification for this spending, but we are powerless to stop it. So, whatever…
i would only accept this if it only covered elderly or disabled people.
What a complete joke!
I agree….this is total overkill and should be protested vigorously.
The US Government thinks watching TV is a right not a luxury. Though I understand the benefits of clearing out the old signal. However I do not believe we should pay for people to get free converter boxes and install. Though trying to go after the business is not the solutions. If you owned a business and you were handed a contract by the government for X amount of dollars you would take it.
One solution, vote our the incumbent politicians who allow this. Stand up people.
If you would leave things just like they were, there would lnot be this problem. Just another one of our freedoms being taken away!