The National Telecommunications and Information Administration today awarded IBM a $120 million contract to administer the coupon program aimed at easing the DTV transition for American consumers.

Under the contract, IBM will award each home that requests them up to two $40 coupons that can go toward the purchase of set top converters that will allow owners of analog TV sets to receive digital signals after Feb. 17, 2009.

On that date, TV broadcasters are scheduled to stop analog broadcasting and go to digital-only broadcasting.

Without converters, consumers would be unable to receive the digital broadcasts on conventional analog sets.

“This is a major milestone toward implementing a successful coupon program to ensure the switch from analog to digital television is completed smoothly and as planned,” said NTIA Administrator John Kneuer.

“By awarding the contract on schedule, NTIA is preparing to be open for business so consumers may request coupons starting January 1, 2008, as required by law.”

IBM will provide services in three areas:

• Consumer education.
  
  
• Coupon distribution to consumers and retail store participation.
  
  
• Financial processing to reimburse retailers, to maintain records, and to prevent waste, fraud, and abuse.

The Coupon Program was authorized by the Digital Television Transition and Public Safety Act of 2005.