I'm glad to join you for MSTV's twelfth annual update -- a dozen years that MSTV has been turning the spotlight on the technology that promises to transform television.

To put it in perspective -- it took at least 12 years for the United States to be born. It took nine years to put a man on the moon (with huge commitments of people and money). It took some 20 years for computing to reach a point that a "personal computer" could become a reality.

I'd like to make four brief points:

1. We've come a long way.

The digital conversion is going on in all media. Dramatic steps are underway in all related industries: broadcasters, receiver manufacturers, satellite and cable operators and programmers -- and yes -- computer companies.

It is extremely important that broadcasters are now assuming their place at the leading edge of the transition -- they are not left behind, forever locked into an analog world while all other delivery systems make the shift or initiate service using digital technology.

Let's go to the numbers:

• As of today, the FCC has granted 104 Construction Permits for new digital stations -- we've broken the 100 mark.

• Our records show there are eight stations on the air with full time operating authority: WLWT Cincinnati, and WBNS Columbus -- both Ohio; KITV, Honolulu and KHVO, Hilo-- both Hawaii, as well as WCVB Boston, WKOW, Madison, Wisconsin, and the newest additions, WCBS New York, and KNBC, Los Angeles.

• In addition, there are 13 experimental DTV stations operating.

• And in November, almost all of the 24 volunteer stations will turn on their transmitters -- and begin offering digital signals over-the-air to about one-third of the country's households. As will many stations which are not in the top ten markets but which volunteered anyway to be on air in digital.

2. There will be bumps along the way.

We are entering a new era. We have a multitude of industries pulling together to make this work. Of course not everything will flow smoothly. But the technical challenges ahead are not nearly as daunting as the advent of digital television itself.

• Surely one of the most difficult problems to solve will be compatibility among different digital users.

• Also issues like copy protection, multipath problems, even the size of the new sets.

• There will not be a flood of programming to start -- but on this point, I am heartened that DirecTV, USSB and Thomson are launching a 37 minute "dealer channel." This DBS broadcast will explain to viewers what DTV is about and will demonstrate direct broadcast satellite delivery in a variety of formats -- including 1920 x 1080i. Stores everywhere will have something to show consumers.

And I saw a dynamite presentation last evening by PBS -- partnering with Intel -- to create enhanced digital television.

Give it time. It will all come together.

3. The Government's formal role is winding down as the new TV antennas are being turned on.

We have set the stage -- we have given broadcasters the spectrum they need to transition to digital; set the rules of the game; and allotted each broadcaster its channel.

There still are a few important decisions the FCC must make and we must resolve them promptly.

• We must decide which nonbroadcast services fit the statutory definition of "ancillary and supplementary."

• And we must decide what fees should be charged to broadcasters who offer these services, as directed by the Congress.

• We are just about to finish the Second Reconsideration of the 5th and 6th Report and Order which includes, among other things, a decision on whether and when to allow broadcasters to maximize power above 200kw.

• We need to decide whether the Commission should assign "transport identification numbers" to facilitate use of the voluntary PSIP standard. PSIP would link DTV stations to their paired NTSC channel numbers, regardless of the DTV frequency.

• And, of course, there is must carry. We all know that there are strong arguments at both extremes -- but I have been interested in finding a middle ground.

I am pleased that MSTV and other broadcasters, such as Cosmos and Morgan Murphy Stations, have not taken an extreme view. Your comments will be most constructive as the Commission grapples with this difficult issue.

I am hopeful that if all the industries work together for the benefit of the American consumer, we will find that capacity on most cable systems will expand at the same time that broadcasters are turning on their digital channels. While that won't solve everyone's problem, it goes a long way toward speeding digital conversion.

As I have said before, it is in cable's interest to expedite the conversion. Because once we complete conversion and the analog channels are returned, cable capacity again will be freed up.

The Commission should address this issue as soon as we can review the comments and reach an informed decision.

And we must be diligent to ensure that this transition to digital works for the American consumer.

4. You need to keep your viewers foremost in mind.

That means you must use every opportunity to explain what's happening -- to local government officials, local community organizations -- using your own air and other media.

Broadcasters are experts at marketing and promotion. You are in a perfect position to build anticipation and excitement among viewers and community leaders as they learn about the arrival of DTV.

Here's an idea: why not set up a "Digital TV Working Group" in your local community made up of all the TV stations, your consumer electronic stores, local cable operators, and local governments? This kind of group could help smooth the rollout where it really counts -- in your local communities.

And don't ignore programming and interactive opportunities that take full advantage of the extraordinary potential of digital television. Be creative. Whether you are turning on digital this week or next year or three years from now -- you can be a pioneer. The world is open to you. A new day is dawning. Take the challenge.

CONCLUSION

To recap my four points:

Digital television is here. We have come a very long way in the last twelve years. There will be bumps in the road as we enter this stage in the conversion from analog to digital. Government must remain diligent to ensure that the conversion works for the benefit of consumers, but our formal work is winding down. It is now in your hands. And to succeed you must keep your viewers foremost in your mind.

Free, over-the-air broadcasting plays a fundamental role in our society. It is the window on the world for all Americans. It is crucial that broadcasters have the opportunity to participate in the universal transition to digital. That is why I have been working with broadcasters for over four years to provide assistance where I can, to learn more about your real-world challenges, and tell you, once again, this transition will be worth the effort. It will happen. Be there!

Thank you.