Rules on DTV converter coupons might ease, but expiration date stands

As the rollout of digital converter boxes for next year's conversion to all-digital TV continues, the federal government is considering loosening some eligibility requirements for subsidies on the boxes. But other beefs from consumers and consumer groups remain unaddressed.

The National Telecommunications and Information Administration, the agency administering the distribution of $40 coupons to offset the typical $50 to $70 cost of the boxes, is considering allowing nursing home residents and consumers who use post-office boxes to apply for the coupons, as our colleagues at Consumers Union, the publisher of Consumer Reports, are reporting on hearusnow.org.

But the agency isn't budging on the expiration of the coupons after 90 days. CU and other groups complain that this is a potentially bigger issue, because there are still relatively few converter boxes in stores, few have the analog pass-through feature some consumers want, and none are as yet priced at $40 or less, meaning consumers must bear some out-of-pocket cost.

We've reviewed three coupon-eligible boxes without the analog pass-through feature and one, a Philco product, that has it. All did a decent job, but you might have to tinker with your setup to get optimal results.

For more helpful advice and links to other DTV resources on the Web, check out our Digital TV Transition information center on ConsumerReports.org.

Low-cost Blu-ray players: Still not so low

With prices for entry-level Blu-ray players still hovering near the $350 mark, we've been anticipating the arrival of the first Blu-ray players from second-tier brands, presumably at lower prices than the major brands.

Based on first models slated to arrive, however, that's not going to happen, at least immediately. For example, Funai, a low-cost Japanese manufacturer that controls the Emerson, Sylvania and Symphonic brands in the U.S., is readying the debut of a Sylvania-brand Blu-ray player, which should arrive in a few weeks. Amazon.com is now taking pre-orders for the player, and it's priced at $350—not the bargain we imagined. And Best Buy will begin selling an Insignia-brand Blu-ray player—presumably manufactured by Funai, which makes standard-def DVD players for the retailer—on June 9th, at the same $350 price.

These prices are higher than we anticipated, particularly since Funai said at CES in January that a Sylvania model would be available this spring for less than $300. (This link takes you directly to an Adobe Acrobat version of the company's official press release.)

So we still think you should wait just a bit longer before buying a Blu-ray player. But getting a lower price is only one of the reasons. The other is that the Blu-ray technology is still evolving. For example, the Sylvania player is a so-called "Profile 1.1 model," with Bonus View (picture-in-picture) capability, but not Internet connectivity (BD-Live), a feature that will be included in upcoming Profile 2.0 players. We imagine that the Insignia model will also be a Profile 1.1 model. So far, the Sony PlayStation 3 game console is the only Profile 2.0 Blu-ray player available (and then via a firmware upgrade), although Panasonic is readying the release of the first Profile 2.0 stand-alone player, the DMP-BD50. (Click on the image above for a closer look.) That player doesn't yet have a price, and its launch is still four to six weeks away.

We fully expect Blu-ray prices to drop later this year, as the market becomes more competitive. By waiting just a few more months, you'll likely get not just a better price, but also a player containing all the features Blu-ray is capable of delivering.

—James K. Willcox

AT&T to pro-rate early termination fees for cell-phone contracts

In another sign of the growing consumer power in the cell phone marketplace that we reported last January, AT&T has joined Verizon in pro-rating its $175 early termination fee, a major thorn in the side of respondents to our latest survey of cellular service providers (available to subscribers).

But three other big wireless service providers, Alltel, T-Mobile, and Sprint, have yet to deliver on their promises to do likewise this year. Those providers still ding you for up to $200 if you cancel your cell phone contract before its full term is up. Consumer advocates including Consumers Union, Consumer Reports' parent organization, consider such flat fees to be unjustified, since consumers continually repay the cost of a low-priced or "free" cell phone with a portion of their bill each month.

AT&T's plan is similar to Verizon's. For both, there is no cancellation fee for the 30-day trial period at the beginning of a new cell phone contract, during which new customers can quit the service if they're dissatisfied. Thereafter, the $175 fee on one- and two-year contracts is reduced by $5 for each month you stay with the service.

Two promising new non-iPhones

Cell phones with iPhone-like design are garnering most of the attention as manufacturers begin to roll out their 2008 models. But we're also impressed with some conventional handsets that are taking more original, if not subtler, steps toward better cell-phone design. Here are two of them:

LG enV2 by LG. The original enV, with its tiny, hard-to-see keypad didn't impress us much when it debuted a more than a year ago. But, based on an initial look, this second incarnation, available this month from Verizon for $130 with a 2-year contract, seems to have fixed the problem. For one thing, the keypad is wonderfully large—roomy enough to accommodate the widest thumbs. It's also noticeably thinner and smaller, measuring just 4 in. x 2.13 in.  x 0.65 in. (For a closer look at the enV2, click on the image at right and the one immediate below.)

Like the old enV, it opens up like an eye-glass case to reveal a 2.4-in. screen, stereo speakers, and full QWERTY keyboard to satisfy heavy texters and multimedia addicts (though the keys did appear to be a tad more narrow than those on the original). Other niceties include support for GPS navigation and stereo Bluetooth headsets.

(Complete details of the original LG enV are found in our Ratings of cell phones, both available to ConsumerReports.org subscribers.)

Motorola MOTO Z9. GPS navigation, while flourishing on the Sprint and Verizon networks, has not been an option for most AT&T customers, save for a select group of smart-phone users (that doesn't even include owners of the iPhone, which lacks true GPS). That changes with the Motorola MOTO Z9, available now from AT&T for $250 with a 2-year contract. (Click on the image at right for a closer look.)

This GPS-enabled phone, which is compatible with AT&T's 3G data network, has a large, 2.4-in display that promises comfortable viewing of real-time, turn-by-turn directions offered by the extra-cost service. The Z9 is also compatible with AT&T's Video Share, which lets you stream live, one-way video of your special moments to another compatible phone. You can also download content directly music from eMusic and sideload tunes from Napster To Go. Other features include support for microSD cards up to 8GB and stereo Bluetooth headsets.

—Mike Gikas

HD DVD buyers get some relief

If you're one of the unfortunate souls who succumbed to the lure of a low-priced HD DVD player instead of a more expensive Blu-ray model, take heart: Several major consumer electronics retailers are offering refunds and credits that could help mitigate your pain over the demise of the HD DVD format.

Now that Circuit City's offer—full store credit for the return of a player—has expired, the best remaining deal we've seen is from Wal-Mart, which similarly offers to refund the full sales price of an HD DVD player to customers who purchased a player on or after November 1st, 2007. You need to have the sales receipt and return the player to the store, but you don't need the original packaging. But act soon, as the offer expires April 30th. A company spokesperson told me Wal-Mart is considering some other promotional high-def offers, but they'll probably be later this spring due to the current short supply of Blu-ray players on the market.

At both Amazon and Best Buy, you can get a $50 store credit, and don't even have to return the HD DVD player (you're essentially getting $50 for the trauma of backing the wrong format). At Amazon, those who purchased an HD DVD player directly from the online retailer (and not one of its third-party affiliates) prior to February 23, 2008 are receiving emails with a promotional code for a $50 credit good toward future Amazon purchases. The code is valid through April 9, 2009.

Best Buy's deal—a $50 store gift card— applies to those who purchased an HD DVD player (or an HD DVD add-on for the Xbox 360) before Feb. 23, 2008. The retailer said it's proactively identifying those customers through its Rewards Program, extended service plan documentation and BestBuy.com purchases, and will mail gift cards automatically by May 1st. Others can call Best Buy (1-888-BestBuy), as long as you have a Best Buy receipt or credit-card information to serve as proof of purchase. The offer appears to be good through the end of the year.

If you're a two-time high-def loser—you not only bought an HD DVD player, but got it from a retailer who isn't participating in a return program—Best Buy still feels your pain. The company is accepting HD-DVD player trade-ins, regardless of where it was purchased, via Best Buy's online trade-in center. Though the offer isn't as generous as a full refund, at least it's something you could use toward the purchase of a Blu-ray player. To find out what you'd get for your HD DVD player, visit the Best Buy online trade-in site at https://www.bestbuytradein.com/bb/. And Best Buy customers can essentially double-dip, accepting the $50 gift card, and then trading the player in for additional store credit.

—James K. Willcox

Philco TB100HH9: A DTV set-top box with analog pass-through

With the clock marking the DTV transition ticking more loudly every day, we're starting to see more converter boxes showing up in stores. We recently posted First Look reviews of three boxes—the $50 Magnavox TB100MW9, the $60 Insignia NS-DXA1, and the $60 Zenith DTT900. Now we've just completed our preliminary tests on one of the first boxes with "analog pass-though" capability, the Philco TB100HH9.

Analog pass-through can be an important feature for households in areas served by so-called "low-power" broadcasters. Though all full-power stations are required to broadcast only digital signals as of February 17, 2009, the low-power broadcasters can continue analog broadcasts, at least for the time being. Since the converter box does not include an analog tuner, you will have to continue using your TV's built in analog tuner to pick up these stations. A converter box with analog pass through will not only put digital programs on the RF antenna output to the TV (channel 3 or 4), but will also pass along traditional analog antenna signals as well. For more information, check out "The DTV Transition: The low-down about analog pass-though."

Kids turned cybercriminals

You might know this kid. He's as young as 12 or 13, not all that popular in school. He spends a lot of time online. You figure he's playing World of Warcraft, constantly refining his MySpace pages, or maybe hanging out in Habbo, a virtual world popular with kids. But he may also be wreaking havoc on social networking sites, selling a veritable supermarket full of his own malware, and creating packages of phishing tools.

"These kids are obsessed with phishing," said Chris Boyd, director of malware research for Facetime Communications during a presentation at the RSA Conference, here in San Francisco. They don't see phishing as a problem, Boyd says, because they typically start out stealing large numbers of MySpace pages, then move on to stealing a few PayPal accounts—but for a lot more money.

Today's young hackers consider themselves stars of the cyberworld, not aware or not caring that what they're doing is illegal. "For these kids, it's a game, a hacker version of American Idol," Boyd said. "But the TV show they're really on is America's Most Wanted."

RSA 2008: Only you can prevent cyber-attacks

Ira Winkler looks like a guy with a lot on his mind. And rightly so. After all, he helped orchestrate a hack of a power company, at the request of the company itself, which wanted to test its defenses. It took Winkler, who is president of the Internet Security Advisors Group, and his team just a day to break in. If he'd wanted to, he could potentially have turned out the lights on the power company's customers—or worse, since this company ran a nuclear reactor.

Obviously, the company's defenses did not hold up well. What was most striking was how easy it was for Winkler and his team to break in. One step in accomplishing the task involved tricking employees into clicking on an e-mail that downloaded malicious code onto their work computers.

"There is a major storm brewing that is receiving insufficient attention from the government," Winkler said.

RSA Conference: Assessing online threats

I'm attending the RSA Conference in San Francisco—billed as the "world's largest security conference and expo"—where security software maker Symantec today revealed a few of the latest online threats, and U.S. Department of Homeland Security Secretary Michael Chertoff offered a few insights into what the federal government is doing to protect U.S. cyberspace.

The biggest threat to your personal data, according to Symantec, comes from the loss of laptops, hard drives, and USB drives, which accounted for 57 percent of the data loss outlined in the company's latest Internet Security Threat Report, released today. In addition, 70 percent of the malicious code unleashed in the last six months of 2007 was meant to steal confidential information. Finally, the creation of malicious software is now outpacing the creation of "good" programs, said Steve Trilling, vice president of Symantec Research Labs.

All this stolen information ends up in an underground marketplace that works just like a legitimate economy, Trilling said. Stolen eBay accounts go for about $8, e-mail passwords for $30, credit cards for as little as 40 cents, and bank accounts for up to $1,000 or so, depending on how much money is in the account. Interestingly, the virtual world is one of the most lucrative. A stolen World of Warcraft account can be worth 100 times more than a credit card.

Send in the iClones

Last week at CTIA 2008, the biggest tradeshow in the U.S. devoted to cell phones and other things wireless, key manufacturers Samsung, LG, and Sony Ericsson didn't even try to deny that the upcoming models they eagerly trotted before us bore a strong resemblance to the iPhone.

The newcomers unabashedly borrowed from Apple's hit multimedia smartphone in looks and ergonomic design. Like the iPhone, the Samsung Instinct, the Sony Ericsson X1 (click on the image at right for a closer look), and the LG Vu have a large, dark touch screen (about 3-in. measured diagonally) framed by a shiny metallic edge. Their interfaces, though distinct, all provide a quick way to jump in and out of their many functions, from phone calling and text messaging to media playback and Web browsing. And like the iPhone, if you select the wrong application icon, pushing a home key brings you right back to the main menu.

Pending our thorough tests of these pending pretenders, we can't say how well they stack up against their inspiration. But used briefly on the tradeshow floor, their performances seemed quite impressive, and some even add useful features the iPhone lacks.  Here are my first impressions:

DTV converter coupons: It's now or never

Use 'em or lose 'em. That's the bottom line with the $40 government coupons (seen at right) for buying digital converter boxes. Coupons expire 90 days after issue, and if you haven't used them by then, you're out of luck. You can't request a replacement.

That's a growing concern for consumers who rushed to request coupons earlier this year to ensure they didn't miss out on the program. They're anxious to buy a converter box before the coupon expires, but there are few models now in stores, and all cost more than $40, requiring shoppers to foot part of the bill. There will be $40 boxes this summer, but that's no help for those who need to redeem a coupon before then.

We just checked the websites for Best Buy, Circuit City, Radio Shack, and Wal-mart, and found that each had one or two boxes. Of the boxes listed, all but two cost $60; only Wal-mart had lower-priced models, for $50 and $53. With these four retailers, you can't buy the boxes online; they're available only in retail stores, or by phone from Radio Shack (877-773-8848) and Best Buy (877-229-3889).

XM-Sirius Merger: What it might mean for you

Last week, the Department of Justice granted rivals Sirius Satellite Radio and XM Satellite Radio permission to merge. If the Federal Communications Commission also grants permission in the coming months, as many expect, there could be a single, integrated satellite-radio company by 2009.

Consumers Union, our parent organization, and other industry stakeholders are continuing, however, to fight the merger. Such critics reject the companies' assertions that the merger would be in the consumer interest and say it violates anti-monopoly safeguards the FCC put in place about a decade ago as conditions for the satellite-radio operating licenses.

To help bolster support for the merger, both XM and Sirius have posted the fees and channel lineups they say would be in place after the merger is approved.

The new plans aim to deliver on the consumer benefits the companies promise will result from a merger. But our look at the proposals suggests the pluses generally come with tradeoffs or depend on some as-yet-unanswered questions.

The DTV transition: The low-down on analog pass-through

Most TV stations must stop broadcasting analog signals on February 17, 2009, but some stations don't have to switch completely to digital broadcasts. Low-power TV stations, TV translator stations, and so-called Class A stations can continue broadcasting analog TV signals well after the deadline. If you're in an area served by such a station, you'll want a DTV converter box that can handle both digital and analog signals. Of course, if you're not able to receive any digital stations, there's no rush to buy any converter box, and we anticipate there being a greater assortment of boxes with analog pass-through in the not-too-distant future.

Low-power TV was created in the early 1980s to provide locally oriented or specialized programming to smaller rural towns or small communities within urban areas. TV translator stations boost and re-broadcast the signals of full-power stations to communities that can't receive them either because they're too far away, or because mountains or uneven terrain inhibit reception. Class A stations are a class of low-power stations that are required to air a certain amount of locally produced programming each week.

The vast majority of TV broadcasts are from full-power stations that will switch to digital, but nearly 7,000 low-power and translator stations provide free over-the-air TV programming to viewers. Although they will one day, too, have to make the switch to digital, currently there's no firm timetable for that transition. Therefore, if you're in a market currently being served by such a station, we recommend you get a DTV converter box with "analog pass-though" capability. These boxes allow analog TV signals to pass through the box without being converted to digital so the TV's analog tuner can receive and display them. We recently ran preliminary tests on one of the early pass-through models, the Philco TB100HH9. We'll be posting that review here shortly.

A Lenovo laptop that knows your face

I hate passwords. Or more correctly, I hate how many passwords, PINs and security codes/answers I have to remember.

There are passwords and access codes to get into my home and office computers; my cell phone; my work and personal e-mail accounts; my home, office and cell phone voicemails; my online bank accounts; my wireless home network equipment; my accounts with Web sites such as ConsumerReports.org and this blog...

Maybe that's why I was very interested in the Lenovo IdeaPad Y510, one of the latest notebooks Consumer Reports is testing for our upcoming laptop computer Ratings update. Its most unique feature: It uses your face as the key to personal computer security.

The IdeaPad uses VeriFace, a "facial recognition" program installed in the IdeaPad.  Put simply: You register yourself (and anyone else that you want to have access to the laptop) by letting the software "scan in" the faces in front of the built-in, 1.3-megapixel webcam. Those facial images can then be associated with logins—to a Windows Vista "user" account, for example. That way if you've set the Lenovo to "lock" after a period of inactivity, getting back in is as simple as facing the webcam at the top of the IdeaPad's 15.4-inch LCD screen. This facial recognition scheme can also be used to log you into your Web-based e-mail and other accounts that normally require you to type in a user name and password.

You can review how the Lenovo IdeaPad works by watching our video using the player embedded in this post.

As with other biometric-based security devices (such as fingerprint scanners), VeriFace worked well and wasn't spoofed by simple trickery. But this 007-type approach to PC security wasn't completely flawless. (Hint: Those who wear hats and reflective glasses or typically use their laptops in badly-lit places might have second thoughts about facial recognition security.) And VeriFace still requires typed-in passwords as a back-up means of access—which means it is no less vulnerable to hackers and code-cracking software.

We're still testing the Lenovo IdeaPad and will include it in our Ratings of laptop computers soon on ConsumerReports.org. But one shortcoming that was obvious to me and other testers: Its LCD screen reflected light—a lot. Under our video studio's bright lights, the screen acted like a mirror. Perhaps that's so you can better examine your face before telling the Lenovo's VeriFace software, "I'm ready for my close-up."

—Paul Eng