*Pages 1--4 from Microsoft Word - 20148.doc* Federal Communications Commission DA 02- 1748 Before the Federal Communications Commission Washington, D. C. 20554 In the Matter of ) ) Cable & Communications Corporation d/ b/ a ) File No. EB- 02- TS- 049 Mid- Rivers Cable Television ) ) Operator of Cable Systems in: ) ) Glendive, Montana ) Sidney, Montana ) Roundup, Montana ) Wibaux, Montana ) Circle, Montana ) Jordan, Montana ) Ekalaka, Montana ) Richey, Montana ) ) Request for Waiver of Section 11. 11( a) of the ) Commission’s Rules ) ORDER Adopted: July 25, 2002 Released: July 30, 2002 By the Chief, Technical and Public Safety Division, Enforcement Bureau: 1. In this Order, we grant Cable & Communications Corporation d. b. a. Mid- Rivers Cable Television (“ Mid- Rivers”) temporary waivers of Section 11.11( a) of the Commission’s Rules (“ Rules”) for the each of the eight above- captioned cable television systems. Specifically, we grant a temporary, 12- month waiver of Section 11.11( a) for the Glendive, Montana system, a temporary, 24- month waiver of Section 11.11( a) for the Sidney, Montana system and a temporary, 36- month waiver of Section 11.11( a) for the Roundup, Montana; Wibaux, Montana; Circle, Montana; Jordan, Montana; Ekalaka, Montana; and Richey, Montana systems. Section 11.11( a) requires cable systems serving fewer than 5,000 subscribers from a headend to either provide national level EAS messages on all programmed channels or install Emergency Alert System (“ EAS”) equipment and provide a video interrupt and audio alert on all programmed channels and EAS audio and video messages on at least one programmed channel by October 1, 2002. 1 2. The Cable Act of 1992 added new Section 624( g) to the Communications Act of 1934 (“ Act”), which requires that cable systems be capable of providing EAS alerts to their subscribers. 2 In 1 47 C. F. R. § 11.11( a). 2 Cable Television Consumer Protection and Competition Act of 1992, Pub. L. No. 102- 385, § 16( b), 106 Stat. 1460, 1490 (1992). Section 624( g) provides that “each cable operator shall comply with such standards as the Commission shall prescribe to ensure that viewers of video programming on cable systems are afforded the same 1 Federal Communications Commission DA 02- 1748 2 1994, the Commission adopted rules requiring cable systems to participate in EAS. 3 In 1997, the Commission amended the EAS rules to provide financial relief for small cable systems. 4 The Commission declined to exempt small cable systems from the EAS requirements, concluding that such an exemption would be inconsistent with the statutory mandate of Section 624( g). 5 However, the Commission extended the deadline for cable systems serving fewer than 10, 000 subscribers to begin complying with the EAS rules to October 1, 2002, and provided cable systems serving fewer than 5,000 subscribers the option of either providing national level EAS messages on all programmed channels or installing EAS equipment and providing a video interrupt and audio alert on all programmed channels and EAS audio and video messages on at least one programmed channel. 6 In addition, the Commission stated that it would grant waivers of the EAS rules to small cable systems on a case- by- case basis upon a showing of financial hardship. 7 The Commission indicated that waiver requests must contain at least the following information: (1) justification for the waiver, with reference to the particular rule sections for which a waiver is sought; (2) information about the financial status of the requesting entity, such as a balance sheet and income statement for the two previous years (audited, if possible); (3) the number of other entities that serve the requesting entity’s coverage area and that have or are expected to install EAS equipment; and (4) the likelihood (such as proximity or frequency) of hazardous risks to the requesting entity’s audience. 8 3. Mid- Rivers filed a request for temporary waiver of Section 11.11( a) for each of the eight captioned cable systems on January 30, 2001. Mid- Rivers seeks a 12- month waiver for the Glendive, Montana system, a 24- month waiver for the Sidney, Montana system and a 36- month waiver for the Roundup, Montana; Wibaux, Montana; Circle, Montana; Jordan, Montana; Ekalaka, Montana; and Richey, Montana systems. In support of its waiver request, Mid- Rivers states that each of the eight systems serves small, rural communities and each system serves between 68 and 1,445 subscribers. Based on price quotes provided by EAS equipment manufacturers, Mid- Rivers estimates that it would cost approximately $9,000 to install EAS equipment at each of these systems for a total cost of $72,000. Mid- Rivers asserts that the cost of installing EAS equipment at the eight systems will impose a substantial financial hardship on it and provides financial statements for 2000 and 2001 in support of this assertion. In addition, Mid- Rivers submits that its subscribers will continue to have ready access to national EAS information on at least one- third of all programmed channels carried on its systems. Mid- emergency information as is afforded by the emergency broadcasting system pursuant to Commission regulations ….” 47 U. S. C. § 544( g). 3 Amendment of Part 73, Subpart G, of the Commission’s Rules Regarding the Emergency Broadcast System, Report and Order and Further Notice of Proposed Rule Making, FO Docket Nos. 91- 171/ 91- 301, 10 FCC Rcd 1786 (1994) (“ First Report and Order”), reconsideration granted in part, denied in part, 10 FCC Rcd 11494 (1995). 4 Amendment of Part 73, Subpart G, of the Commission’s Rules Regarding the Emergency Broadcast System, Second Report and Order, FO Docket Nos. 91- 171/ 91- 301, 12 FCC Rcd 15503 (1997) (“ Second Report and Order”). 5 Id. at 15512- 13. 6 Id. at 15516- 15518. 7 Id. at 15513. 8 Id. at 15513, n. 59. 2 Federal Communications Commission DA 02- 1748 3 Rivers also asserts that its subscribers will have access to EAS information through over- the- air reception of broadcast television and radio stations and other sources. Finally, Mid- Rivers believes that it can fund EAS equipment for the eight systems by phasing them into compliance over the next three years. 4. Based upon our review of the financial data and other information submitted by Mid-Rivers, we conclude that a 12- month waiver of Section 11. 11( a) for the Glendive, Montana system, a 24- month waiver of Section 11.11( a) for the Sidney, Montana system and a 36- month waiver of Section 11.11( a) for Roundup, Montana; Wibaux, Montana; Circle, Montana; Jordan, Montana; Ekalaka, Montana; and Richey, Montana systems are warranted. 9 In particular, we find that the estimated $72,000 cost of EAS equipment for these small cable systems, which are slated for elimination, could impose a financial hardship on Mid- Rivers. 5. We note that the Commission recently amended the EAS rules to permit cable systems serving fewer than 5,000 subscribers to install FCC- certified decoder- only units, rather than both encoders and decoders, if such a device becomes available. 10 Based on comments from equipment manufacturers, we anticipate that such a decoder- only system could result in significant cost savings to small cable systems. 11 6. Accordingly, IT IS ORDERED that, pursuant to Sections 0.111, 0.204( b) and 0.311 of the Rules, 12 Cable & Communications Corporation d. b. a. Mid- Rivers Cable Television IS GRANTED a waiver of Section 11.11( a) of the Rules until October 1, 2003 for its Glendive, Montana cable system, IS GRANTED a waiver of Section 11.11( a) of the Rules until October 1, 2004 for its Sidney, Montana cable system and IS GRANTED a waiver of Section 11.11( a) of the Rules until October 1, 2005 for its Roundup, Montana; Wibaux, Montana; Circle, Montana; Jordan, Montana; Ekalaka, Montana; and Richey, Montana cable systems. 7. IT IS FURTHER ORDERED that Cable & Communications Corporation d. b. a. Mid-Rivers Cable Television place a copy of this waiver in its system files. 9 The waiver for the Glendive, Montana system will extend 12 months from October 1, 2002, until October 1, 2003, the waiver for the Sidney, Montana system will extend 24 months from October 1, 2002, until October 1, 2004 and the waiver for the Roundup, Montana; Wibaux, Montana; Circle, Montana; Jordan, Montana; Ekalaka, Montana; and Richey, Montana systems will be extend 36 months from October 1, 2002, until October 1, 2005. Mid- Rivers also specifically requested waiver of the testing and monitoring requirements of the EAS rules for these eight systems. We clarify that the waivers we are granting also encompass the EAS testing and monitoring requirements. 10 Amendment of Part 11 of the Commission’s Rules Regarding the Emergency Alert System, EB Docket 01- 66, FCC 02- 64 at ¶ 71 (released February 26, 2002). 11 One manufacturer estimated that an EAS decoder- only system can reduce the cost by 64% over what a cable operator would spend for an encoder/ decoder unit. Id. at ¶ 70. 12 47 C. F. R. §§ 0.111, 0. 204( b) and 0.311. 3 Federal Communications Commission DA 02- 1748 4 8. IT IS FURTHER ORDERED that a copy of this Order shall be sent by Certified Mail Return Receipt Requested to counsel for Cable & Communications Corporation d. b. a. Mid- Rivers Cable Television, Christopher C. Cinnamon, Esq., Cinnamon Mueller, 307 North Michigan Avenue, Suite 1020, Chicago, Illinois 60601. FEDERAL COMMUNICATIONS COMMISSION Joseph P. Casey Chief, Technical and Public Safety Division Enforcement Bureau 4