*Pages 1--4 from Microsoft Word - 22554.doc* Federal Communications Commission DA 02- 2864 Before the Federal Communications Commission Washington, D. C. 20554 In the Matter of ) ) Northland Cable Television, Inc. ) File No. EB- 02- TS- 467 ) Operator of Cable Systems in the States of: ) ) California, South Carolina and Texas ) ) Request for Waiver of Section 11. 11( a) of the ) Commission’s Rules ) ORDER Adopted: October 29, 2002 Released: November 1, 2002 By the Chief, Technical and Public Safety Division, Enforcement Bureau: 1. In this Order, we grant Northland Cable Television, Inc. (“ Northland”) temporary waivers of Section 11.11( a) of the Commission’s Rules (“ Rules”) for 15 cable television systems in the three above- captioned states. Specifically, we grant temporary 36- month waivers of Section 11.11( a) for the 15 cable television systems in Attachment A. Section 11.11( a) requires cable systems serving fewer than 5,000 subscribers from a headend to either provide national level Emergency Alert System (“ EAS”) messages on all programmed channels or install 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 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 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 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”). 1 Federal Communications Commission DA 02- 2864 2 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. Northland filed a request for a waiver or alternative a five- year extension of time of Section 11.11( a) for the 15 small, rural cable systems in the three captioned states on August 27, 2002. In support of its waiver request, Northland states that these small, rural cable systems serve between 126 and 885 subscribers. Based on price quotes provided by EAS equipment manufacturers, Northland estimates that it would cost approximately $105,000 to install EAS equipment at these systems. Northland asserts that this cost will impose a substantial financial hardship on it and provides its financial statement for 2001 in support of this assertion. In addition, Northland submits that its subscribers will continue to have ready access to national EAS information from other sources, including its cable systems. Northland also asserts that its subscribers will have access to EAS information through over- the- air reception of broadcast television and radio stations. 4. Based upon our review of the financial data and other information submitted by Northland, we decline to grant Northland a temporary, five- year waiver of Section 11.11. However, we conclude that a temporary, 36- month waiver of Section 11.11( a) for the 15 captions cable television systems in Attachment A are warranted. 9 In particular, we find that the estimated $105,000 cost to install EAS equipment for these 15 systems could impose a financial hardship on Northland. 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 5 Id. at 15512- 13. 6 Id. at 15516- 15518. 7 Id. at 15513. 8 Id. at 15513, n. 59. 9 The waivers will extend from October 1, 2002 until October 1, 2005. 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). 2 Federal Communications Commission DA 02- 2864 3 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 Northland Cable Television, Inc. IS GRANTED waivers of Section 11.11( a) of the Rules until October 1, 2005 for the 15 captioned cable television systems listed in Attachment A. 7. IT IS FURTHER ORDERED that Northland Cable Television, Inc., place a copy of this waiver in its systems files. 8. IT IS FURTHER ORDERED that a copy of this Order shall be sent by Certified Mail Return Receipt Requested to counsel for Northland Cable Television, Inc., Maria T. Browne Esq., Cole, Raywid & Braverman, LLP, 1919 Pennsylvania Avenue, Suite 200, Washington, D. C. 20006. FEDERAL COMMUNICATIONS COMMISSION Joseph P. Casey Chief, Technical and Public Safety Division Enforcement Bureau 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- 2864 4 Attachment A Northland Cable Television, Inc. Cable Systems: Temporary Waiver Granted Until: California Coursegold, California October 1, 2005 Fish Camp, California October 1, 2005 Lushmeadow, California October 1, 2005 Mariposa, California October 1, 2005 South Carolina: Five Points, South Carolina October 1, 2005 Saluda, South Carolina October 1, 2005 Texas: Buffalo, Texas October 1, 2005 Coolidge, Texas October 1, 2005 Dublin, Texas October 1, 2005 Hamilton, Texas October 1, 2005 Hico, Texas October 1, 2005 Jewett, Texas October 1, 2005 Lake Buchanan, Texas October 1, 2005 Llano, Texas October 1, 2005 Wortham, Texas October 1, 2005 4