*Pages 1--3 from Microsoft Word - 22557.doc* Federal Communications Commission DA 02- 2867 Before the Federal Communications Commission Washington, D. C. 20554 In the Matter of ) ) Sky Cablevision Ltd. ) File No. EB- 02- TS- 493 ) Operator of Cable Systems in: ) ) Bellamy, Alabama ) Boligee, Alabama ) Forkland, Alabama ) Providence, Alabama ) Sweetwater, Alabama ) 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 Sky Cablevision Ltd. (“ Sky Cablevision”) temporary, 36- month waivers of Section 11.11( a) of the Rules for the five above- captioned cable television systems. 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, 1 Federal Communications Commission DA 02- 2867 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. Sky Cablevision filed a request for temporary, 36- month waivers of Section 11.11( a) for the five captioned cable systems on September 5, 2002. In support of its waiver request Sky Cablevision states that these cable systems serve between 103 and 379 subscribers. Based on price quotes provided by EAS equipment manufacturers, Sky Cablevision estimates that it would cost approximately $50, 000 to install EAS equipment at these systems. Sky Cablevision asserts that this cost will impose a substantial financial hardship on it and provides its financial statements for 2000 and 2001 in support of this assertion. In addition, Sky Cablevision submits that its subscribers will continue to have ready access to national EAS information from other sources, including its cable systems. In this regard, Sky Cablevision notes that its subscribers currently have access to national EAS messages on a substantial percentage of all programmed channels. Sky Cablevision further indicates that subscribers will have access to EAS information through over- the- air reception of broadcast television and other sources. 4. Based upon our review of the financial data and other information submitted by Sky Cablevision, we conclude that temporary, 36- month waivers of Section 11.11( a) for the five captioned cable systems are warranted. 9 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 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. 9 The 36- month 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. 2 Federal Communications Commission DA 02- 2867 3 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 Sky Cablevision, Ltd. IS GRANTED waivers of Section 11. 11( a) of the Rules until October 1, 2005 for the five captioned cable television systems. 7. IT IS FURTHER ORDERED that Sky Cablevision, Ltd., 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 Sky Cablevision, Ltd., 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 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