*Pages 1--4 from Microsoft Word - 30402* Federal Communications Commission DA 03- 2652 Before the Federal Communications Commission Washington, D. C. 20554 In the Matter of ) ) USA Media Group, LLC ) File No. EB- 02- TS- 658 ) Operator of Cable Systems in the States of: ) ) California, Idaho, Nevada, Oregon and ) Washington ) ) Request for Waiver of Section 11. 11( a) of the ) Commission’s Rules ) ORDER Adopted: August 14, 2003 Released: August 18, 2003 By the Chief, Spectrum Enforcement Division, Enforcement Bureau: 1. In this Order, we grant USA Media Group, LLC, (“ USA Media”) temporary waivers of Section 11.11( a) of the Commission’s Rules (“ Rules”) for 28 cable television systems in the five above-captioned states. 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 Commission declined to exempt small cable systems from the EAS requirements, concluding that such an 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 03- 2652 2 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. USA Media filed a request for temporary, 36- month waivers of Section 11.11( a) for 28 cable systems in the five captioned states on October 4, 2002. In support of its waiver request, USA Media states that these are small, rural cable systems which serve between 19 and 477 subscribers. Based on price quotes provided by EAS equipment manufacturers, USA Media estimates that it would cost at a minimum approximately $238,000 to install EAS equipment at these cable systems. USA Media 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, USA Media submits that its subscribers will continue to have ready access to national EAS information from other sources, including its cable systems. USA Media further submits 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 USA Media, we conclude that temporary waivers of Section 11.11( a) for the 28 cable television systems from October 4, 2002 until October 1, 2005 are warranted. 9 However, we note that USA Media did not file its waiver request until October 4, 2002, after the October 1, 2002 deadline for cable systems serving 10,000 or fewer subscribers to install EAS equipment. We find that USA Media was in violation of the requirement in Section 11.11( a) of the Rules to install EAS equipment by October 1, 2002. We admonish USA Media for this violation. 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 5 Id. at 15512- 13. 6 Id. at 15516- 15518. 7 Id. at 15513. 8 Id. at 15513, n. 59. 9 We clarify that the waivers we are granting also encompass the EAS testing and monitoring requirements. 2 Federal Communications Commission DA 03- 2652 3 encoders and decoders. 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 USA Media Group, LLC IS GRANTED a waiver of Section 11.11( a) of the Rules from October 4, 2002 until October 1, 2005 for the 28 cable television systems in Attachment A. 7. IT IS FURTHER ORDERED that USA Media Group, LLC IS ADMONISHED for violating the requirement in Section 11. 11( a) of the Rules to install EAS equipment by October 1, 2002. 8. IT IS FURTHER ORDERED that USA Media Group, LLC place a copy of this waiver in its system files. 9. IT IS FURTHER ORDERED that a copy of this Order shall be sent by Certified Mail Return Receipt Requested to counsel for USA Media Group, LLC, Julie Kaminski Corsig, Esq., Davis Wright Tremaine LLP, Suite 450, 1500 K Street, N. W., Washington, D. C. 2005- 1272. FEDERAL COMMUNICATIONS COMMISSION Joseph P. Casey Chief, Spectrum Enforcement 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 Federal Communications Commission DA 03- 2652 4 Attachment A USA Media Group, LLC Cable Systems: Temporary Waiver Granted Until: California Auburn Valley, California October 1, 2005 Bridgeport, California October 1, 2005 Chalfant, California October 1, 2005 Crowley Lake, California October 1, 2005 Lee Vining, California October 1, 2005 Idaho Avery, Idaho October 1, 2005 Canyon, Idaho October 1, 2005 Culdesac, Idaho October 1, 2005 Harrison, Idaho October 1, 2005 Kooskia, Idaho October 1, 2005 Murray, Idaho October 1, 2005 Prichard, Idaho October 1, 2005 Riggins, Idaho October 1, 2005 Nevada Verdi, Nevada October 1, 2005 Oregon Knappa, Oregon October 1, 2005 Westport, Oregon October 1, 2005 Washington Almira, Washington October 1, 2005 Chattaroy, Washington October 1, 2005 Chinook Pass, Washington October 1, 2005 Coulee City, Washington October 1, 2005 Davenport, Washington October 1, 2005 Diamond Lake, Washington October 1, 2005 Malaga, Washington October 1, 2005 Mattawa, Washington October 1, 2005 Orcas Island, Washington October 1, 2005 Royal City, Washington October 1, 2005 Wilbur, Washington October 1, 2005 Wilson Creek, Washington October 1, 2005 4