*Pages 1--6 from Microsoft Word - 25389.doc* Federal Communications Commission DA 03- 553 Before the Federal Communications Commission Washington, D. C. 20554 In the Matter of ) ) Charter Communications, Inc. ) File No. EB- 02- TS- 459 ) Operator of Cable Systems in the States of: ) ) Colorado, Georgia, Idaho, Illinois, Indiana, ) Kentucky, Louisiana, Michigan, Mississippi, ) Missouri, Nebraska, Nevada, North Carolina, ) Oklahoma, Tennessee, Texas, Utah, Washington ) ) Request for Waiver of Section 11. 11( a) of the ) Commission’s Rules ) ORDER Adopted: February 25, 2003 Released: March 3, 2003 By the Chief, Technical and Public Safety Division, Enforcement Bureau: 1. In this Order, we grant Charter Communications, Inc. (“ Charter Cable”) temporary, 36- month waivers of Section 11.11( a) of the Commission’s Rules (“ Rules”) for 69 cable television systems in 18 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 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 03- 553 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. On August 23, 2002, Charter filed a request for temporary, three- year waivers of Section 11.11( a) for 69 small, rural cable systems in the 18 captioned states. Charter states that these cable systems serve 100 or fewer subscribers. Based on price quotes provided by EAS equipment manufacturers, Charter estimates that it would cost a total of approximately $655,500 to install EAS equipment at the 69 systems. Charter 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, Charter submits that its subscribers will continue to have ready access to national EAS information from other sources, including its cable systems. Charter also asserts that its subscribers will have access to EAS information through over- the- air reception of broadcast television and radio stations. Finally, Charter believes that it can ensure that all stand alone systems comply with EAS requirements within three years. 4. Based upon our review of the financial data and other information submitted by Charter, we conclude that temporary, 36- month waivers of Section 11.11( a) for the 69 cable systems in the captioned states are warranted. 9 In particular, we find that the estimated $655,500 cost to install EAS equipment at these cable systems could impose a financial hardship on Charter. 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 12- month waiver will extend from October 1, 2002, until October 1, 2003, and the 36- month waiver 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 03- 553 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 Charter Communications, Inc. IS GRANTED a waiver of Section 11. 11( a) of the Rules until October 1, 2005 for 69 cable television systems listed in Attachment A. 7. IT IS FURTHER ORDERED that Charter Communications, Inc. place a copy of this waiver in its system files. 8. IT IS FURTHER ORDERED that a copy of this Order shall be sent by Certified Mail Return Receipt Requested to counsel for Charter Communications, Inc., Timothy P. Tobin, Esq., Cole, Raywid & Braverman, LLP, 1919 Pennsylvania Avenue, N. W., Suite 200, Washington, D. C. 20006. 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 Federal Communications Commission DA 03- 553 4 Attachment A Charter Communications, Inc. Cable Systems: Waivers Granted Until: Colorado Fleming, Colorado October 1, 2005 Georgia Tignall, Georgia October 1, 2005 Idaho Donnelly, Idaho October 1, 2005 Illinois Enfield, Illinois October 1, 2005 Indiana Lynnville, Indiana October 1, 2005 Troy, Indiana October 1, 2005 Kentucky Bradfordsville, Kentucky October 1, 2005 Greenup, Kentucky October 1, 2005 Louisiana Dixie Inn, Louisiana October 1, 2005 Sicily Island, Louisiana October 1, 2005 Tangipahoa Village, Louisiana October 1, 2005 Michigan Ashley, Michigan October 1, 2005 Barryton, Michigan October 1, 2005 Barton City, Michigan October 1, 2005 Brethren, Michigan October 1, 2005 Broomfield, Michigan October 1, 2005 Freesoil, Michigan October 1, 2005 Luzerne, Michigan October 1, 2005 Mesick, Michigan October 1, 2005 Mikado, Michigan October 1, 2005 Perrinton, Michigan October 1, 2005 Prescot, Michigan October 1, 2005 Sterling, Michigan October 1, 2005 Wellston, Michigan October 1, 2005 Woodland, Michigan October 1, 2005 4 Federal Communications Commission DA 03- 553 5 Cable Systems: Waivers Granted Until: Mississippi Osyka, Mississippi October 1, 2005 Missouri Annapolis, Missouri October 1, 2005 Bell City, Missouri October 1, 2005 Cairo, Missouri October 1, 2005 Chamois, Missouri October 1, 2005 Fisk, Missouri October 1, 2005 Qulin, Missouri October 1, 2005 Nebraska Boelus, Nebraska October 1, 2005 Elba, Nebraska October 1, 2005 Dannebrog, Nebraska October 1, 2005 Mason City, Nebraska October 1, 2005 Oconto, Nebraska October 1, 2005 Talmage, Nebraska October 1, 2005 Nevada Lockwood, Nevada October 1, 2005 North Carolina Ashe, North Carolina October 1, 2005 Oklahoma Adair, Oklahoma October 1, 2005 Agra, Oklahoma October 1, 2005 Boynton, Oklahoma October 1, 2005 Carney, Oklahoma October 1, 2005 Cromwell, Oklahoma October 1, 2005 Colcord, Oklahoma October 1, 2005 Depew, Oklahoma October 1, 2005 Dustin, Oklahoma October 1, 2005 Hulbert, Oklahoma October 1, 2005 Kansas, Oklahoma October 1, 2005 Kellyville, Oklahoma October 1, 2005 Luther, Oklahoma October 1, 2005 Marland, Oklahoma October 1, 2005 Milburn, Oklahoma October 1, 2005 Porter, Oklahoma October 1, 2005 Tryon, Oklahoma October 1, 2005 Wyandotte, Oklahoma October 1, 2005 5 Federal Communications Commission DA 03- 553 6 Cable Systems: Waivers Granted Until: Tennessee West Pointe, Tennessee October 1, 2005 Texas Kosse, Texas October 1, 2005 Leona, Texas October 1, 2005 Lipan, Texas October 1, 2005 Midway, Texas October 1, 2005 North Zulch, Texas October 1, 2005 Richland Springs, Texas October 1, 2005 Spicewood Beach, Texas October 1, 2005 Tilden, Texas October 1, 2005 Utah Rockville, Utah October 1, 2005 Washington Northport, Washington October 1, 2005 Starbuck, Washington October 1, 2005 6