Report No. CI 99-2       COMPLIANCE AND INFORMATION ACTION    January 8, 1999

    FCC RELEASES THIRD REPORT AND ORDER REGARDING EAS RULES


     On December 23, 1998, The Federal Communications Commission (FCC) released the
Third Report and Order (Third R&O) regarding the Emergency Alert System (EAS).  In the Third
R&O, the Commission declined to adopt rules that would require cable systems to install selective
channel override equipment for use during EAS activations.

     After carefully considering the record in this proceeding, the Commission believes that
voluntary selective override is preferable to a mandatory scheme.  The Commission encourages
cooperation between cable operators and broadcasters.  The rules permit the establishment of
written agreements between cable systems and broadcast stations regarding the display of EAS
messages.  Broadcasters that chose to provide emergency programming to the public may ensure
the integrity of the programming with such an agreement.  The cable system will also be able to
display EAS massages on those channels that may not provide emergency programming.  The
Commission decision does not affect any existing cable franchise or municipal agreements.

     Effective December 31, 1998, cable systems that serve 10,000 or more subscribers from a
headend are required to have EAS equipment in place and operational.  EAS rules require that all
EAS participants perform required equipment testing, and upon request by the President, deliver a
national alert message.  State and local EAS messages, however, are conveyed to the public on a
voluntary basis.

                            - FCC -