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                           Before the
                Federal Communications Commission
                     Washington, D.C. 20554

In the Matter of                )
                                )
HLM Cable Corporation           )    File No. EB-02-TS-196
                                )
Operator of Cable Systems in:   )
                                )    
Auburndale, Wisconsin           )
Junction City, Wisconsin        )
Pittsville, Wisconsin           )
Rudolph, Wisconsin              )
Vesper, Wisconsin               )
                                )
Request for Waiver of Section 11.11(a) of the     )    
Commission's Rules              )    
                                        
                              ORDER 

Adopted:  September 24, 2002            Released:  September  27, 
2002

By the Chief, Technical  and Public Safety Division,  Enforcement 
Bureau:

      1.  In this Order,  we grant HLM  Cable Corporation  (``HLM 
        Cable'') temporary, 36-month waivers of Section  11.11(a) 
        of  the  Commission's  Rules  (``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 
        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.  HLM Cable  filed  a  request  for  temporary,  36-month 
        waivers of Section 11.11(a) for the five captioned  cable 
        systems  on  May 16,  2002.   In support  of  its  waiver 
        request,  HLM Cable  states that  the five  small,  rural 
        cable systems each serve between 68 and 320  subscribers.  
        Based  on a  price  quote provided  by an  EAS  equipment 
        manufacturer,  HLM Cable  estimates that it  will cost  a 
        total of  approximately $46,470 to install EAS  equipment 
        at  the five systems.  HLM  Cable 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,  HLM  Cable 
        submits that its subscribers will continue to have  ready 
        access  to national EAS  information from other  sources, 
        including its  cable systems.  In this regard, HLM  Cable 
        notes  that  its  subscribers currently  have  access  to 
        national  EAS messages  on  at least  42 percent  of  all 
        programmed  channels.  HLM  Cable also  asserts that  its 
        subscribers will  have access to EAS information  through 
        over-the-air reception of broadcast television and  radio 
        stations.   Finally, HLM  believes that it  can fund  EAS 
        equipment for these systems in the next three years.  

      4.  Based upon our review of  the financial data and  other 
        information  submitted by HLM Cable,  we conclude that  a 
        temporary,  36-month waiver of  Section 11.11(a) for  the 
        five captioned systems is warranted.9  In particular,  we 
        find  that the  estimated $46,470 cost  of EAS  equipment 
        for  these small cable systems  could impose a  financial 
        hardship on HLM Cable.  

      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 
        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  HLM  Cable 
        Corporation  IS GRANTED a waiver  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 HLM Cable Corporation  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  HLM  Cable  Corporation,  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
_________________________

  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'').

  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  36 months  from October  1,  2002, 
until October 1, 2005.  HLM  Cable also requested  waiver of  the 
testing and monitoring  requirements of the  EAS rules for  these 
systems.  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).

  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.