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

In the Matter of                )
                                )
Grove Communications Inc. d/b/a )    File No. EB-02-TS-138
Grove Cable Co.                 )    
                                )
Operator of Cable Systems in:   )
                                )    
Grand Marais, Michigan          )
Republic, Michigan              )
Seney, Michigan                 )
Shingleton, Michigan            )
                                )
Request for Waiver of Section 11.11(a) of the     )    
Commission's Rules              )    
                                        
                              ORDER 

Adopted:  September 27, 2002            Released:    October   4, 
2002

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

1.        In this Order, we grant Grove Communications Inc. d/b/a 
  Grove Cable Co.  (``Grove Cable'') temporary, 36-month  waivers 
  of Section 11.11(a)  of the Commission's Rules (``Rules'')  for 
  the  four 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.        Grove Cable filed  a request  for a  waiver of  Section 
  11.11(a)  for the  four captioned  cable  systems on  March  1, 
  2002.  In  support of  its waiver request,  Grove Cable  states 
  that each of  the four systems serves small, rural  communities 
  and has few  subscribers.  Specifically, Grove Cable  indicates 
  that the  Seney system  serves 42  subscribers, the  Shingleton 
  system serves 152  subscribers, the Grand Marais system  serves 
  237   subscribers,  and   the   Republic  system   serves   267 
  subscribers.   Based  on  a price  quote  provided  by  an  EAS 
  equipment  manufacturer, Grove  Cable estimates  that it  would 
  cost approximately $6,250  to install EAS equipment at each  of 
  these  systems  for  a total  cost  of  $25,000.   Grove  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,  Grove 
  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,  Grove  Cable 
  notes that  its subscribers currently  have access to  national 
  EAS  messages on  approximately 25  percent of  all  programmed 
  channels.  Grove Cable  also asserts 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   Grove  Cable,  we  conclude   that 
  temporary, 36-month  waivers of Section  11.11(a) for the  four 
  captioned systems are warranted.9  In particular, we find  that 
  the estimated  $25,000 cost for EAS  equipment for these  small 
  cable  systems  could impose  a  financial  hardship  on  Grove 
  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 Grove  Communications 
  Inc.  d/b/a Grove  Cable  Co.  IS GRANTED  waivers  of  Section 
  11.11(a)  of the  Rules  until October  1,  2005 for  the  four 
  captioned cable television systems.

7.        IT IS FURTHER  ORDERED that  Grove Communications  Inc. 
  d/b/a  Grove Cable  Co. 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  Robert 
  Grove, President, Grove  Communications Inc. d/b/a Grove  Cable 
  Co., 115 Glenwood Road, Marquette, Michigan 49855.

                         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 for  the four systems will extend 36 months  from 
October 1,  2002, until  October 1,  2005.  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.