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

In the Matter of                )
                                )
Ind. Co. Cable TV, Inc.         )
                                )    File No. EB-02-TS-208
Operator of Cable Systems in the State of:   )
                                )
Arkansas                        )
                                )
Request for Waiver of Section 11.11(a) of the     )    
Commission's Rules              )    
                                        
                              ORDER 

Adopted:  October 1, 2002               Released:    October   7, 
2002 

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

1.        In  this  Order,  we  grant  Ind.Co.  Cable  TV,   Inc. 
  (``Ind.Co. Cable'')  temporary waivers of  Section 11.11(a)  of 
  the  Commission's Rules  (``Rules'')  for 22  cable  television 
  systems in the  above-captioned state.  Specifically, we  grant 
  24-month  waivers of  Section 11.11(a)  for two  cable  systems 
  listed  in  Attachment  A  and  36-month  waivers  of   Section 
  11.11(a) for 20 cable systems listed in Attachment A.   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.        On May  23, 2002,  Ind.Co. Cable  filed a  request  for 
  temporary, 24-month  and 36-month waivers  of Section  11.11(a) 
  for 22 cable systems  in the State of Arkansas.  In support  of 
  its waiver request,  Ind.Co Cable states that these are  small, 
  rural cable systems with the largest two systems, Pangburn  and 
  Forrest City,  serving 824 and  883 subscribers,  respectively, 
  and the  20 smaller  systems each  serving between  29 and  755 
  subscribers.   Based  on  price  quotes  provided  by  an   EAS 
  equipment manufacturer, Ind.Co.  Cable estimates that it  would 
  cost  between $7,290  and $7,790  to install  EAS equipment  at 
  each of  these systems.  Ind.Co. Cable  asserts that this  cost 
  will  impose  a  substantial  financial  hardship  on  it   and 
  provides  its  2001 financial  statement  in  support  of  this 
  assertion.   In  addition,   Ind.Co  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,  Ind.Co  Cable  notes  that  its  subscribers 
  currently have access to national EAS messages on at least  38% 
  of their programmed channels.  Ind.Co. 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  Ind.Co.  Cable,  we  conclude  that 
  temporary, 24-month waivers  of Section 11.11(a) are  warranted 
  for  the  largest   two  cable  systems  in  Attachment  A  and 
  temporary, 36-month waivers  of Section 11.11(a) are  warranted 
  for  the  smaller  20  cable  systems  in  Attachment  A.9   In 
  particular, we find that  the estimated $7,290 or more cost  of 
  EAS  equipment for  each of  these  small cable  systems  could 
  impose a financial hardship on Ind.Co. 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  Ind.Co. Cable  TV, 
  Inc.  IS GRANTED  a waiver  of Section  11.11(a) of  the  Rules 
  until  October 1,  2004 for  two  cable television  systems  in 
  Attachment A  and IS GRANTED  a waiver of  Section 11.11(a)  of 
  the Rules  until October 1,  2005 for 20  cable televisions  in 
  Attachment A.

7.        IT IS FURTHER ORDERED that Ind.Co. Cable TV, 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 counsel  for 
  Ind.Co.  Cable  TV,   Inc.,  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


Attachment A


Cable Systems:                          Temporary Waiver Granted 
Until:


Forrest City, Arkansas                       October 1, 2004
Pangburn, Arkansas                      October 1, 2004
Black Rock, Arkansas                         October 1, 2005
Bradford, Arkansas                      October 1, 2005
Calico Rock, Arkansas                        October 1, 2005
Cushman, Arkansas                       October 1, 2005
Diamond City, Arkansas                  October 1, 2005
Evening Shade, Arkansas                 October 1, 2005
Guion, Arkansas                         October 1, 2005
Gum Springs, Arkansas                        October 1, 2005
Melbourne, Arkansas                     October 1, 2005
Moro, Arkansas                          October 1, 2005
Mt. Pleasant, Arkansas                  `    October 1, 2005
Newark, Arkansas                        October 1, 2005
Oil Trough, Arkansas                         October 1, 2005
Plainview, Arkansas                     October 1, 2005
Pleasant Plains, Arkansas                    October 1, 2005
Russell, Arkansas                       October 1, 2005
Sidney, Arkansas                        October 1, 2005
Tumbling Shoals, Arkansas                    October 1, 2005
Tupelo, Arkansas                        October 1, 2005
Yellville, Arkansas                     October 1, 2005



_________________________

  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 24-month waivers will extend from October 1, 2002,  until 
October 1,  2004,  and  the 36-month  waivers  will  extend  from 
October 1, 2002, until October 1, 2005.  Additionally, 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.