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

In the Matter of                )
                                )
Millennium Digital Media Systems, L.L.C.     )    File No. EB-02-
TS-232
                                )
Operator of Cable Systems in the States of:  )
                                )    
Idaho, Michigan, Oregon and Washington  )
                                )
                                )
Request for Waiver of Section 11.11(a) of the     )    
Commission's Rules              )    
                                        
                              ORDER 

Adopted:  October 9,  2002              Released:   October   10,  
2002

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


1.        In  this  Order,  we  grant  Millennium  Digital  Media 
  Systems, L.L.C.  (``Millennium'')  temporary, 12-month  waivers 
  of Section 11.11(a)  of the Commission's Rules (``Rules'')  for 
  six  cable television  systems in  two of  the  above-captioned 
  states and temporary,  36-month waivers of Section 11.11(a)  of 
  the  Rules for  26  cable television  systems  in four  of  the 
  above-captioned  states as  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  June  4,  2002,  Millennium  filed  a  request  for 
  temporary,  36 month  waivers  of    Section  11.11(a)  for  32 
  small, rural  cable television  systems operating  in the  four 
  captioned   states.   In   support  of   its  waiver   request, 
  Millennium states that  six of the cable systems serve  between 
  1,071 and 1,603 subscribers  and 26 of the cable systems  serve 
  between  37  and  976  subscribers.   Based  on  price   quotes 
  provided by  EAS equipment manufacturers, Millennium  estimates 
  that  it  would  cost a  total  of   $320,000  to  install  EAS 
  equipment at these cable systems.  Millennium asserts that  the 
  cost of installing  EAS equipment at these systems will  impose 
  a substantial financial  hardship on it and provides  financial 
  statements for 2000 and 2001 in support of this assertion.   In 
  addition,  Millennium   submits  that   its  subscribers   will 
  continue to have ready access to national EAS information  from 
  other sources,  including its  cable systems.  In this  regard, 
  Millennium notes that its subscribers currently have access  to 
  national  EAS messages  on a  approximately 38  percent of  all 
  programmed  channels.    Millennium  also   asserts  that   its 
  subscribers will have  access to EAS information through  over-
  the-air reception  of broadcast television  and radio  stations 
  and other sources.  

4.        Based upon our review of  the financial data and  other 
  information  submitted by  Millennium, we  do not  find that  a 
  temporary, 36-month waiver of Section 11.11(a) for each of  the 
  32  cable systems  is warranted.   However,  we find  that  the 
  estimated $320,000 cost of EAS equipment for these small  cable 
  systems  could   impose  financial   hardship  on   Millennium.  
  Therefore,  we conclude  that  temporary, 12-month  waivers  of 
  Section 11.11(a) for six  of the cable systems in Attachment  A 
  and temporary, 36-month  waivers of Section 11.11(a) for 26  of 
  the cable systems in Attachment A are warranted.9  

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 Millennium  Digital 
  Media Systems, L.L.C.  IS GRANTED a waiver of Section  11.11(a) 
  of  the Rules  until  October 1,  2003  for six  of  the  cable 
  television systems in Attachment  A and IS GRANTED a waiver  of 
  Section 11.11(a) of the  Rules until October 1, 2005 for 26  of 
  the cable television systems listed in Attachment A. 

7.        IT IS  FURTHER ORDERED  that Millennium  Digital  Media 
  Systems, L.L.C.  place a copy  of these waivers  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 Millennium  Digital Media Systems,  L.L.L., Christopher  C. 
  Cinnamon, Esq., Cinnamon  & Muller, 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



     Millennium Digital Media Systems, L.L.C.

     Cable Systems:                     Temporary Waiver Granted 
Until:

     
     Idaho
     Buhl, Idaho                        October 1, 2005
     Shoshone, Idaho                    October 1, 2005
     
     Michigan
     Grass Lake, Michigan                    October 1, 2005
     Union City, Michigan                    October 1, 2003
     Vermontville, Michigan                  October 1, 2005
     
     Oregon
     Salmon River, Oregon                    October 1, 2005

     Washington
     Anderson Island, Washington             October 1, 2005
     Bellingham, Washington             October 1, 2005
     Bridgeport Bar, Washington              October 1, 2005
     Carson, Washington                 October 1, 2005
     Chelan, Washington                 October 1, 2003
     Concrete, Washington                    October 1, 2005
     Creston, Washington                October 1, 2005
     Darrington, Washington                  October 1, 2005
     Easton, Washington                 October 1, 2005
     Echo Lake, Washington                   October 1, 2003
     Entiat, Washington                 October 1, 2005
     Forks, Washington                  October 1, 2003          
     Key Penninsula, Washington              October 1, 2005
     Lake Roesinger, Washington              October 1, 2003
     Mansfield, Washington                   October 1, 2005
     Manson, Washington                 October 1, 2005
     Marblemount, Washington            October 1, 2005
     Napavine, Washington                    October 1, 2005
     Packwood, Washington                    October 1, 2005
     Pe Ell, Washington                 October 1, 2005
     Randle, Washington                 October 1, 2005
     South Port, Washington                  October 1, 2005
     Thorpe, Washington                 October 1, 2005
     Twisp, Washington                  October 1, 2005
     Waterville, Washington                  October 1, 2005
     Whidbey Island, Washington              October 1, 2003
_________________________

  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 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.  

  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.