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

In the Matter of                )
                                )
Karban TV Systems, Inc.         )    File No. EB-02-TS-432
                                )
Operator of Cable Systems in:   )
                                )    
Three Lakes, Wisconsin          )
Mercer, Wisconsin               )
Land O'Lakes, Wisconsin         )
Boulder Junction, Wisconsin     )
                                )
Request for Waiver of Section 11.11(a) of the     )    
Commission's Rules              )    
                                        
                              ORDER 

Adopted:  October 10, 2002              Released:   October   16, 
2002

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

1.        In this  Order,  we  grant  Karban  TV  Systems,  Inc.,  
  (``Karban  TV'')   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.        Karban TV  filed  a  request  for  temporary,  36-month 
  waivers of Section 11.11(a) for the four above-captioned  cable 
  systems on August 7,  2002.  In support of its waiver  request, 
  Karban TV  states that these small,  rural cable systems  serve 
  between  127  and 634   subscribers.   Based  on  price  quotes 
  provided by  EAS equipment manufacturers,  Karban TV  estimates 
  that it  would cost $40,000 to  install EAS equipment at  these 
  systems.   Karban TV  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,   Karban   TV  submits   that   its 
  subscribers will continue to have ready access to national  EAS 
  information from  other sources, including  its cable  systems.  
  In this regard, Karban TV notes that its subscribers  currently 
  have access to national EAS messages on over 50 percent of  all 
  programmed  channels.    Karban  TV  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   Karban  TV,   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  $40,000 cost  of EAS equipment  for these  small 
  cable systems could impose a financial hardship on Karban TV.  

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 Karban TV  Systems, 
  Inc.  IS GRANTED  a waiver  of Section  11.11(a) of  the  Rules 
  until October  1, 2005   for each of  the four  above-captioned 
  cable television systems.

7.        IT IS  FURTHER ORDERED  that  Karban TV  Systems,  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 to John  R. 
  Karban, President, Karban  TV Systems, Inc., 73A South  Stevens 
  Street, Rhinelander, Wisconsin 54501.  

                         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 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.