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

In the Matter of                )
                                )
E.D. & D., Inc. d/b/a Haines Cable Tv & Skagway   )    File   No. 
EB-02-TS-473
Cable Tv                        )
                                )
Operator of Cable Systems in:   )
                                )
Haines, Alaska                  )       
Skagway, Alaska                 )

Request for Waiver of Section 11.11(a) of the     )    
Commission's Rules              )    
                                        
                              ORDER 

Adopted:  November 12, 2002             Released:   November  26, 
2002

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

1.        In this Order,  we grant  E.D. & D,  Inc. d/b/a  Haines 
  Cable Tv and Skagway Cable Tv (``the Company'') temporary,  36-
  month waivers  of Section  11.11(a) of  the Commission's  Rules 
  (``Rules'')  for  the  two  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.        The Company filed a  request for a temporary,  36-month 
  waiver of Section 11.11(a) for the two captioned cable  systems 
  on August  26, 2002.   In support  of its  waiver request,  the 
  Company states that  these are small, rural cable systems  that 
  together  serve  348   subscribers.   Based  on  price   quotes 
  provided by EAS equipment manufacturers, the Company  estimates 
  that  it  would  cost  approximately  $20,000  to  install  EAS 
  equipment  at these  systems.  The  Company asserts  that  this 
  cost will  impose a  substantial financial hardship  on it  and 
  provides financial  data for 1999 and  2000 in support of  this 
  assertion.   The   Company  indicates  that  subscribers   will 
  continue to have ready access to national EAS information  from 
  other sources,  including its  cable systems.  In this  regard, 
  the Company  notes that its  subscribers currently have  access 
  to  national  EAS  messages on  at  least  90  percent  of  all 
  programmed  channels.   The  Company  further  indicates   that 
  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  the Company, we find that  temporary, 
  36-month  waivers of  Section 11.11(a)  for the  two  captioned 
  cable systems are warranted.9  In particular, we find that  the 
  estimated $20,000 cost  of EAS equipment for these small  cable 
  systems could impose a financial hardship on the Company. 

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  E. D.  & D,  Inc. 
  d/b/a Haines Cable Tv and Skagway Cable Tv ARE GRANTED  waivers 
  of Section 11.11(a) of the Rules until October 1, 2005 for  the 
  two captioned cable television systems.

7.        IT IS FURTHER ORDERED that E. D. & D, Inc. d/b/a Haines 
  Cable Tv and Skagway Cable Tv 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 Patty  A. 
  Campbell, President  and Owner, E.  D. & D,  Inc. d/b/a  Haines 
  Cable Tv and Skagway Cable Tv, P.O. Box 1229, 715 Main  Street, 
  Haines, Alaska 99827.

                         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.