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

In the Matter of                )
                                )
Etan Industries, Inc. d/b/a Cable Management )    File No. EB-02-
TS-515
Associates                      )
                                )
Operator of Cable Systems in:   )
                                )    
Logansport, Louisiana           )
Agua Dulce, Texas               )
Bellville, Texas                )
Blackwell, Texas                )
Hempstead, Texas                )
Lawn, Texas                     )
Merkel, Texas                   )
Roscoe, Texas                   )
Sealy, Texas                    )
Tuscola, Texas                  )
Woodville, Texas                )
                                )
Request for Waiver of Section 11.11(a) of the     )    
Commission's Rules              )    
                                        
                              ORDER 

Adopted:  May 9, 2003                   Released:  May 15, 2003

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

1.        In this  Order, we  grant Etan  Industries, Inc.  d/b/a 
  Cable  Management  Associates  (``CMA'')  temporary,   36-month 
  waivers  of   Section  11.11(a)  of   the  Commission's   Rules 
  (``Rules'')  for   the  11  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.        CMA filed a request for temporary, 36-month waivers  of 
  Section  11.11(a)  for  the  11  captioned  cable  systems   on 
  September  11, 2002.   In support  of its  waiver request,  CMA 
  states  that these  cable  systems  serve between  39  and  809 
  subscribers.  Based on  price quotes provided by EAS  equipment 
  vendors,  CMA  estimates  that  it  would  cost   approximately 
  $106,000  to  purchase  and  install  EAS  equipment  at  these 
  systems.  CMA asserts that this cost will impose a  substantial 
  financial hardship on  it and provides its financial  statement 
  for 2000 and 2001  in support of this assertion.  In  addition, 
  CMA submits  that its subscribers will  continue to have  ready 
  access  to  national   EAS  information  from  other   sources, 
  including its  cable system.   In this regard,  CMA notes  that 
  its subscribers currently have access to national EAS  messages 
  on  at  least  41 percent  of  all  programmed  channels.   CMA 
  further submits  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 CMA, we  conclude that temporary  36-
  month waivers of Section 11.11(a) for the 11 captioned  systems 
  are  warranted.9  In  particular, we  find that  the  estimated 
  $106,000 cost  of EAS equipment for  these small cable  systems 
  could impose a financial hardship on CMA.  

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  Etan  Industries, 
  Inc. d/b/a Cable  Management Associates IS GRANTED a waiver  of 
  Section 11.11(a)  of the Rules until  October 1, 2005  for  the 
  11 captioned cable television systems.

7.        IT IS FURTHER ORDERED that Etan Industries, Inc.  d/b/a 
  Cable Management Associates 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  counsel 
  for Etan  Industries, Inc. d/b/a  Cable Management  Associates, 
  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
_________________________

  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.