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

In the Matter of                )
                                )
Schindler's Cable TV            )    File No. EB-02-TS-322 
                                )    
Operator of Cable Systems in:   )
                                )
Belcourt, North Dakota          )
Duseith, North Dakota           )
Rural Belcourt, North Dakota    )
Shell Valley, North Dakota      )    
                                )
Request for Waiver of Section 11.11(a) of the     )    
Commission's Rules              )    
                                        
                              ORDER 

Adopted:  July 15, 2003                 Released:  July 17, 2003

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

1.        In  this   Order,  we   grant  Schindler's   Cable   TV 
  (``Schindler's'')  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.        Schindler's filed a request  for a temporary,  36-month 
  waiver  of  Section  11.11(a)  for  the  four  captioned  cable 
  systems on  July 12, 2002.  In  support of its waiver  request, 
  Schindler's states  that these are  small, rural cable  systems 
  which serve  between 30  and 170 subscribers.   Based on  price 
  quotes  provided by  EAS equipment  manufacturers,  Schindler's 
  estimates that it  would cost approximately $40,000 to  install 
  EAS equipment at these systems.  Schindler's asserts that  this 
  cost will impose a substantial financial hardship and  provides 
  financial  data for  2001 in  support  of this  assertion.   In 
  addition,  Schindler's   submits  that  the  subscribers   will 
  continue to have ready access to national EAS information  from 
  other sources,  including its cable  systems.  In this  regard, 
  Schindler's  notes that  subscribers currently  have access  to 
  national EAS messages on at least 45 percent of all  programmed 
  channels.  Schindler's  further submits  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  Schindler's,   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 
  Schindler's.  

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 Schindler's Cable  TV 
  IS GRANTED  a waiver  of Section  11.11(a) of  the Rules  until 
  October  1,  2005  for  the  four  captioned  cable  television 
  systems.

7.        IT IS FURTHER ORDERED that Schindler's Cable TV 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  Schindler's  Cable  TV,  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
_________________________

  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.   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.