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

In the Matter of                )
                                )
Galaxy Cable, Inc.              )    File No. EB-02-TS-334
                                )
Operator of Cable System in:    )
                                )    
Schuyler, Nebraska              )
                                )
Request for Waiver of Section 11.11(a) of the     )    
Commission's Rules              )    
                                        
                              ORDER 

Adopted:  July 16, 2003                 Released:  July 18, 2003

By the Chief, Spectrum Enforcement Division, Enforcement Bureau:

1.        In this Order,  we grant Galaxy  Cable, Inc.  (``Galaxy 
  Cable'') a  temporary, 36-month waiver  of Section 11.11(a)  of 
  the  Commission's  Rules (``Rules'')  for  the  above-captioned 
  cable  television  system.   Additionally,  we  clarify   three 
  previous orders granting waivers of Section 11.11(a) to  Galaxy 
  Telecom,    L.P.   (``Galaxy    Telecom''),   Galaxy    Cable's 
  predecessor-in-interest.1   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, 2002.2

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.3  In 1994, the Commission adopted rules  requiring 
  cable systems to participate in EAS.4  In 1997, the  Commission 
  amended the  EAS rules  to provide financial  relief for  small 
  cable systems.5  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).6    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.7  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.8   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.9

3.        On April 2,  2002, Galaxy Telecom  filed a request  for 
  waiver of  Section 11.11(a) of  the Rules for  234 small  cable 
  systems.  In its  waiver request, Galaxy Telecom noted that  it 
  had filed for Chapter 11 bankruptcy protection in October  2001 
  and that  it intended to transfer all  of its assets to  Galaxy 
  Cable  as  part  of  the  court-ordered  reorganization   plan.  
  Galaxy  Telecom indicated  that  it was  therefore  filing  the 
  waiver  request on  behalf of  both Galaxy  Telecom and  Galaxy 
  Cable.   In  support of  its  waiver  request,  Galaxy  Telecom 
  submitted  financial documentation  indicating that  compliance 
  with  Section  11.11(a)   would  impose  a  serious   financial 
  hardship on  it.  On June  21, 2002, the  Technical and  Public 
  Safety  Division  of  the  Enforcement  Bureau  released  three 
  orders  granting Galaxy  Telecom temporary  waivers of  Section 
  11.11(a) for the 234 small cable systems.10  On July 19,  2002, 
  Galaxy Cable  filed a request for  clarification of the  Waiver 
  Orders.  Galaxy  Cable states  that following  the issuance  of 
  the  Waiver  Orders,  all  of  Galaxy  Telecom's  assets   were 
  transferred  to  Galaxy Cable  pursuant  to  the  court-ordered 
  reorganization  plan.   Galaxy  Cable  notes  that  the  Waiver 
  Orders only  reference Galaxy  Telecom, not  Galaxy Cable,  and 
  seeks clarification  that the waivers  granted in these  orders 
  also  apply to  Galaxy Cable.   We clarify  that the  temporary 
  waivers of  Section 11.11(a) granted to  Galaxy Telecom in  the 
  Waiver Orders also  apply to its successor, Galaxy Cable.   The 
  failure  to reference  Galaxy Cable  in the  Waiver Orders  was 
  inadvertent. 

4.        Galaxy  Cable  also  requests  clarification  that  the 
  waivers granted in the Waiver Orders will continue to apply  to 
  the systems if the systems are sold.  Galaxy Cable states  that 
  it is currently seeking  buyers for certain of its systems  and 
  asserts that  its ability to sell  the systems at market  value 
  may be substantially impaired  if the buyers have to bring  the 
  systems  into  compliance immediately.   Galaxy  Cable  further 
  asserts that  the Commission has  recognized the importance  of 
  small  system relief  following  a  system after  sale  of  the 
  system to  a larger  operator.  In support  of this  assertion, 
  Galaxy Cable cites  a 1995 Commission order determining that  a 
  small  cable  system  eligible  for  relief  from  cable   rate 
  regulation shall  remain eligible for such  relief even if  the 
  system is subsequently acquired by a larger cable operator.11  

5.        We deny Galaxy Cable's  request for clarification  that 
  the  temporary  waivers  granted  in  the  Waiver  Orders  will 
  continue to  apply if  the systems  are sold.   We granted  the 
  temporary waivers  based on  our review of  the financial  data 
  and  other  information  submitted  by  Galaxy  Telecom,  which 
  demonstrated that the  estimated cost of EAS equipment for  the 
  234 small  cable systems could  impose a substantial  financial 
  hardship  on it.   We have  no basis  for determining  at  this 
  juncture  whether compliance  with the  EAS requirements  would 
  impose a similar financial  hardship on any buyer or buyers  if 
  some of Galaxy Cable's  systems are sold.  Moreover, we do  not 
  believe  that the  policy of  allowing small  cable systems  to 
  remain eligible  for relief from rate  regulation even if  they 
  are  subsequently  acquired by  a  larger  operator  should  be 
  automatically  extended to  the  EAS context.   We  think  that 
  there  is  a   significant  distinction  between  the   ongoing 
  regulatory burdens  and costs associated  with rate  regulation 
  and  the   one-time  expense  of   installing  EAS   equipment.  
  Further, the cost to small cable systems of complying with  the 
  EAS rules continues to  decline.  In this regard, 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.12  On July  23, 
  2002, the Commission  staff granted an equipment  authorization 
  for an  EAS decoder-only unit  to an equipment  manufacturer.13  
  We anticipate that  such a decoder-only system could result  in 
  significant cost  savings to small  cable systems.14   Finally, 
  in view of the serious public safety objectives underlying  the 
  EAS  rules, we do  not think  that it would  be appropriate  to 
  automatically extend  the temporary waivers  granted to  Galaxy 
  Cable's systems  to any  subsequent buyer  irrespective of  its 
  size  or financial  status.  Rather,  we will  afford any  such 
  buyer 30 days from  the date the sale of any system or  systems 
  is  consummated  to  request  a  waiver  of  Section  11.11(a), 
  submitting  the information  necessary to  support a  financial 
  hardship  showing.  Any  buyer  that  does not  file  a  waiver 
  request will be required  to come into compliance with the  EAS 
  rules by the end of the 30-day period.

6.        On August 26, 2002,  Galaxy Cable filed a  supplemental 
  request for  a temporary, 36-month  waiver of Section  11.11(a) 
  for its Schuyler,  Nebraska cable system.  Galaxy Cable  states 
  that  in  preparing  the  April  2,  2002  waiver  request,  it 
  incorrectly   identified   the   Schuyler   system   as   being 
  interconnected with its Wilber, Nebraska headend and  therefore 
  believed that the  Schuyler system would not require a  waiver.  
  However, Galaxy  Cable states that it  is actually its  Geneva, 
  Nebraska cable  system that is  interconnected with the  Wilber 
  headend and  therefore does not require  a waiver.  One of  the 
  Waiver Orders granted  Galaxy Telecom's request for a  24-month 
  waiver  of Section  11.11(a)  for the  Geneva,  Nebraska  cable 
  system.15  Galaxy  Cable notes that  the Schuyler cable  system 
  has approximately 996 subscribers.  Based on price quotes  from 
  EAS  equipment manufacturers,  Galaxy Cable  estimates that  it 
  would cost  approximately $10,000 to  install EAS equipment  at 
  this system.  Galaxy  Cable 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,   Galaxy  Cable  submits  that   its 
  subscribers will continue to have ready access to national  EAS 
  information from  other sources, including  its cable  systems.  
  Galaxy  Cable  also asserts  that  its  subscribers  will  have 
  access  to EAS  information through  over-the-air reception  of 
  broadcast television and radio stations.  

7.        Based upon our review of  the financial data and  other 
  information  submitted by  Galaxy  Cable, we  conclude  that  a 
  temporary,  36-month  waiver   of  Section  11.11(a)  for   the 
  Schuyler cable  system is warranted.16   In particular we  find 
  that  the estimated  $10,000 cost  of  EAS equipment  for  this 
  small cable system could impose a financial hardship on  Galaxy 
  Cable.   Further, we  withdraw the  temporary, 24-month  waiver 
  previously granted for the Geneva, Nebraska cable system.  

8.        Accordingly, IT IS  ORDERED that  Galaxy Cable,  Inc.'s 
  request for  clarification IS GRANTED  to the extent  indicated 
  herein and IS otherwise DENIED.

9.        IT IS FURTHER ORDERED that, pursuant to Sections 0.111, 
  0.204(b)  and 0.311  of  the  Rules,17 Galaxy  Cable,  Inc.  IS 
  GRANTED  a  waiver  of Section  11.11(a)  of  the  Rules  until 
  October 1,  2005 for  the Schuyler,  Nebraska cable  television 
  system.

10.       IT IS  FURTHER  ORDERED that  the  temporary,  24-month 
  waiver of Section  11.11(a) of the Rules previously granted  to 
  Galaxy Cable for  its Geneva, Nebraska cable television  system 
  IS WITHDRAWN.

11.       IT IS FURTHER ORDERED that  Galaxy Cable, Inc. place  a 
  copy of this waiver in its system files.
12.       IT IS FURTHER ORDERED that  a copy of this Order  shall 
  be sent by  Certified Mail Return Receipt Requested to  counsel 
  for  Galaxy  Cable,   Inc.,  Christopher  C.  Cinnamon,   Esq., 
  Cinnamon  Mueller,  307  North  Michigan  Avenue,  Suite  1020, 
  Chicago, Illinois 60601.

                         FEDERAL COMMUNICATIONS COMMISSION
                         


                         Joseph P. Casey
                         Chief, Spectrum Enforcement Division
                         Enforcement Bureau


_________________________

  1 Galaxy  Telecom, L.P., 17 FCC Rcd  11798 (Enf. Bur., Tech.  & 
Pub. Safety Div., 2002); Galaxy  Telecom, L.P., 17 FCC Rcd  11801 
(Enf. Bur.,  Tech. &  Pub. Safety  Div., 2002);  Galaxy  Telecom, 
L.P., 17 FCC  Rcd 11805  (Enf. Bur.,  Tech. &  Pub. Safety  Div., 
2002) (collectively, ``Waiver Orders'').

  2 47 C.F.R.  11.11(a).

  3 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).  

  4 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), reconsideration  granted in  part, 
denied in part, 10 FCC Rcd 11494 (1995).

  5 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).

  6 Id. at 15512-13.

  7 Id. at 15516-15518.

  8 Id. at 15513.

  9 Id. at 15513, n. 59.

  10 See Waiver Orders, supra n. 1.

  11 Implementation of Sections of the Cable Television  Consumer 
Protection and Competition Act  of 1992:  Rate Regulation,  Sixth 
Report and Order  and Eleventh Order  on Reconsideration, 10  FCC 
Rcd 7393, 7413 (1995).

  12 Amendment  of Part  11 of the  Commission's Rules  Regarding 
the Emergency Alert System, 17 FCC Rcd 4055,  4082 (2002).

  13 Public Notice,  ``Notice Regarding FCC Certification of  EAS 
Decoder,'' DA 02-2312 (Enf. Bur. released September 19, 2002).

  14 One estimate  indicates that an EAS decoder-only system  can 
reduce the cost by 64% over what a cable operator would spend for 
an encoder/decoder unit.  17 FCC Rcd at 4082.

  15 Galaxy Telecom, L.P.,  17 FCC Rcd 11801 (Enf. Bur., Tech.  & 
Pub. Safety Div., 2002).

  16 The waiver will  extend from October 1, 2002, until  October 
1, 2005.   We  clarify  that  the waiver  we  are  granting  also 
encompasses the EAS testing and monitoring requirements.   Galaxy 
Cable also  requests  that  we  clarify  that  this  waiver  will 
continue to apply  to the Schuyler  cable system if  it is  sold.  
For the reasons stated above, we deny this request.

  17 47 C.F.R.  0.111, 0.204(b) and 0.311.