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

In the Matter of                )
                                )
Pinpoint Communications, Inc.   )
                                )    File No. EB-02-TS-630  
Operator of Cable Systems in:   )
                                )    
Cambridge, Nebraska             )
Herndon, Kansas                 )
Norcatur, Kansas                )
Republican City, Nebraska       )
Stamford, Nebraska              )
                                )
Request for Waiver of Section 11.11(a) of the     )    
Commission's Rules              )    
                                        
                              ORDER 

Adopted:  July 28, 2003                 Released:  July 30, 2003

By the Chief, Spectrum Enforcement Division, Enforcement Bureau:

1.        In this Order, we  grant Pinpoint Communications,  Inc. 
  (``Pinpoint'') temporary, 36-month waivers of Section  11.11(a) 
  of  the Commission's  Rules  (``Rules'') for  the  five  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.        Pinpoint  filed  a  request  for  temporary,   36-month 
  waivers  of  Section 11.11(a)  for  the  five  captioned  cable 
  systems  on September  30,  2002.   In support  of  its  waiver 
  request,  Pinpoint states  that  these are  five  small,  rural 
  cable  systems, which  serve between  25 and  626  subscribers.  
  Based  on  price quotes  provided  by  EAS  equipment  vendors, 
  Pinpoint estimates that it would cost a total of  approximately 
  $44,250 to  install EAS equipment  at these systems.   Pinpoint 
  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,  Pinpoint 
  submits  that  its subscribers  will  continue  to  have  ready 
  access  to  national   EAS  information  from  other   sources, 
  including its  cable systems.  In  this regard, Pinpoint  notes 
  that  its subscribers  currently have  access to  national  EAS 
  messages  on  approximately   50  percent  of  all   programmed 
  channels.  Pinpoint 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 Pinpoint, we conclude that  temporary, 
  36-month waivers  of Section  11.11(a) for  the five  captioned 
  cable systems are warranted.9  In particular, we find that  the 
  estimated $44,250 cost  of EAS equipment for these small  cable 
  systems could impose a financial hardship on Pinpoint.  

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.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   Pinpoint 
  Communications, Inc.  IS GRANTED a  waiver of Section  11.11(a) 
  of  the Rules  until October  1, 2005  for the  five  captioned 
  cable television systems.

7.        IT IS  FURTHER  ORDERED that  Pinpoint  Communications, 
  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  Roger 
  Hoffman,  Executive Vice  President,  Pinpoint  Communications, 
  Inc., 611 Patterson, Box 490, Cambridge, Nebraska 69022.  

                         FEDERAL COMMUNICATIONS COMMISSION
                         


                         Joseph P. Casey
                         Chief, Spectrum Enforcement 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.