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

In the Matter of                )
                                )
Craig Wireless Honolulu Inc.    )    File No. EB-03-TS-101
                                )
Operator of Wireless Cable System in:)
                                )    
Oahu, Hawaii                    )
                                )
Request for Waiver of Section 11.11(a) of the     )    
Commission's Rules              )    
                                
                              ORDER 

Adopted:  October 7, 2003               Released:    October   9, 
2003

By the Chief, Spectrum Enforcement Division, Enforcement Bureau:

1.        In this Order,  we grant Craig  Wireless Honolulu  Inc. 
  (``Craig'')  a temporary  waiver  of Section  11.11(a)  of  the 
  Commission's   Rules  (``Rules'')   for   the   above-captioned 
  wireless cable  television system.   Section 11.11(a)  requires 
  wireless cable systems  serving more than 5,000 but fewer  than 
  10,000 subscribers from  a single transmission site to  install 
  Emergency Alert System (``EAS'') equipment and begin  providing 
  EAS audio  and video  messages on  all channels  by October  1, 
  2002.1  Section 11.11(a)  requires cable systems serving  fewer 
  than  5,000 subscribers  from  a single  transmission  site  to 
  either provide  national level 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.        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  extend  the  EAS  requirements  to 
  wireless cable systems  and 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  

3.        On September  30, 2002,  Craig filed  a request  for  a 
  permanent  waiver  of  the  requirements  of  Section  11.11(a) 
  applicable to wireless  cable systems with more than 5,000  but 
  fewer than  10,000 subscribers or in  the alternative, a  five-
  year extension  of time to comply  with these requirements  for 
  the captioned wireless cable system.  In support of its  waiver 
  request,  Craig states  that the  captioned system  is an  all-
  digital  wireless cable  television system  which serves  8,780 
  subscribers.   Craig  submits   that  it  already  provides   a 
  complete  EAS message  on  one  channel with  audio  and  video 
  alerts on  all of its other  programmed channels.  Craig  notes 
  that its EAS system currently conforms to the EAS  requirements 
  for wireless cable system with 5,000 or fewer subscribers,  but 
  does  not conform  to  the additional  requirements  for  those 
  systems with  more than  5,000 subscribers.  Based  on a  price 
  quote from an EAS equipment manufacturer, Craig estimates  that 
  it would cost a total of approximately $255,000 to install  the 
  required EAS equipment  at the captioned system's  transmission 
  site because  it must insert  the EAS video  and audio  content 
  into  its encoded  digital systems.   Craig asserts  that  this 
  cost will  impose a  substantial financial hardship  on it  and 
  provides its financial statements for 2002 and 2003 in  support 
  of this assertion.   Craig submits that it provides a  complete 
  EAS message on one  channel with audio and video alerts on  all 
  of  its other  programmed  channels.  Craig  asserts  that  its 
  subscribers will continue to have ready access to national  EAS 
  information  from other  sources, including  its cable  system.  
  Craig further submits that its subscribers will have access  to 
  EAS  information through  over-the-air reception  of  broadcast 
  television and radio stations.  

4.        We  note  that  in  September  2002,  another   digital 
  wireless cable  system filed a request  for a permanent  waiver 
  of Section 11.11(a) to  enable it to use an alternative  method 
  for providing  EAS alerts, asserting  that compliance with  the 
  EAS  requirements   impose  substantially   greater  costs   on 
  wireless cable systems  using digital technology than on  other 
  cable systems.7   We declined to grant  the system a  permanent 
  financial  hardship  waiver, concluding  that  the  system  was 
  seeking  what was  in effect  a revision  of the  EAS rules  to 
  reflect  the  impact  of  the  use  of  digital  technology  by 
  wireless  cable systems.   However,  we granted  the  system  a 
  limited,  30-day  waiver  of  Section  11.11(a)  to  enable   a 
  revision of the Commission's EAS rules to be requested  through 
  the petition  for rulemaking process.   In addition, we  stated 
  that if a petition  for rulemaking is filed, this waiver  would 
  be automatically  extended until either  the effective date  of 
  any changes  adopted by  the Commission  to the  EAS rules  for 
  wireless cable  systems using  digital technology,  or 90  days 
  after the Commission  issues a decision declining to adopt  any 
  such   changes.    On   October   31,   2002,   the    Wireless 
  Communications   Association  International,   Inc.   filed   a 
  petition  for rulemaking  requesting an  amendment of  the  EAS 
  rules for  digital wireless  cable systems.8   A public  notice 
  seeking comment  on this petition  for rulemaking was  released 
  on December 18, 2002.9  

5.        Craig is  seeking  either  a permanent  waiver  of  the 
  requirements of Section  11.11(a) applicable to wireless  cable 
  systems   with  more   than  5,000   but  fewer   than   10,000 
  subscribers, or  a five-year extension of  time to comply  with 
  those  requirements.  We  believe  that the  issues  raised  by 
  Craig  concerning  the  impact of  the  EAS  rules  on  digital 
  wireless cable systems are more appropriately addressed in  the 
  proceeding described above.   Accordingly, while we decline  to 
  grant  Craig Wireless's  waiver request  on financial  hardship 
  grounds, we grant  Craig Wireless a waiver of the  requirements 
  of Section 11.11(a)  applicable to wireless cable systems  with 
  more than 5,000 but fewer than 10,000 subscribers until  either 
  the effective date of any changes adopted by the Commission  to 
  the  EAS  rules  for  wireless  cable  systems  using   digital 
  technology, or 90  days after the Commission issues a  decision 
  declining to adopt any such changes.  

6.        Accordingly, IT IS ORDERED  that, pursuant to  Sections 
  0.111,  0.204(b)  and 0.311  of  the  Rules,10  Craig  Wireless 
  Honolulu Inc.  IS GRANTED a waiver  of Section 11.11(a) of  the 
  Rules  as  specified  herein and  in  all  other  respects  its 
  request  for a  waiver  of Section  11.11(a)  of the  Rules  IS 
  DENIED.

7.        IT IS FURTHER ORDERED that Craig Wireless Honolulu Inc. 
  place a copy of this waiver in its system file. 

8.        IT IS FURTHER ORDERED that  a copy of this Order  shall 
  be sent by  Certified Mail Return Receipt Requested to  counsel 
  for  Craig Wireless  Honolulu  Inc., Peter  D.  Shields,  Esq., 
  Wiley Rein  & Fielding  LLP, 1776 K  Street, N.W.,  Washington, 
  D.C. 20006.

                         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 W.A.T.C.H.  TV and  Benton Ridge  Telephone Co.,  17 FCC  Rcd 
18329 (Enf. Bur., Tech. & Pub. Safety Div., 2002).

  8 The Wireless Communications Association International,  Inc., 
Petition for Rulemaking to Request Amendment of the  Commission's 
Rules to  Permit  Use of  ``Force  Tune'' Technology  by  Digital 
Wireless Cable Systems, RM-10619 (filed October 31, 2002).

  9  Public   Notice,  Consumer  &   Government  Affairs   Bureau 
Reference Information  Center  Petitions  for  Rulemaking  Filed, 
Report No. 2589 (December 18, 2002).

  10 47 C.F.R.  0.111, 0.204(b) and 0.311.