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

In the Matter of                )
                                )
Lovell Cable TV, Inc.           )    File No. EB-02-TS-100
                                )
Operator of Cable System in:    )
                                )    
Lovell, Wyoming                 )
                                )
Request for Waiver of Section 11.11(a) of the     )    
Commission's Rules              )    
                                        
                              ORDER 

Adopted:  July 25, 2002                 Released:  July 30, 2002

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

1.        In  this  Order,  we   grant  Lovell  Cable  TV,   Inc. 
  (``Lovell'') a temporary,  36-month waiver of Section  11.11(a) 
  of the Commission's  Rules (``Rules'') for the  above-captioned 
  cable  television  system.   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.        Lovell filed a request for a temporary, 36-month waiver 
  of Section  11.11(a) for  the captioned cable  system on  March 
  19,  2002.  In  support of  its waiver  request, Lovell  states 
  that  this  is  a  small,  rural  cable  system  which   serves 
  approximately  685  subscribers.    Based  on  a  price   quote 
  provided  by an  EAS equipment  manufacturer, Lovell  estimates 
  that  it  would  cost  approximately  $10,290  to  install  EAS 
  equipment at this  system.  Lovell asserts that this cost  will 
  impose a substantial financial hardship on it and provides  its 
  financial statement for  2001 in support of this assertion.  In 
  addition, Lovell submits that its subscribers will continue  to 
  have  ready  access to  national  EAS  information  from  other 
  sources, including  its cable system.   In this regard,  Lovell 
  notes that  its subscribers currently  have access to  national 
  EAS messages  on 13  of all programmed  channels.  Lovell  also 
  asserts  that   its  subscribers  will   have  access  to   EAS 
  information   through  over-the-air   reception  of   broadcast 
  television and  radio stations. Finally,  Lovell believes  that 
  it will  be able to fund  EAS equipment for  the system in  the 
  next three years.

4.        Based upon our review of  the financial data and  other 
  information submitted by Lovell, we conclude that a  temporary, 
  36-month waiver  of Section 11.11(a)  for the captioned  system 
  is  warranted.9  In  particular,  we find  that  the  estimated 
  $10,290  cost of  EAS equipment  for  this small  cable  system 
  could impose a financial hardship on Lovell.  

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   Lovell Cable  TV, 
  Inc.  IS GRANTED  a waiver  of Section  11.11(a) of  the  Rules 
  until  October  1, 2005  for  the  captioned  cable  television 
  system.

7.        IT IS FURTHER ORDERED that Lovell Cable TV, 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  Lovell Cable  TV,  Inc., 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 waiver will extend 36 months from October 1, 2002,  until 
October 1, 2005.   Lovell also specifically  requested waiver  of 
the testing and  monitoring requirements  of the  EAS rules.   We 
clarify that the waiver we are granting also encompasses 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.