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Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of )
)
Moosehead Enterprises, Inc. ) File No. EB-02-TS-127
)
Operator of Cable Systems in: )
)
Bingham, Maine )
Greenville, Maine )
Guilford, Maine )
Jackman, Maine )
Monson, Maine )
Rockwood, Maine )
)
Request for Waiver of Section 11.11(a) of the )
Commission's Rules )
ORDER
Adopted: September 24, 2002 Released: September 27,
2002
By the Chief, Technical and Public Safety Division, Enforcement
Bureau:
1. In this Order, we grant Moosehead Enterprises, Inc.
(Moosehead Enterprises) temporary, 36-month waivers of
Section 11.11(a) of the Commission's Rules (``Rules'')
for the six 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. Moosehead Enterprises filed a request for temporary,
36-month waivers of Section 11.11(a) for the six
captioned cable systems on April 3, 2002. In support of
its waiver request, Moosehead Enterprises states that
these are small, rural cable systems which each serve
less than 750 subscribers. Based on a price quote
provided by an EAS equipment manufacturer, Moosehead
Enterprises estimates that it would cost at a minimum
$7,461 for EAS equipment for each of these systems plus
installation for a total cost of approximately $53,766.
Moosehead Enterprises asserts that this cost will impose
a substantial financial hardship on it and provides its
financial statement for 2000 and 2001 in support of this
assertion. In addition, Moosehead Enterprises submits
that its subscribers will continue to have ready access
to national EAS information from other sources,
including its cable systems. In this regard, Moosehead
Enterprises notes that its subscribers currently have
access to national EAS messages on at least 35 percent
of all programmed channels carried on the cable systems.
Moosehead Enterprises also asserts that its subscribers
will have access to EAS information through over-the-air
reception of broadcast television and radio stations.
Finally, Moosehead Enterprises believes that it will be
able to fund EAS equipment for the six systems in the
next three years.
4. Based upon our review of the financial data and other
information submitted by Moosehead Enterprises, we
conclude that a temporary, 36-month waiver of Section
11.11(a) for the six cable systems is warranted.9 In
particular, we find that the estimated $53,766 cost of
EAS equipment for these small cable systems could impose
a financial hardship on Moosehead Enterprises.
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 Moosehead
Enterprises, Inc. IS GRANTED a waiver of Section
11.11(a) of the Rules until October 1, 2005 for each of
the six captioned cable television systems.
7. IT IS FURTHER ORDERED that Moosehead Enterprises, 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
counsel for Moosehead Enterprises, 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 waivers will extend from October 1, 2002, until October
1, 2005. Moosehead Enterprises also requested a waiver of the
testing and monitoring requirements of the EAS rules for these
systems. 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.