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Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of )
)
Northland Cable Properties Seven Limited ) File No. EB-02-
TS-469
Partnership )
)
Operator of Cable Systems in: )
)
Matagorda, Texas )
Clallam Bay/Slip Point, Washington )
Conway, Washington )
)
)
Request for Waiver of Section 11.11(a) of the )
Commission's Rules )
ORDER
Adopted: October 21, 2002 Released: October 25,
2002
By the Chief, Technical and Public Safety Division, Enforcement
Bureau:
1. In this Order, we grant Northland Cable Properties
Seven Limited Partnership (``Northland'') temporary, 36-month
waivers of Section 11.11(a) of the Commission's Rules
(``Rules'') for the three 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. Northland filed a request for a permanent or five-year
waiver of Section 11.11(a) for the three captioned cable
systems on August 27, 2002. In support of its waiver request,
Northland states that the three small, rural cable systems
serve between 118 and 364 subscribers. Based on price quotes
provided by EAS equipment vendors, Northland estimates that it
would cost approximately $21,000 to purchase and install EAS
equipment at these systems. Northland 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, Northland submits that its
subscribers will continue to have ready access to national EAS
information from other sources, including its cable systems.
In this regard, Northland notes that its subscribers currently
have access to national EAS messages on approximately one-
third of all programmed channels. Northland also asserts 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 Northland, we find that a permanent
or a five-year waiver of Section 11.11(a) is not warranted.
However, we conclude that a temporary, 36-month waiver of
Section 11.11(a) for each of the three captioned cable systems
is warranted.9 In particular, we find that the estimated
$21,000 cost of EAS equipment for this small cable system
could impose a financial hardship on Northland.
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 Northland Cable
Properties Seven Limited Partnership IS GRANTED a waiver of
Section 11.11(a) of the Rules until October 1, 2005 for the
three captioned cable television systems.
7. IT IS FURTHER ORDERED that Northland Cable Properties
Seven Limited Partnership 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 Northland Cable Properties Seven Limited Partnership,
K. E. Love, Esq., Northland Communications Corp., 1201 Third
Street, Suite 3600, Seattle, Washington 98101.
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 36 months from October 1, 2002,
until October 1, 2005. Additionally, 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.