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Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of )
)
Complete Communication Services ) File No. EB-02-TS-307
)
Operator of Cable Systems in: )
)
State Center, Iowa )
Stratford, Iowa )
Roland, Iowa )
)
Request for Waiver of Section 11.11(a) of the )
Commission's Rules )
ORDER
Adopted: January 31, 2003 Released: February 5,
2003
By the Chief, Technical and Public Safety Division, Enforcement
Bureau:
1. In this Order, we grant Complete Communication Services
(``CCS'') a temporary, 12-month waiver of Section
11.11(a) of the Commission's Rules (``Rules'') for the cable
television system in Stratford, Iowa and temporary, 36-month
waivers of Section 11.11(a) of the Rules for the cable
television systems in State Center and Roland, Iowa. 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. CCS filed a request for a permanent or five-year waiver
of Section 11.11(a) for the three captioned cable system on
July 11, 2002. In support of its waiver request, CCS states
that these are small, rural cable systems serving between 226
and 1,237 subscribers. Based on price quotes provided by EAS
equipment manufacturers, CCS estimates that it would cost
between $21,000 and 30,000 to install EAS equipment at these
cable systems. CCS asserts that this cost will impose a
substantial financial hardship on it and provides financial
data for 2000 and 2001 in support of this assertion. In
addition, CCS submits that its subscribers will continue to
have ready access to national EAS information from other
sources, including its cable systems. In this regard, CCS
notes that its subscribers currently have access to national
EAS messages on 64% of all programmed channels. CCS 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 CCS, we find that a permanent or
five-year waiver of Section 11.11(a) for the captioned cable
systems is not warranted. However, we conclude that a
temporary, 12-month waiver of Section 11.11(a) for one cable
system and temporary, 36-month waivers of Section 11.11(a) for
two cable systems are warranted.9 In particular, we find that
the estimated $21,000 plus cost of EAS equipment for these
small cable systems could impose a financial hardship on CCS.
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 Complete
Communication Systems IS GRANTED a waiver of Section 11.11(a)
of the Rules until October 1, 2003 for the Stratford, Iowa
cable television system and IS GRANTED waivers of Section
11.11(a) of the Rules until October 1, 2005 for the State
Center and Roland, Iowa cable television systems.
7. IT IS FURTHER ORDERED that Complete Communication
Systems 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 Randall
Baker, General Manager, Complete Communication Services, Post
Office Box 438, 1001 Tennyson, Stratford, Iowa 50249.
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 12-month waiver will extend from October 1, 2002, until
October 1, 2003, and the 36-month waiver will extend 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.