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Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of )
)
Pinpoint Communications, Inc. )
) File No. EB-02-TS-630
Operator of Cable Systems in: )
)
Cambridge, Nebraska )
Herndon, Kansas )
Norcatur, Kansas )
Republican City, Nebraska )
Stamford, Nebraska )
)
Request for Waiver of Section 11.11(a) of the )
Commission's Rules )
ORDER
Adopted: July 28, 2003 Released: July 30, 2003
By the Chief, Spectrum Enforcement Division, Enforcement Bureau:
1. In this Order, we grant Pinpoint Communications, Inc.
(``Pinpoint'') temporary, 36-month waivers of Section 11.11(a)
of the Commission's Rules (``Rules'') for the five 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. Pinpoint filed a request for temporary, 36-month
waivers of Section 11.11(a) for the five captioned cable
systems on September 30, 2002. In support of its waiver
request, Pinpoint states that these are five small, rural
cable systems, which serve between 25 and 626 subscribers.
Based on price quotes provided by EAS equipment vendors,
Pinpoint estimates that it would cost a total of approximately
$44,250 to install EAS equipment at these systems. Pinpoint
asserts that this cost will impose a substantial financial
hardship on it and provides its financial statements for 2000
and 2001 in support of this assertion. In addition, Pinpoint
submits that its subscribers will continue to have ready
access to national EAS information from other sources,
including its cable systems. In this regard, Pinpoint notes
that its subscribers currently have access to national EAS
messages on approximately 50 percent of all programmed
channels. Pinpoint further submits 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 Pinpoint, we conclude that temporary,
36-month waivers of Section 11.11(a) for the five captioned
cable systems are warranted.9 In particular, we find that the
estimated $44,250 cost of EAS equipment for these small cable
systems could impose a financial hardship on Pinpoint.
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.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 Pinpoint
Communications, Inc. IS GRANTED a waiver of Section 11.11(a)
of the Rules until October 1, 2005 for the five captioned
cable television systems.
7. IT IS FURTHER ORDERED that Pinpoint Communications,
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 Roger
Hoffman, Executive Vice President, Pinpoint Communications,
Inc., 611 Patterson, Box 490, Cambridge, Nebraska 69022.
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 Id. at 15513.
8 Id. at 15513, n. 59.
9 The waivers will extend from October 1, 2002, until October
1, 2005. 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.