Click here for Adobe Acrobat version
Click here for Microsoft Word version

******************************************************** 
                      NOTICE
********************************************************

This document was converted from Microsoft Word.

Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.

All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.

Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.

If you need the complete document, download the
Microsoft Word or Adobe Acrobat version.

*****************************************************************



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

In the Matter of                )
                                )
Satellite Cable Services, Inc.  )  File No. EB-03-SE-188
                                )       
Operator of Cable Systems in:   )
                                )    
Delmont, South Dakota           )
Geddes, South Dakota            )
Pickstown, South Dakota         )
                                )
Request for Waiver of Section 11.11(a) of the     )    
Commission's Rules              )    
                                        
                              ORDER 

Adopted:  August 15, 2003               Released:    August   19, 
2003

By the Chief, Spectrum Enforcement Division, Enforcement Bureau:

1.        In this Order, we grant Satellite Cable Services,  Inc. 
  (``Satellite Cable'')  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,  Inc. 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.        On September 25, 2002, Satellite Cable filed a  request 
  for  permanent  waivers of  Section  11.11(a)  for  the  three-
  captioned  cable  systems.     In  support  of  this   request, 
  Satellite Cable states the three cable television systems  were 
  recently acquired.  Moreover,  Satellite Cable states that  the 
  three small, rural  cable systems serve together  approximately 
  165  subscribers.   Based  on  price  quotes  provided  by  EAS 
  equipment  manufacturers,  Satellite Cable  estimates  that  it 
  would cost  between $7,500 and $10,000  per headend to  install 
  EAS equipment at  these systems.  Satellite Cable asserts  that 
  this cost  will impose a substantial  financial hardship on  it 
  and provides its financial statement for the four-month  period 
  ending  December  2001  in  support  of  this  assertion.    In 
  addition,  Satellite Cable  submits that  its subscribers  will 
  continue to have ready access to national EAS information  from 
  other sources,  including its cable  systems.  Satellite  Cable 
  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   Satellite  Cable,  we  find   that 
  permanent waivers of  Section 11.11(a) for the three  captioned 
  cable systems  are not  warranted.  However,  we conclude  that 
  temporary waivers  of Section 11.11(a)  for these systems  from 
  October  1, 2002  until October  1,  2005 are  warranted.9   In 
  particular, we  find that the estimated  $7,500 to $10,000  per 
  headend cost  of EAS  equipment for these  small cable  systems 
  could impose a financial hardship on Satellite Cable. 

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  Satellite  Cable 
  Services, Inc. IS GRANTED  a waiver of Section 11.11(a) of  the 
  Rules from October 1, 2002 until October 1, 2005 for the  three 
  captioned cable television systems.

7.        IT IS FURTHER  ORDERED that  Satellite Cable  Services, 
  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 Satellite  Cable Services,  Inc., David  L. Edwards,  Esq., 
  Cutler &  Donahoe, LLP,  10 North Phillips  Avenue, 9th  Floor, 
  Sioux Falls, South Dakota 57104-6725.  

                         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 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.