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Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of )
)
Oak Grove Heights Cable Company ) File No. EB-02-TS-191
)
Operator of Cable System in: )
)
Oak Grove Heights, Arkansas )
)
Request for Waiver of Section 11.11(a) of the )
Commission's Rules )
ORDER
Adopted: July 25, 2002 Released: July 30, 2002
By the Chief, Technical and Public Safety Division, Enforcement
Bureau:
1. In this Order, we grant Oak Grove Heights Cable Company
(``Oak Grove Heights'') a temporary, 36-month waiver of
Section 11.11(a) of the Commission's Rules (``Rules'') for the
above-captioned cable television system. 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. Oak Grove Heights filed a request for a temporary, 36-
month waiver of Section 11.11(a) for the captioned cable
system on May 10, 2002. In support of its waiver request, Oak
Grove Heights states that this is a small, rural cable system
which serves approximately 180 subscribers. Based on a price
quote provided by an EAS equipment manufacturer, Oak Grove
Heights estimates that it would cost approximately $7,587 to
install EAS equipment at this system. Oak Grove Heights
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, Oak Grove
Heights submits that its subscribers will continue to have
ready access to national EAS information from other sources,
including its cable systems. In this regard, Oak Grove
Heights notes that its subscribers currently have access to
national EAS messages on approximately 40 percent of all
programmed channels. Oak Grove Heights 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 Oak Grove Heights, we conclude that a
temporary, 36-month waiver of Section 11.11(a) for the
captioned system is warranted.9 In particular, we find that
the estimated $7,587 cost of EAS equipment for this small
cable system could impose a financial hardship on Oak Grove
Heights.
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 Oak Grove Heights
Cable Company IS GRANTED a waiver of Section 11.11(a) of the
Rules until October 1, 2005 for the captioned cable television
system.
7. IT IS FURTHER ORDERED that Oak Grove Heights Cable
Company place a copy of this waiver in its system file.
8. IT IS FURTHER ORDERED that a copy of this Order shall
be sent by Certified Mail Return Receipt Requested to counsel
for Oak Grove Heights Cable Company, 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 waiver will extend 36 months from October 1, 2002, until
October 1, 2005. Oak Grove Heights also specifically requested
waiver of the testing and monitoring requirements of the EAS
rules. We clarify that the waiver we are granting also
encompasses 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.