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                )
                                )
Jordan-Soldier Valley Telephone Company )
                                )    File No. EB-02-TS-440
Operator of Cable Systems in:   )
                                )
Moorhead, Iowa                  )
Onawa, Iowa                     )
Soldier, Iowa                   )
Danbury, Iowa                   )
Ute, Iowa                       )
                                )
Request for Waiver of Section 11.11(a) of the     )    
Commission's Rules              )    
                                        
                              ORDER 

Adopted:  November 12, 2002             Released:   November  26, 
2002

By the Chief, Technical  and Public Safety Division,  Enforcement 
Bureau:

1.        In this Order, we grant Jordan-Soldier Valley Telephone 
  Company  (``Jordan-Soldier'')  temporary  waivers  of   Section 
  11.11(a) of  the Commission's  Rules (``Rules'')  for the  five 
  above-captioned  cable  television  systems.  Specifically,  we 
  grant 12-month waivers of Section 11.11(a) for Moorhead,  Iowa, 
  Onawa,  Iowa  and Soldier,  Iowa  cable  systems  and  36-month 
  waivers of  Section 11.11(a)  for Danbury, Iowa  and Ute,  Iowa 
  cable  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.        On August 22, 2002, Jordan-Soldier filed a request  for 
  temporary waivers  of Section 11.11(a)  for the five  captioned 
  cable television  systems.  In support  of its waiver  request, 
  Jordan-Soldier  states  that  these  are  small,  rural   cable 
  systems serving between 59 and 781 subscribers. Based on  price 
  quotes  provided  by an  EAS  equipment  manufacturer,  Jordan-
  Soldier estimates that  it would cost approximately $50,000  to 
  install  EAS   equipment  at  these  systems.    Jordan-Soldier 
  asserts  that this  cost will  impose a  substantial  financial 
  hardship on it  and provides its 2000 2001 financial  statement 
  in  support of  this  assertion.  In  addition,  Jordan-Soldier 
  submits  that  its subscribers  will  continue  to  have  ready 
  access  to  national   EAS  information  from  other   sources, 
  including its  cable systems.  In  this regard,  Jordan-Soldier 
  notes that  its subscribers currently  have access to  national 
  EAS  messages  on  at  least  42  percent  of  all   programmed 
  channels.   Jordan-Soldier 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  Jordan-Soldier,  we  conclude  that 
  temporary, 12-month waivers  of Section 11.11(a) are  warranted 
  for  Moorhead,  Onawa  and  Soldier,  Iowa  cable  systems  and 
  temporary, 36-month waivers  of Section 11.11(a) are  warranted 
  for Dunbury  and Ute, Iowa cable  systems.9  In particular,  we 
  find that  the estimated $50,000 cost  for installation of  EAS 
  equipment  for  these  small  cable  systems  could  impose   a 
  financial hardship on Jordan-Soldier.  

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  Jordan-Soldier 
  Valley  Telephone  Company   IS  GRANTED  waivers  of   Section 
  11.11(a)  of  the  Rules  until  October  1,  2003  for   three 
  captioned cable  television systems and  IS GRANTED waivers  of 
  Section 11.11(a)  of the Rules  until October 1,  2005 for  two 
  captioned cable televisions systems.

7.        IT  IS  FURTHER  ORDERED  that  Jordan-Soldier   Valley 
  Telephone Company place a copy of these waivers in its  systems 
  files.

8.        IT IS FURTHER ORDERED that  a copy of this Order  shall 
  be sent by Certified Mail Return Receipt Requested counsel  for 
  Jordan-Soldier  Valley  Telephone,  Christopher  C.   Cinnamon,             
  Esq., Cinnamon Muller,  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 12-month waivers will extend from October 1, 2002,  until 
October 1,  2003,  and  the 36-month  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.