**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

In the Matter of )

)

Dixie Cablevision, Inc. ) File No. EB-02-TS-378

)

Operator of Cable System in: )

)

Oktibbeha County, Mississippi )

)

Request for Waiver of Section 11.11(a) of the )

Commission's Rules )

## ORDER 

**Adopted: April 28, 2003 Released: May 2, 2003**

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

1.  In this *Order*, we grant Dixie Cablevision, Inc. ("Dixie
    Cablevision") 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.  Dixie Cablevision filed a request for a temporary, 36-month waiver
    of Section 11.11(a) for the captioned cable system on August
    1, 2002. In support of its waiver request, Dixie Cablevision states
    that this is a small, rural cable system which serves approximately
    300 subscribers. Based on price quotes provided by EAS equipment
    manufacturers, Dixie Cablevision estimates that it would cost
    approximately \$10,000 to install EAS equipment at the system. Dixie
    Cablevision 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, Dixie Cablevision
    submits that subscribers will continue to have ready access to
    national EAS information from other sources, including its cable
    systems. In this regard, Dixie Cablevision notes that its
    subscribers currently have access to national EAS messages on
    approximately 28 percent of all programmed channels. Dixie
    Cablevision further submits that 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 Dixie Cablevision, we conclude that a temporary
    36-month waiver of Section 11.11(a) for the captioned cable system
    is warranted.[^9] In particular, we find that the estimated \$10,000
    cost of EAS equipment for this small cable system could impose a
    financial hardship on Dixie Cablevision.

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] Dixie Cablevision, Inc. **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 Dixie Cablevision, Inc. 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 Dixie
    Cablevision, Inc., 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 from October 1, 2002, until October 1,
    2005. Additionally, 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.