Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D

Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D. C. 20554

In the Matter of ) ) File No. EB-02-TS-069 Waiver of the Rules ofthe Federal ) FO Docket No. 91 -301 Communications Commission Relating ) FO Docket No 91-171 to Implementation ofthe Emergency ) Broadcast System ) Branch Cable, Inc.

To: Chief, Office of Homeland Security, Enforcement Bureau

PETITION FOR FURTHER WAIVER OF EMERGENCY ALERT SYSTEM REOUIREMENTS

Branch Cable, Inc. (hereinafter "Petitioner"), by its attorneys, respectfully requests a further waiver of Section 11.11 of FCC Rules, 47 U.S.CO § 11.11. Specifically, Petitioner seeks further additional time to comply with the requirement to implement Emergency Alert System ("EAS") equipment and procedures at Petitioner's cable television headend systems at Crosby, New Augusta,

New Hebron and Roxie, Mississippi. Section 11.II(a) requires cabletelevision systems serving fewer than 5,000 subscribers eitherto providethe national level EAS message on all programmed channels- including the required testing - or to install EAS equipment and provide a video interrupt and audio alert on all prognumned channels and EAS audio and visual messages on at least one progrmmned channeL Petitionerrequests a furtherwaiverperrnitting additional time for the cable television headend systems at the nmned communities to comply with these requirements., Petitioner relies herein upon the mechanism for waiver established in the SecondReport andOrderin FO DocketNos. 91-30I and

91-171, FCC 97-338, found at 12 FCC Rcd 1550.3, see ~19 et seq. (1997). 2

Background

On February 12, 2002 Petitioner filed a Petition For Waiver Of Emergency Alert System

Requirements, which were then scheduled to take effect on October 1, 2002 The Enforcement

Bureau ("the Bureau") granted Petitioner a temporary waiver of the requirements for EAS implementation, including the requirements for testing and monitoring. Jj Recognizing that the estimated $100,000 cost of EAS equipment for Petitioner's set ofsmall cable systems would cause a financial hardship on Petitioner, and considering other local circumstances, the Bureau granted

Petitioner's request for waiver. In doing so the Bureau granted a 36-month waiver for seven of

Petitioner's cable television systems, and a 12-month waiver for Petitioner's systems located at

Ackerman and Bude, Mississippi. Since that time, Petitioner has installed compliant EAS systems in

five headend communities: Isola, Louise, Warren County, Ackerman and Bude, Mississippi.

As set forth below, circumstances exist wherein EAS-comp1iant technology compatible with

Petitioner's cable television system facilities is still not yet commercially available to the four named

systems at a financially reasonable expense, and none is foreseen to be available by October 1,2005.

Installation at current prices threatens the financial viability ofthe four systems, and would result in

stranded investment, given Petitioner's plans for headend consolidation. Forthe reasons shown herein,

Petitioner requests further waiver ofthe EAS requirements attendant to Petitioner's cable television headend systems at Crosby, New Augusta, New Hebron and Roxie, Mississippi. As demonstrated

Jj See, Order in The Matter a/Branch Cable, Inc., File No. EB-02-TS-069, released June 24, 2002 ("Branch Order"), wherein 36-month waivers were granted for Petitioner's headend systems in Crosby, Isola, Louise, New Augusta, New Hebron, Roxie and Warren County, Mississippi, and 12-month waivers were granted for Petitioner's headend systems in Ackennan and Bude, Mississippi, 3 herein, good cause exists for grant ofa further waiver. Y

Further Waiver Is Justified by Continued Financial Hardship and Planned Facility Modifications

In the Branch Order and elsewhere the Bureau has restated its commitment to grant waivers

ofthe EAS rules to small cable systems on a case-by-casebasis upon a showingoffinancial hardship.

The Commission recognized that smaller systems do not have access to the financial resources,

purchasing discounts and other efficiencies oflarger companies .. In the Second Report andOrder, at

~20, the Commission stated, "Finally, we note that there is potential for financial hardship for small

cable systems even with an extended phase-in period. Therefore, we will continue to provide waivers

on a case-by-case basis." Indeed, Petitioner finds that EAS implementation endures as an economic

burden for the Crosby, New Augusta, New Hebron and Roxie cable television systems.

Since release ofthe Branch Order Petitioner has continued its detailed review ofequipment

vendors' proposals for providingsubscribers with EAS messages and interrupts. Petitionerhas finished

installing EAS systems where costs relative to subscribership warrant the expenditure. Costs of

installation have ranged from $6,520 to $6,877 per headend system. The latestquote from Petitioner's

EAS supplier is $7,742 per headend, which, while higher than quotes from other vendors, offers to

Petitioner the advantages of 1) a weekly testing feature, 2) minimizing inventory ofspare parts, and

3) avoidance ofduplicate training ofEAS personnel on the operation, testing and protocols oftwo

"The Commission may exercise its discretion to waive a rule where particular facts would make strict compliance in consistent with the public interest." WAIT Radio v. FCC, 418 F.2d 1153, 1159 (D,c. Cir. 1969) Waiver of a Commission rule is appropriate where (l) the underlying purpose ofthe rule will not be served, or would be frustrated, by its application in a particular case, and grant ofthe waiver is otherwise in the public interest, or (2) unique facts or circumstances render application of the rule inequitable, unduly burdensome or otherwise contrary to the public interest, and there is no reasonable alternative. 4 different systems.

Despite Petitioner's diligent efforts to acquire EAS systems for the four remaining systems, the prospects remain economically untenable. The very lowest prices found by Petitioner are as follows:

Lowest Headend Number of Quoted Cost per Community Subscribers EAS Costs Subscriber

Crosby 91 $3,869 $42..52

New Augusta 112 $4,266 $3809

New Hebron 96 $4,266 $44044

Roxie 115 $4,266 $37,10

These quotes are for equipment acquisition only. They do not include accessories, installation or

financing .. Because these lowest quotes are from a vendor other than the vendor of Petitioner's installed EAS systems, Petitioner would incur additional costs for spare parts, training and testing.

Petitioner has been unsuccessful in obtaining funds for EAS from commercial sources because of

leverage restrictions that continue to be placed upon Petitioner by existing lenders.

As mentioned in the Branch Order, it was hoped that FCC-certified decoder-onlyunits would

offer a lower cost means ofsmall system EAS compliance. To date, however, Petitioner has located

no economically practical FCC-certified decoder-only units available on the market Petitioner

inquired with the decoder-onlyvendors listed on the FCC'swebsite and others. The quotes it received

for decoder-only units were generally about $400 less than those for encoder/decoder equipment, but the $400 savings would be more than lost again because Petitioner would have to replace multiple modulators in order to use the decoder-only equipment Therefore EAS vendors have consistently 5 recommended that Petitioner pay the extra $400 and purchase encoder/decoder equipment.

At the same time, Petitioner has embarked on a plan to consolidate headends and install new broadband facilities. The program began in late 2003 and is projected to proceed through 2008.¥

Upon completion, Petitioner will have consolidated nine headends into one, resulting in improved services, increased capacity and lower costs for subscribers. Due to the impendingdeactivation ofeach headend at Crosby, New Augusta, New Hebron and Roxie, installation ofEAS at each headend prior to consolidation will result in wasted investment in duplicate systems that will be of no further use.

Petitioner finds that to acquire and operate stand-alone EAS systems for temporary use at

Crosby,New Augusta, New Hebron and Roxie at currentquoted costs would befinancially imprudent

and costly to its subscribers. Spread over two years, for example, subscriber rates for equipment

purchase alone at the Crosby system would have to be raised by about $1.77 per month, which is a

72% increase; rates at the New Augusta system would increase by $1.59 per month (5.7%); rates

at the New Hebron system would increase by $1.85 per month (6.7%), and rates at the Roxie system

would increase by $1 .55 per month (5.7%). These figures demonstrate that the cost ofEAS, totaling

$16,667, is too great a burden to place upon subscribers or upon Petitioner, whose entire operation

cumulatively produced less than $46,000 income in year 2004, andjust over $31 ,000 income in year

2003. Petitioner's audited adjusted income statement and balance sheet for years 2003 and 2004 are

attached hereto.

Petitionerwould bejeopardized by enforcement ofthe EAS implementation requirements for

¥ Petitioner plans to install fiber-to-the-home and/or rebuild Digital Subscriber Line facilities in Roxie and then consolidate the Roxie headend into the Bude/Meadville headend. Sequentially, Petitionerplans to do the same with facilities in Crosby, New Augusta and New Hebron. Eventually all ofPetitioner's headends will beconsolidated into the Bude/Meadville location. 6

Crosby, New Augusta, New Hebron and Roxie by October I, 2005. Petitioner's subscribers do not have the means to payhigher cablerates to coverthe costs ofEAS. The population oftheservice areas is low, and the people are ofverymodest income. According to most recent U.S. Census estimates,!! key demographics of the subject areas are as follows:

2002 2002 Population 2000 Popu- 2003 Median Household Living in lation not in Population Income Poverty Labor Force ?!

Crosby 354 Amite County $26,838 19.0% 48.1% Wilkinson County $20,433 29.2% 575%

New Augusta 703 Perry County $28,123 184% 45.6%

New Hebron 446 Jefferson Davis $21,277 26.0% 48.5% County

Roxie 559 Franklin County $25,212 21.9% 48.1%

Petitioner submits that these measured circumstances ofweak local economyjustifygrant of an additional amount oftime to deliverEAS services to subscribers in the four communities. The costs to subscribers may be justifiably postponed. The costs will be lower when the four headends are consolidated into a single EAS compliant facility.

Petitioner Can Achieve Cost Efficiencies with Consolidated EAS Delivery

Petitionerrecentlyconsolidated two headends into one (Louise into Isola), reducing from nine

!! Statistics of the US. Department of Commerce, Bureau of the Census, State and County Quick Facts

?! The national average is 36. I%. 7 to eight the numberheadends used provide cabletelevision services. Theserved communities are small, rural, and geographically disconnected, in locations where many subscribers would not otherwise be

able to receive programming services. As Petitioner pursues its consolidation plan, the systems will

be operated more efficiently, permitting Petitioner to achieve essential cost savings. Programming

packages and equipment will be purchased in bulk to obtain the best pricing, and billing and customer

services operations will be consolidated within a central location. None ofPetitioner's singleheadend

systemswouldbe economicallyviablewithout the efficiencies ofconcomitant operation ofthe group

as a whole. Likewise, bearing EAS costs as a group will be a valuable efficiency With a further

waiver, Petitionerwill avoid the extra costs ofduplicated acquisition and operation ofEAS equipment

that will be dismantled and abandoned upon consolidation ofthe headends over the next three years,

Consolidated operation ofPetitioner's systems is essential in rural Mississippi. Ifthe Bureau

will pennit Petitioner to deploy EAS according to a planned program of headend consolidation,

Petitioner's subscribers will benefit significantly from the cost efficiencies realized under the plan.

Alternative Sources of Emergency Alerting Remain in Place at Crosby, New Augusta, New Hebron and Roxie

The emergency alert environment ofinfonnation and risks remains unchanged since release

ofthe Branch Order. Petitioner continues to carry on the basic tier ofthe four headend systems all

of the off-air broadcasting signals that are available for carriage in the area, including the public

broadcasting signals. The systems continue to be served by at least one 24-hour news network,

making national breaking news available to all subscribers on the basic tier. The basic tier ofeach

system also includes The Weather Channel, which carries local weather infonnation and updates, as

well as national alerts. Likewise, local and county Civil Defense systems remain installed to cover 8 the communities. No other cable television systems serve the communities, so there are none that would be expected to install new BAS equipment in the service areas.

The main risks to the communities are weatherrelated emergencies, including tornadoes and floods. The Civil Defense siren systems alert residents to impending hazard from severe weather systems, and Petitionerstrives to keep the cable television systems operatingduring such times so that viewers can tune into local broadcast stations orto The WeatherChannel for specific alert information.

The likelihood of the occurrence of an unusual or surprise national emergency that would directly affect the system subscribership remains remote, as none of the service areas is in close

proximity to a nuclear reactor, major airport or international border. No major prisons, reservoirs, hospitals, military orweapons facilities are installed nearby. Ifanational emergencyoccurs, subscribers

will be informed by the existing alerting systems and by the cable television and broadcast

programming that Petitioner continues to provide. It is in the subscribers' interests that Petitioner's

cable television system operations remain in service, at low monthly rates, and that the time for

installation ofEAS systems be extended.

Further Waiver Is Justified Under the Circumstances

As demonstrated herein, BAS installation at the Crosby, New Augusta, New Hebron and Roxie

headend systems by October 1,2005 remains economically infeasible. Petitioner intends to deliver

EAS services to these remaining communities, but to do so by October I, 2005 would be a burden

to all ofPetitioner's subscribers and would place Petitioner at serious business risk. Petitioner and

its customers will benefit ifthe deadline for installation ofEAS is postponed until October 1,2008

Grant ofPetitioner's request for a waiver of Section I L1 I(a) ofthe Commission's rules is

in the public interest The unique and unusual circumstances surrounding the Petitioner's financial 9 circumstances and the interdependence of its eight small systems constitute more than sufficient grounds for additional relieffrom EAS obligations for the headend systems at Crosby, New Augusta,

New Hebron and Roxie. Special consideration is warranted for the environment demonstrated herein,

so that Petitioner's cable television systems, serving very rural areas in Mississippi, may continue to

provide the best possible programming serviceto its subscribers. Thenegative financial implications

of stand alone and stranded EAS installation would be alleviated by a further waiver for the four

headend systems.. Such relief would permit Petitioner to continue to provide high quality service

withoutjeopardizing the economic viability ofits very small systems .. EAS implementation should

be extended through October 1,2008 for the Crosby, New Augusta, New Hebron and Roxie systems

so that Petitionermaydeliver EAS in an economically efficient manner, realizing the lowest possible

cost for the entire operation and the greatest possible relieffor all ofthe four remaining subscriber

groups.

CONCLUSION

Forthe reasons stated herein, Petitionerrequests that further waiverbe granted for the headend

systems at Crosby, New Augusta, New Hebron and Roxie, Mississippi, extending until October I,

2008 the time for EAS implementation and related compliance with Section 11.II(a) ofthe FCC's

rules. The Petitioner's supplemental showingherein is consistent with the requirements forreliefset

forth in the Second Report and Order in this matter. Furthermore, the public interest benefit ofa

further waiver equals or exceeds that which would be gained by earlier enforcement of the EAS

requirements. Accordingly, Petitioner requests that a further waiver be granted as proposed.

The Commission may contact L Brooks Derryberry, General Manager, Branch Cable, Inc., 10

125 South Congress Street, Suite 1100, Jackson, Mississippi 39201-3304, Phone: (601) 355-1522, fax: (60I) 353-0950, with any questions regarding this request. Please direct a copy ofany written communications to Petitioner to Lukas, Nace, Gutierrez & Sachs, Chtd" Attention Pamela L Gist,

1650 Tysons Boulevard, Suite 1500, McLean, Virginia 22102; Phone: (703) 584-8665; Fax: (703)

584-8695; Email: [email protected].

Respectfully submitted,

BRANCH CABLE, INC. YML_A~ By:--~~=:''''':----=-:''-'------=--=--- Pamela L Gist Its Attorney

Date: May 10, 2005

Lukas, Nace, Gutierrez & Sachs, Chartered 1650 Tysons Boulevard, Suite 1500 McLean, Virginia 22102 Ph, (703) 584-8665 Attachment 1

Lowest Quotes for EAS Equipment I MONROE ENGINEERED EAS QUOTATION I Consultant: WENDELL D. WOODY & ASSOCIATES Proposal Date KANSAS CITY.MO.I (816) 305-36141 [email protected] and Number; Quotation for Emergency Alert System April3J!;c,t;tJl13-. Name: EDWARD FLOWERS Q ote#3293 E-Mail: [email protected] Copy: Todd Steinmetz. NCTC Hardware Sales Coordinator Address: tsteinmetz @ cabletvcoop.org Copy: James F. Heminway. Monroe Electronics E-Mail: [email protected] Company: BRANCH CABLE, INC. (TELAPEX) Address: 176 Main Street East City, State: MEADVILLE, MS 39653 Telephone: 601-384-8485 Fax: 601-384-2440 CROSBY, MISSISSIPPI 28 CHANNEL CABLE SYSTEM EAS SOLUTION by MONROE BASEBAND SWITCHING 23 - -Channels, Modulators BBA/BBV 5 - - Channels, Off-Air Bdct (Letters) [This a.O.M. has 24 Channel CapacityJ [EXPAND CHANNELS IN INCREMENTS OF 8J "ONE-NET' VERSION ENDECODER I DECODER

Page 1 NCTC Extended Model I Description IQty. Prtce Price

R189 NEW MONROE 'ONE-NET' EAS ENCODER / DECODER 1 $ 2.599 $ 2,599 Monroe's One·Net Is a fully conflgurable EAS Encoder/Decoder. It provides full compliance to the FCC mandate, plus ali the features required to meet CATV's evolving technology. The One-Net will interface with most existing analog EAS systems and can be enabled to meet the new digital EAS requirements. Cost effective EAS solution for both Analog and Digital EAS (including DVS-168 and SCTE-18).Ethernet Port for Network Access. Up to 3 internal AM/FM/NOAA Radios. Siores 1.000'5 of Events including Audio Fites. Full Compliment of inputs and outputs for any EAS System. Remole access through any Inlernel Browser. (NO SPECIAL SOFTWARE REQUIRED) Email Notifications for Selected Events and Most System Failures. LAN INTERFACE: 10/100 Base-T (RJ45) PHYSICAL SIZE: 19.0" W x 3.50" H x 12.0" D (2RU); WEIGHT: 4 Lbs. POWER REQUIREMENTS: Inpul120VAC @.4amps.

R-177M Monroe Master Base Band Switch 1 $ 478 $ 476 The R-1 nM Base Band Switch consists of 8 switches on a 2 RU rack mount panel and includes the master system override control function. Overall unit depth is less than 2.5 inches. All connections are made to the front of the R-177M and it is designed to be mounted to the rear of the headend equipment racks to ease unit access and hookup and installation of wiring. The R-177M has baseband video and balanced stereo audio Inputs - with a nloop throughn Both signals are buffered to drive the Signal at a 1:1 level to the outputs.

R-177S Monroe Slave Base Band Switch The R-177S Base Band Switch conSiSts of 8 switches on a 2 RU rack mount panel 2 $ 397 $ 794 and includes the master system override control function. Overall unit depth is less than 2.5 inches. All connections are made to the front of lhe R-177S and il is designed to be mounted to the rear of the headend equipment racks to ease unit access and hookup and installation of wiring. The R-177S has baseband video and balanced slereo audio inputs - wilh a "loop through". Both Signals are buffered to drive lhe signal at a 1:1 level to lhe outputs.

NATIONAL CABLE TV COOP PRICING TOTAL 3.869

COMPLETE SYSTEM MEETING THE FCC MANDATE

Page 2 Model I Description I OPTIONALEASEQUWMENT

J·55·FM·WC J·55·FM. FM Receiving Antenna $169. 5 element, horizontal polarized heavy dUty ruggedized commercial grade yagi antenna. Shipped with center boom mounting hardware for mast up to 2" 0.0. Rear of boom IS adaptable for cantilever mounting to mast/tower leg and these mounts are sold separately: WCM-1. WCM-2. orWCM-3. J·56·162 J·56·162 NOAA Receiving Antenna $162. 5 element, vertical polarized heavy dUty ruggedized commercial grade yagi antenna. Rear mounting boom onto 1.5" to 2" 0.0. mast. Ga.n9 dBi.

EQUIPMENT SOURCE: MONROE ELECTRONICS 100 HOUSEL AVENUE LYNDONVILLE, N. Y. 14098 PHONE: 800-821-6001 FAX: 585-765-9330 E-MAIL: [email protected] CONTACT: Barbara Howell SEE WEB SITE: www.monroe-electronics.com

Page 3 I MONROE ENGINEERED EAS QUOTATION I Consultant: WENDELL D. WOODY & ASSOCIATES KANSAS CITY.MO.I (816) 305-36141 [email protected] Quotation for Emergency Alert System Name: EDWARD FLOWERS E-Mail: [email protected] Copy: Todd Steinmetz. NCTC Hardware Sales Coordinator Address: tsteinmetz @ cabletvcoop.org Copy: James F. Heminway, Monroe Electronics E-Mail: [email protected] Company: BRANCH CABLE, INC. (TELAPEX) Address: 176 Main Street East City, State: MEADVilLE. MS 39653 Telephone: 601-384-8485 Fax: 601-381-14:..;-2=..44:..:.:;:.0 --.1

NEWAUGUSTA,NEWHEBRON,& ROXIE MISSISSIPPI 33, 34, & 37 CHANNEL CABLE SYSTEMS EASSOLUTIONbyMONROE BASEBAND SWITCHING 33 >(6 OffAirs) =27 - -Chis. Mods. BBA/BBV 34 >(5 OffAirs) =29 - -Chis. Mods. BBA/BBV 37 >(6 OffAirs) =31 - -Chis. Mods. BBA/BBV [This a.O.M. has 32 Channel Capacity] [EXPAND CHANNELS IN INCREMENTS OF 8] "ONE-NET' VERSION /l.~~ /7 ENDECODERIDECODER ,/ /G@ '11 1

Page 1 NCTC Extended Model I Description IQty. Price Price

R189 NEW MONROE 'ONE-NET' EAS ENCODER I DECODER 1 $ 2,599 $ 2,599 Monroe's One-Net is a fully conflgurable EAS Encoder/Decoder. It provides full compliance to the FCC mandate, plus all the features required to meet CATV's evolving technology. The One-Net will Interface with most existing analog EAS systems and can be enabled to meet the new digital EAS requirements. Cost effective EAS solution for both Analog and Digital EAS (including DVS-168 and SCTE-18).Ethernet Portfer Network Access. Up to 3 internal AMIFM/NOAA Radios. Stores 1,000's of Events including Audio Files. Full Compliment of inputs and outputs for any EAS System. Remote access through any Internet Browser. (NO SPECIAL SOFTWARE REQUIRED) Email Notifications for Selected Events and Most System Failures. LAN INTERFACE: 10/100 Base-T (RJ45) PHYSICAL SIZE: 19.0" W x 3.50" H x 12.0" D (2RU); WEIGHT: 4 Lbs. POWER REQUIREMENTS: Input 120VAC @ .4 amps.

R-177M Monroe Master Base Band Switch 1 $ 476 $ 476 The R-177M Base Band Switch consists of 8 switches on a 2 RU rack mount panel and includes the master system override control function. Overall unit depth is less than 2.5 inches. All connections are made to the front of the R-177M and it is designed to be mounted to the rear of the headend equipment racks to ease unit access and hookup and installation of wiring. The R-177M has baseband video and balanced stereo audio inputs - with a "loop through", Both Signals are buffered to drive the signal at a 1:1 fevel to the outputs.

R-177S Monroe Slave Base Band Switch The R·177S Base Band Switch consists of 8 switches on a 2 RU rack mount panel 3 $ 397 $ 1,191 and includes the master system override control function. Overall unit depth is less than 2.5 inches. Ali connections are made to the front of the R-177S and it is deSigned to be mounted to the rear of the headend eqUipment racks to ease unit access and hookup and installation ofwiring. The R-177S has baseband video and balanced stereo audio inputs· with a "loop through" Both sIgnals are buffered to drive the signal at a 1:1 level to the outputs.

NATIONAL CABLE TV COOP PRICING TOTAL $ COMPLETE SYSTEM MEETING THE FCC MANDATE 4;J!r

Page 2 Model ~ Description I OPTIONALEASEQWPMENT

J·55·FM·WC J·55·FM, FM Receiving Antenna $169, 5 element. horizontal polarized heavy duty ruggedized commercial grade yagi antenna. Shipped with center boom mounting hardware for mast up to 2" 0,0, Rear ofboom is adaptable for cantilever mounting to masUtower leg and these mounts are sold separately: WCM-1. WCM-2. or WCM-3. J·56·162 J·56·162 NOAA Receiving Antenna $162, 5 element, vertical polarized heavy dUty ruggedized commercial grade yagi antenna. Rear mounting boom onto 1.5" to 2" 0.0. mast. Gain 9 dBI,

Page 3 Attachment 2

Balance Sheets Income Statements BRANCH CABLE, INC. Adjusted Income Statement CATV Operations -Audited- December 31 2004 Actual 2003 Actual

CATV REVENUES

Basic Service Analog 894596 807.826 Basic Service Digital 17985 19 179 Premium Service Analog 91.095 106877 Premium Service Digital 20.434 23.584 Cable Installation 24.618 22.773 Cable Additionai Outlets 50,864 54.689 Cable Late Fees 29827 28.064 Cable Hsn Commissions 1.195 2706 Pay Channel-Cinemax o o Pay Channel-Hbo o o Pay Channel-Movie Channel o o Cable Uncollectibles (4,260) (3.177)

TOTAL CABLE REVENUES 1,126,355 1,062,521

CATV EXPENSES

Salaries 101,803 106.576 Employee Benefits 35,825 35.361 401 (K) Retirement 4,092 3,594 Payroll Taxes 11.553 10,487 Rent System 39,240 28,870 Rent Equipment 0 0 Rent Warehouse 0 0 Store/Office Supplies 5,881 4.416 Maintenance-Equipment 35.824 29.858 Maintenance-System 122,441 112,139 Inventory Adjustments/Scrap 130 0 Travel 923 1,617 Vehicle Expense 16,859 15,415 Business Meals 790 839 Media (All/General) 762 1,378 Application Usage Fees-Franklin 16,262 16,752 Telephone 0 0 Billing/Collection Services - Frank 5,169 5,335 Pay Channel Costs 75,166 81,067 Basic Channel Costs 388,892 354,054 Cable Guide Cost 1,927 1,895 Local Franchise Taxes 1,246 5,241 Utilities 33,195 31,277

TOTAL CATV EXPENSES 897,980 846,172

CABLE PROFIT 228,375 216,349

Depreciation Expense 165,282 170,506 Amortization Expense 7,101 6,347 Interest Expense-General 10,114 8,323

INCOME BEFORE TAXES 45,879 31,173 Balance Sheets

Branch CaD'e, Inc OECHlBER 3 I 2004 Aclual 2003 Acluol

--,._,-~.~--- nJRRl1'JI A)SUS

C CJ':i11 lSi) 'i8: 3Ui /9 .; Accfsl

NONCURRENT ASSETS Deferred Charges 126.480 68.479 Investments & Other Assels 126.480 68479 Tolal Noncurren! Assets 126480 68.479

PROPERTY PLANT & EQUIPMENT Ptant In Service -3951535 3886525 Planl And Acquisition Adjustments 112_922 118214 Planl Accum Dep/Amor! (3.298.849) (3.131.759) Tolal Net Plant 765_608 872,980

TOTAL ASSETS 1,420,682 1,520,279

CURRENT LIABILITIES Accounls Payable 60.760 56.501 Affiliated Accounls Payable 77.703 67,604 Accrued Income Taxes 12,771 21,634 Accrued Expenses 31,196 25.546 Advance Billing & Cuslomer Deposits 110,215 111,25B Current Debt 54.452 51,030 Tolal Current Liabilities 347.097 333,573

LONG-TERM DEBT 98,238 152.690 NONCURRENT DEFERRED TAX LIABILITY 93,267 113,516 Total Liabilities 53B,602 599,779

STOCKHOLDER'S EQUITY (DEFICIT): Common Stock 1,090 1,090 Additional Pd In Capital 133,685 132,998 Retained Earnings 747,305 786.412 Total Stockholders' Equity 882,080 920,500

TOTAL LIABILITIES 8. EQUITY 1,420,682 1,520,279

ITOTAL BALANCE SHEET 0 0 Co/c Bol Sheet T%/ 0 0

Wednesday, March 16, 2005 1 DECLARATION

I, L Brooks Derryberry, hereby state and declare:

I am General Manager ofBranch Cable, Inc., cable television operator and petitioner herein

2 I am familim with the facts contained in the foregoing Petition For Frntber Waiver of

Emergency Alert System Requirements, and I verify that those facts me true and correct to the best of my knowledge and belief, except that I do not and need not attest to those facts which are subject to official notice by the Commission

I declme under penalty ofperjury that the foregoing is true and correct

Executed on this 64-day of May, 2005

L .. Brooks Derryberry r General Manager