FCC Record, Volume 26, No. 7, Pages 4843 to 5761, March 28 - April 08, 2011 Page: 5,116
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4. On December 27, 2006, Baja filed a request for waiver from the integration ban. The
Bureau denied that request on June 29, 2007, but granted Baja leave to amend.'2 On June 24, 2009, Baja
Broadband filed an amended request for waiver from the integration ban. As justification for its request,
Baja submitted updated financial data to demonstrate that it is in financial difficulty and is, therefore,
unable to comply with the integration ban at this time. On March 4, 2010, the Media Bureau granted
Baja's request, stating that extreme financial hardship and a willingness to purchase devices from
refurbishing companies that will sell integrated set top boxes to subscribers at retail justified a conditional
waiver." The waiver for refurbished integrated devices was permanent subject to certain conditions,
while the waiver for new navigation devices with integrated security was limited to one year.
5. Baja seeks an extension of at least one year for the time-limited portion of the waiver,
and a clarification that the waiver for refurbished devices applies to all refurbished devices, and is not
limited to high-definition ("HD") set top boxes and digital video recorder ("DVR") devices.4 Baja filed
its request pursuant to Sections 1.3 and 76.7 of the Commission's rules. The Bureau has granted waiver
of the integration ban pursuant to those rule sections in cases of non-speculative, extraordinary financial
hardship." In light of Baja's demonstrated financial hardship, and consistent with Bureau precedent, we
conclude that a limited extension of Baja's request for waiver of the integration ban for new non-HD,
non-DVR set top boxes is justified under Sections 1.3 and 76.7 of the Commission's rules. We therefore
grant Baja a one-year waiver extension. As we concluded in the Baja Waiver Order, we find that
granting an additional waiver to Baja under Sections 1.3 and 76.7 of our rules is justified in order to
enable Baja to continue offering competitive HD and DVR service and to provide Baja's subscribers with
another retail alternative to leasing a set top box from Baja. In addition, as requested by Baja, we clarify
that the waiver we granted last year with respect to refurbished devices includes non-HD and non-DVR
devices, subject to the same conditions set forth in the Baja Waiver Order.
6. In the Renewal Request, Baja states waiver of the integration ban allowed Baja to cut its
lease price for basic set top boxes in half and add more than 2,000 new digital customers, thus laying the
groundwork for Baja's transition to all-digital systems.'6 It adds that as a direct result of the waiver, it
was able to deploy digital cable and broadband for the first time in two New Mexico systems that
previously had been one-way analog only." Baja also notes that it activated 122 customer-purchased set
top boxes, enabling those customers to receive digital cable without leasing a set top box from Baja and
expects that number to increase as its digital penetration increases.'
of new or improved services. 47 U.S.C 549(c). Furthermore, petitioners who have shown good cause have
received waivers of the integration ban pursuant to Sections 1.3 and 76.7 of the Commission's rules. See Charter
Communications, Inc. Request.for Waiver of Section 76.1204(a) (1) of the Commission's Rules, 22 FCC Rcd 8557,
8564-5, 18-19 (2007) ("Financial Hardship Order").
12 Armstrong Utilities, Inc., et al, 22 FCC Red 11725, 11745, 57 (2007).
"1 Baja Broadband Operating Company LLC (fio'a Ortmge Broadband Operating Company LLC and Carolina
Broadband, LLC), 25 FCC Red 2200, 2204-2206, 11-14 (2010) ("Baja Waiver Order").
" Renewal Request at 1.
" See, e.g., 2007 Financial Hardship Order, 22 FCC Rcd at 13426-7, 39-40.
lb Renewal Request at I.
i Id. at 2.
Federal Communications Commission
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United States. Federal Communications Commission. FCC Record, Volume 26, No. 7, Pages 4843 to 5761, March 28 - April 08, 2011, book, April 2011; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc52169/m1/288/: accessed October 17, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.