FCC Record, Volume 26, No. 7, Pages 4843 to 5761, March 28 - April 08, 2011 Page: 5,117
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7. To demonstrate its extraordinary financial hardship, Baja submitted financial statements
that demonstrate that the company continues to be in a precarious financial position. Although its
operating cash flow has changed from negative to positive, there are other financial indicators that,
although they too show improvement, continue to indicate financial distress."' Baja's operating expenses
exceed its operating income, and it continues to suffer a net loss, meaning that Baja is not making enough
money to cover its expenses.2" Furthermore, Baja's overall debt has increased and Baja does not have the
resources necessary to pay its current financial obligations. Accordingly, Baja has met the standard for
waiver of the integration ban for new non-HD, non-DVR two-way set top boxes under Sections 1.3 and
76.7 of the Commission's rules for a period of one year from the release date of this Order.
8. We conclude that an additional waiver of the integration ban for one year would be in the
public interest, and that Petitioner has met the standard for waiver under Sections 1.3 and 76.7 of the
Commission's rules. We note, however, that when the rules adopted in the Third Report and Order and
Order on Reconsideration become effective, the integration ban will no longer apply to one-way set top
boxes without recording capability,2' and the financial burden of integration ban compliance will decrease
significantly. We believe that once the rule becomes effective, the integration ban will no longer impose
an unmanageable cost even on operators who demonstrate extraordinary financial hardship.
IV. ORDERING CLAUSES
9. Accordingly, IT IS ORDERED that, pursuant to Sections 1.3 and 76.7 of the
Commission's rules, 47 C.F.R. 1.3 & 76.7, waiver of Section 76.1204(aX 1) of the Commission's rules,
47 C.F.R. 76.1204(a)(1), IS GRANTED to Baja Broadband Operating Company, LLC with respect to
new non-HD, non-DVR set top boxes for a period of one year from the date this Order is released.
10. This action is taken pursuant to authority delegated by Section 0.283 of the
Commission's rules, 47 C.F.R. 0.283.
FEDERAL COMMUNICATIONS COMMISSION
Michelle M. Carey
Deputy Chief, Media Bureau
0 Id. at Exhibit I.
21 Implementation of Section 304 of the Telecommunications Act of 1996: Conmmnercial Availability of Navigation
Devices, 25 FCC Rcd 14657, 14679-14682, 14701 45-51 (2010) (amending Section 76.1204 of the Commission's
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/m1/289/: accessed March 28, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.