FCC Record, Volume 26, No. 7, Pages 4843 to 5761, March 28 - April 08, 2011 Page: 5,120
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denied those petitions.9 In limited circumstances, however, operators may be eligible for waiver of the
4. Petitioner makes its request for waiver pursuant to the Financial Hardship Order" and
Sections 1.3 and 76.7 of the Commission's rules." In light of Petitioner's demonstrated financial
hardship, we conclude that, consistent with the Financial Hardship Order, a grant of its Waiver Request
for one year from the release date of this Order is justified under Sections 1.3 and 76.7 of the
Commission's rules. We therefore grant Petitioner a time-limited waiver of the integration ban.
5. On June 15, 2007, Allegiance filed a petition requesting a limited waiver of the
integration ban for a period of two years.13 On March 30, 2009, Allegiance updated its financial record
and sought an extension of the waiver until July 1, 2010.14 We concluded that based on the company's
net losses over the preceding three years, liquidity problems, and heavy debt, good cause was shown to
extend Allegiance's waiver.'" On June 1, 2010, Allegiance asked for a further extension of the waiver.'6
Due to the company's continuing financial hardship, we grant a one-year waiver extension. While the
company's financial situation improved slightly from 2008 to 2009, Allegiance continues to carry a
sizeable debt and a large negative cash flow." Allegiance's cost of compliance with the integration ban
would require an already cash-strapped company to take on a considerable amount of additional debt
obligations." Based on its financial statements, Allegiance appears to be on the path to stability;'9
9 Comcast Corp. v. FCC, 526 F.3d 763 (D.C. Cir. 2008); Charter Comm., Inc. v. FCC, 460 F.3d 31 (D.C. Cir.
2006); General Instrument Corp. v. FCC, 213 F.3d 724 (D.C. Cir. 2000). The Commission argued, and the D.C.
Circuit agreed, that the integration ban was a reasonable means to meet Section 629's directive. Charter Comm.,
Inc. v. FCC, 460 F.3d 31, 41 (D.C. Cir. 2006) ("this court is bound to defer to the FCC's predictive judgment that,
'[a]bsent common reliance on an identical security function, we do not foresee the market developing in a manner
consistent with our statutory obligation."').
'0 For example, Section 629(c) provides that the Commission shall grant a waiver of its regulations implementing
Section 629(a) upon an appropriate showing that such waiver is necessary to assist the development or introduction
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)(I) of the Commission's Rules, 22 FCC Red 8557,
8564-5, 18-19 (2007) ("Financial Hardship Order").
" Financial Hardship Order, 22 FCC Red at 8564-5, f4 18-19.
2 47 C.F.R. 1.3, 76.7.
13 Waiver Request at 1.
4 Letter from Stephen R. Ross, Counsel, Allegiance Communications, L.L.C., to Marlene H. Dortch, Secretary,
Federal Communications Commission at Attachment (March 30, 2009).
's Allegiance Communications, LLC Request for Waiver of Section 76.1204(a)(1) of the Commission's Rules, 24
FCC Rcd 9273 (2009).
"6 Letter from Stephen R. Ross, Counsel, Allegiance Communications, L.L.C., to Marlene H. Dortch, Secretary,
Federal Communications Commission (June 1, 2010).
7 Id. at Attachment B.
"' Id at Attachment A.
19 Id. at Attachment B.
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/m1/292/: accessed April 26, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.