FCC Record, Volume 26, No. 7, Pages 4843 to 5761, March 28 - April 08, 2011 Page: 5,121
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however, a limited extension of the waiver would help the company's financial security and allow it to
continue to provide telecommunications services to its otherwise underserved rural coverage area.
6. In 2006, we concluded that speculative claims that the integration ban may impose a
financial burden on cable companies were not persuasive20 but in 2007, we found that extraordinary
financial hardship, when supported by specific and unambiguous documentation, can present good cause
for a limited waiver of the integration ban.21 With regard to Petitioner's request for a waiver, we find
that Petitioner has effectively documented extraordinary financial hardship. While common reliance is
integral to the development of the competitive navigation device market that Congress mandated through
Section 629, we believe that in this case the Petitioner has shown good cause for waiver of the integration
ban rule based on the costs associated with its imposition. Accordingly, 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,22 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 on operators who
demonstrate extraordinary financial hardship.
IV. ORDERING CLAUSES
7. 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, the request for waiver of Section 76.1204(aX1) of the
Commission's rules, 47 C.F.R. 76.1204(a)(1), filed by Allegiance Communications, LLC, IS
GRANTED for one year from the date this Order is released.
8. 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
20 See Comcast Corporation's Request for Waiver of 47 C.F.R. 76.1204(a)(l). CSR-7012-Z, CS Docket No. 97-80
at 17-19 (April 19, 2006) (asserting that that the increased costs associated with the integration ban would slow
Comcast's transitions to all-digital platforms); Comcast Corporation Request for Waiver of Section 76. 1204(a)(1) of
the Commission 's Rules, 22 FCC Red 17113, 17125, 17 (2007) ("While we recognize concerns raised by some
commenters that imposition of the integration ban may lead to higher cable bills in the short term, we reaffirm the
conclusion that the Commission reached in the 2005 Deferral Order that 'the costs that this requirement will impose
should be counterbalanced to a significant extent by the benefits likely to flow from a more competitive and open
supply market.'") (quoting 2005 Deferral Order, 20 FCC Rcd at 6809, 29).
21 Financial Hardship Order, 22 FCC Rcd at 8564-5, 11 18-20.
SImplementation of Section 304 of the Telecommunications .4ct of 1996: Commercial Availability of Navigation
Devices, 25 FCC Red 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/m1/293/: accessed September 20, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.