If your cable system inserts commercials on digital channels, you may be required to install equipment by December 13, 2012 to comply with the FCC’s CALM Act ru. The regulations require cable operators inserting commercials on digital channels to comply with certain volume standards, detailed in a publication called ATSC A/85, by the December 13 deadline. 

If your system uses a third party to insert commercials, you can rely on a certification from the third party that it is in compliance. If you insert commercials on your own, your system must install equipment and software necessary to assure compliance with ATSC A/85. If your system inserts commercials and cannot meet the December 13 deadline, you should seek a waiver. The waiver request must be filed by October 14, 2012. 

Operators who do not insert commercials, and merely pass through commercials embedded by programmers, may generally rely on certifications from programmers to show compliance with ATSC A/85. Again, the regulations apply to digital channels only. 

Two types of waiver are available for operators unable to comply with the rules by December 13. 

Financial Hardship Waiver. The FCC can grant a one-year waiver of the rules’ effective date if an operator shows that it would face a financial hardship to get the equipment necessary to comply. 

To obtain a financial hardship waiver, an operator must show: (i) evidence of its financial condition; (ii) a cost estimate for obtaining the necessary equipment; (iii) an explanation of why its financial condition justifies postponing compliance; and (iv) an estimate of how long it will take to comply. 

Alternatively, a small system (one with fewer than 15,000 subscribers and not affiliated with a large operator) may use a streamlined hardship waiver process, certifying that it: (i) meets the definition of small system; and (ii) needs a one-year delay to obtain the equipment to avoid a financial hardship. 

General Waiver. Under its general waiver standard, the FCC can waive the rules on a showing of “good cause.” General waivers may be appropriate where, for example, a system uses an alternative technology that would make it difficult to comply with ATSC A/85. 

If you have any questions about waivers of the CALM Act rules, please contact Bruce Beard at (314) 394-1535 or bbeard@cm-chi.com or Jake Baldwin at (312) 372-3930 or jbaldwin@cm-chi.com.