It’s that time of year—in which operators that received waivers for last year’s FCC set-top integration ban make their case for why their exemptions should be extended. James Cable was granted a waiver last year based upon its "dire financial straits." The operator wrote the FCC last week saying it needs at least a 1-year extension based on its finances. The ban prevents operators from deploying set-tops with integrated security (ie, without a CableCARD). In ’07, despite savings from its partial integration ban waiver, James Cable said it suffered negative free cash flow in the amount of nearly $900K, lost another 4% of its basic subs and has a penetration rate of only 36%.