Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

nouse siti no._32 a1

INTRODUCED BY REPRESENTATIVE JOSE “PINGPING” |. TEJADA

EXPLANATORY NOTE

This bill seeks to renew the franchise granted to Central CATV, Inc. (now Sky Cable
Corporation), under Republic Act No. 7969 entitled “An Act Granting the Central CATY, Inc. a
Franchise to Establish, Construct, Maintain and Operate for Commercial Purposes
Cable/Community Antennae Television Systems in the Philippines” enacted into law on 30
March 1995.

Sky Cable Corporation (“Sky Cable”) is an entity that has been granted by the State
to operate television systems for the last twenty five (25) years. It has begun its operation of
television systems in Metro Manila and eventually extended its operation in key provincial
areas. In its earnest effort to service the Filipino nationwide, and pursuant to its existing
franchise, Sky Cable applied, and was granted by the National Telecommunications
Commission in 2015 an authority to operate a direct broadcast satellite service. Today, Sky
Cable is a leader in providing the public a better access to a variety of sources of news,
information, education, science and technology, and entertainment.

Information dissemination plays a crucial role in the development and growth of our
country. Throughout its more than twenty years in the service, Sky Cable has not only
provided entertainment to Filipino families nationwide, but has also served the Filipino
people in disseminating vital information in pursuit of the State’s recognition of the vital role
of communication and information in nation building. It has likewise provided the
government an avenue to reach out to its constituents even in the far-flung provinces.

In recognition of Sky Cable’s commitment and leadership as television systems and
direct broadcast satellite service provider, and its effort to keep pace with technological and
capital requirements of its operations, the immediate renewal of its franchise is
recommended to ensure the uninterrupted and improved delivery of services to the Filipino
people.

In the light of the above premises, the passage of this bill is earnestly sought.

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JOSE “PI 1. TEIADA
3" District, Province of Cotabato


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House BillNo,__ 2421

INTRODUCED BY REPRESENTATIVE JOSE “PINGPING” I. TEJADA

AN ACT
RENEWING THE FRANCHISE GRANTED TO SKY CABLE CORPORATION (FORMERLY CENTRAL
CATV, INC.) UNDER REPUBLIC ACT NO. 7969 OR “AN ACT GRANTING THE CENTRAL CATV,
INC. A FRANCHISE TO ESTABLISH, CONSTRUCT, MAINTAIN AND OPERATE FOR
COMMERCIAL PURPOSES CABLE/COMMUNITY ANTENNAE TELEVISION SYSTEMS IN THE
PHILIPPINES” FOR TWENTY-FIVE (25) YEARS FROM THE EFFECTIVITY OF THIS ACT

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Nature and Scope of Franchise. — Subject to the provisions of the 1987
Philippine Constitution and applicable laws, rules and regulations, the franchise granted to
Sky Cable Corporation (formerly Central CATY, Inc.), hereunder referred to as the grantee,
its successors or assigns, to construct, install, establish, operate, and maintain for
commercial purposes and in the public interest, community antennae television systems in
the different provinces, cities and municipalities in the Philippines, and those of foreign
television and radio and other stations, including pay TV, and the distribution or
transmission of the same to homes, offices, condominiums, subdivisions, hotels,
restaurants, and other residential, commercial and industrial structures within and outside
the Philippines by means of electromagnetic waves, optics or any kind of energy, force,
variations or impulses, radiated through space or transmitted through any other medium as
may be allowed by law and are at present available or will be made available through
technological advances or innovations in the future, to originate, distribute, transmit and
receive through said systems, news and documentaries, and to establish, construct,
maintain and operate such other systems as are essential or convenient to carry out the
forgoing is hereby renewed for another twenty-five (25) years from the effectivity of this
Act.

Section 2. Manner of Operation of Stations or Facilities. - The stations or facilities
of the grantee shall be constructed and operated in a manner as will, at most, result only in
the minimum interference on the wavelengths or frequencies of existing stations or other
stations which may be established by law, without in any way diminishing its own privilege
to use its assigned wavelengths or frequencies and the quality of transmission or reception
thereon as would maximize rendition of the grantee's services and/or availability thereof.

Section 3. Prior Approval of the National Telecommunications Commission. — The
grantee shall secure from the National Telecommunications Commission (NTC) the

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appropriate permits and licenses for the construction and operation of its stations and
facilities, and shall not use any frequency in the radio/television spectrum without
authorization from the NTC. The NTC, however, shall not unreasonably withhold or delay
the grant of any such authority.

Section 4. Responsibility to the Public. — The grantee shall provide adequate public
service time to enable the government, through the said cable television stations or
facilities, to reach the population on important public issues; provide at all times sound and
balanced programming; promote public participation such as in community programming;
assist in the functions of public information and education; conform to the ethics of honest
enterprise; and not use its stations and facilities for the transmission of obscene and
indecent language, speech, act or scene, or for the dissemination of deliberately false
information or willful misrepresentation, to the detriment of the public interest, or to incite,
encourage, or assist in subversive or treasonable acts.

Section 5. Right of Government. — A special right is hereby reserved to the President
of the Philippines, in times of war, rebellion, public peril, calamity, emergency, disaster or
disturbance of peace and order, to temporarily take over and operate the stations or
facilities of the grantee; to temporarily suspend the operation of any station or facility in
the interest of public safety, security and public welfare; or to authorize the temporary use
and operation thereof by any agency of the government, upon due compensation to the
grantee, for the use of its stations or facilities during the period when they shall be so
operated.

Section 6. Term of Franchise. — This franchise shall be in effect for a period of
twenty-five (25) years from the effectivity of this Act, unless sooner revoked or cancelled.
This franchise shall be deemed ipso facto revoked in the event the grantee fails to operate
continuously for two (2) years.

Section 7. Acceptance and Compliance. — Acceptance of this new franchise shall be
given in writing within sixty (60) days from the effectivity of this Act. Upon giving such
acceptance, the grantee shall exercise the privileges granted under this Act. Non-
acceptance shall render the franchise void.

Section 8. Tax Provisions. — The grantee, its successors or assigns, shall be liable to
pay the same taxes on their real estate, buildings and personal property, exclusive of this
franchise, as other persons or corporations are now or hereafter may be required by law to
pay. in addition thereto, the grantee, its successors or assigns, shall be levied, assessed and
collected a franchise tax equivalent to three percent (3%) of all gross receipts of the
business transacted under this franchise by the grantee, its successors or assigns and the
said percentage shall be in lieu of all taxes on this franchise or earnings thereof: Provided,
That the grantee, its successors or assigns, shall continue to be liable for income taxes
payable under Title I! of the National internal Revenue Code.

The grantee shall file the return with and pay the tax due thereon to the
Commissioner of Internal Revenue or his duly authorized representatives in accordance with
the National Internal Revenue Code and the return shall be subject to audit by the Bureau of
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Section 9. Self-regulation by and Undertaking of Grantee. — The grantee shall not
require any previous censorship of any speech, play, act or scene, or other matter to be
telecast from its stations: Provided, That the grantee, during any telecast shall cut off from
the air the speech, play, act or scene, or other matter being telecast if the tendency thereof
is to propose and/or incite treason, rebellion or sedition; or the language used therein or
the theme thereof is indecent or immoral: Provided, further, That willful failure to do so
shall constitute a valid cause for the cancellation of this franchise.

Section 10. Sale, Lease, Transfer, Grant of Usufruct, or Assignment. - The grantee
shall not lease, transfer, grant the usufruct of, sell nor assign this franchise or the rights and
privileges acquired thereunder to any person, firm, company, corporation or other
commercial or legal entity, nor merge with any other corporation or entity without the prior
approval of the Congress of the Philippines. Neither shall the controlling interest in the
grantee be transferred, whether as a whole or in parts and whether simultaneously, or
contemporaneously, to any such person, firm, company, corporation or entity without the
prior approval of the Congress of the Philippines. Any person or entity to which this
franchise is sold, transferred or assigned, shall be subject to the same conditions, terms,
restrictions and limitations of this Act.

Section 11. Warranty in Favor of National and Local Governments. — The grantee
shall hold the national, provincial, city and municipal governments of the Philippines free
from all claims, accounts, demands, or actions arising out of accidents or injuries, whether
to property or to persons, caused by the construction or operation of the stations, facilities
and equipment of the grantee.

Section 12. Separability Clause. — \f any of the sections or provisions of this Act is
held invalid, all other provisions not affected thereby shall remain valid.

Section 13. Repealability and Non-exclusivity Clause. - This franchise shall be
subject to amendment, alteration, or repeal by the Congress of the Philippines when the
public interest so requires and shall not be interpreted as an exclusive grant of the privileges
herein provided for.

Section 14. Reportorial Requirement. — The grantee shall submit an annual report to
the Congress of the Philippines, on its compliance with the terms and conditions of the
franchise and on its operations with sixty (60) days from the end of every year.

Section 15. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved