FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.B. No. 
85 
Introduced by Senator Ramon Bong Revilla, Jr. 
EXPLANATORY NOTE 
It is often observed that the law lags behind sweeping social and technological 
developments of the time which significantly redefine our ways of living. In such 
circumstances, the law has to keep abreast with these changes in order to maintain its 
preservative and regulatory hnction in society. This dynamism is much more prononnced 
in the case of recent scientific breakthroughs. The advent of cable television technology 
is a classic example. Cable television operation is a fast becoming major business 
enterprise. 
Currently, the industry has an estimated work force of more than 700,000 
employees and contributes to the national coffers about P600 million in taxes annually. 
There are about 327 local entrepreneurs operating in the industry (l'hilippine 
Cable 
Television Association, 1995). However, the large amount of capital outlay needed to 
expand the industry's operations and the strength of commercial mass media stifles its 
growth potentials. Aggravating the woes of local investors in the industry is the state of 
Philippine law governing it. It is widely perceived that the Government is in a state of 
conhsion in regulating the industry. 
Under Executive Order No. 205 signed in 1987, the cable television industry is 
classified as a form of commercial mass media, hence the application of the prohibition 
on foreign equity participation in the industry as enunciated in Article XVT, Section 11 
(1) of the 1987 Constitution. On the other hand, Republic Act No. 7925 enacted in 1995 
seems to include cable television systems in its definition of telecommunications without 
any categorical mention of it. Be that as it may, the records of the 1986 Constitutional 
Commission clearly show that the framers of the Constitution considered 
telecommunications as a public utility. Therefore, foreign equity participation in the cable 
television industry may be allowed. 
However, the ambiguity of the language of RA No. 7925 with respect to the 
nature of the cable television industry and the inadequacy of the provisions of E.O. 205 in 
addressing the concerns of the industry necessitate remedial legislation. In the context of 
the fact that the cable television industry is impressed with public interest, this bill aims 
to provide the cable television industry the impetus it needs to develop by laying down 
the legal basis for the entry of needed capital, albeit foreign-owned. 
To ensure the dominance of local equity, the bill provides incentives and support 
mechanisms that will promote competition in the field and allow a better-levelled 
comparative growth of the different players in the enterprise. The proposed legislation 


also seeks to rationalize government regulation of the industry be clearly delineating the 
powers of the government agency mandated by law under E.O. No. 205 and FL4 No. 
7925 and through the formulation of provisions specific and categorical to the industry. 
Most importantly, this bill aims to bring the Philippine cable television industry at 
par with global trends and standards through technology transfer. It is hoped that these 
novel innovations in the law will ultimately redound to the benefit of the industry’s 
subscribers, of which a growing majority are the common Filipino masses. 
In the light of the above premises, the immediate passage of this bill is earnestly 
urged. 


FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHJLIPPINES 
1 
First Regular Session 
1 
v 
Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT 
PROMOTING AND REGULATING THE OPERATION OF 
CABLE TELEVISION IN THE PHILIPPINES, AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and House of Representutives of the Philippines in 
Congress assembled: 
SECTION 1. Title. This Act shall be known as the “Cable Television Act of 
2004”. 
SEC. 2. Declaration of Policy. - It shall be the policy of the State to: 
a) To recognize that the delivery of cable television services to subscribers is impressed 
with public interest and subject to minimal and reasonable government regulation 
b) As public interest requires, to allow viable competition in the cable television industry 
in order to achieve and sustain its growth, to ensure the industry’s responsiveness to the 
needs and interests of its subscribers and of the general public, and discourage and 
prohibit monopolies in the industry. 
c) To establish and promote the highest standards for cable television operation and 
services to maximize the informative, educational and entertainment or recreational value 
of cable television technology to the public, and 
d) To encourage self-regulation in the cable television industry and professionalism in the 
delivery of its services through nationwide associations of legitimate cable television 
service operators. 
SEC. 3. Definition of Terms. - As used in this Act: 
a) Cable Television System - refer to any and all processes and facilities for the purpose 
of providing service within defined service areas and to multiple subscribers multiple- 
channel community antennae or cable television and delivering programs of broadcast 
television stations and/or other program providers. 


b) Cable Television Operator - refers to my person granted a Provisional Authority or a 
Certificate of Authority as provided in this Act, and is actually providing cable television 
service to its subscribers. 
c) Cable Television Service - includes services rendered by a cable television operator for 
a fee, such as: 
i) One or two-way transmission to subscribers of video programs and 
other audio-visual programs; and 
ii) Subscriber interaction or seIection of video programs and other 
audiovisual services but excludes: 
a. Re-transmission of television signals of one or more television 
broadcast stations; and 
b. A cable television facility that serves fewer than fifty (SO) 
subscribers at any given time. 
d) Commission - refers to the National Telecommunications Commission 
SEC. 4. Ownership and Control - The ownership, control and operation of cable 
television systems in the Philippines which are considered as content providers, such as 
those that produce their own content or programs or originate their own opinions, shall be 
limited to citizens of the Philippines, or to corporations, cooperatives or associations 
wholly-owned and managed by such citizens. 
However, the ownership, control and operation of cable television systems which are 
merely network providers, such as those who neither produce their own content or 
programs nor originate their own opinions but only own the cable television network or 
infrastructure, shall he open to all citizens of the Philippines, corporations, cooperatives, 
associations, joint ventures organized under Philippine laws at least sixty percent (60%) 
of the capital of which is owned and controlled by citizens of the Philippines. 
SEC. 5. Regulation and Supervision of the Cable Television Industry. - The 
regulation and supervision of the cable television industry in the Philippines is hereby 
vested in the National Telecommunications Commission. 
SEC. 6. Powers and Duties of the Commission - The Commission shall have 
the following powers and duties. 
a) To issue, suspend and revoke Certificates of Authority or Provisional 
Authority, licenses, permits and other authorization in the exercise of its 
regulatory and supervisory powers under this Act. 
b) To promulgate, upon approval of the Secretary of Transportation and 
Communication, rules and regulations to implement the provisions of this Act; 
c) To hear, investigate and decide all questions., controversies or disputes arising 
out of or in connection with the operation of cable television systems in the 
country and impose penalties and other sanctions on violations of the provisions 
of this Act and its implementing rules and regulations; 
d)To issue subpoenas, require the production of books, papers, records and other 
documents as may be necessary in the resolution of any matter under its 
consideration; and 


e) To prosecute violations of the provisions of this Act, rules and regulations, 
orders and other issuance promulgated by the Commission in the implementation 
of this Act. 
SEC. 7. Legislative Franchise and Certificate of Authority. - Any person, 
association or corporation who shall install and moderate a cable television system, or 
render cable television service for a fee on a nation-wide or region-wide basis, shall be 
required to obtain and secure a franchise from the Congress of the Philippines and a 
Certificate of Authority from the Commission: Provided, That municipal or provincial 
cable television systems operators shall be required to obtain and secured the necessary 
local government permit or franchise from the appropriate local government authority as 
well as a Certificate of Authority from the Commission. 
A cable television system shall be considered to be operated on a nation-wide 
basis if the system is intended to be installed and operated to service at least three (3) 
regions, or at least three (3) provinces in separate regions. It shall be considered to be 
operated on a region-wide basis if the system is intended to be installed and operated to 
serve in at least three (3) provinces in the region. 
Any person, association or corporation who shall install and operate a cable 
television system, or render cable television service for a fee within a municipality, city 
or province shall be required to obtain a Certificate of Authority from the Commission. 
A Certificate of Authority to operate a cable television system shall be issued in 
favor of an applicant legally, technically and financially capable of providing cable 
television service for a period of fifteen (15) years from the date of its issuance and 
subject to such other terms and conditions the Commission may reasonably impose. 
Pending the grant or issuance of the Certificate of Authority, the Commission 
may issue a Provisional Authority to operate a cable television system, likewise subject to 
the terms and conditions the Commission may reasonably impose, which shall ripen into 
a Certificate of Authority two (2) years f?om the date of issuance, unless earlier revoked 
by the Commission for valid cause. 
SEC. 8. Non-Exclusivity. - The Commission may grant to an applicant-operator 
the authorization to operate a cable television system within the same franchise area 
covered by a Certificate of Authority or by a Provisional Authority issued to another 
operator two (2) years earlier, upon determination by the Commission that: 
a) 
The prior cable television operator has not substantially complied with the 
terms and conditions of his authorization; 
b) 
The cable television service currently provided by the operator to its 
subscriber is sub-standard, inefficient andor inadequate; and/or 
c) The prior cable television operator has unreasonably and unjustifiably rehsed 
or failed to comply with the terns and conditions of its authorization or the orders, 
issuance or regulations promulgated by the Commission. 
SEC. 9. Revocation of Authorization - The Commission shall, motu proprio or on 
complaint of an interested party, upon notice and after due hearing, revoke the authority 
granted to a cable television operator, if the Commission determines that said cable 
television operator: 


a) Has not commenced the commercial operation of its cable television system as 
provided for in its authorization afier two (2) years from the date of issuance of 
the authorization; 
b) Has ceased the commercial operation of its cable television system; 
c) Provides its subscribers services below the standards prescribed by law; 
d) Has engaged in business practices detrimental to healthy competition within the 
industry; and 
e) Has unreasonably and unjustifiably refused or failed to comply with the terms and 
conditions of its authorization or the orders, issuance or regulations promulgated by the 
Commission 
SEC. 10. Right of Easement - Duly authorized cable television operators shall have 
the right-of-way granted to existing public utilities and dedicated to compatible uses: 
Provided, that the cable television operator shall ensure that: 
a) The owner of the property subject of the easement is justly compensated for the 
servitude and damages caused by the installation, operation or removal of its 
cable television facilities. 
b) The function, appearance and safety of the property subject to the easement and 
the convenience and safety of other users and the general public are not adversely 
affected, and 
c) The expenses of installation, operation or removal of such facilities are borne by 
the cable television operator exercising the right of easement: provided, further, 
That the rate of annual fees to be paid by the cable television operator in 
compensation to the owner of the property subject of the easement shall be fixed 
by the Commission. 
SEC. 11. Lease of Excess Capacity. - A cable television operator may, with the 
approval of the Commission, lease or sub-lease the excess capacity of its cable television 
system, but may not utilize such excess capacity in, or in any manner engage, in 
broadcast or telecommunications or other non-cable television services without securing 
the appropriate legislative franchise and authority from the Commission. 
SEC. 12. Advertisements. - Cable television service may include and carry public 
announcements, notices and advertisements and other similar segment, not exceeding five 
( 5 ) minutes per hour of program, in addition to insertions by foreign programmers. 
SEC. 13. Carriage of Commercial Television Signal. - A cable television operator 
may carry on its cable television system the signals of commercial televisions stations 
free of charges. 
SEC. 14. Payment of Times. - A cable television operator shall be subject to the 
payment of taxes under the National Revenue Code, as amended. 
SEC. 15. Prohibited Acts. - The following acts are hereby declared unlawful: 
a) No cable television operator shall engage in any television broadcast or 
telecommunication activity unless duly licensed for the purpose. 
b) No cable television operator shall receive and distribute encoded or un-encoded 
satellite program signals without the written authorization of the concerned satellite 
programmer; 
c) No person shall intercept or receive, or assist in intercepting or receiving, any service 
offered over a cable television system by tapping, making or causing to be made any 
unauthorized connection to existing cable television facilities, with drop, feeder and truck 


lines, or by the recording, manufacture, distribution, importation or sale of intercepted or 
received cable television signals; and 
d) No person shall knowingly use or receive any direct or indirect benefit from any cable 
television service through any of the prohibited acts enumerated in the preceding 
paragraphs. 
SEC. 16. Penalties. - Any person, including directors and officers of 
corporations, who knowingly and wilhlly violates any provision of this Act or commits 
any of the prohibited acts in the preceding section shall be punished by a fine not less 
than fifty thousand pesos (P50,OOO.OO) but not more than three hundred thousand pesos 
(P300,OOO.OO) or an imprisonment term of not less than one (1) year but not more than 
three (3) years, or both. 
SEC. 17. Repealing Clause. - Pertinent provisions of Executive Order No. 205 
and all other laws, decrees, regulations or parts thereof inconsistent with the provisions of 
this Act are hereby repealed or modified accordingly. 
SEC 18. Effectivity. - This Act shall take effect immediately upon approval. 
Approved,