*()4 k&d 3(j p 2 yj 
THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
SENATE 
S. No. 
~ 
~~ 
- 
~ 
~- 
~~ 
~~ 
~ 
Introduced by Senator S. W. OsmeAa Ill 
EXPLANATORY NOTE 
Industries associated with information technology (IT) have led and fuelld the 
monumental leaps and strides in technology at the turn of the millenium, making 
possible the rapid dissemination of advancements in science, technology, agriculture, 
engineering, and many other fields of knowledge. Today, the possibilities facing IT 
industries are endless. 
As a medium for the delivery of television services to subscribers and the 
general public, Community Antennae Television (CATV) or cable TV partakes of the 
character of a public utility. This bill proposes to vest in the National 
Telecommunications Commission (NTC), regulatory and supervisory powers over the 
Cable TV industry in order to safeguard the public interest and to provide acceptable 
standards of service in cable TV. 
In view of the foregoing, early passage of this bill is earnestly requested. 
SERGIO OSMENA 111 
Senator 


THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
”&$, 
J&+/ 30 p 2  
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S. No. 
Introduced by Senator S. R. Osmeiia 111 
AN ACT 
PROMOTING AND REGULATING THE OPERATION OF CABLE TELEVISION IN 
THE PHILIPPINES, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Republic of the 
Philippines in Congress assembled: 
1 
2 
3 
4 
5 
G 
7 
8 
9 
I O  
I 1  
12 
13 
14 
15 
SECTION I. Title. - This Act shall be known as the “Cable Television 
Act of 2004.1’ 
SEC. 2. Declaration ofPolicies. - It shall be the policy of the State to: 
a) Recognize that the delivery of cable television services to subscribers is 
impressed with public interest and subject to minimal and reasonable 
government regulation; 
b) Allow, 
as public interest requires, 
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) Establish and promote the highest standards for cable television 
operation and service to maximize the informative, educational and 
entertainment or recreational value of cable television technology to the 
public; and 
I 


1 
2 
3 
4 
5 
G 
7 
8 
9 
10 
I I  
12 
13 
14 
15 
I G  
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
d) 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. Definifion of Terms. - As used in this Act 
a) Cable Television System - refers 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 
program providers. 
b) Cable Television Operator - refers to any person granted a Provisional 
and is 
Authority or a Certificate of Authority as provided in this Act, 
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 selection of video programs and other 
audio-visual 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 (50) 
subscribers at any given time. 
d) Commission - refers to the National Telecommunications Commission. 
SEC 4. 
Ownership and Confrol. - 
The ownership, control, and 
operation of cable television systems in the Philippines shall be open to all 
citizens of the Philippines, or associations, cooperatives, partnerships, joint 
ventures, or corporations organized under Philippine laws at least sixty percent 
(60%) of the capital of which is owned by citizens of the Philippines. 


I 
2 
3 
4 
5 
6 
7 
8 
9 
I O  
1 1  
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
' 24 
25 
26 
27 
28 
29 
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 fhe Commission. - The Commission 
shall have the following powers and duties: 
a) to issue, suspend and revoke the Certificates of Authority of 
Provisional Authority, licenses, permits and other authorizations 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. Certificate of Authority - It shall be unlawful for any person to 
install and operate a cable television system, or render cable television service 
for a fee, 
without a Certificate of Authority issued by the National 
Telecommunications 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 
> 


1 
of its issuance and subject to such other terms and conditions as the 
2 
Commission may reasonably impose. 
3 
Pending the grant or issuance of the Certificate of Authority, the 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
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 
from 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 
15 
16 
b) The cable television service concurrently provided by the operator to 
17 
its subscribers is sub-standard, 
inefficient, 
and/or inadequate; 
the terms and conditions of this authorization; 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
and/or 
c) The prior cable television operator 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: 9. Revocafion of Aufhorizafion. - The Commission shall, motu 
upon notice and after due 
revoke the authority granted to a cable television operator, if the 
propio or on complaint of an interested party, 
hearing, 
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 after two (2) years from the 
date of issuance of the authorization; 
4 


I 
2 
b) has ceased the commercial operation of its cable television system; 
c) provides its subscribers services below the standards prescribed by 
3 
law; 
4 
d) has engaged in business practices detrimental to healthy competition 
5 
within the industry; and 
G 
e) has unreasonably and unjustifiably refused or failed to comply with 
7 
8 
9 
SEC. I O .  
Right of Easement. 
- 
duly authorized cable television 
the terms and conditions of its authorization or the orders, issuances, 
or regulations promulgated by the Commission. 
10 
1 1  
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
operators shall have the right of easement 
over rights-or-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 of 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. 1 I. 
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. 


I 
2 
3 
4 
5 
6 
7 
8 
9 
10 
1 1  
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
SEC. 12. Advertisements. Cable televisions service may include and 
carry paid public announcements, notices and advertisements and other similar 
segments, not exceeding a total of ten ( I O )  minutes per hour of program, in 
addition to insertions authorized 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 television stations free of charges. 
SEC. 14. Payment of Taxes. A cable television operator shall be 
subject to the payment of taxes under the National Internal 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 system by tapping, making 
or causing to be made any unauthorized connection to existing cable 
television facilities, 
with drop, feeder and trunk 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 pa rag rap hs. 
SEC. 16. Penalties. Any person, including directors and officers of 
corporations, who knowingly and willfully violates any provision of this Act or 
commits any of the prohibited acts in the preceding section shall be punished by 
6 


a fine of 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 (I) 
year but not more than three (3) years, or both. 
SEC. 17. Repealing Clause. - All laws, decrees, orders, rules and 
regulations and other issuances inconsistent with the provisions of this Act are 
deemed modified, revoked or repealed accordingly. 
SEC. 18. Effectivity. This Act shall take effect fifteen (1 5) days after its 
publication 
in 
two 
(2) 
leading 
newspapers of 
national 
circulation. 
Approved , 
7