G.R. No. 138810 - Batangas CATV, Inc. vs. Court of Appeals

Permit and Ordinance
On July 28, 1986, the Batangas City Sangguniang Panlungsod enacted Resolution No. 210 granting Batangas CATV, Inc. a permit to construct, install, and operate a CATV system in Batangas City.
Section 8 of Resolution No. 210 authorized petitioner to charge subscribers specified maximum rates and required Sanggunian approval for any rate increase.

Rate Increase and Litigation
In November 1993, petitioner unilaterally raised its monthly subscriber rate from ₱88 to ₱180 without securing Sanggunian approval.
The City Mayor threatened to cancel petitioner’s permit for non-compliance, prompting petitioner to file Civil Case No. 4254 before the Regional Trial Court (RTC) for injunctive relief, arguing that the National Telecommunications Commission (NTC) held exclusive regulatory power under E.O. 205.
On October 29, 1995, RTC Branch 7 enjoined respondents from canceling petitioner’s permit or interfering with its rate-fixing, holding that LGUs lacked authority over CATV rates.
On February 12, 1999, the Court of Appeals reversed the RTC, ruling that under the Local Government Code (LGC), the Sangguniang Panlungsod could regulate and fix CATV subscriber rates.
Petitioner filed a petition for review on certiorari before the Supreme Court, assailing the CA decision and resolution.

Whether the Batangas City Sangguniang Panlungsod, under the general welfare clause of the Local Government Code, has authority to fix or approve CATV subscriber rates.
Whether regulatory power over CATV operations, including rate-fixing, is exclusively vested in the NTC by Executive Order No. 205 and subsequent issuances.