Question & AnswerQ&A (Republic Act No. 7969)
The franchise allows Central CATV, Inc., its successors or assigns, to construct, establish, install, operate, and maintain community antenna television systems for commercial purposes in the Philippines and between the Philippines and other countries. This includes receiving and distributing various audio-visual signals, including pay TV, and transmitting through any medium allowed by law, as well as originating and distributing news, entertainment, informational, and educational programs.
The stations or facilities must be constructed and operated to cause only minimum interference with the wavelengths or frequencies of existing or legally established stations without diminishing Central CATV's own rights to use its selected frequencies or the quality of transmission.
Central CATV, Inc. must secure the appropriate permits and licenses from the National Telecommunications Commission (NTC) and may not use any frequency without authorization from the NTC.
Central CATV, Inc. must provide adequate public service time for government information dissemination, ensure sound and balanced programming, promote community participation, assist in public information and education, adhere to honest enterprise ethics, and refrain from transmitting obscene, indecent, false, or subversive content.
The President of the Philippines may temporarily take over, suspend operation, or authorize government use of the stations during war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, with due compensation to the grantee.
The franchise is granted for twenty-five (25) years from the act's effectivity date unless revoked or canceled earlier. Failure to operate continuously for two (2) years results in automatic revocation.
Central CATV, Inc. and its successors or assigns must pay the same taxes on real estate, buildings, and personal property as other entities, plus a franchise tax of 3% of all gross receipts from business under the franchise, which is in lieu of all taxes on the franchise or earnings. They also remain liable for income taxes under the National Internal Revenue Code.
No. The grantee shall not require prior censorship. However, the grantee must cut off from air any telecast that incites treason, rebellion, sedition, or contains indecent or immoral language or themes. Failure to do so is cause for franchise cancellation.
No. The franchise cannot be leased, transferred, sold, assigned, or merged without prior approval from the Congress of the Philippines. Any such transfer subjects the new owner to the same franchise conditions.
The grantee is required to submit an annual report to the Congress of the Philippines on its compliance with the franchise terms and its operations within sixty (60) days after the end of each year.