Question & AnswerQ&A (NTC MEMORANDUM CIRCULAR NO. 10-10-2003)
The primary purpose is to implement rules and regulations governing Community Antenna/Cable Television (CATV) and Direct Broadcast Satellite (DBS) services to promote competition in the sector and prevent monopolistic practices.
CATV is defined as any facility that receives, amplifies or otherwise modifies and improves signals broadcast by television, satellite, or radio stations and distributes such signals by wire, fiber optic or cable to subscribing members of the public who pay for the service.
DBS service refers to the delivery of TV programs directly to the home via a satellite receiving dish, bypassing cable landlines, also known as direct-to-home/direct-to-user (DTH/DTU) broadcast system.
Exclusive contracts are agreements that grant sole or exclusive rights to air or broadcast certain programs or content to specific CATV/DBS operators to the exclusion of others.
Exclusive contracts or any behavior tantamount to exclusivity are presumed anti-competitive and contrary to sound public policy, and are generally prohibited except as provided under these guidelines.
They must submit a petition to the National Telecommunications Commission (NTC), showing that parties consent to dispute jurisdiction in Philippine authorities and that all program/content providers are registered with the NTC, with foreign providers appointing a local agent.
The NTC dockets the case, issues a notice of hearing published in a newspaper at least 15 days prior, allows interested parties to file comments, and renders a decision within 30 days of the hearing.
The NTC will void the exclusivity clauses in the contract but the remaining parts of the contract remain valid.
Yes, they are presumed valid; however, the NTC may review them motu proprio or upon verified petition to determine if they are anti-competitive and may void exclusivity provisions accordingly.
The NTC considers impact on competition, effects on investments especially in underserved areas, diversity of programming, contract duration, and other relevant factors to promote healthy competition.
Operators must have authorization from program/content providers to retransmit signals and exercise self-censorship in retransmission to subscribers.
The NTC may impose administrative fines, penalties, sanctions including suspension or revocation of authorizations and suspension of pending or future applications after due notice and hearing.
The provisions shall automatically expire 10 years from the Circular’s effectivity unless extended by the NTC after public notice and consultation.
Such declaration does not affect the validity or effectiveness of the remaining provisions of the Circular.
It took effect fifteen (15) days following its publication in the Official Gazette or a newspaper of general circulation in the Philippines.