Law Summary

SECTION 1: Nature and Scope of Franchise

• Explanation: Grants a franchise to Kabasalan Satellite Cable Television System, Inc. (the grantee) to operate a commercial cable television system in Zamboanga del Sur.
• Key Definitions:
  • "Grantee": Refers to Kabasalan Satellite Cable Television System, Inc. and its successors or assigns.
• Requirements:
  • The grantee may construct, install, and operate a cable system for commercial purposes.
  • Services include audio, visual, educational, and interactive content.
• Important Details:
  • The system can transmit local and foreign signals, including interactive services.
• Future Technologies: Must accommodate future technological advancements.

SECTION 2: Manner of Operation of Stations or Facilities

• Explanation: Operations must minimize interference with existing stations.
• Requirements:
  • The grantee must ensure quality transmission and reception.
• Important Details:
  • The operation should not diminish the rights of other stations.

SECTION 3: Prior Approval of the National Telecommunications Commission

• Explanation: Requires the grantee to obtain permits from the National Telecommunications Commission (NTC).
• Requirements:
  • Must have authorization to use specific frequencies.
• Important Details:
  • NTC must not unreasonably delay approvals.

SECTION 4: Ingress and Egress

• Explanation: Grants rights for construction and maintenance of infrastructure.
• Requirements:
  • Prior approval from the Department of Public Works and Highways is needed to disturb public places.
• Consequences:
  • Non-compliance will result in the Department repairing at the grantee's expense.

SECTION 5: Responsibility to the Public

• Explanation: The grantee must serve the public interest and provide balanced programming.
• Requirements:
  • Provide public service time for government communication.
  • Avoid broadcasting obscene or misleading content.
• Consequences:
  • Violations may result in penalties as deemed appropriate.

SECTION 6: Right of Government

• Explanation: Government retains rights to operate stations during emergencies.
• Requirements:
  • Compensation is owed to the grantee when the government operates their facilities.
• Important Details:
  • The radio spectrum is a national resource, and usage privileges may be revoked.

SECTION 7: Term of Franchise

• Explanation: Defines the duration of the franchise.
• Requirements:
  • Franchise lasts 25 years unless revoked.
  • Operations must commence within three years of the operating permit.
• Consequences:
  • Non-compliance results in automatic revocation.

SECTION 8: Acceptance and Compliance

• Explanation: Outlines the acceptance process for the franchise.
• Requirements:
  • Acceptance must be in writing within 60 days.
• Consequences:
  • Failure to accept renders the franchise void.

SECTION 9: Bond

• Explanation: Mandates a bond for non-operational grantees.
• Requirements:
  • Bond amount determined by NTC to ensure compliance.
• Consequences:
  • Failure to fulfill conditions will result in forfeiture of the bond.

SECTION 10: Tax Provisions

• Explanation: Establishes tax obligations for the grantee.
• Requirements:
  • Pay real estate and franchise taxes.
  • Income taxes apply under the National Internal Revenue Code.
• Consequences:
  • Taxes are subject to audit by the Bureau of Internal Revenue.

SECTION 11: Self-regulation by and Undertaking of Grantee

• Explanation: The grantee is responsible for content regulation.
• Requirements:
  • Must cut off indecent or seditious content during broadcasts.
• Consequences:
  • Non-compliance may lead to cancellation of the franchise.

SECTION 12: Warranty in Favor of National and Local Governments

• Explanation: Holds governments harmless from claims due to grantee’s operations.
• Requirements:
  • The grantee must bear liability for accidents or injuries.

SECTION 13: Sale, Lease, Transfer, Usufruct, etc.

• Explanation: Restrictions on transferring the franchise.
• Requirements:
  • Prior congressional approval is required for transfers.
• Consequences:
  • Non-compliance results in revocation of the franchise.

SECTION 14: Dispersal of Ownership

• Explanation: Encourages public participation in ownership.
• Requirements:
  • At least 30% of outstanding capital must be offered in the stock market within ten years.
• Consequences:
  • Non-compliance results in automatic revocation of the franchise.

SECTION 15: General Cable Television Policy Law

• Explanation: Compliance with future cable television policies mandated by Congress.

SECTION 16: Separability Clause

• Explanation: Invalid provisions do not affect the validity of remaining sections.

SECTION 17: Repealability and Nonexclusivity Clause

• Explanation: Congress may amend or repeal the franchise as public interest requires.

SECTION 18: Reportorial Requirement

• Explanation: Annual reporting to Congress on compliance and operations required.
• Deadline: Reports due within 60 days of year-end.

SECTION 19: Effectivity Clause

• Explanation: The Act takes effect 15 days after publication in two newspapers.

Key Takeaways

• Franchise Duration: 25 years, subject to compliance with operational conditions.
• Public Interest: Grantee must serve public needs and avoid harmful content.
• Government Rights: The government can take control during emergencies with compensation.
• Ownership Dispersal: Grantee must offer stock to promote public investment.
• Compliance and Reporting: Regular compliance reports to Congress are mandatory, with penalties for non-compliance.