Law Summary
SECTION 1: Nature and Scope of Franchise
- Explanation: This section grants Cable Link & Holdings Corp. a franchise to construct, operate, and maintain cable/community antennae television (CATV) systems in the Philippines.
- Key Definitions:
- Grantee: Cable Link & Holdings Corp.
- CATV Systems: Cable/community antennae television systems used for distributing audio, visual, and other signals.
- Important Requirements:
- The franchise is for commercial purposes in the public interest.
- The grantee may provide various services including live and recorded programs, and use advanced technologies as they become available.
- Bullet Points:
- Franchise includes national and international services.
- Services to be provided to various establishments and public conveyances.
SECTION 2: Manner of Operation of Stations or Facilities
- Explanation: The grantee must operate its facilities to minimize interference with existing stations.
- Important Requirements:
- Maintain quality of transmission while maximizing service delivery.
- Bullet Points:
- Interference with other stations must be minimal.
- Quality of service and transmission must be prioritized.
SECTION 3: Prior Approval of the National Telecommunications Commission
- Explanation: The grantee must obtain necessary permits from the National Telecommunications Commission (NTC) to operate.
- Important Requirements:
- Authorization from NTC is mandatory for frequency usage.
- NTC must not unreasonably delay or withhold permits.
- Bullet Points:
- Compliance with NTC regulations is required.
SECTION 4: Ingress and Egress
- Explanation: The grantee may conduct excavations for installation with DPWH approval.
- Important Requirements:
- Must repair any disturbances caused by their operations.
- Timeframes:
- Repairs must be completed within 10 days of notice; otherwise, DPWH may repair at the grantee's expense.
- Bullet Points:
- Excavations allowed in public spaces with DPWH consent.
- Failure to repair incurs double expense.
SECTION 5: Responsibility to the Public
- Explanation: The grantee must provide balanced programming and comply with public service requirements.
- Important Requirements:
- Must avoid obscene content and disseminating false information.
- Bullet Points:
- Ensure programming is sound and balanced.
- Promote community participation and public information.
SECTION 6: Right of Government
- Explanation: The President may take control of the grantee’s operations during emergencies.
- Important Requirements:
- Temporary suspension of operations is allowed for public safety.
- Bullet Points:
- Compensation to the grantee is required for government use.
SECTION 7: Term of Franchise
- Explanation: The franchise is valid for 25 years unless revoked or canceled.
- Important Requirements:
- Operations must commence within one year of NTC approval.
- Continuous operation for two years is required.
- Consequences:
- Failure to meet conditions can result in automatic revocation.
- Bullet Points:
- Must start operations within specified timeframes.
SECTION 8: Acceptance and Compliance
- Explanation: The grantee must formally accept the franchise.
- Important Requirements:
- Acceptance must be written within 60 days of the Act’s effectivity.
- Consequences:
- Non-acceptance leads to franchise voiding.
- Bullet Points:
- Prompt acceptance is critical for franchise validity.
SECTION 9: Bond
- Explanation: The grantee must file a bond to guarantee compliance.
- Important Requirements:
- Bond amount determined by NTC.
- Consequences:
- Bond forfeiture occurs if compliance is not met after three years.
- Bullet Points:
- Bond cancellation is possible upon fulfillment of conditions.
SECTION 10: Tax Provisions
- Explanation: The grantee is subject to all applicable taxes and fees.
- Key Definitions:
- NIRC: National Internal Revenue Code of 1997, as amended.
- Important Requirements:
- Tax returns must be filed with local authorities.
- Bullet Points:
- Compliance with NIRC is mandatory.
SECTION 11: Self-regulation by and Undertaking of Grantee
- Explanation: The grantee is responsible for content regulation.
- Important Requirements:
- Must cut off inappropriate broadcasts in real-time.
- Consequences:
- Failure to comply may lead to franchise cancellation.
- Bullet Points:
- Responsibility for content lies with the grantee.
SECTION 12: Warranty in Favor of National and Local Government
- Explanation: The grantee assumes liability for accidents related to their operations.
- Important Requirements:
- Must indemnify government for claims arising from their activities.
- Bullet Points:
- Liability extends to both property and personal injuries.
SECTION 13: Nontransferability of Franchise
- Explanation: The franchise cannot be leased or transferred without Congressional approval.
- Important Requirements:
- Any unauthorized transfer results in automatic revocation.
- Bullet Points:
- Strict rules on ownership changes are enforced.
SECTION 14: General Cable Television Policy Law
- Explanation: The grantee must adhere to future cable television policy laws enacted by Congress.
- Bullet Points:
- Compliance with evolving legislative frameworks is necessary.
SECTION 15: Reportorial Requirement
- Explanation: The grantee must submit an annual compliance report to Congress.
- Important Requirements:
- Reports are due 60 days after the end of each year.
- Bullet Points:
- Transparency in operations is mandated.
SECTION 16: Separability Clause
- Explanation: If any provision is invalidated, the remaining provisions remain effective.
- Bullet Points:
- Protection against partial invalidation of the Act.
SECTION 17: Repealing and Nonexclusivity Clause
- Explanation: Congress can amend or repeal the franchise as public interest requires.
- Bullet Points:
- Franchise is not exclusive and may be subject to future alterations.
SECTION 18: Effectivity Clause
- Explanation: The Act takes effect 15 days post-publication in newspapers.
- Bullet Points:
- Grantee is responsible for publication to initiate effectivity.
Key Takeaways
- Republic Act No. 9382 grants a 25-year franchise to Cable Link & Holdings Corp. for CATV operations in the Philippines.
- The grantee must comply with numerous operational, regulatory, and reporting requirements, including obtaining necessary permits, maintaining public service standards, and adhering to tax obligations.
- The franchise is subject to revocation for non-compliance, and any transfer of rights requires Congressional approval.
- The law emphasizes public safety, accountability, and the government's right to intervene under specific circumstances.