Exclusive CATV Franchise to Sining Makulay

The government objective is to improve television industry service and facilities in the Philippines.
The government seeks to spread social benefits through opportunities for self-improvement via mass media and modern communication.
CATV systems are recognized as necessary due to geographical reception needs in some areas, and in urban areas for special viewership such as hotels, business houses, and educational institutions.
Technological advances give CATV a significant national role, requiring regulatory power by the national government.

Section 2 establishes a franchise term of 25 years from the date the CATV is put in operation.
Section 2 provides that the franchise is renewable for another 25-year period.

Section 3 requires the CATV to be constructed and operated to avoid interference with existing stations.
Section 3 requires the CATV to be operated in a way that permits expansion of the grantee’s services.

Section 4 authorizes the grantee to exercise the right of eminent domain insofar as may be reasonably necessary for the efficient maintenance and operation of the CATV.
Section 4 authorizes installation and maintenance of the grantee’s ducts, cables, and other facilities over and across public property.
Section 4 expressly includes within public property: streets, highways, forest reserves, and other similar property of the Government of the Philippines, including its branches or instrumentalities.

Section 5 reserves to the President of the Philippines the power, in time of war, rebellion, public peril, or other national emergency, and when public safety requires, to:
- cause the closing of the grantee’s CATV, or
- authorize the use or possession of the CATV by the government.
Section 5 provides that such government use or possession during the national emergency is without compensation to the grantee.

Section 6 sets the monthly and connection rates the grantee may charge:
- PHP 20.00/mo. for each subscriber connection to service one television set.
- PHP 5.00/mo. for each additional television set extension in the same subscriber’s private residence for use by his family.
- PHP 35.00 initial connection charge.
Section 6 allows additional charges for actual cost for:
- (1) relocation of outlets,
- (2) additional work and materials for connection to subscriber premises located at a greater distance from the feeder cable, including where the distance from the center line of the street, alley or easement occupied by a feeder cable to any outlet at the subscriber’s set exceeds 150 feet, and
- (3) underground service from underground cable requiring trenching (including back filling, repairing and/or replanting).

Section 7 requires the grantee to pay to the Treasurer of the Government of the Philippines each year a tax equivalent of 3% of all gross receipts from business transacted under the franchise.
Section 7 provides that the franchise tax is in lieu of any and all taxes, duties and tariffs of any kind, nature or description levied or collected by any authority whatsoever, whether municipal, provincial, or national.
Section 7 grants the grantee express exemption from all such taxes, duties and tariffs covered by the in-lieu provision.

Section 8 provides that the franchise grant is subject to amendment, alteration, or modification.
Section 8 provides that the right to use and occupy public property granted under the franchise reverts to the government upon termination of the franchise.
Section 9 prohibits the grantee from leasing, transferring, selling, or assigning the franchise or the rights or privileges acquired under it without the approval of the President of the Republic of the Philippines.

Section 10 repeals or modifies any acts, decrees, orders and proclamations, rules and regulations, or parts thereof that are inconsistent with the decree’s provisions.
Section 10 terminates and cancels all franchises, permits, or certificates previously granted by local governments or by any instrumentality or agency of the national government for the operation of CATV.

Presidential Decree No. 1512 is dated June 11, 1978 and was issued by President Ferdinand E. Marcos.
Effectivity is governed by the decree’s clause stating it takes effect upon approval.
The decree is completed and signed in the City of Manila on June 11, 1978.