NTC Rules on CATV and DBS Competition

CATV: A facility that receives and distributes broadcast signals via wire, fiber optic, or cable to paying subscribers.
DBS Service: Satellite-based TV program delivery directly to subscribers’ homes.
Commission: Refers to the National Telecommunications Commission (NTC).
Exclusive Contracts: Agreements granting sole rights to certain operators to broadcast specific programs/content to the exclusion of others.
Programs/Content Provider: Entities providing or distributing TV programs/signals to authorized CATV or DBS operators.

Exclusive contracts or any exclusivity behavior between CATV/DBS operators and content providers are generally presumed anti-competitive and prohibited.

CATV/DBS operators may petition the NTC for approval of exclusive contracts.
Requirements before approval include:
- Agreement to submit disputes to competent Philippine authorities.
- Program/content providers must be registered; foreign providers must appoint a local agent.
After petition filing and fee payment, the NTC will docket the case and issue a hearing notice.
Petitioners must publish the hearing notice to allow interested parties to comment or oppose.
Failure to justify the exclusivity as non-anti-competitive and in the public interest results in voiding exclusivity provisions.
The NTC decision must be made within thirty days following the hearing.

Existing contracts presumed valid but subject to NTC review upon motion or petition.
If exclusivity is found anti-competitive or against public policy, exclusivity clauses will be voided without invalidating the entire contract.

The NTC considers:

Impact on competition, especially protecting small/new market entrants.
Effect on investments, particularly in unserved or underserved areas.
Effect on diversity in programming content.
Duration of the exclusive contract.
Other relevant factors for promoting healthy competition and local content development.

Re-transmission of signals without authorization or agreement is prohibited.
Operators are required to self-censor content in retransmissions to subscribers.

The NTC may impose fines, sanctions, suspension, or revocation of authorizations after due notice and hearing.
Actions may include suspension of pending or future applications.

The prohibition on exclusive contracts and requirement for approval will automatically expire ten years from effectivity, unless extended after public consultation.

Invalidity or unconstitutionality of any provision does not affect other provisions.

All inconsistent prior memoranda, circulars, rules, or regulations are repealed or amended to conform.

The Circular takes effect 15 days after publication in the Official Gazette or a newspaper of general circulation.
At least three certified copies must be filed with the University of the Philippines Law Center.