Need for Development and Support of Cable Television Industry
- Significant portions of the country remain uncovered by cable television, indicating the need for industry expansion.
- Incentives and investment protection are essential to encourage growth in the cable television sector.
- Professionalism and self-regulation under a nationally recognized operators' association have contributed positively to industry growth.
- Minimal but reasonable government regulation is advocated to maintain a balance.
Distinct Operation of Cable Television Systems
- Cable television is classified as a subscriber service with unique technology.
- Its operation must be maintained distinctly and separately from telecommunications and broadcast television.
Regulatory Authority and Supervision
- The National Telecommunications Commission (NTC) retains exclusive regulatory and supervisory powers over the cable television industry in the Philippines.
Licensing and Authorization for Cable Television Operators
- Only entities granted a Provisional Authority or Certificate of Authority by the NTC may install, operate, or maintain cable television systems.
- Cable television services may carry advertisements and paid segments with fees charged by operators.
- Operators must not infringe on broadcast television markets by inserting advertisements in retransmitted programs without consent from the program provider.
Restrictions on Other Service Providers
- Local exchange operators, broadcasters, and operators of various satellite and wireless video programming services are prohibited from operating cable television systems without specific permits or licenses.
- Such permits must comply with this Executive Order and related laws and regulations.
Conditions for Granting Additional Authority to Operate
- NTC may authorize a new operator within an area already served if:
a) The existing operator has failed to substantially comply with authorization terms without justification.
b) The current service is grossly inadequate.
c) The new operation will not cause ruinous competition against the existing operator.
Leasing of Excess Capacity
- Cable operators may lease or sub-lease excess cable capacity to third parties subject to prior NTC approval.
Control over Satellite Program Signals
- Receipt and distribution of encoded satellite program signals require written authorization from the satellite programmer.
Enforcement and Implementation
- NTC is tasked to ensure proper implementation, adopt necessary rules and regulations.
- NTC may impose penalties, including administrative fines and sanctions, after due process, for violations of this Order and related regulations.
Repeal of Conflicting Issuances
- All prior executive orders, administrative orders, and issuances inconsistent with this Executive Order are repealed, modified, or amended accordingly.
Effectivity
- The provisions of the Executive Order take effect immediately upon approval on September 9, 1997.