Law Summary
Regulatory Authority
- The National Telecommunications Commission (NTC) holds exclusive regulatory and supervisory authority over the cable television industry in the Philippines.
Licensing and Operation Requirements
- Only entities granted Provisional Authority or Certificate of Authority by the NTC may install, operate, maintain cable TV systems, or provide cable TV service.
- Cable TV can carry advertisements and paid segments, charging reasonable fees.
- Operators must not insert advertisements in retransmitted broadcast programs without consent from the program providers.
Restrictions on Other Service Providers
- Local exchange operators, broadcasters, and operators of direct broadcast satellite services, multi-point distribution services, TV receive-only satellite program distribution services, and other video programming providers must secure specific permits or licenses before operating cable TV systems or providing similar services.
- Operation without proper authorization is prohibited and subject to applicable laws.
Conditions for Granting Additional Operating Authorities
- NTC may grant an operator authority within an existing franchise area if:
- The prior operator fails to comply substantially with authorization terms without justification.
- The current cable TV service is grossly inadequate.
- Granting new authority will not cause ruinous competition or conflict with investment policies.
Leasing of Excess Capacity
- Cable operators may lease or sub-lease excess cable system capacity to third parties, but only with prior NTC approval.
Distribution of Encoded Satellite Program Signals
- Receiving and distributing encoded satellite program signals is limited to entities with written authorization from the satellite program providers.
Enforcement and Penalties
- NTC is directed to implement the Executive Order, adopt necessary rules and regulations.
- After due process, NTC may impose penalties including administrative fines and sanctions for any violations.
Repeal of Inconsistent Issuances
- All prior executive orders, administrative orders, and issuances inconsistent with this order are repealed, modified, or amended.
Effectivity
- The Executive Order takes effect immediately upon approval on September 9, 1997.