PRESCRIBING POLICY GUIDELINES TO GOVERN THE OPERATIONS OF CABLE TELEVISION IN THE PHILIPPINES

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WHEREAS, the State recognizes the vital role of communication and
information in nation-building;

WHEREAS, the Filipino people must be given wider access to more sources of
news, information, education, sports events and entertainment programs other
than those provided for by mass media and afforded television programs to
attain a well informed, well-versed and culturally refined citizenry and
enhance their socio-economic growth;

WHEREAS, cable television (CATV) systems could support or supplement the
services provided by television broadcast facilities, local and overseas, as
the national information highway to the countryside;

WHEREAS, because a large part of the country is still not covered by cable
television services, there is an urgent need to maximize the development of the
cable television industry and to provide incentives and afford protection to
investments therein;

WHEREAS, professionalism and self-regulation among existing operators,
through a nationally recognized cable television operators’ association, have
enhanced the growth of the cable television industry and must therefore be
maintained along with minimal reasonable government regulations;

NOW, THEREFORE, I, FIDEL
V. RAMOS, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby adopt the
following guidelines for the cable television (CATV) industry:

SECTION 1. The operation of cable television systems, as a subscriber service
undertaking with a unique technology, shall be maintained separate and distinct
from telecommunications or broadcast television.

SEC. 2. The regulation and supervision of the cable television industry in
the Philippines shall remain vested solely with the National Telecommunications
Commission (NTC).

SEC. 3. Only persons, associations, partnerships, corporations or
cooperatives granted a Provisional Authority or Certificate of Authority by the
Commission may install, operate and maintain a cable television system or
render cable television service within a service area.

Cable television service may
carry advertisements and other similar paid segments for which the cable
television operator may charge and collect reasonable fees; Provided, that no
cable television operator shall infringe on broadcast television markets by
inserting advertisements in the programs it carries or retransmits without the
consent of the program provider concerned.

SEC. 4. Local exchange operators and/or broadcasters, as well as operators
of direct broadcast satellite service, multi-point distribution service,
television receive-only satellite program distribution service and other systems
of providers of video programming utilizing whatever technology, shall not
operate cable television systems or any form of service involving the delivery
television programs and signals, by wire or cable or through the airwaves and
other wireless video signal transmission systems without specific permits,
licenses and/or authority to operate a cable television system as provided
hereunder and under applicable laws and rules and regulations, which permits,
licenses and/or authority shall be issued in accordance with the provisions of
this Executive Order.

SEC. 5. The Commission may grant an applicant an authority to operate a
cable television system within the same franchise area covered by any
Provisional Authority or Certificate of Authority issued by the Commission two
(2) years earlier only upon the determination by the Commission that –

a) the prior cable television
operator has not, without sufficient justification, substantially complied with
the terms and condition of his authorization;

b) the cable television service
currently provided by the operator to its subscriber is grossly inadequate; and

c) the grant of the authority to
the applicant will not result in ruinous competition detrimental to the
existing operator and incompatible with the investment policies under this
Executive Order.

SEC. 6. A cable television operator may, with prior approval from the
Commission, lease or sub-lease any excess capacity of its cable television
system to a third party.

SEC. 7. Receipt and distribution encoded satellite program signals shall be
limited to the written authority granted by the satellite programmer.

SEC. 8. The Commission is hereby directed to ensure the proper
implementation of this Executive Order, adopt rules and regulations for the
purpose and, after due notice and hearing, impose the appropriate penalties in
case of violation of any of the provisions hereof and the applicable rules and
regulations, including administrative fines, penalties and sanctions as may be
allowed or prescribed by existing laws.

SEC. 9. All executive orders, administrative orders and other issuances
inconsistent herewith are hereby repealed, modified or amended accordingly.

SEC. 10. This Executive Order shall take effect immediately upon approval
hereof.

DONE in the City of Manila, this 9th day of September, in the year of
Our Lord, Nineteen Hundred and Ninety-Seven.

(Sgd.) FIDEL
V. RAMOS
President of the Philippines

By the President:

(Sgd.) RUBEN D. TORRES
Executive Secretary

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