Decree Granting An Exclusive Franchise To Construct, Operate And Maintain A Community Antenna Television System (Catv) In The Philippines In Favor Of Sining Makulay, Incorporated

Case Overview and Summary

Summary of Presidential Decree No. 1512

Granting of Exclusive Franchise
- Grants Sining Makulay, Incorporated an exclusive franchise to construct, operate and maintain a Community Antenna Television System (CATV) in the Philippines. (Section 1)
- Authorizes the grantee to receive and transmit messages, impressions, pictures, music, entertainment, advertising and signals throughout the Philippines. (Section 1)

Duration of Franchise
- The franchise is valid for 25 years from the date the CATV is put into operation. (Section 2)
- The franchise is renewable for another 25-year period. (Section 2)

Construction and Operation Requirements
- The CATV must be constructed and operated to avoid interference with existing stations and to permit the expansion of the grantee's services. (Section 3)

Right of Eminent Domain and Installation
- The grantee is authorized to exercise the right of eminent domain as reasonably necessary for the efficient maintenance and operation of the CATV. (Section 4)
- The grantee is authorized to install and maintain its facilities over and across public property, including streets, highways, forest reserves and other similar property of the Government of the Philippines. (Section 4)

Presidential Authority in Emergencies
- The President of the Philippines reserves the right, in times of war, rebellion, public peril or other national emergency, to cause the closing of the grantee's CATV or to authorize the use or possession thereof by the government without compensation during the continuance of the national emergency. (Section 5)

Rates and Charges
- The rates to be charged by the grantee are specified in the law. (Section 6)
- For each subscriber connection to service one television set: P20.00/month
- For each additional television set extension in the same subscriber's private residence for use by his family: additional charge of P5.00/month
- Initial connection charge: P35.00
- The grantee may charge for actual costs related to relocation of outlets, additional work and materials for connections beyond a certain distance, and providing underground service. (Section 6)

Tax Obligations
- The grantee shall pay to the Treasurer of the Government of the Philippines each year a tax equivalent to 3% of all gross receipts from business transacted under this franchise. (Section 7)
- This tax shall be in lieu of any and all taxes, duties and tariffs of any kind, nature or description levied or collected by any authority, from which the grantee is expressly exempted. (Section 7)

Amendment, Alteration or Modification
- The franchise is subject to amendment, alteration or modification. (Section 8)
- The right to use and occupy public property and places granted shall revert to the government upon termination of this franchise. (Section 8)

Transfer or Assignment of Franchise
- The grantee shall not lease, transfer, sell or assign this franchise, nor the rights or privileges acquired herein, to any firm, person, company or corporation without the approval of the President of the Republic of the Philippines. (Section 9)

Repeal and Termination of Previous Franchises
- All acts, decrees, orders and proclamations, rules and regulations or parts thereof inconsistent with any of the provisions of this Decree are hereby repealed or modified accordingly. (Section 10)
- All franchises, permits, or certificates for the operation of CATV previously granted by local government or by any instrumentality or agency of the national government are hereby terminated and canceled. (Section 10)

Effectivity
- This Decree shall take effect upon approval. (Section 11)