PHILIPPINE ASSOCIATION, INC. CABLE LINE Mar - Apr 2014 • Vol. 14 Issue 2

Headline | PCTA TOASTS CABLE TV INDUSTRY AT THE 22ND PCTA CONVENTION page 4

INSIDE: PRESIDENT’S REPORT F.Y. 2013 - 2014 PAGE 6

The Official Newsletter of THE PHILIPPINE CABLE TELEVISION ASSOCIATION, INC. Editor’s Note

Jose Luis E. Dabao, Editor-in-Chief

Greetings!

I hope this issue finds you well, with excitement bubbling for what is going to be an eventful PCTA Convention 2014. This year we are taking am in depth look at the threats and opportunities for Cable operators and the themes will center on interconnection. Economies of scale will be best achieved by operators cooperating and investing in technology allowing us to offer broadband, HD and OTT!

I invite everyone to attend the technical and management sessions where we intend to explore the options for interconnection from hardware to programming options. These are exciting, turbulent times. Let’s ride the currents together to a bigger and better future!!

DISCLAIMER The opinions, views and/or contents expressed in the articles, contributors or paid advertisements of Cable Line are exclusively that of their author or originator, and do not necessarily reflect the position or stand of the PHILIPPINE CABLE TELEVISION ASSOCIATION, INC.

CABLE LINE 3 PCTA TOASTS CABLE TV INDUSTRY AT THE 22ND CONVENTION

{Anne B. Manalansan}

Hundreds of cable television operators from all over the country Executives from content companies and distributors are set gather once again to confer and mark the 22nd edition of the to present their point of view and suggestions on the issue, industry’s longest-running event, the Philippine Cable Television while technology providers will line up solutions that could Association (PCTA) Convention. With the theme, Interconnect! further enhance the cable TV business. The impact of Digital PCTA Convention will take place on April 1-4, 2014 at the SMX Terrestrial TV (DTT) deployment on the pay TV business will also Convention Center in Pasay City. be discussed to provide delegates with insights to effectively position their business for sustainability. The PCTA has invited Secretary Herminio “Sonny” Coloma Jr. of the Presidential Communications Operations The confirmed speakers and resource persons for the Office to be the Keynote Speaker during the Opening Ceremony Management session are the following: on April 2, Wednesday. Sec. Coloma will be joined by special 1. Sen. Jr. – Chairman, Asian Vision Cable guest Commissioner Gamaliel A. Cordoba of the National Holdings Commission. 2. Deputy Commissioner Carlo Jose Martinez – NTC 3. Mr. John Medeiros – COO, CASBAA The honored guests will also lead the Ribbon-cutting 4. Engr. Alvin N. Blanco – Chief, Broadcast Services Division, Ceremony of the Exhibition, located at Function Rooms 1 and 2 NTC which will follow the formal opening. Forty-one (41) companies 5. Engr. Edgardo V. Cabarios – Director, Regulation Branch, NTC are on board to display their latest content offerings, technology 6. Mr. Cedric Sazon - President, PCTA solutions, and high-technology equipment. This year’s Gold 7. Mr. Allan Dungao – Chairman, PCTA Sponsors are Fox International Channels (FIC), Cable Box Office 8. Mr. Rodrigo A. Montinola – COO, SkyCable Shows and Systems (Cable Boss), Asian Cable Communications, 9. Mr. Frank Miller - Huawei Globe MSO CTO Inc. (ACCION), SES, Al Jazeera Media, and Trinity Broadcasting 10. Atty. Goering George C. Paderanga – Chairman, Misamis Networks (TBN), while the Silver Sponsors include France 24, CATV Network Inc. HBO, Solar Entertainment, Euronews, Channel News Asia, and 11. Mr. Felipe B. Bince Jr. – CFO, Asian Vision Cable Holdings TV5 Monde. 12. Engr. Elpidio M. Paras - President/CEO of Parasat Cable TV Inc. Mr. John Medeiros, Chief Policy Officer of CASBAA, 13. Mr. Jude Turcuato – VP, Territory Head, , Fox Int’l. will discuss the Philippines and regional pay TV industry as well Channels as foreign investment and the importance of maintaining an 14. Mr. Timothy Bautista – COO, CABLE BOSS open market, after the luncheon hosted by Fox International 15. Mr. March Ventosa – Line of Business Head, ABS-CBN Channels. Right after, the PCTA, led by President Cedric Sazon Narrowcast Group and Chairman Allan Dungao, will present the Loyalty Awards to 16. Mr. Jaque Ruby – COO, Asian Cable Communications Inc. its long-time members. 17. Engr. Joseph Arguelles – Engineering Manager, Asian Vision Cable Holdings Inc. Later in the afternoon, the PCTA members gather in a 18. Mr. Jose L. Lobregat – Senior Vice President, FUBC General Membership Assembly where association matters and 19. Mr. Alex Paras - Operations Manager, Parasat Cable TV Inc. other issues are addressed and the new members of the Board 20. Mr. Rob Gelphman, VP – Marketing and Member Relations, for 2014-2015 are elected. MoCA 21. Mr. George Li - Marketing Director, Gospell On April 3, Thursday, the Conference will have 22. Mr. Sung Hun Kim - Business Dev’t. Manager – SPV, CISCO simultaneous sessions – one for Management and another one 23. Mr. Roger Siow - Sales Director SEA, Conax for Technical - that will start at 9 o’clock in the morning. For the Technical session, local and foreign technology experts The Management session will have panels of speakers discussing will present and dissect the issue of Interconnection as well as the theme of Interconnection and how it will address the the impact of the adoption of ISDB-T in the country’s cable TV challenges posed by new technologies and other delivery industry. FTTX solution will also be discussed, and the challenges platforms, as well as highlight the legal, financial, technical, and opportunities on video delivery over cable TV infrastructure and regulatory implications of interconnected cable systems. will be presented. Finally, TESDA will provide an update on the

4 CABLE LINE The Official Newsletter of THE PHILIPPINE CABLE TELEVISION ASSOCIATION, INC. President’s Report June 1, 2013 – May 31, 2014

{Cedric M. Sazon}

Dear fellow PCTA members and colleagues,

Warm greetings to everyone! My term as the President of our Association will end in two months’ time and as customary, I would like to report on what your PCTA Board had done in the past months.

On the heels of the passage of the Anti-Cable TV and Cable Internet Tapping Act of 2013, our association promptly produced copies of a video infomercial to create awareness and to duly inform the public about R.A. No. 10515. Our members, as well as some programmers, were given a copy of the material for them to air over their cable systems and channels, respectively. At the same time, your Board had submitted to the National Telecommunications Commission (NTC) our comments on the proposed Implementing Rules and Regulations of the law, and earnestly participated in crafting its final version. Finally on October 16, 2014, the NTC issued Memorandum Circular 04-10-2013, setting the rules of this landmark regulation that will protect the cable television and internet industries.

Recently, our association was informed of a proposed Pole Regulation Bill filed in Congress for our consideration and support. We conducted a simple survey among our members to gather information that would guide us in tackling this piece of legislation. We shall inform everyone as soon as we have come up with our stand on the matter.

Also last February 19, 2014, our Association was invited by Movie and Television Review and Classification Board (MTRCB) Chairman Eugenio Villareal to present to their board an overview of the cable television business for their better understanding and appreciation.

The past year saw the horrific destruction of many communities brought on by natural calamities such as typhoons Santi (Central Luzon) and Yolanda (Eastern Visayas) in October and November 2013 respectively. The PCTA, led by the Corporate Social Responsibility (CSR) Committee Chair Bing Ledesma, has donated a total of Php120,000.00 to the people in the affected communities through the cable operators in those areas.

Our Association also continued to update the technical knowledge of the people working in our industry. Led by Technical Committee Co-Chairmen, Engr. Romeo Zerrudo and Engr. Julian Ventura, the PCTA conducted technical seminars in Cebu City on October 17-18, 2013; in Calamba, Laguna in November 14-15, 2013; and in Tuguegarao City, Cagayan in January 23-24, 2014. The seminars presented updated topics such as local area network (LAN), IP for Cable Technician, Challenges of Cable TV, OTT, IPTV, and Cable Wi-Fi to further keep everyone abreast of technological developments in the cable TV industry.

In line with the Memorandum of Agreement that the PCTA signed last year with the Institute of Electronics Engineers of the Philippines (IECEP), the association continues to grant CPE credit units to participating members of IECEP during the technical seminars.

CABLE LINE 5 NCII and NCIII assessment which the agency is undertaking in organizations to present their cause and advocacies to the coordination with PCTA. members of the cable TV industry. This year, the speakers and presenters are Ms. Abbygale Arenas-De Leon, President The roster of speakers and resource persons for the Technical of Personi-fi Image Studio Inc.; Mr. Boom San Agustin, Senior session is as follows: Consultant of Our Knowledge Consulting Asia; Ms. Salve Duplito, 1. Atty. Teodoro C. Pascua - Deputy Director General, Host of ANC’s “On the Money”; Mr. Jones Castro, Vice Chairman TESDA of PhilDev; and Ms. Cristina Lim-Yuson, Council Member of 2. Engr. Teodoro D. Buenavista Jr. - Director, Planning, NCCT-DEPED. Financial & Management Branch, NTC 3. Engr. James Santiago - Consultant, ARIB/DiBEG The much-awaited PCTA Fellowship Night will be presented by 4. Engr. Mar L. Apuhin - Supervisor SVP, CISCO Discovery Networks Asia on the evening of April 3rd together 5. Mr. Demian Lee - Technical Director, Irdeto with Creative Programs Inc. as Bar Host. Discovery Networks 6. Engr. Eduard Cheng - Engineering Head, Ricklee Asia, which is observing its 20th anniversary, is a first-time 7. Mr. Raynor Huang - Senior Marketing Manager-AN sponsor of the PCTA party. It will be held at Function Room 4 of Product Line, Huawei the SMX Convention Center. 8. Mr. Wang Hai (Sean) - Technical Director, King Type (KT) 9. Mr. Yogi Yao - Engineering Director, Ocom On March 22, technical personnel from different cable Communication, Inc. TV companies will pit skills in a bid to be declared champion 10. Engr. Bonby P. Manalo - Global Engineering Services, of the 11th Cablelympics. The technical skills show will be ABS-CBN Global, Ltd. conducted by members of the PCTA Technical Committee led 11. Engr. Lance Filio, Corp. by Engr. Romeo Zerrudo, Chairman, and Engr. Julian Ventura, Co-chairman. At stake is P5,000 for the Champion, P3,000 for As in the past, the Pre-Convention session on Tuesday, April 1, the Second placer, and P2,000 for the Third placer plus a medal will present interesting topics that inspire participants towards each. improving not only themselves but the way they conduct their business. The session also provides opportunity for some

if interreligious understanding is the prominent goal, however, as earlier Although this requirement by the NTC does not include religious discussed that has been seemingly eroded by the intent to influence programming specifically, such requirement may have had its origins politics in the country among other agendas. from the US communications regulations particularly the Radio Act of 1927 and the Communications Act of 1934 wherein provision was Going back, Radio Veritas will forever be remembered for its role in made for the regulatory body to oversee communication services to helping uphold democracy during the EDSA revolution. Former University local communities which would serve the ‘public interest, convenience, of the Philippines president Francisco Nemenzo stated that: "Without and necessity’. The Radio Commission and the subsequent Federal Radio Veritas, it would have been difficult, if not impossible, to mobilize Communications Commission (FCC) both took steps under this doctrine millions of people in a matter of hours." And in another account it was to ensure that a wide range of community interests would be served by said that: "Radio Veritas, in fact, was our umbilical cord to whatever else broadcasting, religion being prominent among those interests. was going on.”

According to Stewart M. Hoover and Douglas K. Wagner in their work, Like Radio Veritas, cable TV operators, individually and collectively, History and Policy in American Broadcast Treatment of Religion , the newly- possess the inherent capacity to disseminate ideologies and beliefs that regulated and regularized broadcasting that evolved in the period 1927-35 can change the course of a country or at the very least the life of a person. had an important incentive to give account of religion as part of its overall However, let us be mindful that not all these ideologies and beliefs have service obligations, and a further incentive, based on the experience of the public’s interest at heart and so the exercise of judiciousness is the period before 1927, to ensure that what religion was aired was of necessary. a variety that involved ‘broad truths’ and was noncontroversial. Thus, the networks arrogated to themselves responsibility for control over Thus, every good tree bears good fruit but a bad tree bears bad fruit. Paul Sagmayao, Mercado; Tatad, Francisco S. (1986), People Power: The Philippine Revolution of 1986: An Eyewitness History, Manila, Philippines: The James B. Reuter, S.J., Foundation, religious content by refusing to sell air time to sectarian groups whose OCLC 16874890 content would not be considered ‘public service’ programming because of their limited audience. Second, at the same time, the networks moved Bacani, Teodoro [1987]. The Church and Politics. Clarentian Publications, Diliman, City cited in http://en.wikipedia.org/wiki/ quickly to divest themselves of the responsibility for the content of this Status_of_religious_freedom_in_the_Philippines http://www.abscbnnews.com/nation/05/05/10/church-leaders-wield-power-philippine-elections

air time, turning it over to established religious institutions, likethe http://newsinfo.inquirer.net/407229/religious-groups-infiltrate-congress-via-partylist-elections#ixzz2uakIRoTA Roman Catholic Church and Protestant Church with the expectation that

the approach taken would be broad and noncontroversial. Jennings, 1969: 3; FCC Blue Book, 1946: 10-13 Media, Culture and Society” (Sage Publications), Vol. 19, Number 1, January 1997, pp. 7-27 The said trend has continued to the present and is further amplified by McCargo, Duncan (2003), Media and Politics in Pacific Asia, Routledge, p. 20, ISBN 0-415-23375-5, retrieved 2007-12-03 the emergence of numerous religious institutions that have established Matthew 7:17; New International Version (NIV) themselves to the point that most already have their own networks and production arms. This development would have been very encouraging

6 CABLE LINE The Official Newsletter of THE PHILIPPINE CABLE TELEVISION ASSOCIATION, INC. Committee Report

CALAMITY: AN OPPORTUNITY TO SERVE {Ralph B. Casiño}

For the longest time, the Philippines have always been retained earnings (assuming there is such fund), or one of calamity's favorite punching bags. Recent additional investment and or borrowings. We’re still in weather events, however show that the intensity the dark on how many of our fellow cable operators and coverage and occurrences of these weather who are victims of these calamities such as Yolanda disturbances have significantly increased. have actually completed their system rehabilitation. Considering that cash flow is hampered, fund sourcing The effects of Typhoon Sendong two years ago in for system rehabilitation is quite difficult. Mindanao, up to the recent Typhoon Yolanda and its 10-meter tall water surge that hit the Visayas and literally With this as the background, a number of questions razed Tacloban, portions of Leyte, Cebu and neighboring may be of interest: towns to the ground are of a magnitude that have not been experienced in recent past. The devastation of INSTITUTIONALIZED RELIEF ASSISTANCE AND DISCOUNTS the earthquake that hit Bohol and its historical heritage AND SUBSCRIPTION FEE MORATORIUM sites as well as Cebu is unprecedented. Typhoon Pablo that visited the Nueva Ecija, and Bulacan, and Tropical It is a fact and which I personally will attest to, that many, Depression Agaton which inundated several areas in if not all program providers have been magnanimous Mindanao all indicate that calamity will continue to and have wholeheartedly extended assistance to be part of our normal existence. Blame it on climate these affected cable operators and their employees change, irresponsible stewardship, illegal logging and either in the form of cash or goods. Program fee indiscriminate waste disposal and what not. The fact is moratoriums were also graciously granted by Program they're here to stay. Today's buzzword is not Mitigation Providers and Distributors, the level of which depended but Adaptation. What do we need to do to adapt to upon the extent of the damage, as well as the strength this climate change in our environment. We have to of the cable operator programmer relationship. Unless I live with it. am mistaken, there appears to be no formula on these payment reliefs and moratoria. The discount among In addition to property damage, all these have caused different program providers follows no fixed standard. huge losses in the lives and livelihood of Filipinos, The level of relief also varies from programmer to including many of cable operators and fellow PCTA programmer. members. The fund needed to rehabilitate the cable system and infrastructure is both formidable and While one may correctly argue that relief assistance overwhelming. Note further that financial requirement to typhoon victims/cable operators should remain for this extraordinary event is not normally provisioned purely voluntary, one couldn’t help but ask whether this and I strongly doubt if cable systems are insured and practice could be Standardized and Institutionalized? adequately covered against flood and related and For as long as this remains arbitrary, it may not be similar calamities. Mr. Cable Operator/Calamity Victim equitable and could be susceptible to abuse. thus will need to source additional funds, perhaps from

Continued on Page 6

CABLE LINE 7 From Page 5

Take note that from a program distributors’ standpoint, the discounts to cable systems take them farther from RISK ANALYSIS their Minimum Guarantees (MG) obligation to their principals. It would be of interest to find out if there But following the tenet that charity begins at home, are mechanisms in the program distributors’ contract before one could even imagine doing the above, that allow some leeway in terms of their MG relief to we need to conduct our own risk reduction analysis. the likes of HBO, Discovery etc.? The absence of such We need to view the physical location of our major provision puts the distributor in a precarious position, assets (at least those would create a major breakdown between extending a meaningful relief, and meeting in our operation) and evaluate the risk these assets its obligations to their principals. By institutionalizing may be exposed to. Key and high value assets need relief and assistance, guidelines can be set towards to be identified with their corresponding risk exposure a meaningful and fair relief package that goes to the evaluated. Impact simulation will have to be conducted deserving calamity victim. Program providers should which should result in a risk-mitigation and corrective also have similar levels of discount to the same cable action plan. Are key outside plant assets such as power operator. supply, line amplifiers and receivers properly installed? Which ones need to be transferred to a more secure This topic could be a subject to a lengthy discussion. location? Is our headend susceptible to flood; is there PCTA members are encouraged to submit their a need to elevate the headend? Risk assessment is comments which would be a basis for the cable foremost in the consciousness of both government associations to carry it forward, create a TWG among agencies and the private sector and seeking help from cable operators and program providers and design them such as securing a geo hazard map of our local mechanics for implementation. community should not be difficult and a good start.

AN OPPORTUNITY TO SERVE We need to develop our own emergency response protocol for our personnel to follow in the event of various From a cable operator’s standpoint, these natural emergencies like flood, mudslide, fire, earthquake calamities which likely will occur with higher intensity and the likes. Once this protocol is implemented, and frequency will pose as an opportunity to become perhaps it can be expanded in coordination with other a more relevant factor in the community. Local establishments in the community. These are but few of government is mandated to beef up and strengthen its the many initiatives that we as a CATV service provider risk reduction capability against these natural calamities. can seriously consider. Being an integral part of communications media, CATV operators must make their facilities available in The incidents that happened in the past two years disseminating vital information and advance warnings from Sendong to Pablo, Yolanda and Agaton have of the onset of these disturbances and in the airing shown that while government may have all the good of relevant information and educational materials intention to help in times like this, their resources and geared towards upgrading the community’s overall resulting output have been wanting. Two years after preparedness. Training materials on first aid, earthquake Sendong, we still see evacuation centers loaded with and flood preparedness and emergency protocol are refugees. Five months after Yolanda, Leyte and other available from various government and NGOs. Airing areas affected still have to be rehabilitated. To expect them free would be of major help. more from the government at this point in time may be advantageous. We need to take care of our own These initiatives would be viewed by all as giving back and if this is done on a community basis, we can be to the community as a corporate social responsible better off and perhaps we can rest better at night business organization and improve the system’s thinking that we have done what is needed to protect standing in the community. our businesses. As a responsible corporate citizen, we would have done our share in being a part of the Please note further that to be truly perceived as solution rather than becoming a burden. corporate responsible business enterprise, efforts should be bereft of any political color or private agenda with nothing but the good of the community as its driving force. Any benefit from this will come as a natural consequence.

8 CABLE LINE Visayas Dateline

A TREE AND ITS FRUIT

{Atty. Goering G.A. Paderanga, Jr.}

Recently, in the last commemoration of the 1986 EDSA Revolution, Constitution and further buttressed by American jurisprudence. I was again reminded of the events which occurred when I was Thus, religious organizations have become morally influential to only two years old. its citizens even during election time.

In a nutshell, during the regime of then President Marcos, grave In the last presidential election in 2010, popular preachers Mike oppression and serious human rights abuses were prevalent in Velarde of the "El Shaddai" fellowship and Apollo Quiboloy of the country, highlighted by the assassination of Senator Ninoy the "Kingdom of Jesus Christ" sect have demanded attention Aquino. In an effort to regain control over the country and from presidential candidates by telling their millions of followers legitimize his presidency, Marcos initiated the holding of a snap for whom to vote. President Aquino, then, was endorsed by the presidential election wherein he was declared the winner. The Iglesia Ni Cristo which has about 6 million members and requires blatant corruption that marred the said election led into a coup its followers to vote only for the candidates named by its leaders. attempt to oust Marcos involving the take-over of key strategic facilities, such as the airport, military bases, TV and radio stations, In the 2013 elections, religious groups reportedly have infiltrated the General Headquarters of the AFP in Camp Aguinaldo, and Congress through the party-list system. Although religious groups major highway junctions to restrict counter-offensive by Marcos- are prohibited from joining party-list organizations, their affiliates loyal troops. Aiding the coup was Archbishop Cardinal Sin who in are propped up as separate advocacy groups apparently to skirt a message aired over Radio Veritas appealed to the Filipinos to the rules and penetrate Congress such as the incumbent. aid coup leaders by going to the section of EDSA between Camp Crame and Aguinaldo and giving emotional support, food and Recently, religious organizations have ventured into broadcasting other supplies. Many people, especially priests and nuns, trooped and production for radio, TV and the internet. Some of these to EDSA. As Marcos-loyal troops with tanks and armored vans networks are the Cebu Catholic Television Network, TV Maria, the approached nearer to the camps, nuns holding rosaries knelt in Sonshine Media Network International, and the Iglesia Ni Cristo front of the tanks and men and women linked arms together to Television among others. block them. Eventually, the troops retreated with no shots fired . In the end, was inaugurated as President while Despite the limited channel capacity of analog cable TV systems Marcos and his family fled the country. and although most if not all are not covered by the must-carry rule, many of our fellow cable TV operators are currently carrying Looking back, one could not overstate the importance of the EDSA these programs in their system. The reasons for carrying such Revolution to our country’s democracy and history. However, I programs range from finding an inexpensive way to fill their could not avoid noticing the crucial role that religion and media channel line-up, to promoting the beliefs of a particular religious have on politics as seemingly demonstrated in the 1986 EDSA organization, an accommodation thereto or to its leader orfor Revolution. commercial purposes through lease of airtime.

It is said that when the Philippines was placed under martial law According to the provisional authority granted by the National in President Marcos’ time, things changed dramatically when Telecommunications Commission (NTC) to cable TV operators, some bishops opposed the martial law and ultimately led to the one of the terms and conditions of the grant is that it “must carry ouster of Marcos. in its program line-up at least one (1) community channel, one (1) news and information channel and one (1) educational, cultural In the Philippines, religious freedom is guaranteed by the and civic-oriented channels.” The PCTA also hosted an Executive Cable Conference in Cebu City last October 16, 2013 to discuss with our members in the Visayas the different ways that they could enhance their cable business, sharing with them the experience of cable operators in Thailand and India.

I am pleased to report that the 22nd edition of the PCTA Convention will once again be held at the SMX Convention Center from April 1-4. Under the able leadership of our hard-working Director and Convention Chair, Lorlyn G. Velarde, I am confident that all of us will have an eye-opening experience during the conference as we dissect and discuss the advantages of having an interconnected headend and other value-added services for our cable TV business.

Our newsletter, Cable Line, which comes out every two months, has been a valuable source of information for all industry stakeholders. I would like to express our appreciation to all the advertisers who, through their continued support, had ensured its continuous publication and dissemination as scheduled.

Through the years, the PCTA has steadily grown in numbers and at present, I am happy to report that we have a total of 359 regular members and 28 affiliate members. In addition, through prudent use of financial resources, our association continues to be in a good and healthy fiscal position.

In addition to the above projects and activities, the PCTA also addressed the following issues and concern in the past year:

1. The Association filed a letter of complaint to the National Telecommunications Commissions (NTC) against Media Scape, Inc. ( TV) for offering DTH service to multi-dwelling units using coaxial cable and fiber optic cable. The case is still ongoing at the agency. 2. The Association filed an opposition against the application to install and operate a nationwide multi-point video distribution system on KU band by Kumintang Broadcasting System. 3. The CBCP case which the Association also opposed was finally archived by the NTC. 4. The Association actively participated in the Technical Working Group (TWG) for Digital (DTT) at the NTC. On November 4, 2013, Memorandum Circular No. 05-11-2013 had been released by the NTC mandating the use of ISDB-T as the standard format for DTT implementation in the Philippines.

As technology develops and evolve, our Association will remain steadfast in our mission to ensure the growth and sustainability of our cable TV business. I encourage our fellow cable operators to keep at pace with these developments and plan ahead to remain competitive and relevant. Above all, let us keep an open mind and consider new ways of leveraging our foothold on the market to our advantage.

Finally, on behalf of the PCTA Board, allow me to thank all of you, our fellow members, for entrusting us with your support and cooperation. Our Association will only be as strong as its members so let us continue working together to have a viable cable TV business and a thriving cable TV industry.

Very truly yours,

CEDRIC M. SAZON President

S t r i c t l y T e c h n i c a l

Staying Relevant {By Engr. Joseph M. Arguelles, PECE}

There are several questions that have been circling around in Active Internet Users, which means 3.5 out of 10 Filipinos are our industry such as: Is the Cable TV being challenged? Are we online, and the average Filipino spends over 16 hours of Internet threatened to lose our subscribers? The answer to these questions per month. 82% of Filipino Internet users access entertainment is a resounding yes, but we should not worry nor panic if we start websites and spends close to 3 hours. That’s the amount of time making our ‘smart move’ now. Cable TV should continue to be taken away from watching TV to watching in the Internet. Why relevant and remain that way. How? am I showing these? Because most likely, majority of them are accessing these information via DSL and mobile networks (3G or Have you ever heard the term ‘Direct-to-Consumers’? Well, it is LTE). How can we get our hand into this market? a method of delivering the content directly to the viewer online, Going back to my previous statement about being and staying a contrast to the traditional way of delivering content through relevant, our cable system should be able to provide internet a distribution channel like cable tv or satellite. In return, a access or deliver broadband service. consumer is paying his online subscription directly to the content owner. The fee directly goes to the content owner in full while the Two-way cable system is expensive ‘middlemen’ are generally out of the equation. Now, that is taking Converting or upgrading the cable system to a DOCSIS-based away the very reason why cable tv is here to operate. A film outlet network entails a considerable amount of investment. Maintaining who owns the movie right featuring ‘transforming alien robots’ the cable network in ‘tip-top shape’ and ingress-free requires a experimented on this concept and tested the market yielding great deal of technical expertise and troubleshooting skills from positive results. Consequently, many content and copyright our technicians and engineers. But there is an alternative for the owners are now following suit. Sports events, documentaries and budget-conscious cable operators: Ethernet-Over-Coax (EOC) animated shows, just to mention a few, are now available direct- offers a hopeful approach to upgrade the network from a ‘cable to-consumers, as well. tv-only’ service into a broadband-enabled cable system. Ask around, shop around, and inquire from your preferred local or Another non-traditional way of delivering content, is the foreign suppliers. subscription-based video-on-demand. In the US, ® is very successful doing that at the expense of cable and telco internet Bandwidth is expensive providers. Here in the Philippines, similar setup is emulated like That is a fact. If you buy bandwidth in small amounts (say 4 or 10 Clickplay.ph (free promotions here). Another one is a video- Mbps only), definitely the cost per Mbps is relatively expensive. streaming website which not only offers archived titles, but also You will find a hard time recovering your cost, either because offers Live TV which used to be available only in cable and satellite the profit margin is small (worse nothing at all) or the selling platform. price of your internet service is higher than the competitors. Solution? Work together with other cable operators, preferably So, what does that mean? Viewers have more options now adjacent areas and aggregate your bandwidth requirements, and in accessing their favourite shows and movies. No longer the negotiate for a better deal with our ‘friendly’ ISPs and avail of monopoly of cable tv, but shows and movies are now accessible volume discounts. You may even save some of the local loop cost through the internet. when you share a common fiber backbone. Now is the opportune time to talk about consolidation, cooperation, and collaboration Philippine Internet Facts among fellow cable operators. Smartphone and tablet owners are growing at an exponential rate. A study of Mobile Life 2013 , almost half of total combined Now is the best time to unite and INTERCONNECT! smartphones and tablet owners use their devices for instant messaging, playing games and accessing social networks. With 1http://www.tnsglobal.com/sites/default/files/whitepaper/tns-mobile-life-data-devices.html#sthash.gqfBYjDK. all their data consumptions, 45% use WiFi in the home, 32% use dpbs mobile network data and the remaining use public WiFi. According 2http://www.forward.ph/blog/wp-content/uploads/2013/11/The-State-of-Philippine-Internet-Usage-2013- to Philippine Internet Usage 2013 , there are over 33 Million Infographic-Forward-Solutions1.png CONFERENCE PROGRAMME

April 1, 2014 – Tuesday Venue: MEETING ROOMS 7 - 9

01:30 PM Invocation Mr. Alex G. Paras – Director, PCTA

National Anthem

01:45 PM Opening Remarks Ms. Lorlyn Garcia-Velarde - Overall Chair, PCTA Convention 2014

02:30 PM 88 Things Every Professional Should Know Ms. Abbygale Arenas-De Leon – President, Personi-fi Image Studio Inc.

03:00 PM Salesmanship in the Digital Age Mr. Boom San Agustin – Senior Consultant, Our Knowledge Consulting Asia

03:30 PM Philippine Open Internet Exchange Mr. Bayani Benjamin R. Lara - Network Operations Advanced Science and Technology Institute (ASTI) - DOST

Coffee Break

03:45 PM Financial Disaster Proofing Ms. Salve Duplito – Host, On the Money, ANC

04:15 PM Our Nation’s Future through Technology Innovation Mr. Jones Castro – Vice Chairman, PhilDev

04:45 PM Promoting TV Literacy to Children Ms. Cristina Lim-Yuson – Council Member, NCCT-DEPED

05:05 PM Session Closing Remarks Ms. Amelita G. Ledesma – Director, PCTA

6:00 PM Party hosted by Creative Programs, Inc. The Food Club Manila

April 2, 2014 – Wednesday Venue: FUNCTION ROOM 3

09:00 AM Invocation National Anthem

09:10 AM Welcome Remarks Mr. Cedric M. Sazon - President, PCTA The Official Newsletter of THE PHILIPPINE CABLE TELEVISION ASSOCIATION, INC.

CONFERENCE PROGRAMME

09:30 AM Message from Guest of Honor Hon. Gamaliel A. Cordoba - Commissioner, National Telecommunications Commission

09:45 AM Introduction of Keynote Speaker Mr. Allan P. Dungao - Chairman, PCTA

09:55 AM Keynote Address Hon. Herminio “Sonny” B. Coloma Jr. - Secretary, Presidential Communications Operations Office

10:15 AM Exhibit Opening Remarks Ms. Lorlyn Garcia- Velarde, Overall Chair, PCTA Convention 2014

10:20 AM Ribbon-Cutting Ceremony

10:30 AM Viewing of Exhibits

12:00 NN Luncheon hosted by Fox International Channels

01:30 PM The Philippines’ Pay TV Industry in Focus Mr. John Medeiros – Chief Policy Officer, CASBAA

02:00 PM Presentation of PCTA Loyalty Awards Mr. Cedric M. Sazon – President, PCTA Mr. Allan P. Dungao – Chairman, PCTA

02:30 PM General Membership Assembly 03:30 PM Regional Elections / Coffee Break Visayas – Meeting Room 4 Mindanao – Meeting Room 7 04:30 PM National Election

05:30 PM Announcement of newly-elected members of the PCTA Board for 2014-2015

6:00 PM Party hosted by HBO (by invitation only)

April 3, 2014 – Thursday MANAGEMENT SESSION Venue: MEETING ROOMS 7 - 9

09:00 AM The Case for Interconnection: Is it really the answer? Keynote: Sen. Ramon B. Magsaysay Jr. – Chairman, Asian Vision Cable Holdings Panelists: Mr. Allan P. Dungao – President, Satellite Cable Network Inc. Mr. Cedric M. Sazon – President, Kalibo Cable TV Network Mr. Rodrigo A.P. Montinola – COO, SKY Cable Mr. Frank Miller - Globe MSO CTO , Huawei Moderator: Mr. Ralph B. Casiño – Vice Chairman, PCTA

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10:30 AM Coffee Break sponsored by ZooMoo

10:40 AM Challenges to Interconnection Legal Atty. Goering George C. Paderanga – Chairman, Misamis CATV Network Inc. Financial Mr. Felipe B. Bince Jr. – CFO, Asian Vision Cable Holdings Technical Engr. Elpidio M. Paras – President/CEO, Parasat Cable TV Inc. Regulation Engr. Alvin N. Blanco – Chief, Broadcast Services Division, NTC Engr. Edgardo V. Cabarios – Director, Regulation Branch, NTC Moderators: Mr. Efren Arayata Jr. – Director, PCTA Atty. Goering G. Paderanga Jr. – Vice President-Visayas, PCTA

12:00 NN Luncheon hosted by Disney

12:30 PM Sponsors’ Video Presentation Gold Sponsors Trinity Broadcasting Network SES Al Jazeera Media Network Cable BOSS ACCION Fox International Channels

01:30 PM Enhancements and Solutions for Interconnected Cable Systems Subscriber Management System – Mr. Alex Paras, Operations Manager, Parasat Cable TV Inc. Connected Home – Mr. Rob Gelphman, VP – Marketing and Member Relations, MoCA Over the Top (OTT) – Mr. George Li, Marketing Director, Gospell C-DOCSIS Remote PHY – Mr. Sung Hun Kim, Business Dev’t. Manager – SPV, CISCO Outsourcing Service for Conditional Access – Mr. Roger Siow, Sales Director SEA, Conax Moderator: Mr. Joel Dabao – Director, PCTA

03:00 PM Programmers’ Take on Interconnection Mr. Jude Turcuato – VP, Territory Head, Philippines, Fox Int’l. Channels Mr. Timothy Bautista – COO, CABLE BOSS Mr. Antonio “March” Ventosa – Line of Business Head, ABS-CBN Narrowcast Group

Moderators: Ms. Lorlyn Garcia-Velarde – Director, PCTA Mr. Alex Paras – Director, PCTA

04:00 PM Coffee Break / Sponsors’ Video Presentation Silver Sponsors Euronews Solar Entertainment Corporation Home Box Office Asia TV5Monde Channel NewsAsia France24

18 CABLE LINE The Official Newsletter of THE PHILIPPINE CABLE TELEVISION ASSOCIATION, INC. CONFERENCE PROGRAMME

04:15 PM Digital Terrestrial TV and the business of Pay Television Hon. Carlo Jose Martinez – Deputy Commissioner, NTC Engr. Joseph Arguelles – Engineering Manager, Asian Vision Cable Holdings Inc. Mr. Jose L. Lobregat – Senior Vice President, FUBC

Moderators: Dr. Venancio C. Lo – Vice President, Luzon, PCTA Mr. Pompeyo Abergas – Director, PCTA

05:15 PM Session Closing Remarks Mr. Victoriano Sy Sr. – Vice President, Mindanao, PCTA

TECHNICAL SESSION Venue:MEETING ROOMS 4 - 6

09:00 AM Interconnection: What, Why, When, and How 1.1 DWDM Optical Transport – Engr. Mar L. Apuhin, Supervisor SVP, CISCO 1.2 Conditional Access (CAS) – Mr. Demian Lee, Technical Director, Irdeto 1.3 C-DOCSIS – Engr. Eduard Cheng, Engineering Head, Ricklee 1.4 Distributed CMTS – Mr. Raynor Huang, Senior Marketing Manger-AN Product Line, Huawei 1.5 Ethernet Over Coax (EoC) – Mr. Wang Hai (Sean), Technical Director, King Type (KT) Moderator: Engr. Joseph M. Arguelles – Director, PCTA

12:00 NN LUNCHEON

01:00 PM The Impact of Adoption of ISDB-T in the Philippine Cable TV Industry 1.1 Private Sector/HW Supplier Point of View – Engr. James Santiago, Consultant, ARIB/DiBEG 1.2 Regulator takes on the Matter – Engr. Teodoro D. Buenavista Jr., Director, Planning, Financial & Management Branch, NTC

Moderator: Engr. Fernando C. Morales – President, Visayan CATV Network Inc.

02:15 PM Fiber-to-the-X (FTTX) Solution Mr. Yogi Yao - Engineering Director, Ocom Communication, Inc. 03:00 PM TESDA Updates Atty. Teodoro C. Pascua - Deputy Director General, TESDA

03:15 PM Coffee Break

03:30 PM Challenges and Opportunities on Video Delivery over Cable TV Infrastructure 1.1 IPTV / VIDEO STREAMING – Engr. Bonby P. Manalo, Global Engineering Services , ABS-CBN Global, Ltd. 1.2 OTT/Multiscreen – Dr. Gordon Chen, CEO, Telelynx

Moderator/Reactor: Engr. Ronaldo G. Tuzon – Supervisor CAP, SKY Cable

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04:45 PM Renewable Energy for Cable Operation Engr. Oligario S. Serafica – Governing Council, Renewable Energy Association of the Philippines

05:30 PM Session Closing Remarks Engr. Romeo Zerrudo - Technical Committee Chair/Director, PCTA

6:00 PM PCTA Fellowship Night presented by Discovery Networks Asia Function Room 4, Second Level, SMX

April 4, 2014 - Friday MANAGEMENT SESSION Venue: MEETING ROOMS 7 - 9

09:00 AM Huawei Product Presentation 10:00 AM Gospell Digital Technology Presentation 11:00 AM Angel TV Presentation 12:00 PM Luncheon hosted by Scripps Network 01:00 PM CONFERENCE CLOSING REMARKS Ms. Lorlyn Garcia-Velarde – Over-all Chair, PCTA Convention 2014

TECHNICAL SESSION MEETING ROOMS 4 - 6

09:00 AM CABLELYMPICS PCTA Technical Committee

11:00 AM Awarding of Winners Mr. Cedric M. Sazon – President, PCTA Engr. Romeo Zerrudo – Chairman, Technical Committee, PCTA Engr. Julian Ventura – Co-chairman, Technical Committee, PCTA

11: 45 NN Session Closing Remarks Engr. Julian Ventura – Co-chairman, Technical Committee, PCTA

*END OF CONFERENCE*

As of Printing deadline March 20, 2014

20 CABLE LINE

Advisory to PCTA Members

To allow us to better serve our members:

1. Please update your official authorized representative, address, contact number (s) and email with the secretariat to facilitate better communication. 2. In an agreement entered into by PCTA with TV5MONDE, France24, Al Jazeera, Euronews, and Channel NewsAsia, these channels are giving free carriage to PCTA members. Members are therefore encouraged to carry FTA signal and advise the channel assignment to facilitate authorization documentation. 3. Assistance in processing MTRCB permits. 4. Use of the comments/suggestions box by members is highly appreciated.

Editor-in-chief JOSE LUIS E. DABAO Circulation ARLENE C. TAN Editorial Board BEN L. SARILLA CEDRIC M. SAZON LYN S. ODULIO ALLAN P. DUNGAO RALPH B. CASINO Publisher PHILIPPINE CABLE TELEVISION ASSOCIATION Managing Editor & Advertising Manager (PCTA), INC. ROSANNA B. MANALANSAN Unit 504 Taipan Place Condominium, F. Ortigas Jr. Road, Ortigas Center, Pasig City Editorial Assistant Tel. Nos.: 63.2.638.8541 • 63.2.638.8544 JENNEFER A. MANGUSSAD Fax No.: 63.2.638.85.42 Email: [email protected] Contributors [email protected] CABLE BOSS Website: www.pcta.org.ph

Design and Layout ALL RIGHTS RESERVED. SAM L. LANUZA