This Act is enacted to promote the sound development of the cable radio and television industry, to safeguard the audio-visual rights and interests of the public, to enhance public interest and well-being, and to maintain the audiovisual diversity,

The terms used in this Act shall be defined as follows:
1. Cable Radio and Television Service: Refers to the service of transmitting images, sound or data through the installed cable radio and television system for direct viewing, listening or receiving by the public
2. Cable Radio and Television System (referred to hereinafter as "system"): Refers to the facility formed by head-ends, cable transmission network and other related equipments with available technology and equipments.
3. Cable Radio and Television System Operator (referred to hereinafter as "system operator"): Refers to a business which provides cable radio and television services by law;
4. Channel Provider: Refers to a program and advertisement supplier business which authorizes, under a specific name, program and advertisement transmission to cable television operators;
5. Subscriber: Refers to those who have signed a contract with the system operator to use the cable radio and/or television service;
6. Basic Channel: Refers to a channel whose visual and/or audio reception can be made upon regular payment of basic subscription fees;
7. Encryption: Refers to the technique adopted by the system operator that makes descrambling necessary for subscribers to watch and/or listen the program;
8. Head-ends: Refers to facilities and locations for receiving, processing, and transmitting cable radio and/or television signals, which are then transmitted to the cable transmission network;
9. Inserted Characters: Refers to words and graphics appearing on the TV screen which have been edited and compiled, and which are not part of the original contents being transmitted;

The regulatory agency referred to in this Act is National Communications Commission at the central government level; municipal government at the municipality level; and county (city) government at the county (city) level.

System operator is eligible to offer telecommunication and other value-added services with its system. However, according to Telecommunications Act, operators with the franchise or permission to run the operations shall acquire operation permit or franchise license by law.
System operators engaged in telecommunications operations shall abide by relevant provisions of the Telecommunications Act.