C A B L E L I N EPHILIPPINE CABLE TELEVISION ASSOCIATION (PCTA), INC.

J a n - F e b 2 0 1 6 • V o l . 1 6 I s s u e 1

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Jan-Feb 2015 • Vol. 16 Issue 1

C A B L E L I N E

Editor-in-chiefWESLEY C. SELDA

Editorial BoardRALPH B. CASIÑO

ATTY. GERIK CAESARE A. PADERANGAJOSE LUIS E. DABAO

MA. ISABELITA SY-HOLLITEMARITA ZERRUDO CORRALES

Managing Editor, Advertising Manager

SAM L. LANUZA

Editorial AssistantJUDY S. VALDEZ

CirculationARLENE C. TANBEN L. SARILLA

ANGELIQUE BAUTISTA

ContributorsENGR. JOSEPH M. ARGUELLES

GLENN R. TANSIONGCOENGR. FREDERICK D. ESQUILLOJEROME C. ESPARTINEZ (OMI)

PublisherPHILIPPINE CABLE TELEVISION ASSOCIATION

(PCTA), INC.Unit 504 Taipan Place Condominium,

F. Ortigas Jr. Road, Ortigas Center, Pasig CityTelefax: 63.2.638.8544

api@pcta.org.ph www.pcta.org.ph

ALL RIGHTS RESERVED.

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D I S C L A I M E RThe 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.

D I S C L A I M E R

Editor's notE

Wesley

The Annual PCTA Convention is fast approaching and with it all comes the excitement and concerns. This year it will be held at the largest ballroom in Southeast Asia. For the first time, HBO officially opens up its party to all PCTA delegates. All events are scheduled to occur within the ballroom premises in order to remove the challenges of transporting over 500 delegates to and from various events in a traffic plagued metropolis. Our previous convention site had one hotel within walking distance, this year we have no less than three hotels in walking distance. In the past year, the Cable television industry experienced at least a 400% growth in digital operations. This definitely affects the type of exhibits this year. Everyone will or at should be clamouring to see what’s up. How the cost and benefit of

going digital has changed. There is a SHIFT in the market; we, the members need to get on board or get left behind. This convention has been carefully scheduled not to conflict with any other regional cable television industry convention, our suppliers both programming and hardware have been accommodated to ensure they can attend. Financial, software, and other potential peripheral services have also been invited. Make no mistake about it, this convention is bigger and geared towards arming us to ride this market shift.

***

The PCTA general membership assembly has for years been hampered by this lingering issue. After years and years of endless debate it will finally be decided once and for all. This year, the PCTA can finally end the nagging recurring issue of DTH membership. This year we will have a vote to amend our outdated bylaws, most controversial among them is in accepting Community Antenna Systems only or to open our membership to all Pay Television Systems. Our bylaws were created when we were the only pay television set-ups around, this is clearly not the case anymore. Right or wrong this debate will be closed, the Will of the general membership will be heard. How the vote will go is up to us, we need a quorum to amend the bylaws for either choice. Everyone has grown tired of this annual sidetrack, it’s time to vote, count and be done with it. As a first year director, I have become party to so many issues and concerns our association is facing and it is anything but easy. It is up to each and everyone of us how we face these things. One thing is for sure, fear and apprehension cannot be allowed dominate our members and directors. If we allow it we will surely be taken over by the shifts our industry is going through. This January, we welcome Mr. Alex Paras (Parasat Cable TV, Inc.), Mr. Ronald Manlapig (Planet Cable Inc.), and Mr. Boy Opina (Royal Cablevision Corporation) to the board of directors. The following gentlemen were appointed and have graciously accepted the position to replace the directors who are no longer available.

We, your board of directors, continue to forge ahead.

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Members of the board of directors of the Philippine Cable Television Association (PCTA) had a meeting with the National Te l e c o m m u n i c a t i o n s Commission (NTC), to discuss the prevailing issue of telco’s LTE interferences on CATV’s TVRO facilities

held on January 13, 2016 at the NTC Office in QC. It was a follow-up to the previous dialogue meeting held last December 2, 2015, in which NTC Commissioner Gamaliel Cordoba was also present.

Present during the meeting as representatives of PCTA were Chairman Atty. Gerik Paderanga, President Ralph Casiño, VP for Luzon Joel Dabao and yours truly. Present for NTC, were Deputy Commissioner Engr. Edgardo Cabarios, Director for Broadcast Engr. Alvin Blanco and in-charge of

NTC Meeting with PCTA on issues related to LTE Interferences

Frequency Management, Engr. Obet Tolentino. Ms. Bing Ledesma was also in attendance.

Through the formal complaint compiled and previously submitted by PCTA, NTC clearly acknowledged the interference issues which adversely affect the business of some cable operators and members of the PCTA. In response, NTC decided to create a Technical Working Group (TWG) composed of representatives from PCTA and NTC. The task of the TWG is to formulate a working policy and implementing guidelines to mitigate and prevent the “painful” effect of the LTE interferences in the cable industry in general.

On its next meeting to be called by NTC, PCTA will submit a “draft” policies and guidelines to be reviewed and deliberated by the TWG. The group hoped to come up with a finalized version to swiftly address this growing issue in the industry.

PCTA will keep our members posted for any development.

{by Engr. Joseph M. Arguelles}

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My Greetings to all fellow members!

In the Year 2015, many of us experienced the catastrophic devastation of typhoons Lando and Nona that struck the Northern Luzon and Visayas area. Tattered

lanterns, festive lights and tin roofs lettered the towns killing and leaving hundreds of people homeless. A lot of our members suffered damages to their businesses too.

As expected, these are the usual outcomes after any storm. Typhoons are one of our fears as cable operators, for it may result unexpected damages, to our outside plants and other equipments important to our operation. Once you are affected, you can expect the expenses. Whether we like it or not, we have to spend money to cure the problem and continue to survive. We, small operators could hardly afford the outright purchases to rehabilitate the system. We only depend on our good relationship with the suppliers who can give as credit lines.

Because of this, PCTA came up with relief assistance to be given to those affected members. Though the amount is not enough to cover up the losses, it still help us in a little way to feel that we are a member of the organization. Somehow, it helps us alleviates our morale and give us hope to recover our losses.

For typhoon Lando, the PCTA was able to help three cable operator members in Northern Luzon; while for

Typhoon Nona, 11 systems in the Visayas region.

The PCTA is also studying to create a new program called ‘Bayanihan’ where a neighboring systems can voluntarily help in the rehabilitation of the affected system. Whether, to send technicians, lend some equipment, and other help needed by the system. PCTA will be the one to organize the logistics and ground coordination for each volunteer and affected operator. We are hopeful to finish the guidelines so the association can implement it.

We are open for comments and suggestions for this program.

Through PRAYERS we can speak in silence and the action is up to God because we could not tell when or where the next typhoon will come or struck. God designs what we go through but we are the ones who will decide how to get through it.

NTC Meeting with PCTA on issues related to LTE Interferences

{by Glenn R. Tansiongco}

CALAMITY: A CHRONIC PROBLEM OF CABLE OPERATORS

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Jan-Feb 2015 • Vol. 16 Issue 1

Last January 25, 2016, the PCTA held its first roadshow at the Marriott Hotel in Manila to discuss with its members issues pertaining to amendments and revisions of our association’s bylaws. The issue on who should become regular members

of PCTA was greatly discussed. Past President Mr. Reuel Dominguez summed it best when he spoke on behalf of the southern Luzon operators that PCTA regular members should purely be cable television operators. All other pay-TV operators including DTH, Satellite, MMDS, LMDS, IPTV, and operators with other technological means can only become affiliate members. This is consistent with my message in the previous article urging all cable TV operators to unite amidst stifling competition and remain steadfast together within the association. Kudos sir for bringing that out.

The next issue that was intensely contended was regarding voting. Who are entitled to vote and be voted for as a director of PCTA, is it one vote per member or one vote per franchise/provisional authority (PA) registered? How about MSOs (Multiple System Operators) who have several different corporations each with a PA registered in its name but actually owned and controlled by a single person or entity? Are they allowed to have two or more memberships based on the number of companies they register with PCTA as a member and as a consequence can hold and vote for two or more seats on the Board of Directors?

View from the Chair

1Non-stock corporations exist for purposes other than for profit like civic, religious and charitable organizations. It does not follow however that a non-stock corporation can make no profits. Many such corporations do obtain profits as an incident to their operations, but unlike stock corporations, such profits are not distributed among its members but are used for the furtherance of its purposes. (p. 44, Campos Vol. I, 1990) 2Section 89, Corporation Code

In answering these questions we go to the law. The law provides that for non-stock corporations,1 unless otherwise provided by the articles of incorporation or the bylaws, each member shall be entitled to one vote.2 Since the beginning, the association has practiced that one PA registered entitles a member to one vote. This means that a single member with ten (10) PAs registered with the association is also entitled to ten (10) votes. Corollary, if the member’s CATV operation is small and limited only to one city or municipality and therefore only one PA registered, that member is entitled to only one vote. However, this “one PA-one vote” rule is not provided in our bylaws. Instead, our bylaws ambiguously provide that “at all meetings of members, a member shall be entitled to one vote and may vote in person or by proxy executed in writing by the member or his duly authorized attorney-in-fact.” It is ambiguous because this provision pertains to voting proxy and not directly to manner of voting.

It seems that our bylaws really intended to follow the “one member-one vote” provided in the corporation code. Nonetheless, this was never practiced in the PCTA.

Consequently, the usual practice of “one PA-one vote” rule has led to intense politicking and lobbying within the association. The votes of larger cable operators were sought after to gain a foothold and secure a seat in the Board during yearly elections. As if there is any profit to be made by being a PCTA director, our association was likened to a stock corporation where the biggest shareholders hold the largest number of votes. It is even reported that desperate members intent on getting a

{by Atty. Gerik Caesare A. Paderanga}

(continued on page 10)

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(continued on page 10)

{by Engr. Pere Esquillo}

FIRST APNIC/PCTA ROUTING WORKSHOP

Last January 27-29, 2016, in cooperation with the Asia Pacific Network Information Centre (APNIC), “Workshop On Routing I” was held at the New Horizon Hotel, Mandaluyong City with a total of 29 participants represented by the following PCTA members: Batangas CATV, Inc., Bicol CATV System, Inc., Cable Link and Holdings Corporation, Cable Television Network, Inc., Celebrity Cable Network, Colorview CATV, Inc., Culasi Cable TV, Kabayan Cable TV Systems, Inc., Kabankalan Community Antenna Television, Inc. (K-CAT), Kalino Cable Television Network, Inc., Lagawe Multi-Purpose Development Cooperative Cable Network, New City Cable System, P.E.C. Broadcasting Corporation, Planet Cable, Inc., Quezon CATV, Inc., RBC Cable Master System, RJJ CATV Network, Royal Cablevision Corporation, Satellite Cable Network, Inc., Seaview Cable Network, Inc., Skycable Corporation, Sunshine CATV, Inc., St. Joseph Cablevision, Inc., and Talavera Cable System.

APNIC is the not-for-profit Regional Internet address Registry (RIR) for the Asia Pacific region. It provides number resource allocation and registration services that support the global operation of the Internet. As more and more cable operators SHIFT from analog video service to digital service and add the Value Added Service of offering the

Internet to their subscribers, we find ourselves tapping into technologies and systems that our technical staff needing more training to cope with the new challenges. In multiple meetings between APNIC and PCTA, APNIC representatives expressed interest in assisting CATV operators in matter. This APNIC routing workshop is the result of those meetings.

On the first day of the 3-day workshop, Ms. Sheryl (Shane) Hermoso, APNIC Senior Training Officer for eLearning, introduced herself and then asked the participants to tell something about themselves, i.e. their knowledge on networking, work experience, and the likes, and express their expectations on the workshop and/or subject matter. Ms. Shane discussed first the agenda of the 3-day workshop and provided information on APNIC, defined routing and discussed some relative terms.

Aside from discussions, the 3-day workshop is comprised of lab exercises. The lab actually is a setup of simulated network of routers. A network diagram is presented to the participants and then they were grouped to perform routing activity/activities using their laptops to access the lab and define and/or configure their respective assigned router. After each session, Ms. Shane checked whether the configuration and/or result is correct.

At the end of the 3-day workshop, the participants learned basic routing concept, classifications of different routing protocols, Internet routing architecture, Basic network infrastructure design principles, OSPF, BGP etc. Presented also during the workshop are considerable practical work based on IPv4 as well as IPv6 and Cisco IOS router configuration commands. During the closing ceremony, PCTA TID Committee Chair Engr. Joseph M. Arguelles presented Ms. Shane with a token of appreciation and a certificate for her valuable contribution as speaker/trainer of the 3-day workshop. The participants received

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business of Internet service. Definitely, this will not be the last workshop that APNIC and PCTA will conduct. Your Association the PCTA, represented by your directors and the secretariat continue to push for the interests of our industry.

certificates from APNIC. Photo op of the participants, speaker and TID committee also took place.

This is a very positive step forward in educating our technical staff to achieve technical competence in the

seat on the board have resorted to skullduggery—vote or proxy buying. This is unfortunate to say the least. Naturally, the biggest cable operators and those with “unholy” alliances in the country have dominated the directorship for more than two decades. The interests of the small and marginalized cable operators who make up a vast majority of the membership of the PCTA have not been represented in the Board.

With regard to MSOs who can register multiple corporations but actually owned and controlled by one person or entity, the NCTA3 Bylaws is instructive. NCTA Bylaws requires that a company bring into membership all cable systems that it owns or controls. “Owns or controls” is defined as having a 25% or greater interest in a cable system.4 We can include a similar provision in our PCTA bylaws so that all MSOs and other companies who are owned and controlled by a single person or

entity shall be forced to declare their companies and subsidiaries’ shareholdings to the association. Any false declaration can be considered fraudulent which should merit expulsion from PCTA membership. Any member-operator who tries to circumvent such prohibition is criminally motivated and should be prosecuted.

Dear members, our right to vote and choose the persons who will direct the management and operation of our association is significant because it is the only way by which we can have a say as to how the purposes and goals of the association can be achieved. Once the directors are elected, we as members relinquish all corporate powers to the Board as required by law.5 We need to sow the seeds of change now to ensure equality and better representation in our association’s board of directors. In the end, we hope to reap a better harvest and prepare our association’s survival in the future.

3The NCTA is the principal trade association for the US cable television industry, representing more than 90% of the US cable market, more than 200 cable program networks, and equipment suppliers and providers of other services to the cable industry; 4https://www.ncta.com/who-we-are/membership 2Campos, supra at 436

LAST LEG OF TECHNICAL SEMINAR HELD IN METRO MANILA

(from page 6)

(from page 7)

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{by Engr. Pere Esquillo}

The last leg of PCTA Technical Seminar for the fiscal year 2015-2016 was held last 14 - 15 January 2016 at the New Horizon Hotel, Mandaluyong City. The simultaneous seminars, “Cable TV Fundamentals” and “Emerging Technologies and Applications” which were approved for 12 CPD credit units, were also offered to PECEs, ECEs, and ECTs.

Mr. Wesley C. Selda, welcomed the attendees and he cited that to date, the Metro Manila leg is the most attended for seminar of the year. An overwhelming total of 95 participants were present for the morning joint session, where Engr. Ricky Q. Cruz, Engr. Neil C. Tagabi, and Mr. W.C. Selda presented “OSHA”, “CATV Systems”, and “Customer Servicing and Work Order Management”, respectively. During lunch, Technical Seminar Sponsor, Engr. Homer Bertol of PCT International, made a company product presentation. He also delivered a technical presentation on Triton Technology on the LTE interference being experienced by some cable TV systems in the Philippines.

At the breakout session, the Level 2 “Emerging Technologies and Applications” was attended by 58 participants while 37 attendees for the Level 1 “Cable TV Fundamentals”. Each session ended with an evaluation exam to verify the understandings and leanings of the participants. Top passers were then cited and awarded during the closing ceremony.

LAST LEG OF TECHNICAL SEMINAR HELD IN METRO MANILA

Thank you and congratulations to all the participants especially to the top passers..

Level 1/Cable TV Fundamentals 1. Mark Anthony S. Lucero (Wuhan Fiberhome

International Tech. Phils., Inc.)2. Joel E. Bonecillo (EBDI Philippines, Inc.)3. Ronaldo A. Nortado Jr. (Cablelink and Holdings Corporation) Gilbert M. Dueñas

Level 2/Emerging Technologies and Applications1. Ronaldo C. Ferrer (Transmission Specialists, Inc.)2. Josue E. Cruz (Cablelink and Holdings Corporation)

Baby Carmelita M. Balite (Cablelink and Holdings Corporation) Nexel P. Maruquez (Galaxy Cable Corporation)

3. Reyman M. Reyes (Cablelink and Holdings Corporation)

Jeffrey L. Andalis (Sky Cable, Inc.)

PCTA would also like to thank this event’s sponsor, PCT International.

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For more inquiries please contact : Telefax: (632) 633-7358 / Trunkline: (632) 633-7361local 107 or contact your Account Executives:

Smokey Mateo - (0917) 832 8328 for Region 4 (except Quezon) Ghelo Gua – an - (0917) 519 9699 for Region 7, 10, 11, 12, 13 Carl Denorte - (0908) 896 8075 for Region 4 (Quezon only), 5, 6, 9, ARMM Cyrus Graycochea - (0908) 879 6169 for Region 1, 2, CAR Myron Raymundo - (0917) 580 8312 for Region 3, 8

Eye Candies{by Jerome Espartinez, OMI}

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Jan-Feb 2015 • Vol. 16 Issue 1

{by Joel Dabao}

Are you ready to Shift?

Shift.

Shift in mindset

Shift in technology

Shift in business model

To say I’m excited for the upcoming convention might be the understatement of the year. This is the biggest convention ever, since it will be held in the largest hotel ballroom in Southeast Asia!

We have invited programmers, hardware and business solutions from all over the world and they are coming to meet YOU our dear PCTA members.

We’ve put together a lot of new activities to make this convention the most memorable. From more in depth Personal Finance to the latest in Technological Trends. How are we to survive in the world of IP streaming? Come and let’s figure it out together!

Make sure to come early! Viva Communications Inc. will be shooting Karaokray on Tuesday, 12th April! from 9:00 AM to 5:00 PM. Contact your AEs now if you want to join and come early to the convention if you want to watch!

Coffee with Industry Leaders

What is the next step for my system? Broadband? Digital? OTT? Find out the growing pains our early adopters in the PCTA went through and help understand which strategy is most applicable to you, or even better, ask them what they think about your situation.

Social Media Marketing

How often? How many Characters? Text only or should I add a photo? Social media marketing is cheap and effective

but is as mysterious as the dark side of the moon! Come and listen to experts who have tamed the wild beast that is social media!

Affiliate Marketing

Marketing isn’t easy, especially when you’re doing it alone. Find out how your channel partners are willing to support your marketing efforts and how they’ve supported others! Everything’s easier with a little help and who knows, the next great idea may come from YOU!

OTT is here! Are we ready?

Everyone is talking about OTT, how will it affect you? Can I secure the rights? is there hardware out there that safeguards the Intellectual Property Right of my Program Providers? What kind of OTT service can I offer? Come join this panel with hardware providers AND channel providers and see which path you can take to make the most of this SHIFT in technology.

Bandwidth Providers

Is buying bandwidth as simple as it sounds? Find out direct from the source and voice your concerns.

Personal Finance

Want to safeguard your hard earned money? Or are you willing to take on something more aggressive? Listen as many options are presented to you!

So what are you waiting for? Come register now! We’ve launched the online registration portal at http://pcta.org.ph/registration-2/ We have partnered with DragonPay to allow multiple payment methods to make it even easier for you to go!

If you want to stay inside the Resorts World Complex, book through this Google Form http://goo.gl/forms/ewClfvTRpF to get massive discounts at the Marriott Hotel Manila, Belmont Hotels and Resorts and Remington Hotel! Please call us at (02)638-85-44 or email cableconvention@pcta.org.ph to enjoy these great savings!

We are doing our best to make sure that while this is the biggest convention ever, it’s still affordable for everyone!

See you on April 12 for the SHIFT.

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PCTA Convention 2016 accredited hotels: MARRIOTT HOTEL MANILA No. 10 Newport Boulevard

Newport City Complex Pasay City, Philippines 1309

Name: Verneza Lopez Email: verniza.lopez@marriott.com

T: (632) 988 9999 local 8020 www.manilamarriott.com BELMONT HOTELS & RESORTS Newport Boulevard

Newport City, Pasay City Sharmaine Saringan

sharmaine.saringan@rwmanila.com +63 2 318 8888 www.thebelmonthotels.com REMINGTON HOTEL #1 Jasmine Drive, Newport City

Pasay City, Philippines Sharmaine Saringan sharmaine.saringan@rwmanila.com +63 2 908 8600 ext. 8250 www.remingtonhotel-pasay.com

Single Deluxe Double Deluxe

PHP 6,875.92 PHP 7,895.84

Buffet breakfast, WiFi access, shuttle

to and from the airport, use of recreational

facilities

Superior Room PHP 4,880

Breakfast for two, WiFi access, use of

recreational facilities, scheduled

airport transfer

Double Standard

Room PHP 4,026.00

Breakfast for two, WiFi access,

airport shuttle, use of recreational

facilities.

Schedule of Activities (As of February 15, 2016)

DAY 2| Wednesday| 13 April

8:00 AM Delegates’ Registration and Conference Kit Distribution West Foyer (Front of Ballroom A) 2/F, Marriott Grand Ballroom

Exhibit Registration East Foyer (Front of Ballroom D) 2/F, Marriott Grand Ballroom

9:00 AM Convention Opening Ceremony Ballroom A, 2/F, Marriott Grand Ballroom

10:30 AM Exhibit Ribbon Cutting /Exhibit Viewing Ballroom B, C, D, 2/F, Marriott Grand Ballroom

12:00 NN LUNCHEON Sponsored by Fox Networks Group

Ballroom A, 2/F, Marriott Grand Ballroom

1:30 PM PCTA General Membership Assembly Ballroom A, 2/F, Marriott Grand Ballroom

2:30 PM Election of PCTA Board Members for F. Y. 2016 – 2017

Luzon / National: Ballroom A Visayas: Executive 12 West Mindanao: Executive 11 West

6:00 PM Opening Party: HBO

DAY 3| Thursday| 14 April

8:00 AM Delegates’ Registration West Foyer (Front of Ballroom A) 2/F, Marriott Grand Ballroom

Exhibit Registration

East Foyer (Front of Ballroom D) 2/F, Marriott Grand Ballroom

9:00 AM Regulatory Spotlight Ballroom A, 2/F, Marriott Grand Ballroom 9:30 AM-12:00 PM Plenary Session

Programming Trends, Industry Roundtable, Technical Seminar for Non-Technical, Affiliate Marketing

Ballroom A, 2/F, Marriott Grand Ballroom

9:30 AM-12:00 PM Technical Session Diplomatic, G/F, Marriott Grand Ballroom

12:00 NN Luncheon Sponsored by Solar Entertainment Corporation

Ballroom A, 2/F, Marriott Grand Ballroom

1:30 PM – 5:00 PM Plenary Session/Product Presentations Social Media Marketing

Ballroom A, 2/F, Marriott Grand Ballroom

7:00 PM PCTA Fellowship Night Manila Ballroom, Marriott Hotel

DAY 4| Friday| 15 April

9:00 AM Exhibit Registration East Foyer (Front of Ballroom D) 2/F

9:00 AM Plenary Session Are we ready for OTT, Personal Finance

Ballroom A, 2/F Marriott Grand Ballroom

Cablelympics/Technical Session Executive 11 West, 2/F, Marriott Grand Ballroom

12:00 NN Luncheon Ballroom A, 2/F, Marriott Grand Ballroom

3:00 PM Presentation of Referendum Results Ballroom A, 2/F, Marriott Grand Ballroom

6:00 PM Thanksgiving Dinner Ballroom A, 2/F, Marriott Grand Ballroom

DAY 1| Tuesday| 12 April

7:00 AM PCTA Golf Tournament

8:30 AM Delegates’ Registration and Conference Kit Distribution

West Foyer (Front of Ballroom A) 2/F, Marriott Grand Ballroom

9:00 AM – 6:00 PM LIVE TAPING! Karaokray by Viva Entertainment Ballroom A, 2/F, Marriott Grand Ballroom

2:00 PM Presentation of Amendment Roadshow Results Executive 15 West, 2/F Marriott Grand Ballroom

7:00 PM PCTA Appreciation Night hosted by Creative Programs, Inc. Presentation of PCTA Loyalty Awards and Appreciation to the Sponsors and Exhibitors

Manila Ballroom, Marriott Hotel