Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
Second Regular Session

HOUSE BILL No._6347

Introduced by Honorable Luis A. Ferrer IV

EXPLANATORY NOTE

This bill seeks to renew the franchise granted to Advanced Media Broadcasting System, Inc.,
under Republic Act No. 8061 entitled, “AN ACT GRANTING THE ADVANCED MEDIA
BROADCASTING SYSTEM, INC., A FRANCHISE TO CONSTRUCT, INSTALL, OPERATE
AND MAINTAIN RADIO AND TELEVISION BROADCASTING STATIONS IN THE
PHILIPPINES” enacted into law on 15 June 1995.

‘The term of the franchise of Advanced Media Broadcasting System, Inc., which is twenty-
five (25) years, will expire in June 2020. The filing of this bill is very timely since it will undergo
public hearings and consultations in the committee level and be processed through the legislative
mill. The renewal of its franchise is needed for long term planning and capital investment due to the
emerging technologies that make the broadcasting industry capital intensive.

Communications and media play a vital role in the development and growth of our country.
The state policy is laid down in the 1987 Constitution which provides that “The state recognizes the
vital role of communication and information in nation-building.” A most effective means of
communication and dissemination of information is broadcast media particularly radio in the remote
places of the Philippine archipelago

It is imperative that the government continue to play an active role in sustaining and
encouraging the development of broadcast media

In view of the foregoing, approval of this bill is earnestly requested

LUIS A, FERRER IV


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
Second Regular Session

HOUSE BILL NO. 63477

Introduced by Honorable Luis A. Ferrer IV

AN ACT EXTENDING FOR ANOTHER TWENTY-FIVE (25) YEARS THE
FRANCHISE GRANTED TO ADVANCED MEDIA BROADCASTING SYSTEM, INC. UNDER
REPUBLIC ACT NO. 8061, ENTITLED “AN ACT GRANTING THE ADVANCED
MEDIA BROADCASTING SYSTEM, INC. A FRANCHISE TO CONSTRUCT, INSTALL,
OPERATE AND MAINTAIN RADIO AND TELEVISION BROADCASTING STATIONS
IN THE PHILIPPINES.”

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Nature and Scope of Franchise. - Subject to the provisions
of the Constitution and applicable laws, rules and regulations, the franchise
granted to Advanced Media Broadcasting System, Inc. hereunder referred to as
the grantee, its successor or assignee, under Republic Act No. 8061, to
construct, install, establish, operate and maintain for commercial purposes and
in the public interest, radio and/or television broadcasting stations, including
digital television system, through microwave, satellite or whatever means, as
well as the use of any new technology in television and radio systems, with
the corresponding technological auxiliaries and facilities, special broadcast and
other program and distribution services and relay stations in the Philippines, is
hereby extended for another twenty-five (25) years from the effectivity of this
Act.

SEC. 2. Manner of Operation of Stations or Facilities. - The stations or
facilities of the grantee shall be constructed and operated in a manner as will,
at most, result only in the minimum interference on the wavelengths or
frequencies of existing stations or other stations which may be established by
law, without in any way diminishing its own privilege to use its assigned
wavelengths or frequencies and the quality of transmission or reception


thereon as should maximize rendition of the grantee’s services and/or
availability thereof.

SEC. 3. Prior Approval of the National Telecommunications
Commission. - The grantee shall secure from the National Telecommunications
Commission (NTC) the appropriate permits and licenses for the construction
and operation of its stations or facilities and shall not use any frequency in the
radio/television spectrum without authorization from the NTC. The NTC,
however, shall not unreasonably withhold or delay the grant of any such
authority.

The grantee shall not dispose or lease its facilities except with entities
with radio or television broadcasting franchise: Provided, That the grantee
shall inform and secure written authorization to proceed from the NTC, and
report the transaction to the NTC within sixty (60) days after its completion.
Provided, further, That the NTC shall determine the corresponding sanction for
any violation of this provision.

SEC. 4. Responsibility to the Public. - The grantee shall provide
adequate public service time to enable the government, through the said
broadcasting stations or facilities, to inform the population on important public
issues; provide at all times sound and balanced programming; assist in the
performance of the functions of public information and education; conform to
the ethics of honest enterprise, and to refrain from broadcasting of obscene
and indecent language, speech, act or scene, or disseminating deliberately
false information or willful misrepresentation, to the detriment of the public
interest; or to inciting, encouraging, or assisting in subversive or treasonable
acts.

SEC. 5. Right to Government. - The radio spectrum is a finite resource
that is part of the national patrimony and the use thereof is a privilege
conferred upon the grantee by the State and may be withdrawn any time after
due process.

A special right is hereby reserved to the President of the Philippines, in
times of war, rebellion, public peril, calamity, emergency, disaster, or
disturbance of peace and order: to temporarily take over and operate the
stations or facilities of the grantee; to temporarily suspend the operation of
any station or facility in the interest of public safety, security and public
welfare; or to authorize the temporary use and operation thereof by any
agency of the government, upon due compensation to the grantee for the use
of said stations or facilities during the period when they shall be so operated.

SEC. 6. Term of Franchise. - This franchise shall be in effect for a
period of twenty-five (25) years from the effectivity of this Act, unless sooner


revoked or cancelled. This franchise shall be deemed ipso facto revoked in the
event the grantee fails to operate continuously for two (2) years.

SEC. 7. Acceptance of Franchise. - Acceptance of the terms of this
franchise shall be given in writing to the Congress of the Philippines, through
the Committee on Legislative Franchises of the House of Representatives and
the Committee on Public Services of the Philippine Senate within sixty (60)
days from the effectivity of this Act. Upon giving such acceptance, the grantee
shall exercise the privileges granted under this Act.

Non-acceptance shall render the franchise void.

SEC. 8. Self-regulation by and Undertaking of Grantee. - The grantee
shall not require any previous censorship of any speech, play, act or scene, or
other matter to be broadcast from its stations, but if any such speech, play,
act or scene, or other matter should constitute a violation of the law or
infringement of a private right, the grantee shall be free from any liability, civil
or criminal, for such speech, play, act or scene, or other matter: Provided,
That the grantee, during any broadcast, shall cut off from airing speech, play,
act or scene, or other matter being broadcast if the tendency thereof is to
propose and/or incite treason, rebellion or sedition; or the language used
therein or the theme thereof is indecent or immoral: Provided, further, That
willful failure to do so shall constitute a valid cause for the cancellation of this
franchise.

SEC. 9. Warranty in Favor of National and Local Governments. - The
grantee shall hold the national, provincial, city and municipal governments of
the Philippines free from all claims, liabilities, demands, or actions arising out
of accidents causing injury to persons or damage to properties, during the
construction or operation of the stations of the grantee.

SEC. 10. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of
Franchise. - The grantee shall not sell, lease, transfer, grant the usufruct of,
nor assign this franchise or the rights and privileges acquired thereunder to any
person, firm, company, corporation or other commercial or legal entity, nor
merge with any other corporation or entity, nor the controlling interest of the
grantee be transferred, whether as a whole or in part, and whether
simultaneously or contemporaneously, to any such person, firm, company,
corporation or entity without the prior approval of the Congress of the
Philippines: Provided, That Congress shall be informed of any sale, lease ,
transfer, grant of usufruct, or assignment of franchise or the rights or privileges
acquired thereunder, or of the merger or transfer of the controlling interest of
the grantee, within sixty (60) days after the completion of said transaction:
Provided, further, That failure to report to Congress such change of ownership
shall render the franchise ipso facto revoked: Provided, finally, That any


person or entity to which this franchise is sold, transferred or assigned, shall be
subject to the same conditions, terms, restrictions and limitations of this Act.

SEC. 11. Dispersal of Ownership. - In accordance with the constitutional
provision to encourage public participation in public utilities, the grantee shall
offer to Filipino citizens at least thirty per cent (30%) or a higher percentage
that may hereafter be provided by law of its outstanding capital stock in any
securities exchange in the Philippines within five (5) years from the
commencement of its operations: Provided, That in cases where public offer
of shares is not applicable, establishment of cooperatives and application of
other methods of encouraging public participation by citizens and corporations
operating public utilities as allowed by law must be implemented.

Noncompliance therewith shall render the franchise ipso facto revoked.

SEC. 12. Reportorial Requirement. - The grantee shall submit an annual
report to the Congress of the Philippines, through the Committee on Legislative
Franchises of the House of Representatives and the Committee on Public
Services of the Philippine Senate, on its compliance with the terms and
conditions of the franchise and on its operations on or before April 30 of every
year during the term of its franchise. The reportorial compliance certificate
issued by Congress shall be required before any application for permit or
certificate is accepted by the NTC.

SEC. 13. Fine. - Failure of the grantee to submit the requisite annual
report to Congress shall be penalized by a fine of five hundred pesos (P500.00)
per working day of non-compliance. The fine shall be collected separately by
the NTC distinct from the penalties it imposes for non-compliance of its own
reportorial requirements.

SEC. 14. Equality Clause. - Except for taxes and customs duties, any
advantage, favor, privilege, exemption, or immunity granted under existing
franchises, or which may hereafter be granted for radio and/or television
broadcasting, upon prior review and approval of Congress, shall become part of
this franchise and shall be accorded immediately and unconditionally to the
herein grantee: Provided, That the foregoing shall neither apply to nor affect
provisions of broadcasting franchises concerning territorial coverage, the term,
or the type of service authorized by the franchise.

SEC. 15. Repealability and Non-exclusivity Clause. - This franchise shall
be subject to amendment, alteration, or repeal by the Congress of the
Philippines when the public interest so requires and shall not be interpreted as
an exclusive grant of the privileges herein provided for.


SEC. 16. Separability Clause. - |f any of the sections or provisions of this
Act is held invalid, all other provisions not affected thereby shall remain valid.

SEC. 17. Repealing Clause. - All laws, decrees, orders, resolutions,
instructions, rules and regulations, and other issuances or parts thereof which
are inconsistent with the provisions of this Act are hereby repealed, amended,
or modified accordingly.

SEC. 18. Effectivity. - This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in a newspaper of general circulation.

Approved,