Republic of the Philippines
HOUSE OF REPRESENTATIVE:

Quezon City qe

BY
SEVENTEENTH (17"") CONGRESS

First Regular Session RTESTIRITION UN

ANY OX LOVE

House BiLLNo, 194%) ~ ~~

Introduced by Representative AMADO T. ESPINO, JR.

EXPLANATORY NOTE

This legislative measure seeks to grant GULF WAVES
COMMUNICATIONS CORPORATION (GWCC) a franchise to construct, install
establish, operate and maintain radio and television broadcasting stations
throughout the Philippines.

In shaping the country's future, the role of broadcast media cannot be
overemphasized. It molds, informs and educates the society through the
promotion of public awareness, participation and encouragement of public
opinions on important matters concerning the country

Thus, investors should be encouraged to invest in the radio and television
broadcasting business to assist and support the government in disseminating
important information on Issues and matters of public concerns.

The GULF WAVES COMMUNICATIONS CORPORATION (GWCC) is a
private corporation interested in the telecommunications business for domestic
audiences and other related business. It desires to operate radio and television
stations throughout the Philippines with its central base of operations at Urdaneta
City, Pangasinan

It cannot be gainsaid that the presence of more radio and television
enterprises in the arena of communication industry will not only enhance
competition but consequently make available more information as well as
entertainment to the public.

This is the reason why GULF WAVES COMMUNICATIONS
CORPORATION (GWCC) seeks to offer itself as one of the service providers in
the radio and television broadcasting industry and therefore open the way for


opportunities for more access to radio and television services by fostering a
healthy competition.

Representative
5" District, Pang:


Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

SEVENTEENTH (17"") CONGRESS
First Regular Session

HOUSE BILL nol 944

Introduced by Representative AMADO T. ESPINO, JR.

AN ACT
GRANTING THE GULF WAVES COMMUNICATIONS
CORPORATION A FRANCHISE TO CONSTRUCT, INSTALL,
ESTABLISH, OPERATE AND MAINTAIN RADIO AND
TELEVISION BROADCASTING STATIONS THROUGHOUT
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 1987 Philippine Constitution and applicable laws, rules and regulations, there
is hereby granted to GULF WAVES COMMUNICATIONS CORPORATION
(GWCC) hereunder referred to as the grantee, its successors or assignees, a
franchise to construct, install, establish, operate and maintain for commercial
purposes and in the public Interest, "radio and/or television broadcasting stations
throughout the Philippines’, with its central base of operations located at Urdaneta
City, Pangasinan, where frequencies and/or channels are still available for radio
and/or television broadcasting, including digital television system, through
microwave, satellite or whatever means, including the use of new technologies in
television and radio systems, with the corresponding technological auxiliaries and
facilities, special broadcast and other program and distribution services and relay
stations.

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 right 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 the availability thereof.

SEC. 3. Prior Approval of the National Telecommunications Commission
(NTC) — The grantee shall secure from the NTC the appropriate permits and
licenses for the construction and operation of its stations and 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.

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 reach the population on important public issues; provide at
all times sound and balanced programming; assist in the functions of public
information and education; conform to the ethics of honest enterprise; and shall
not use its stations and facilities for the broadcasting of obscene and indecent
language, speech, act, or scene, or for the dissemination of deliberately false
information or willful misrepresentation to the detriment of the public interest, or to
incite, encourage, or assist in subversive or treasonable acts.

SEC. 5. Right of Government. - A special right is hereby reserved to the
President of the Philippines, in times of war, rebellion, public peril calamity
emergency, disaster o 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 operated

The telecommunication 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 anytime after due process.

SEC. 6. Term of Franchise. - This franchise shall be in effect for a period of
twenty-five (25) years, unless sooner revoked or cancelled. This franchise shall be
deemed jpso facto, revoked in the event the grantee fails to comply with any of
the following conditions

(a) Commence operations within one (1) year from the approval of its
operating permit by the NTC;

(b) Commence operations within three (3) years from the effectivity of this
Act; and

(c) Operate continuously for two (2) years.

SEC. 7. Acceptance and Compliance. -Acceptance of this franchise shall
be given in the 17" the Congress of the Philippines, through the Committee on
Legislative Franchises of the House of Representatives and the Committee on
Public Services of the 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. Bond. - The grantee shall file a bond with the NTC, in the amount
that the NTC shall determine, to guarantee compliance with and fulfilment of the
conditions under which this franchise is granted. If after three (3) years from the
date of the approval of its permit by the Commission, the grantee shall have
fulfilled the same, the bond shall be cancelled by the Commission. Otherwise, the
bond shall be forfeited in favor of the government and the franchise ipso facto
revoked.

SEC. 9. 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 station: Provided, That the grantee, during any
broadcast, shall- cut off from the air the 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. 10. 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, accounts, demands, or actions arising out of
accidents or injuries, whether to property or to persons, caused by the
construction or operation of the stations of the grantee.

SEC. 11. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of
Franchise. The grantee shall not sell, tease, transfer, grant the usufruct of, nor
assign this franchise 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 shall transfer the controlling interest of the grantee,
whether as a whole or in part, and whether simultaneously or contemporaneously,
to any such person, firm, company, corporation, entity without the prior approval
of the Congress of the Philippines: Provided, The Congress shall be informed of
any sale, lease, transfer, grant of usufruct, or assignment franchise or the rights or
privileges acquired thereunder, or the merger or transfer 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 which this franchise
is sold, transferred or assigned, shall be subject to the said conditions, terms,
restrictions, and limitations of this Act.

SEC. 12. Dispersal of Ownership. - In accordance with the constitutional
provision to encourage public participation in public utilities, the grantee shall offer
to Filipino citizen at /east thirty per cent (30%) or a higher percentage that may
hereafter be provided by 1aw of its outstanding capital stock in any securities
exchange in the Philippines within five years from the commencement of its
operations: Provided, That in cases where put-offer of shares is not applicable,


establishment of cooperatives and other methods encouraging public participation
by citizens and corporations operating public utilities m be implemented.
Noncompliance therewith shall render the franchise ipso facto revoked

Sec. 13. General Broadcast Policy Law. - The grantee shall comply with
subject to the provisions of a general broadcast policy law, which Congress may
hereafterenact.

SEC. 14. Reportorial Requirement. - The grantee shall submit an annual
report the Congress of the Philippines, through the Committee on Legislative
Franchises of the House of Representatives and the Committee on Public
Services of the Senate, in 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 certificate is accepted by the NTC.

SEC. 15. Penalty Clause. - Failure of the grantee to submit the requisite
annual report to Congress shall be penalized by a fine of Five Hundred Pesos
(P500.00) for every working day of noncompliance. The fine shall be collected by
the NTC from the delinquent franchise grantee separate from the reportorial
penalties imposed by the NTC.

SEC. 16. Equality Clause. - 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 the provisions of broadcasting franchises concerning territory
covered by the franchise, the life span of the franchise and the type of service
authorized by the franchise.

SEC. 17. Separability Clause. - If any of the sections or provisions of this
Act is held invalid, all other provisions not affected thereby shall remain valid.

SEC. 18. Repealability and Nonexclusively 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. 19. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation

Approved,