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SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
) 
) 
) 
SENATE 
S.No. 2700 
Introduced by Senator FRANCIS G. ESCUDERO 
AN ACT 
'15 
t1AR 16 
RENEWING THE FRANCHISE GRANTED TO THE INTERACTIVE BROADCAST 
MEDIA, INC. UNDER REPUBLIC ACT NO. 8210, TO ANOTHER TWENTY-FIVE 
(25) YEARS FROM THE DATE OF APPROVAL OF THIS ACT 
EXPLANATORY NOTE 
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I 
.., ., 
In consonance with the constitutionally guaranteed freedom of the press, this bill 
renews the franchise granted to Interactive Broadcast Media Inc. under Republic Act 
No. 8210 to another twenty-five (25) years. 
It is submitted that with this extension Philippine mass media will continuously 
evolve under an atmosphere free from any monopolies or restraints. And, as a matter of 
state interest, credible and reliable information is made accessible to advance education, 
and exact transparency and accountability of all matters imbued with public interest. 
Hence, this bill, House Bill No. 5532 in the House of Representatives, is 
respectfully submitted for consideration and approval. 
FRANCIS G. ESCUDERO 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
) 
) 
) 
SENATE 
S. No. 2700 
Introduced by Senator FRANCIS G. ESCUDERO 
AN ACT 
'1'5 
riAIl 16 P5 :24 
RENEWING THE FRANCHISE GRANTED TO THE INTERACTIVE BROADCAST 
MEDIA, INC. UNDER REPUBLIC ACT NO. 8210, TO ANOTHER TWENTY-FIVE 
(25) YEARS FROM THE DATE OF APPROVAL OF THIS ACT 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION I.Nature and Scope of Franchise. - Subject to the provisions of the 1987 
2 
Philippine Constitution and applicable laws, rules and regulations, the franchise 
3 
granted under Republic Act No. 8210 entitled "An Act Granting Interactive Broadcast 
4 
Media, Inc., of the Philippines a Franchise to Construct, Operate and Maintain Radio 
5 
and Television Broadcasting Stations in the Philippines", to Interactive Broadcast 
6 
Media, Inc., hereunder referred to as the grantee, whose controlling interest has been 
7 
transferred to Edcanoy Prime Holdings, Inc., to construct, install, establish, operate and 
8 
maintain for commercial purposes and in the public interest, radio and/ or television 
9 
broadcasting stations, including digital television system, through microwave, satellite 
10 
or whatever means, including the use of any new teclmologies in television and radio 
11 
systems, with the corresponding technological auxiliaries 
and facilities, special 
12 
broadcast and other program and distribution services and relay stations in the 
13 
Philippines, is hereby renewed for another twenty-five (25) years from the approval of 
14 
this Act. 
15 
SEC. 2. Manner of Operation of Stations or Facilities. - The stations or facilities of 
16 
the grantee shall be constructed and operated in a manner as will, at most, result only in 
17 
the minimum interference on the wavelengths or frequencies of existing stations or 
18 
other stations which may be established by law, without in any way diminishing its 
19 
own privilege to use its assigned wavelengths or frequencies and the quality of 
20 
transmission or reception thereon as should maximize rendition of the grantee's 
21 
services and/ or availability thereof. 
22 
SEC. 3. Prior Approval of the National Telec011lmunications Commission. - The 
23 
grantee shall secure from the National Telecommunications Commission (NTC), the 
24 
appropriate permits and licenses for the construction and operation of its stations and 
25 
facilities and shall not use any frequency in the radio/television spectrum without 
26 
authorization from the NTC. The NTC, however, shall not unreasonably withhold or 
27 
delay the grant of any such authority. 
1 


1 
SEC. 4. Responsibility to the Public. - The grantee shall provide adequate public 
2 
service time to enable the government, through the said broadcasting stations or 
3 
facilities, to reach the population on important public issues; provide at all times sound 
4 
and balanced programming; assist in the functions of public information and education; 
5 
conform to the ethics of honest enterprise; and not use its stations and facilities for the 
6 
broadcasting of obscene and indecent language, speech, act or scene; or for the 
7 
dissemination of deliberately false information or willful misrepresentation, to the 
8 
detriment of the public interest, or to incite, encourage or assist in subversive or 
9 
treasonable acts. 
10 
SEC. 5. Riglzt of GOl'emment. - A special right is hereby reserved to the President 
11 
of the Philippines, in times of war, rebellion, public peril, calamity, emergency, disaster 
12 
or disturbance of peace and order: to temporarily take over and operate the stations or 
13 
facilities of the grantee; to temporarily suspend the operation of any station or facility in 
14 
the interest of public safety, security and public welfare; or to authorize the temporary 
15 
use and operation thereof by any agency of the government, upon due compensation to 
16 
the grantee, for the use of said stations or facilities during the period when they shall be 
17 
so operated. 
18 
The radio spectrum is a finite resource that is part of the national patrimony and 
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the use thereof is a privilege conferred upon the grantee by the State and may be 
20 
withdrawn anytime after due process. 
21 
SEC. 6. Term of Franchise. - This franchise shall be in effect for a period of twenty-
22 
five (25) years from the effectivity of the Act, unless sooner revoked or cancelled. This 
23 
franchise shall be deemed ipso facto revoked in the event the grantee fails to operate 
24 
continuously for two (2) years. 
25 
SEC. 7. Acceptllnce and Compliance. - Acceptance of this new franchise shall be 
26 
given in writing to the Congress of the Philippines, through the Committee on 
27 
Legislative Franchises of the House of Representatives and the Committee on Public 
28 
Services of the Senate within sixty (60) days from the effectivity of this Act. Upon giving 
29 
such acceptance, the grantee shall exercise the privileges granted under this Act. 
30 
Nonacceptance shall render the franchise void. 
31 
SEC. 8. Self-Regulation by and Undertaking of Grantee. -
The grantee shall not 
32 
require any previous censorship of any speech, play, act or scene, or other matter to be 
33 
broadcast from its stations: Provided, That the grantee, during any broadcast, shall cut 
34 
off from the air the speech, play, act or scene, or other matter being broadcast if the 
35 
tendency thereof is to propose and/ or incite treason, rebellion or sedition; or the 
36 
language used therein or the theme thereof is indecent or immoral: PrOl)ided, further, That 
37 
willful failure to do so shall constitute a valid cause for the cancellation of this franchise. 
38 
SEC. 9. Warranty in Fm'or of NlltiolJlll Ilnd Local Governments. - The grantee shall 
39 
hold the national, provincial, city, and municipal governments of the Philippines free 
40 
from all claims, accounts, demands or actions arising out of accidents or injuries, 
41 
whether to property or to persons, caused by the construction or operation of the 
42 
stations of the grantee. 
43 
SEC. 10. Sllle, Lellse, Transfer, Usufruct, or Assignment of Franchise. - The grantee 
44 
shall not lease, transfer, grant the usufruct of, sell nor assign this franchise or the rights 
45 
and privilege acquired thereunder to any person, firm, company, corporation or other 
2 


1 
commercial or legal entity, nor merge with any other corporation or entity, nor shall the 
2 
controlling interest of the grantee be transferred, whether as a whole or in parts, and 
3 
whether simultaneously or contemporaneously, to any such person, firm, company, 
4 
corporation or entity without the prior approval of the Congress of the Philippines: 
5 
Provided, That Congress shall be informed of any sale, lease, transfer, grant of usufruct 
6 
of, assignment of franchise or the rights or privileges acquired thereunder, or of the 
7 
merger, or transfer of controlling interest of the grantee, within sixty (60) days after the 
8 
completion of the said transaction: Pr01Jided, further, That failure to report to Congress 
9 
such change of ownership shall render the franchise ipso facto revoked: Provided, finally, 
10 
That any person or entity to which this franchise is sold, transferred or assigned, shall 
11 
be subject to the same conditions, terms, restrictions and limitations of this Act. 
12 
SEC 11. Dispersal of Ownership. - In accordance with the constitutional provision 
13 
to encourage public participation in public utilities, the grantee shall offer to Filipino 
14 
citizens at least thirty per cent (30%) or a higher percentage that may hereafter be 
15 
provided by law of its outstanding capital stock in any securities exchange in the 
16 
Philippines within five (5) years from the commencement of its operations: Prol'ided, 
17 
That 
in cases where public offer of shares is not applicable, establishment of 
18 
cooperatives and other methods of encouraging public participation by citizens and 
19 
corporations operating public utilities must be implemented. Noncompliance therewith 
20 
shall render the franchise ipso facto revoked. 
21 
SEC 12. General Broadcast Policy Law. - The grantee shall comply with and be 
22 
subject to the provisions of a general broadcast policy law, which Congress may 
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hereafter enact. 
24 
SEC 13. Reportorial Requirelllent. - The grantee shall submit an annual report to 
25 
the Congress of the Philippines, through the Committee on Legislative Franchises of the 
26 
House of Representatives and the Committee on Public Services of the Senate, on its 
27 
compliance with the terms and conditions of the franchise and on its operations on or 
28 
before April 30 of every year during the term of the franchise. 
29 
SEC 14. Penalty Clallse.- Failure to submit the mmual report to Congress shall be 
30 
penalized with a fine of five hundred pesos (P500.00) per working day of 
31 
noncompliance. The fine shall be collected by the NTC from the delinquent franchise 
32 
grantee separate from the reportorial penalties imposed by the NTC The collected 
33 
funds shall accrue to the monitoring fund of the NTC inline withits supervisoryand 
34 
regulatory functions. 
The reportorial compliance certificate issued by Congress 
35 
shall be required before any application for permit or certificate is accepted by the NTC 
36 
SEC 15. Equality Clause. - Any advantage, favor, privilege, exemption, or 
37 
immunity granted under existing franchise, or which may hereafter be granted for radio 
38 
and/ or television broadcasting, upon prior review and approval of Congress, shall 
39 
become part of this franchise and shall be accorded immediately and unconditionally to 
40 
the herein grantee: Provided, !lOwe1Jer, That the foregoing shall neither apply to nor affect 
41 
provisions of broadcasting franchises concerning territory covered by the franchise, the 
42 
life span of the franchise or the type of service authorized by the franchise: Provided, 
43 
fll rther, That the foregoing shall not apply to sale, lease, transfer or grant of usufruct of 
44 
legislative franchise with prior congressional approval. 
45 
SEC 16. Sepnrability Clnuse. - If any of the sections or provisions of this Act is 
46 
held invalid, all other provisions not affected thereby shall remain valid. 
3 


1 
SEC. 17. Repenlability Ilnd NonexC/usivity Clause. - This franchise shall be subject 
2 
to amendment, alteration, or repeal by the Congress of the Philippines when the public 
3 
interest so requires and shall not be interpreted as an exclusive grant of the privileges 
4 
herein provided for. 
5 
SEC. 18.Effoctil'ity Clallse. - This Act shall take effect fifteen (15) days after its 
6 
publication in the Official Gazette or in a newspaper of general circulation. 
7 
Approved, 
4