Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

6537

HOUSE BILL No.

Introduced by Honorable Pablo C. Ortega

This bill seeks the renewal of the franchise of SATELLITE BROADCASTING
INCORPORATED

SATELLITE BROADCASTING INCORPORATED was granted a franchise to
construct, install, operate and maintain radio and television broadcasting stations under RA
7965. This law has given the grantee the rights, privileges and authority to function for a
period of twenty-five (25) years from March 30, 1995.

For almost (25) years now, SATELLITE BROADCASTING INCORPORATED
has served as an important vehicle in information dissemination that bridges
communication gaps among the populace of the country. Its radio stations have provided
sound and balanced programming, making information easily accessible to the general
public. It has also frequently communicated with the people on important and major issues
confronting the nation.

The law that has given life and mandate to SATELLITE BROADCASTING
INCORPORATED to operate will expire soon. Therefore, this bill seeks to extend the term
of franchise of SATELLITE BROADCASTING INCORPORATED for another twenty-
five (25) years from its original expiration date.

In view of the foregoing, the passage of this bill is earnestly sought.

(W909 JAG


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

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO.__§537

Introduced by Honorable Pablo C. Ortega

AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE
FRANCHISE GRANTED TO SATELLITE BROADCASTING INCORPORATED
UNDER REPUBLIC ACT NO. 7965 ENTITLED “AN ACT GRANTING THE
SATELLITE BROADCASTING INCORPORATED A_ FRANCHISE TO
CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN
COMMERCIAL RADIO AND TELEVISION STATIONS WITHIN REGIONS I, I,
THE CORDILLERA ADMINISTRATIVE REGION AND THE WHOLE OF
LUZON”

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

SEC. 1. Nature and Scope of Franchise.— Subject to the provisions of the
Constitution and applicable laws, rules and regulations, the franchise granted to Satellite
Broadcasting Incorporated, hereunder referred to as the grantee, its successors or assignees,
under Republic Act No. 7965 to construct, install, establish, operate and maintain for
commercial purposes and in the public interest, radio and television broadcasting stations
in Regions I, Il & Cordillera Administrative Region and the whole of Luzon, including
digital radio and TV system, through microwave, satellite, terrestrial or whatever means, or
the use of any new technologies in radio and television systems, with the corresponding
technological auxiliaries and facilities, special broadcast and other program and distribution
services and relay stations, and to install radio communication facilities for the grantee’s
Private use in its broadcast services is hereby renewed for another twenty-five (25) years
from the expiration of its original franchise.

SEC. 2. Manner of Operations 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 the 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.

SEC. 4. Responsibility to the Public.— The grantee shall provide, free of
charge, adequate public service time which is reasonable and sufficient to enable the
government, through the broadcasting stations or facilities of the grantee, to reach the
pertinent population/s or portions thereof, on important public issues and relay important
public announcements and warnings concerning public emergencies and calamities, as
necessity, urgency or law may require; provide at all times sound and balanced
programming; promote public participation; assist in the functions of public information
and education; conform to the ethics of honest enterprise; promote audience sensibility and
empowerment including closed captioning; and not use its stations or 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.

Public service time referred herein shall be equivalent to ten percent (10%) of the
paid commercials or advertisements which shall be allocated based on need to the
executive, legislative, judiciary, constitutional commissions and international humanitarian
organizations duly recognized by statutes: Provided, That the NTC shall increase the public
service time in case of extreme emergency or calamity. The NTC shall issue rules and
regulations for this purpose, the effectivity of which shall commence upon applicability
with other similarly situated broadcast network franchise holders.

SEC. 5. Right of 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 serious 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 stations or
facilities of the grantee during the period when these 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. Self-Regulation by and Undertaking of the Grantee — The grantee shall not
require any previous censorship of any speech, play, act or scene, or any other matter to be
broadcast from its stations; 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 valid cause for the cancellation of this franchise.

SEC. 8. Warranty in Favor of the 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 the accidents causing injury to
persons or damage to properties, during the construction or operation of the stations of the
grantee.

SEC. 9. Commitment to Provide and Promote the Creation of Employment
Opportunities. — The grantee shall create employment opportunities and shall allow on-the-
job trainings in their franchise operation. Provided, That priority shall be accorded to the
residents in areas where any of its offices is located: Provided, further, That the grantee
shall follow the applicable labor standards and allowance entitlement under existing labor
laws, rules and regulations and similar issuances: Provided, finally, That the employment
opportunities or jobs created shall be reflected in the General Information Sheet to be
submitted to the Securities and Exchange Commission annually.

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 shall
the controlling interest of the grantee simultaneously or contemporaneously, to any person,
firm, company, corporation or entity without the prior approval of the Congress of the
Philippines. Congress shall be informed of any sale, lease, transfer, grant of usufruct, or
assignment of franchise or the rights and privileges acquired thereunder, or of the merger
or transfer of the controlling interest of the grantee, within sixty(60) days after the
completion of the said transaction. Failure to report to Congress such change of ownership
shall render the franchise ipso facto revoked. 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 percent (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, the grantee shall apply other methods of
encouraging public participation by citizens and corporations operating public utilities as
allowed by law. Non-compliance 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 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 the 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
noncompliance. The fine shall be collected by the NTC from the delinquent franchise
grantee separate from the reportorial penalties imposed by the NTC and the same shall be
remitted to the National Treasury.

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 covered, the term,
or the type of service authorized by the franchise.

SEC. 15. Repealability and Nonexclusivity 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. - If any of the sections or provisions of this Act is
held invalid, all the 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.