EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
S.B. No. 1403
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Introduced by SENATOR RAMON BONG REVILLA, JR.
AN ACT
RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE 
GRANTED TO ABS-CBN BROADCASTING CORPORATION, PRESENTLY 
KNOWN AS ABS-CBN CORPORATION, UNDER REPUBLIC ACT NO. 7966, 
ENTITLED "AN ACT GRANTING THE ABS-CBN BROADCASTING 
CORPORATION A FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND 
MAINTAIN TELEVISION AND RADIO BROADCASTING STATIONS IN THE 
PHILIPPINES, AND FOR OTHER PURPOSES"
EXPLANATORY NOTE
In 1953, the Philippines made its first commercial broadcast making it the first 
Southeast Asian country and 2nd in Asia to do so. This is attributed to the then Alto 
Broadcasting System, the nucleus of the present ABS-CBN Corporation, and its 
hardworking Filipino engineers.
ABS-CBN Corporation is reportedly the largest entertainment and media 
conglomerate in terms of revenue, operating income, net income, assets, equity, 
market capitalization, and number of employees12. It owns and operates both national 
and regional television and radio networks. It also distributes international television 
channels. In recent years, the corporation ventured in other businesses such as over- 
the-top platform, and digital terrestrial television service.
1 Lucas, Daxim (23 June 2012). TVS losses double to P4. IB in 2011. In Philippine Daily Inquirer
2 Gonzales, David (17 July 1999). Philippines Indie VIVA Music Group. International Newsline... in Billboard
1


In 2018, the Corporation contributed, in estimate, an amount of P2.5-B in 
various taxes paid to the government3.
On May 4, 2020, the franchise granted to ABS-CBN Corporation by virtue of 
Republic Act No. 7966, otherwise known as "An Act Granting the ABS-CBN 
Broadcasting Corporation A Franchise To Construct, Install, Operate and Maintain 
Television And Radio Broadcasting Stations In The Philippines, And For Other 
Purposes", will expire. This bill seeks to renew the franchise of ABS-CBN Corporation 
for another 25 years. Further, it lays additional provisions so that public service is truly 
ensured and accountability is better guaranteed. Further, this proposed measure is a 
step towards the social protection of the more than eleven thousand employees4 of 
the Corporation.
In view of the foregoing, immediate consideration of this bills is earnestly
sought.
RAMOiyBONG REVILUV, 3R. 
'Senator
3 Senate Committee on Public Services Public Hearing, February 24, 2020. TSN p. 154
4 SEC Form 17-A (11 April 2019)


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
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P1 :38
SENATE
S.B. No. 1403
REC-
Introduced by SENATOR RAMON BONG REVILLA, JR.
AN ACT
RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE 
GRANTED TO ABS-CBN BROADCASTING CORPORATION, PRESENTLY 
KNOWN AS ABS-CBN CORPORATION, UNDER REPUBLIC ACT NO. 7966, 
ENTITLED "AN ACT GRANTING THE ABS-CBN BROADCASTING 
CORPORATION A FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND 
MAINTAIN TELEVISION AND RADIO BROADCASTING STATIONS IN THE 
PHILIPPINES, AND FOR OTHER PURPOSES"
Be it enacted by the Senate and House of Representatives of the Congress assembled:
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Section 1. Section 1 of Republic Act No. 7966 is hereby amended to read as
follows:
“Section 1. Nature and Scope of Franchise. - Subject to the 
provisions of the Constitution and applicable laws, rules and 
regulations, [the ABS-CBN Broadcasting Corporation, hereunder 
referred to as--the grantee, its successors or assigns, is hereby
granted a franchise] THE FRANCHISE GRANTED UNDER 
REPUBLIC ACT NO. 7966 TO ABS-CBN BROADCASTING 
CORPORATION, PRESENTLY KNOWN AS ABS-CBN 
CORPORATION, HEREUNDER REFERRED TO AS THE 
GRANTEE, ITS SUCCESSORS OR ASSIGNEES to construct, 
INSTALL, ESTABLISH, operate and maintain, for commercial
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purposes and in the public interest, television and radio 
broadcasting stations in and throughout the Philippines, through 
microwave, satellite or whatever means including the use of any 
new technologies in television and radio systems with the 
corresponding technological auxiliaries or facilities, special 
broadcast and other broadcast distribution services and relay 
stations[ ], IS HEREBY RENEWED FOR ANOTHER TWENTY- 
FIVE YEARS.”
Sec. 2. Sec. 2 of Republic Act No. 7966 is hereby amended to read as follows:
“Sec. 2. Manner of Operation of Stations or Facilities. - The 
existing and future stations or facilities of the grantee shall be 
constructed in a manner as will at most result in the minimum 
interference on the wavelengths or frequencies of [the other] 
existing stations or OTHER stations which may be established by 
law without in any way diminishing its own right to use its [selected] 
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. Section 3 of Republic Act No. 7966 is hereby amended to read as
follows:
“Sec. 3. [Prior Approval] AUTHORITY of the National 
Telecommunications Commission. - The grantee shall secure from 
the National Telecommunications Commission (NTC) the 
appropriate permits and licenses for its stations OR FACILITIES 
and shall not use any frequency in the television or radio spectrum 
without [having—been—authorized—by—the—Commission] 
AUTHORIZATION FROM THE NTC. The [Commission] NTC, 
however, shall not unreasonably withhold or delay the grant of any 
such authority.


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IN CASE OF VIOLATION/S OF ANY OF THE PROVISIONS OF 
THIS FRANCHISE, THE NTC SHALL HAVE THE AUTHORITY TO 
REVOKE OR SUSPEND, AFTER DUE PROCESS, THE 
PERMITS, OR LICENSES ISSUED BY NTC PURSUANT TO THE 
FRANCHISE.
Sec. 4. Section 4 of Republic Act No. 7966 is hereby amended to read as
follows;
“Sec. 4. Responsibility to the Public. - The grantee shall provide 
FREE OF CHARGE, adequate public service time to enable the 
government, through the said broadcasting stations, to reach the 
PERTINENT populations 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 [such as in community 
programming]: 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 for the 
broadcasting of obscene and indigent 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 A MAXIMUM AGGREGATE OF TEN PERCENT 
(10%) OF THE PAID COMMERCIALS OR ADVERTISEMENTS 
WHICH SHALL BE ALLOCATED BASED ON NEED TO THE 
EXECUTIVE AD LEGISLATIVE BRANCHES, THE JUDICIARY, 
CONSTITUTIONAL COMMISSIONS AND INTERNATIONAL 
HUMANITARIAN ORGANIZATIONS DULY RECOGNIZED BY 
STATUTES: PROVIDED, THAT THE NTC SHALL INCREASE


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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. Sections of Republic Act No. 7966 is hereby amended to read as
follows:
“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 time of rebellion, public peril, calamity, emergency, 
disaster or disturbance of peace and order, to temporarily take over 
and operate the stations of the grantee, to temporarily suspend the 
operation of any station 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 the said stations during the period 
when they shall be so operated.”
Sec. 6. Section 6 of Republic Act No. 7966 is hereby amended to read as
follows:
“Sec. 6. Term of Franchise. - The franchise shall be for a term 
of twenty-five (25) years from the date of 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 
CONSTINUOUSLY FOR TWO (2) YEARS.”


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Sec. 7. Section 7 of Republic Act No. 7966 is hereby amended to read as
follows:
“Sec. 7. Acceptance and Compliance. - Acceptance 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 SENATE OF 
THE PHILIPPINES 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 FRANCHISE VOID.”
Sec. 8. Section 9 of Republic Act No. 7966 is hereby amended to read as
follows:
“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 and/or telecast 
from its stations: Provided, that the grantee, during any broadcast 
and/or telecast, shall [cut off from] NOT ALLOW TO BE AIRED [the 
atr] the speech, play, act or scene, or other matter being broadcast 
and/or telecast 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:[1—and] PROVIDED, 
FURTHER, THAT willful failure to do so shall constitute a valid 
cause for the cancellation of this franchise.”
Sec. 9. Section 10 of Republic Act No. 7966 is hereby amended to read as
follows:
“Sec. 10. Warranty in Favor of National and Local Governments. 
The grantee shall hold the national, provincial, CITY, and
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municipal governments of the Philippines [harmless] FREE from all 
claims, [accounts,] LIABILITIES, demands or actions arising out of 
accidents [or injuries, whether to property or to persons, caused by] 
CAUSING INJURY YO PERSONS OR DAMAGE TO 
PROPERTIES, DURING the construction or operation of the 
stations of the grantee.”
Sec. 10. A new Section 11 is hereby inserted after Section 10 of Republic Act 
No. 7966, to read as follows:
“SEC. 11. COMMITMENT TO PROVIDE AND PROMOTE THE 
CREATION OF EMPLOYMENT OPPORTUNITIES. - THE 
GRANTEE SHALL CREATE EMPLOYMENT OPPORTUNITES 
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 COMPLY WITH 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 (SEC) ANNUALLY.”
Sec. 11. The present Section 11 of Republic Act No. 7966 is hereby 
renumbered as Section 12 and amended to read as follows:
“Sec. [44] 12. Sale, Lease, Transfer, GRANT OF Usufruct[retG.]
OR ASSIGNMENT OF FRANCHISE. — The grantee shall not 
SELL, lease, transfer, grant the usufruct of, [sell] nor assign this 
franchise or the rights and privileges acquired thereunder to any 
person, firm, company, corporation or other commercial or legal
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entity, NOR MERGE WITH ANY OTHER CORPORATION OR 
ENTITY, without the approval of the Congress of the 
Philippines. CONGRESS SHALLL 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 all the same conditions, terms, and 
limitations of this Act.
Sec. 12. A new Section 13 is hereby inserted after Section 12 of Republic Act 
No. 7966, to read as follows:
“SEC 13. COMPLIANCE TO REPUBLIC ACT NO. 8370. - 
PURSUANT TO RA 8370, THE GRANTEE SHALL ALLOT A 
MINIMUM OF FIFTEEN (15%) OF THE DAILY TOTAL AIR TIME 
OF EACH BROADCASTING NETWORK TO CHILD-FRIENDLY 
SHOW/S WITHIN ITS REGULAR PROGRAMMING.”
Sec. 13. A new Section 14 is hereby inserted after new Section 13 of 
this Act to read as follows:
“SEC. 14. 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%) OF A HIGHER PERCENTAGE 
THAT MAY HEREAFTER BE PROVIDED BY LAW OF ITS 
OUTSTANDING CAPITAL STOCK IN ANY SECURITIES


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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 CITIZES AND CORPORATIONS 
OPERATING PUBLIC UTILITIES AS ALLOWED BY LAW. 
NONCOMPLIANCE THEREWITH SHALL RENDER THE 
FRANCHISE IPSO FACTO REVOKED.”
Sec. 14. A new Section 15 is hereby inserted after the new Section 14 of 
Republic Act No. 7966, to read as follows:
“SEC. 15. REPORTORIAL REQUIREMENT. - DURING THE 
TERM OF ITS FRANCHISE, 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.
“THE ANNUAL REPORT SHALL INCLUDE AN UPDATE ON 
THE ROLL-OUT, DEVELOPMENT, OPERATION, OR 
EXPANSION OF BUSINESS; AUDITED FINANCIAL 
STATEMENTS; LATEST GENERAL INFORMATION SHEET 
OFFICIALLY SUBMITTED TO THE SEC (IF APPLICABLE); 
CERTIFICATION OF THE NTC ON THE STATUS OF ITS 
PERMITS AND OPERATIONS; AND AN UPDATE ON THE 
DISPERSAL OF ITS OWNERSHIP UNDERTAKING, IF 
APPLICABLE.


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“THE REPORTORIAL COMPLIANCE CERTIFICATE ISSUED 
BY CONGRESS SHALL BE REQUIRED BEFORE AN 
APPLICATION FOR PERMIT, CERTIFICATE, OR ANY 
EQUIVALENT THEREOF, IS ACCEPTED BY THE NTC.”
Sec. 15. A new Section 16 is hereby inserted after the new Section 15 of 
Republic Act No. 7966, to read as follows:
“SEC. 16. 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 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. 16. A new Section 17 is hereby inserted after the new Section 16 of 
Republic Act No. 7966, to read as follows;
“SEC. 17. EQUALITY CLAUSE. - ANY ADVANTAGE, FAVOR, 
PRIVILEGE, EXEMPTION, OR IMMUNITY GRANTED UNDER 
EXISTING FRANCHISES, OR WHICH MAY HEREAFTER BE 
GRANTED FOR RADIO AND 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 TERRITORIL 
COVERAGE, THE TERM, OR THE TYPE OF SERVICE 
AUTHORIZED UNDER THIS FRANCHISE.”


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Sec. 17. Repealability and Nonexclusivity Clauses. - 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. 18. Separability Clause. If any provision or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall 
remain valid and subsisting.
Sec. 19. Repealing Clause. - All laws, presidential decrees or issuances, 
executive orders, letter of instructions, administrative order, rule or regulation contrary 
to, or inconsistent with the provisions of this Act is hereby repealed, modified or 
amended accordingly.
Sec. 20. Effectivity Clause. This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation.
Approved.
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