Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

SIXTEENTH CONGRESS

FIRST REGULAR SESSION

HOUSE BILL NO. 3359

Introduced by Rep. ARTURO B. ROBES

EXPLANATORY NOTE

This bill seeks to grant a franchise to construct, install, establish, operate and
maintain Radio and Television Broadcasting Stations in the Philippines.

Section 24, Article !l of the 1987 Philippine Constitution provides that the State
recognizes the vital role of communication and information in nation-building. The need
for information is constant and unchanging, in the global setting, he who communicates
first has the advantage. Public service through the expeditious distribution of news,
music, entertainment is an important facet of nation building.

Media plays a significant role in information dissemination and to protect the
country’s finite resources as far as frequencies are concerned, a legislative franchise is
required under the Constitution for radio and television companies to operate.

At the same time, the advent of modern technology like the world wide web or
the internet has revolutionalized the way radio and television broadcasting stations
operate. Companies have to innovate to survive in a fast changing radio and television
broadcasting industry under the auspices of government regulators.

In view of the importance of strengthening the Congressional mandate with
regards to franchises amidst the emerging new trends in broadcasting, approval of this

Rep. ARTU
Lone-District,

ROBES
in Jose del Monte City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
FIFTEENTH CONGRESS

Second Regular Session

3359

House Bill No.

Introduced by ARTURO B. ROBES:

AN ACT
GRANTING THE ROBERT CABILIDA NETWORK, INC., A FRANCHISE TO CONSTRUCT,
INSTALL, ESTABLISH, 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 4. 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
Robert Cabilida Network, Inc., hereunder referred to as the grantee, its successors or assigns,
a franchise to construct, install, establish, operate and maintain for commercial purposes and in
the public interest, radio and/or television broadcasting stations in the Philippines, where
frequencies and/or channels are stil available for radio and/or television broadcasting, including
digital television system, Intemet Protocol (IP) -related services and IP-value-added services,
through microwave, satellite or whatever means, including the use of any 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 of Facilities. — The stations or facilities of the
grantee shall be constructed and operated in a manner as wil, 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 selected
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 and facilities and shall not
use any frequency in the radioftelevision spectrum without authorization from the NTC. The
NTC, however, shall not unreasonably withhold or delay the grant of any such authority.

SEC. 4. Responsibility fo 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 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 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
r facilities during the period when they shall be so operated.

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 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 ipso 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
(©) Operate continuously for two (2) years.

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 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 fulfillment 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 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 and 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 Govemments. - The grantee shall hold
the national, provincial, city and municipal govemments of the Philippines harmless 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, Usufruct, Assignment. - The grantee shall not lease,
transfer, grant the usufruct of, sell nor assign this franchise or the rights and privilege 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 be


transferred, whether as a whole or in parts 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 lease, transfer,
granting the usufruct of, sale or assignment of franchise or the rights or privileges acquired
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. 12. 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 centum (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 other methods of encouraging public
participation by citizens and corporations operating public utilities must be implemented.
Noncompliance therewith shall render the franchise ipso facto revoked.

SEC. 18. General Broadcast Policy Law. — The grantee shall comply with and be subject
to the provisions of a general broadcast policy law, which Congress may hereafter enact

SEC. 14. 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 the
succeeding year.

SEC. 15. Penalty Clause — Any grantee who fails to submit the Annual Report to
Congress will be fined Five Hundred Pesos (P500.00) per working day of non-compliance. Said
fine will be collected by the NTC from said delinquent franchise grantee separate from the
reportorial penalties imposed by NTC. The collected funds shall accrue to the monitoring fund of
the NTC in line with its supervisory and regulatory functions. The reportorial compliance
certificate issued by Congress shall be required before any application for permit or certificate is
accepted by NTC.


SEC. 16. Equality Clause. - Any advantage, favor, privilege, exemption, or immunity
granted under existing franchise, 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,
however, That the foregoing shall neither apply to nor affect provisions of broadcasting
franchises conceming territory covered by the franchise, the life span of the franchise or the
type of service authorized by the franchise: Provided, further, That the foregoing shall not apply
to sale, lease, transfer or grant of usufruct of legislative franchise with prior congressional
approval

SEC. 17. 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. 18. Repealability and Non-exciusivity 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. Publication. This Act shall be published, through the initiative of the Grantee,
fifteen (15) days after this Act is signed by the President of the Philippines or has lapsed into
law.

SEC. 20 Effectivity Clause. — This Act shall take effect fifteen (15) days from the date of

its publication in at least two (2) newspapers of general circulation in the Philippines.

Approved,