Seventeenth Congress
Second Regular Session

7515

HOUSE BILL NO.

Introduced by Honorable Henry S. Oaminal

EXPLANATORY NOTE

This bill seeks to grant the Dan-ag sa Dakbayan Broadcasting Corporation
(DDBC) a franchise to construct, install, establish, maintain and operate a radio
broadcasting and television stations in the island of Mindanao.

Telecommunications play a significant role in the socio-economic development of
the country as well as in the political and religious life of the people. And no less than
the 1987 Constitution mandates that “the State recognizes the vital role of communication
and information in nation building.” Also, the Constitution emphasizes the “right of the
people to information on matters of public concern xx.” Thus, in order to establish and
maintain an easy and fast means of communication throughout the country, it is of utmost
importance to have a reliable and existing radio and television communication system in
the far-flung areas, particularly in the island of Mindanao.

‘The Dan-ag sa Dakbayan Broadcasting Corporation, a Catholic radio station and a
corporation duly organized with financial capabilities and expertise in the field of
communication, intends to fulfill its responsibility by providing the residents of
Mindanao, particularly Ozamiz City and the Province of Misamis Occidental with
adequate information service. The grant of legislative franchise is needed for its
continuing operation to fully assist the government in disseminating information to the
people, and to enrich and improve the information technology system in the country.

In view of the foregoing considerations, approva his bill is earnestly

recommended.



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Seventeenth Congress
Second Regular Session

HOUSE BILL NO. ‘7515

Introduced by Honorable Henry S. Oaminal

AN ACT
GRANTING THE DAN-AG SA DAKBAYAN BROADCASTING CORPORATION
A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH , MAINTAIN AND
OPERATE RADIO BROADCASTING AND TELEVISION STATIONS IN THE
ISLAND OF MINDANAO

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 Dan-ag sa Dakbayan Broadcasting System Corporation, hereunder referred to
as the grantee, its successors or assigns, a franchise to construct, install,establish,
maintain and operate for commercial purposes and in the public interest, throughout the
Philippines and between the Philippines and other countries and territories, wire or
wireless telecommunications systems including, but not limited to, mobile, cellular,
paging, fiber optics, multi-channel multi-point distribution system (MMDS), local multi-
point distribution system (LMDS), satellite transmit and receive systems, switches and

their value-added services such as, but not limited to, transmission of voice, data,


facsimile, control signs, audio and video, information services bureau and all other
telecommunications systems technologies as are at present available or will be made
available through technological advances or innovations in the future; or construct,
acquire, lease and operate or manage transmitting and receiving stations, lines, cables or
systems as are convenient or essential to efficiently carry out the purpose of this
franchise.

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 the 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 or the
availability thereof.

SEC. 3. Authority of the National Telecommunications Commission (NTC). —
The grantee shall secure from the NTC, hereinafter referred to as the Commission, a
certificate of public convenience and necessity or the appropriate permits and licenses for
the construction, installation and operation of its telecommunications systems or
facilities. In issuing the certificate, the Commission shall have the power to impose such
conditions relative to the construction, operation, maintenance or service level of the

telecommunications systems. The Commission shall have the authority to regulate the


construction and operation of its telecommunications systems. The grantee shall not use
any frequency in the radio spectrum without having been authorized by the Commission.
Such certificate shall state the areas covered and date the grantee shall commence the
service. The Commission, however, shall not unreasonably withhold or delay the grant
of any such authority, permits or licenses.

SEC. 4. Responsibility to the Public. — The grantee shall provide reasonable
public service time to enable the government, through the said broadcasting stations, to
reach the population on important public issues; 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; 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 or 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 from the date of effectivity of this Act, unless sooner cancelled.
This franchise shall be deemed ipso facto revoked in the event the grantee fails to operate
continuously within 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.
Nonacceptance shall render the franchise void.

SEC. 8. Bond. — The grantee shall file a bond with the NTC in the amount that it
shall determine to guarantee the 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 conditions, the bond

shall be cancelled by the Commission. Otherwise, the bond shall be forfeited in favor of


the government and the franchise shall be deemed ifso facto revoked.

SEC. 9. Right of Interconnection. — The grantee is hereby authorized to connect
or demand connection of its telecommunications systems to other telecommunications
systems installed, operated and maintained by any other duly authorized person or entity
in the Philippines for the purpose of providing extended and improved
telecommunications services to the public, under such terms and conditions mutually
agreed upon by the parties concerned and the same shall be subject to the review and
modification of the Commission.

SEC. 10. Gross Receipts. — The grantee, its successors or assigns, shall keep a
separate account of the gross receipts of the business transacted by it and shall furnish the
Commission on Audit (COA) and the National Treasury a copy of such account not later
than the thirty-first (31°) day of January of each year for the preceding twelve (12)
months.

SEC. 11. Books and Accounts. — The books and accounts of the grantee, its
successors or assigns, shall always be open to inspection of the COA and its duly-
authorized representatives. It shall be the duty of the grantee to submit to the COA two
(2) copies of the quarterly reports on the gross receipts, the net profits and the general
condition of the business.

SEC. 12. 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, 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, transmitters, facilities and equipment of the grantee.

SEC. 13. Non-transferability of Franchise. — The grantee shall not 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 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. The condition, terms, restrictions and
limitations set by this Act shall be imposed on any person or entity to which this
franchise is sold, transferred or assigned.

SEC. 14. Dispersal of Ownership. - In accordance with the conditional provision
to encourage public participation in public utilities, the grantee shall offer to Filipino
citizens at least thirty (30) percent 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. Noncompliance therewith shall
render the franchise ipso facto revoked.

SEC. 15. 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. 16. Penalty Clause. — Any grantee who fails to submit the annual report to
the Congress of the Philippines shall be fined by Five hundred (P500.00) pesos per
working day of noncompliance. The fine shall be collected by the NTC from said
delinquent franchise grantee separate from the reportorial penalties imposed by the 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
the Congress of the Philippines shall be required before any application for permit or
certificate is accepted by the NTC.

SEC. 17. Equality Clause. — Any advantage, favor, privilege, exemption, or
immunity granted under existing franchise, or which may hereafter be granted, 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 telecommunications
franchises concerning territory covered by the franchise, the life span of the franchise or
the type of service authorized by the franchise.

SEC. 18. 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 provided for in this Act.

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 after its
publication in the Official Gazette or in two (2) newspapers of general circulation.

Approved,