Republic of the Philippines \
HOUSE OF REPRESENTATIVES RECEIVED \
Quezon City omeP 20

TIME:
SEVENTEENTH CONGRESS :
First Regular Session
8270

HOUSE BILL NO.___

Introduced by Representative NANCY A. CATAMCO.

EXPLANATORY NOTE

This legislative measure seeks to grant MOUNT APO MULTIMEDIA
ADVERTISING CORPORATION a franchise to construct, install, establish, operate
and maintain radio stations throughout the Philippines.

In shaping the country’s future, the role of broadcast media cannot be
overemphasized. It molds, informs and educates the society through the promotion
Of public awareness, participation and encouragement of public opinions on
important matters conceming the country.

Thus, investors should be encouraged to invest in the radio
broadcasting business to assist and Support the government in disseminating
important information on Issues and matters of public concems.

The MOUNT APO MULTIMEDIA ADVERTISING CORPORATION isa
Private corporation interested in the telecommunications business for domestic
audiences and other related business. It desires to operate radio stations throughout
the Philippines with its central base of operations at Kidapawan City, North Cotabato.

It cannot be gainsaid that the presence of more radio enterprises in the
area of communication industry will not only enhance competition but consequently
make available more information as well as entertainment to the Public.

This is the reason why MOUNT APO MULTIMEDIA ADVERTISING
CORPORATION seeks to offer itself as one service providers in the radio
broadcasting industry and therefore open the way for opportunities for more access
to radio services by fostering a healthy competition

REP. A. CATAMCO
2nd, District, North Cotabato


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILLNo, 8270

Introduced by HON. NANCY A. CATAMCO.

AN ACT GRANTING THE MOUNT APO MULTIMEDIA
ADVERTISING CORPORATION, A FRANCHISE TO CONSTRUCT,
INSTALL, ESTABLISH, OPERATE AND MAINTAIN RADIO
BROADCASTING STATIONS THROUGHOUT THE PHILIPPINES

Be it enacted by the Senate and House of. Representatives 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 MOUNT APO MULTIMEDIA ADVERTISING
CORPORATION hereunder referred to as the grantee, its successors or
assignees, a franchise to construct, install, establish, operate and maintain for
commercial purposes and in the public interest, “ radio broadcasting stations
throughout the Philippines”, with its central base of operations located at
Kidapawan City, North Cotabato, where frequencies are still available for
radio broadcasting, including the use of new technologies in radio systems,
with the corresponding technological auxiliaries and facilities, special
broadcast and other program and distribution services and relay stations.

Section 2. Manner of Operation of Stations of 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 frequendes of
existing stations or other stations which maybe established by law, without in
any way diminishing its own right to use its assigned frequencies and the
quality of transmission or reception thereon as should maximize rendition of
the grantee’s services and/or the availability thereof.

Section 3. Prior Approval of the National Telecommunications
Commission (NTC).- The grantee shall secure from the NTC the appropriate
Permits and licenses for the construction and operation of its stations and
facilities and shall not use any frequency in radio spectrum without


authorization from the NTC. The NTC, however, shall not unreasonable
withhold or delay the grant of any such authority.

Section 4. Responsibility to 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 sounds and balanced programming; assist in the
functions of the public information and education; conform to the ethics of
honest enterprise; and shall not use its stations and facilities for the
broadcasting of obscene and indecent language, speech, or for the
dissemination of deliberately false information or wilful misrepresentation to
the detriment of the public interest, or to incite, encourage, or assist in
‘subversive or treasonable acts.

Section 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 goverment, upon due compensation to the
grantee, for the use of said stations or facilities during the period when they
shall be operated.

The telecommunication spectrum is 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.

Section 6.Term of Franchise.- The Franchise shall be in effect for the
period of twenty five (25) years, unless sooner revoked or cancelled. The franchise
shall be deemed ipso facto, revoked in the event in the event the grantee fails to
comply with any of the following conditions

a.) Commence operations within on 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;
c.) Operate continuously for two (2) years.

Section 7.Acceptance and Compliance.- Acceptance of this franchise shall
be given in the 17" 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.

Section 8. Bond.- The grantee shall file a bond with the NTC in the amount
that the NTC shall determine, to guarantee compliance with and fulfilment of the
conditions under which this franchise is granted. If after three (3) years from the date
of 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.

Section 9.- Self-regulation by and Undertaking of the Grantee.- The grantee
shall not require any previous censorship of any speech, or other matter to be
broadcast from its station; Provided, That the grantee, during any broadcast, shall
cut off from the air the speech, or other matter being broadcast if the tendency
thereof is to propose andior 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 a valid cause for the cancellation of this
franchise.

Section 10. Warranty in Favor of National and Local Goverments.- 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 the
accidents or injuries, whether to property or to persons, caused by the construction
or operation of the stations of the grantee.

Section 11. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of
Franchise. The grantee shall not sell, lease, transfer, grant the usufruct of, or
assign this Franchise and privileges acquired thereunder to any person, firm,
company, corporation of other commercial legal entity, nor merge with any other
corporation or entity nor shall transfer to controlling interest of the grantee. Whether
as a whole or in part, and whether simultaneously or contemporaneously, to any
such person, firm, company, corporation, entity without the prior approval of the
Congress of the Philippines; Provided, The Congress shall be informed of any sale,
lease, transfer, grant of usufruct, or assignment franchise or the rights or privileges
acquired thereunder, or merger or transfer of the grantee within sixty (60) days after
the completion of said transaction; Provided further, That the failure to report to
Congress such change of ownership shall render the franchise ipso facto revoked;
Provided finally, That any person or entity which this franchise is sold, transferred or
assigned, shalll be subject to the said conditions, terms, restrictions and limitations of
this Act.

Section 12. Dispersal of Ownership. In accordance with the constitutional
provision to encourage public participation in public utilities, the grantee shall offer
Filipino citizen at least thirty per cent (30%) or as higher percentage that may
hereafter be provided by law of its outstanding capital stock in any securities
exchange in the Philippines within five years from the commencement of its
operation. Provided, That in cases where put-offer of shares is not applicable,
establishment of cooperatives and other methods encouraging public participation by


citizens and corporations operating public utilities may be implemented. Non-
compliance therewith shall render the franchise ipso facto revoked.

Section 13. General Broadcast Policy Law.- The grantee shall comply with
subject to the provisions of a general broadcast policy law, which Congress may
hereafter enact.

Section 14. Reportorial Requirement.- The grantee shall submit an annual
report to the Congress of the Philippines, through the Committee in Legislative
Franchises of the House of Representatives and the Committee on Public Services
of the Senate, in 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 its franchise. The
reportorial compliance certificate issued by Congress shall be required before any
application for permit certificate is accepted by the NTC.

Section 15. Penalty Clause.- Failure of the grantee to submit the requisite
annual report to Congress shall be penalized by a fine of Five Hundred Pesos
(P500.00) for every working day of noncompliance. The fine shall be collected by the
BTC from the delinquent franchise grantee separate from the reportorial penalties
imposed by the NTC.

Section 16. Equality Clause.- Any advantage, favor, privilege, exemption, or
immunity granted under existing franchises, or which may hereafter be granted for
radio 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 the provisions
of broadcasting franchises conceming territory covered by the franchise, the life
span of the franchise and the type of service authorized by the franchise.

Section 17.- Separability Clause.- \f any of the sections or provisions of this
Acts held invalid, all other provisions not affected thereby shall remain valid.

Section 18. Repealability and Nonexclusively Clause.- This franchise shall be
subject to amendment, alteration, or repeal by the Congress of the Philippines when
public interest so requires and shall not be interpreted as an exclusive grant of the
privileges herein provided for.

Section 19. Effectivity.- This Act shall take effect fifteen (15) days after its
publications in the Official Gazette or in a newspaper of general circulation.

Approved,