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HOUSE OF REPRESENTATIVES Lig
‘Quezon City
EIGHTEENTH CONGRESS

First Regular Session

House Bi No. __6680

Introduced by REPRESENTATIVE PROSPERO A. PICHAY, JR.

EXPLANATORY NOTE

Nearly every household in the Philippines owns a radio andlor television. Radios and
televisions are two of the most important sources of information in this era since they keep
Us informed and up-to-date with breaking news around the world. They also expand our
minds by teaching us about different people, cultures, ideas and places we might never
encounter in real life. Moreover, radios and televisions are rich sources of entertainment
which is very cheap and accessible to everyone. However, while having a television and
radio seem to be a great advantage, the disadvantages are also threatening. Radios and
televisions can be at the same time considered as a media running in everyone's home
carrying misinformation thereby warping the watcher's or listener's perception of the
world. It is in such situation that it becomes the responsibility of the government to
regulate and supervise radio and television broadcast stations.

In order to protect the public from the harmful effects of television and radio, various
measures were passed. To name a few, the Radio Control Law (Act No. 3846), as
amended and the Public Telecommunications Policy Act of 1995 (RA 7925) were passed
to regulate the installation, operation and maintenance of radio stations both for private
and public use. Also, Executive Order No. 546 and Executive Order No. 205 were passed



to regulate and supervise radio and television broadcast stations, cable television (CATV)
and pay television.

Section 16 of RA 3846 expressly provides that no person, fim, company, association or
corporation shall construct, install, establish, or operate a radio station within the
Philippine Islands without having first obtained a franchise therefor from the Philippine
Legislature. This law provides the franchise requirement for radio stations. After the
enactment of this law in 1963, there was no measure providing the same requirement
with regard to television stations.

In 1995, the Public Telecommunications Policy Act (RA 7925) was enacted. However,
Republic Act No. 7925 does not provide that a broadcasting (television and radio) entity
needs a franchise. This is because first paragraph of Section 16 of Republic Act No. 7925
only provides that no person shall commence or conduct the business of being a PUBLIC
TELECOMMUNICATIONS ENTITY without first obtaining a FRANCHISE. Under the
same law, the terms “telecommunications”, “broadcasting”, “public telecommunications
entity” and “franchise” were clearly defined. The definition of a public telecommunications
entity does not include broadcasting. Neither does the definition of franchise includes the
same. Clearly, there is a gap in the law because only public telecommunications entities
are required to obtain a franchise which excludes those persons engaged in broadcasting
companies.

This bill seeks to amend Sections 1, 2, 3 and 16 of RA No. 7925 to address this gap. The
amendments will include radio and television broadcasting entities in securing first a
franchise in order for them to broadcast their shows and/or programs.

In this regard, the urgent passage of this bill is eamestly requested.

REP. PR PICHAY, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No.__6680

Introduced by REPRESENTATIVE PROSPERO A. PICHAY, JR.

AN ACT
AMENDING SECTIONS 1, 2, 3 AND 16 OF REPUBLIC ACT NO. 7925
OTHERWISE KNOWN AS THE PUBLIC TELECOMMUNICATIONS POLICY
ACT OF THE PHILIPPINES

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

SECTION 1. Section 1 of Republic Act No. 7925 is hereby amended to read
as follows:

“Section 1. Short Title.- This Act shall be known as the “Public
Telecommunications (Policy) AND BROADCASTING Act of the
Philippines.”

SECTION 2. Section 2 of Republic Act No. 7925 is hereby amended
to read as follows:

“Section 2. Scope and Application. - This Act shall apply to all public
telecommunications AND BROADCASTING entities in the
Philippines.”

SECTION 3. Section 3 of Republic Act No. 7925 is hereby amended to read
as follows:

“Section 3. Definitions and Interpretations. - For purposes of this Act,
the following terms shall be used:

(a) xxx

(b) xxx


(c) xxx

(d) Franchise - a privilege conferred upon a telecommunications entity
AND A BROADCASTING (TELEVISION AND RADIO) ENTITY by
congress, authorizing SUCH ENTITIES [that entity] to engage in a
certain type of telecommunications service AND BROADCASTING
SERVICE.

(e) xxx
(f) xxx
(9) xxx
(h) xxx
(i) xxx
G) xxx
(k) xxx"

SECTION 4. Section 16 of Republic Act No. 7925 is hereby amended to
read as follows:

“Section 16. Franchise. - No person shall commence or conduct the
business of being a public telecommunications entity AND A
BROADCASTING (TELEVISION AND RADIO) ENTITY without first
obtaining a franchise.

The Commission, in granting a Certificate of Public Convenience and
Necessity (CPCN), may impose such conditions as to duration and
termination of the privilege, concession, or standard or technical
aspects of the equipment, rates, or service, not contrary to the terms
of the franchise. In no case, however, shall the CPCN be shorter than
five (5) years, nor longer than the life of the franchise. A CPCN expiring
at the same time as the franchise shall be deemed to have been
renewed for the same term if the franchise itself is also renewed or
extended.

Expansion and financing of networks and services, utilizing equipment
compatible with or homologous to existing or previously approved
plant and facilities, in order to service additional demand in the same
areas where the previously approved network and services have been
installed, shall not require any approval by the Commission.

The upgrading of existing plant and network facilities including the
financing thereof, for the purpose of retiring or replacing obsolete or
outmoded equipment with state of the art equipment and technology


in order to improve the quality or grade of service being rendered to
the public within the same areas covered by the existing plant and
facilities previously approved, shall likewise not require the approval
of the Commission.

The Commission, however, shall not grant a subsequent CPCN for
another segment of service or extend the area service coverage of an
entity which has failed to satisfactorily comply with its commitments to
the Commission to provide a particular service in the original area
coverage under an earlier authorization.”

SECTION 5. Transitory Clause. — The National Telecommunications
Commission (NTC) shall grant BROADCASTING (TELEVISION AND RADIO)
ENTITIES with pending applications and/or expired or expiring franchises a
transitory period of five (5) years from the approval of this Act, to comply with the
requirements herein set forth.

SECTION 6. Separability Clause. — If any portion or provision of this Act is
held unconstitutional or invalid, the other sections or provisions not otherwise
affected shall remain in full force and effect.

SECTION 7. Repealing Clause. — All laws, decrees, executive orders,
rules and regulations or other issuances or parts thereof inconsistent with the
Provisions of this Act are hereby repealed or amended accordingly.

SECTION 8. Effectivity. - This Act shall take effect after fifteen (15) days
following the completion of its publication either in the Official Gazette, or ina
newspaper of general circulation in the Philippines.

Approved.