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Republic of the Philippines nie: APR 2
House of Representatives TIME
Quezon City 2 BY

SEVENTEENTH CONGRESS
First Regular Session

House Bi NODA 79

INTRODUCED BY CONGRESSMAN ALFRED VARGAS

EXPLANATORY NOTE
Article II Section 24 of the 1987 Philippine Constitution provides:

“The State recognizes the vital role of communication and information in nation-building.”

‘The Vanguard Radio Network Company, Inc, is a grantee of a Legislative Franchise
under Republic Act No. 7259, as amended by Republic Act No. 8069, on May 22, 1992.

From the time of the grant of franchise, the Vanguard Radio Network Company, Inc, has
been operating the following broadcast stations: (a) DWWG-FM, 101.5 Mhz in Cabanatuan City;
(b) DZXO-AM, 1180 Khz. in Cabanatuan City; (c) DWDC-FM, 101.3 Mhz in Solano, Nueva
Vizcaya; (d) DWMG-AM, 1395 Khz in Solano, Nueva Vizcaya; (e) DWWC-FM 95.3, Mhz in
Cauayan, Isabela; (f) DWXY-FM 100.5, Mhz in Tuguegarao, Cagayan; (g) DWAA-FM 105.5, Mhz
in San Fernando, La Union, and; (h) DYVA-FM, 88.7 Mhz in Tagbilaran City, Bohol. To continue
the operation and maintenance of these stations, this bill seeks to renew the franchise granted
to the Vanguard Radio Network.

The incorporators are of the mindset that social development is achieved effectively
through the broadcasting of intelligent information. In this age of advancement in technology
and communications, national issues and course of development are transmitted through to a
wide coverage of audience at a swift pace.

In view of the foregoing, the approval of this measure is sought.

‘ALFRED VAHGAS


Republic of the Philippines
House of Representatives
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No, 0479

INTRODUCED BY CONGRESSMAN ALFRED VARGAS

ANACT
RENEWING THE FRANCHISE GRANTED TO VANGUARD RADIO NETWORK COMPANY, IN
UNDER REPUBLIC ACT NO. 7529, ENTITLED “A FRANCHISE TO CONSTRUCT, INSTALL,
OPERATE, AND MAINTAIN RADIO AND TELEVISION BROADCASTING STATIONS IN THE
ISLAND OF LUZON, AS AMENDED BY REPUBLIC ACT NO. 8069, EXTENDING ITS
OPERATIONS IN REGIONS 6,7,10, AND 11, AND FOR OTHER PURPOSES,” FOR ANOTHER
TWENTY FIVE (25) YEARS FROM THE EFFECTIVITY OF THIS ACT

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
Vanguard Radio Network Company, Inc., hereunder referred to as the grantee, its successors or
assignees, a franchise to construct, install, operate and maintain for commercial purposes and
in the public interest, radio and television broadcasting stations in the island of Luzon, and in
Regions 6, 7, 10, and 11, with the corresponding auxiliary, special broadcast and other program
distribution services and relay stations, and to install radio communication facilities for the
grantee’s private use in its broadcast services, is hereby renewed for another twenty five (25)
years from the effectivity of this Act.

SEC. 2. Manner of Operation of Stations or Facilities. - The stations or facilities of the
grantee shall be construed and operated in a manner as will at most result only in the minimum
interference on the wavelengths or frequencies of the other existing stations or stations which
may be established by law, without in any way diminishing its own right to use its 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. Prior Approval of the National Telecommunications Commission. - The
grantees shall secure from the National Telecommunications Commission (NTC) the
appropriate permits and licenses for construction and operation of its stations and facilities
and shall not use any frequency in the radio/television spectrum without authorization from

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

SEC. 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 sound and balanced ethics
of honest enterprise; and not use its stations and facilities for the broadcasting of obscene and
indecent language, speech, act or scene, of 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.

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 of facilities of
the grantee, temporarily suspend the operation of any station or facility in the interest of public
safety, security and public welfare, or authorize the temporary use and operation thereof by
any agency of the government, upon due compensation to the grantee, for the use of its 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 any time
after due process.

SEC. 6. Term of Franchise. - This franchise shall be in effect for a period of twenty five
(25) years from 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 continuously for two (2)
years.

SEC. 7. Acceptance and Compliance. - Acceptance of this new 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, 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 wilful failure to do so shall constitute a valid
cause for the cancellation of this franchise.

SEC. 9. Warranty in Favor of National and Local Governments. - The grantee shall
hold the national, provincial, city and municipal governments of the Philippines free from all

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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. 10. Sale, Lease, Transfer, Grant of Usufruct of, or Assignment of Franchise. ~
The grantee shall not lease, transfer, grant the usufruct of, sell or 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 transfer
the controlling interest of the grantee, whether as a whole or in part, and whether
simultaneously or contemporaneously, to such any person, firm, company, corporation, or
entity without the prior approval of the Congress of the Philippines. Provided, That Congress
shall be informed of any sale, lease, transfer, grant of usufruct of, or assignment of controlling
interest of the grantee, within sixty (60) days after the completion of said transaction. Provided,
farther, 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 subjected to all the same conditions, terms, restrictions and
limitations of this Act.

SEC. 11. 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%) 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 operation. 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, Non-
acceptance therewith shall render the franchise ipso facto revoked.

SEC. 12. General Broadcast Policy Law. - The grantee shall comply with and subject to
the provisions of a general broadcast policy law, which Congress may hereafter enact.

SEC. 13. 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 every year
during the term of its franchise. The reportorial compliance certificate issued by Congress shall
be required before any application for permit or certificate is accepted by the NTC.

SEC. 14. Penalty Clause. - Failure of the grantee to submit the requisite annual report
to Congress will be penalized by a fine in the amount of Five Hundred Pesos (Php500.00) per
working day of noncompliance. The fine will be collected by the NTC from the delinquent
franchise grantee separate from the reportorial penalties imposed by the NTC.

SEC. 15. Equality Clause. - Any advantage, favor, privilege, exemption, or immunity,
granted under existing franchises, or which may hereafter be granted for radio and/or
television broadcasting, upon prior review and approval of Congress, shall become part of this

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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 concerning territory covered by such franchise, the life span of the franchise or the
type of service authorized by the franchise.

SEC. 16. Separability Clause. - If any of the sections or provisions of this Act is held
invalid, all other provisions not affected thereby shall remain valid.

SEC. 17. Repealability and Non-Exclusivity 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. 18. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,