Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL no 5381

Introduced by REP. JOSE FRANCISCO “KIKO” B. BENITEZ, Ph.D.

EXPLANATORY NOTE

This legislative measure seeks to renew the congressional franchise of FBS Radio Network
Inc. to construct, install, establish, operate and maintain radio and television broadcasting
stations throughout the Philippines.

Media has always been a partner of the government in nation building and FBS Radio with
its flagship station 94.7 Mellow, more popularly known through its previous Radio Name,
94.7 Mellow Touch, has been at the forefront of providing media services to the general
public. FBS’ several provincial stations have allowed the listening public to avail of the free
information and entertainment brought about by radio broadcasting. FBS’ new radio formats
entertain, inform and educate the populace through intelligent and interactive programs.

The continued operation of FBS Radio promotes healthy competition amongst the
participants in the industry. This helps businesses wider and lower access to the public
dissemination of their products. FBS’ main base of operations is in Mandaluyong, Metro
Manila but has a presence through its provincial stations. The renewal of the franchise will
contribute the good of the country as it allows the grantee to contribute to the country through
its mass media services.

In view of the foregoing, the approval of this bill is earnestly sought.

REP. FRANCISCO “KIKO” B, BENITEZ, Ph.D.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 5361

Introduced by REP. JOSE FRANCISCO “KIKO” B. BENITEZ, Ph.D.

AN ACT
RENEWING THE FRANCHISE GRANTED TO FBS RADIO NETWORK INC. A
FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND
MAINTAIN RADIO AND/OR TELEVISION BROADCASTING STATIONS IN THE
PHILIPPINES

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

SECTION 1. Nature and Scope of Francl Subject to the provisions of the
Constitution and applicable laws, rules and regulations, there is hereby granted to FBS Radio
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 still available for radio broadcasting, through microwave, satellite or
whatever means, including the use of any new technologies in 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 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 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 radio/television spectrum without having
been authorized by the Commission, The Commission, 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 tames 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.

C. 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 any time
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) Operate continuously for two (2) years: and
(c) Commence operations within three (3) years from the effectivity of this Act.

SEC. 7. Acceptance and Compliance. ~ Acceptance of this franchise shall be given in
writing 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 the 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 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 Governments. — The grantee
shall hold the national, provincial, city and municipal governments 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.

EC. 11, 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 conditions, 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. 12, Public Ownership. - In adherence to the constitutional mandate, the herein
grantee shall comply with the enabling law implementing for the purpose the democratization
of ownership of all public utilities.

SEC. 13. 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, shall ipso facto 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 concerning
territory covered by the franchise, the life span of the franchise or the type of service
authorized by the franchise.

SEC. 14. 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. 15. Reportorial Requirement. ~ The grantee shall submit an annual report to the
Congress of the Philippines on Effectivity Clause. its compliance with the terms and
conditions of the franchise and on its operations within sixty (60) days from the end of every
year.

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

SEC. 17. Repeatability 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.— This Act shall take effect fifteen (15) days after its publication, upon the
initiative of the grantee, in at least two (2) newspapers of general circulation in the
Philippines.

Approved,