Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Sixteenth Congress
Second Regular Session
Bill No_ 3923

House

Introduced by Honorable Rosendo “Dodoy” S. Labadlabad

EXPLANATORY NOTE

Article II of our Constitution ,on State Policies provides that “the State
Recognizes the vital role of communications and information in nation
building”. (Section 24).

It is in the light of this policy that the MILLAWAVE SYSTEMS
CORPORATION, (MILLAWAVE) wholly owned and managed by Filipinos,
has been, primarily conceived and formally organized. Imbued with strong
enthusiasm and conscious of their material and technological resources and
capabilities, the incorporators have concretized their plan and vision to
contribute their share in the enhancement of the social and economic growth of
the country through public information.

It is the primary aim of MILLAWAVE SYSTEMS CORPORATION, to
bring about progress by utilizing broadcasting as its medium, given the fact
that technology has become so advanced that global relations and national
development are received and transmitted to a wide range of coverage at a very
fast pace, and through digitalized data, information and news.

MILLAWAVE by this, is applying for a congressional franchise to install,
operate and maintain radio and television broadcast station in the Philippines.

ROSENDO “DODOY” $< LABADLABAD



sEPRE

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Sixteenth Congress
Second Regular Session

3923

House Bill No.

Introduced by Honorable Rosendo “Dodoy” S. Labadlabad

AN ACT
GRANTING THE MILLAWAVE SYSTEMS CORPORATION(MILLAWAVE) A
FRANCHISE TO CONSTRUCT, ESTABLISH, INSTALL, MAINTAIN AND
OPERATE FOR COMMERCIAL PURPOSES AND IN THE PUBLIC INTEREST,
RADIO AND TELEVISION BROADCAST STATIONS IN THE PHILIPPINES.

Be it ena the ite and Hou:
Congress assembled:

of Representative of the Philippines in

SECTION 1. Nature and Scope of Franchise - Subject to the provisions
of the Constitution and applicable laws, rules and regulations, there is hereby
granted to Millawave Systems Corporation (Millawave), hereunder referred to
as the grantee, it’s successors or assigns, a franchise to construct, establish,
install, maintain and operate for commercial purposes and in the public
interest, radio and television broadcast stations in the Philippines, utilizing the
technological advances or innovations in the future; to originate, distribute,
transmit, and receive through said systems, news, and documentaries,
entertainment, informational and educational radio and television programs,
both live and recorded; and to establish, construct, maintain and operate such
other systems as are essential as convenient to carry out the purpose of this
franchise.

SECTION 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
and/or the availability thereof.

SECTION 3. Authority of the National Telecommunications
Commission. - The grantee shall secure from the National Telecommunications
Commission (NTC), hereinafter referred to as the Commission, a certificate of
public convenience and or the appropriate permits, and licenses for the
location, construction, installation and operation of its broadcast stations. 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 broadcast stations. The Commission shall have the authority to regulate
the construction and operation of the said broadcast stations. 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
license.

SECTION 4. Responsibility to the Public. - The grantee shall provide
adequate public service line to enable the government through the said radio
and television 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 shall not use its stations for the transmission of obscene or 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 assists in subversive or treasonable acts.

The grantee shall operate and maintain all its broadcast stations, and
equipment for the transmission and reception of messages, signals and pulses
in a satisfactory manner at all times, and as far as economical and practicable,
modify, improve or change such operating equipment and facilities to keep
abreast with the advances in science and technology.

SECTION 5. Right of Government - A special right is hereby reserved o
he 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, transmitters, facilities or equipment of the
grantee, to temporarily suspend the operation of any station, transmitter,
facility or equipment 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 the compensation to the grantee for the use of said
stations, transmitters, facilities or equipment 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.

SECTION 6. Term of Franchise. - This franchise shall be for a term of
twenty-five (25) years from the date of effectivity of this Act, 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 or provisional authority by the NTC;

(b) Operate continuously for two (2) years; and

(©) Commence operations within three (3) years from the effectivity of

this Act.

SECTION 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. Nonacceptance shall render the franchise void.


SECTION 8. Bond. - The grantee shall file a bond issued in favor of the
National Telecommunications Commission, which shall determine the amount,
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 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. Tax Provisions. - The grantee, its successors or assigns,
shall be subject to the payment of taxes, duties, fees or charges and other
impositions under the National Internal Revenue Code (NIRC) of 1997, as
amended and other applicable laws: Provided, That nothing herein shall be
construed as repealing any specific tax exemptions, incentives or privileges,
benefits and exemptions accorded to existing and future broadcasting station
franchises shalll likewise be extended to the grantee.

The grantee shall file the return with the province were its facility is
located, and pay the taxes due thereon to the Commissioner of Internal
Revenue or his duly authorized representatives in accordance with the NIRC
and the return shall subject to audit by the Bureau of Internal Revenue.

SECTION 10. 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 station. 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 use therein or the theme
thereof is indecent or immoral and willful failure to do shall constitute a valid
cause for the cancellation of this franchise.

SECTION 11. 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.

SECTION 12. 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 there under to any person, firm, company, corporation
or other commercial or legal entity, nor merge with any corporation or entity,
nor shall the controlling interest in the grantee be transferred, whether as a
whole or in part and whether simultaneously or contemporaneously, to any
such person, firm, company, corporation or entity without the prior approval of
the Congress of the Philippines. Any person or entity to which this franchise is
sold transferred or assigned, shall be subject to the same conditions, terms,
restrictions and limitation of this Act.

SECTION 13. Dispersal of Ownership. - In accordance with the
constitutional provisions to encourage public participation in the public
utilities, the grantee shall offer at least thirty per centum (30%) of its
outstanding capital stock or a higher percentage that may hereafter be provided
by law in any securities exchange in the Philippines within five (5) years from
the time it has achieve the status of a national broadcasting network. A


“national broadcasting network” is hereby defined as one that operates three
(3) or more radio and/or television stations. Non-compliance therewith shall
render the franchise ipso facto revoked.

SECTION 14. Equality Clause. - Any advantages, favor, privileges,
exemptions or immunity granted under existing franchises, or which maybe
hereunder be granted for radio and/or television broadcasting, shall be 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 the provisions of the broadcasting franchises
concerning territory covered by the franchise, the lifespan of the franchise or
the type of service authorized by the franchise.

SECTION 15. General Broadcast Policy. - The grantee shall comply
with and be subject to the provisions of a general broadcast policy law, which
Congress may hereafter enact.

SECTION 16. - Reportorial Requirement. - The grantee shall submit an
annual report to the Congress of the Philippines on its compliance with the
terms and conditions of the franchise and on its operations within sixty (60)
days from the end of every year.

SECTION 17. Separability Clause. - If any of the sections or provisions
of this Act is held invalid, all the other provisions not affected thereby, shall
remain valid.

SECTION 18. 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.

SECTION 19. Effectivity Clause. - This act shall take effect fifteen (15)
days from the date of its publication in at least two (2) newspapers of general
circulation.

Approved.