Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No._7066

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

EXPLANATORY NOTE

The proposed law seeks to amend Republic Act No. 8213, further extending the franchise
granted to NOW Cable, Inc. (NOW Cable) and expanding its nature and scope.

NOW Cable was granted a legislative 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, pursuant to Republic Act No. 8213. The franchise has
a term of twenty-five (25) years or up to September 2021

Through the years, NOW Cable has delivered reliable service of communication and has been
a source of information that add to the modernization and economic development of its areas
of operation, It serves the public interest by providing varied content and programming that
has educational and entertainment value. Recently, the NOW Cable was given the authority to
expand its services to some parts of North Luzon, South Luzon, Visayas and Mindanao to fully
maximize the scope of the benefit of the services offered to the public.

Considering the technological leaps since the passage of RA 8213 twenty-five years ago, NOW
Cable will take advantage of such technological advancements to continuously provide the
public with more improved, state-of-the-art interactive television and multimedia services.
This includes, among others, next generation broadcast systems, wireless/satellite
communications networks.

NOW Cable has made appropriate use of its franchise, has complied with the provisions thereof.
and remains committed to upholding the interest of the public and serving the Filipino people,
now more than ever.

Hence, the support of the Members of the Eighteenth Congress for the timely passage of the

proposed law is earnestly requested.
REPJOSE FRANCISCO Bf Goa, Ph.D.

Third District, Negros Occidental


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

2066

HOUSE BILL NO.

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

AN ACT

RENEWING THE FRANCHISE GRANTED TO NOW CABLE, INC. (FORMERLY
KNOWN AS GHT NETWORK, INC.) UNDER REPUBLIC ACT NO. 8213 OR" AN
ACT GRANTING GHT NETWORK, INC. A FRANCHISE TO CONSTRUCT,
INSTALL, ESTABLISH, OPERATE AND MAINTAIN RADIO AND TELEVISION
BROADCASTING STATIONS AND MULTIMEDIA SERVICES IN THE
FHILIPPINES" 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
Constitution and applicable laws, rules and ‘regulations, there is hereby granted to NOW Cable,
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 and/or television broadcasting, including multi-channel multi-point
distribution system (MMDS), local multi-channel multi-point distribution system (LMDS), or
next generation broadcast systems, wired/wireless/satellite communications networks; to
construct, establish, install, operate, manage, lease, maintain and purchase transmitting, receiving,
and switching stations, both for local and international services, intranet and internet networks,
lines, fiber optics, including digital television, through microwave, cables, satellite transmit and receive
systems, control signals, audio and video systems data, information service bureau, pay and pay
per view television, video on demandand public information on demand services, multi disc read
only memory network delivery, packet and frame relay and electronic mail services and other
value added services and all other related technologies and other technology that may hereafter
or in the future be developed such as outer space including low/high altitude platform systems
and low/high earth orbit satellite systems, laser systems in the field of broadcasting for
telecasting and broadcasting of news, documentaries, entertainment, informational and
educational, interactive and various television programs, with the corresponding technological
auxiliaries or facilities, special broadcast and other program and distribution services and relay
stations.


SEC. 2. Manner of Operation of Stations for 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.

SEC. 3. Prior Approval of the National Telecommunications Commission. - The
grantee shall secure from the National Telecommunications Commission the appropriate
permits and licenses for the construction and operation o. 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 times sound and balanced
programming; assist in the function of public information and education; conform to the ethics
of honest enterprise, and not use its stations or 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.

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 mind 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
the said stations or facilities during the period when they shall be so operated.

The radio spectrum is a finite resource that is a 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.

SEC. 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 canceled. 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 franchise shall be given in
writing within sixty (60) days after 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. Tax Provisions. - The grantee, its successors or assigns, shall be liable to pay
the same taxes on its real estate, buildings and personal property, exclusive of this franchise,
as other persons or corporations are now or hereafter may be required by law to pay. In addition
thereto, the grantee, its successors or assigns, shall pay the value-added tax under Republic Act
No. 7716 or a franchise tax of five percent (5%) per annum or at such percentage as may be
prescribed by law on all gross receipts of the radio/elevision business transacted under this
franchise by the grantee, its successors or assigns, whichever is higher: Provided, That the
grantee, its successors or assigns, shall continue to be liable for income taxes payable under
Title II of the National Internal Revenue Code pursuant to Section 2 of Executive Order No.
72, unless the latter enactment is amended or repealed, in which case the amendment or repeal
shall be applicable thereto.

SEC. 9. 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 there is a clear and present danger
thereof to propose and/or incite treason, rebellion or sedition, or the language used therein or
the theme thereof is indecent or immoral; and 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 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,

SEC. 11. Sale, Lease, Transfer, Usufruct, etc. - 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. Any person or entity to which this franchise is sold, transferred or
assigned shall be subject to all the same conditions, terms, restrictions, and limitations of this
Act.

SEC. 12. Dispersal of Ownership - In accordance with constitutional provisions to
encourage public participation in public utilities, the grantee shall offer at least thirty percent
(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 live (5) years from the time it has
achieved the status of a national broadcasting network. A "national broadcasting network” is
hereby defined as one that operates three or more radio and/or television stations.
Noncompliance therewith shall render the franchise ipso facto revoked.


SEC. 13. 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. 14, Equality Clause. - In the event of any competing individual, partnership or
corporation receiving from Congress a similar franchise in which there shall be any term or
terms more favorable than those granted under the franchise or tending to place the herein
grantee at any disadvantage, then such term or terms shall ipso facto become part of the terms
hereof and shall operate equally in favor of the grantee as in the case of said competing
individual, partnership or corporation.

SEC. 15. 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,

SEC. 16. Repeatability and Nonexclusivity 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. 17. 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,

SEC. 18, Effectivity. This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved,