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

EIGHTEENTH CONGRESS
First Regular Session

7098

HOUSE BILL NO.

Introduced by LUIS RAYMUND F. VILLAFUERTE, JR.

EXPLANATORY NOTE

This bill seeks to extend the franchise granted to Christian Music Power, Inc. under Republic
Act 8130, approved last 16 July 1995, which allows it to construct, operate, and maintain
radio broadcasting stations in the Philippines, with the corresponding technological
auxiliaries or facilities, special broadcast and other broadcast distribution services and relay
stations, and to install radio communications facilities for the grantee’s private use in
broadcast services.

Christian Music Power, Inc. owns and operates the Edge Radio Network. The network
consists of three FM stations, located in Mindanao and the Visayas. They include 101.5
DXCD-FM, Edge Kidapawan operating at 5 kilowatts from Kidapawan City, Cotabato; 92.7
DXCW-FM, Edge Sibugay operating at | kilowatt from Ipil, Zamboanga Sibugay; and 92.9
DYCI-FM, Edge Guihulngan operating at | kilowatt from Guihulngan, Negros Oriental.

As a Christian broadcasting network, the Edge Radio exists primarily to share God’s message
of hope and love through His Son, Jesus Christ, with every Filipino. It aims to inspire its
listeners—in particular, the youth and young professionals, to lead a life of faith, positivity
and action. With a programming format designed to propagate the Christian worldview
through music, ministry and social awareness, the Edge Radio contributes to values formation
by stressing the development of strong family ties, life-skills, and good citizenship.

Even in this advanced age of technology and communications, radio remains to be an
invaluable medium in providing relevant and timely information affecting our country. It has
the ability to reach across borders and touch listeners regardless of socio-economic class,
creed and gender. It continues to play a vital role in nation-building, promoting national
unity, identity and integrity. It is therefore requested that the Congressional Franchise granted
to Christian Music Power, Inc. be renewed so that it can continue its radio ministry and serve

the listening public.
LUIS UND F. /LAFUERTE, JR.


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

EIGHTEENTH CONGRESS

First Regular Session

HOUSE BILL NO.__ 7998

Introduced by LUIS RAYMUND F. VILLAFUERTE, JR.

AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE
FRANCHISE GRANTED TO CHRISTIAN MUSIC POWER, INC. UNDER
REPUBLIC ACT NO. 8130 TO CONSTRUCT, ESTABLISH, OPERATE AND
MAINTAIN RADIO BROADCASTING STATIONS IN THE PHILIPPINES, AND
FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representative 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 Christian
Music Power, Inc., its successors or assigns and hereunder referred to as the grantee, a
franchise to construct, install, operate and maintain for commercial purposes and in the public
interest, radio broadcasting stations in the Philippines, where frequencies and/or channels are
still available for radio broadcasting, with the corresponding technological auxiliaries or
facilities, special broadcast and other program and distribution services and relay stations,
and to install radio communication facilities for the grantee’s private use in its broadcast
services.

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 minimum interference on the wavelengths or frequencies of the other existing station
or 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. Prior Approval of the National Telecommunications Commission. —
The grantee shall secure from the National Telecommunications Commission (NTC) the
appropriate permits and licenses for its stations and shall not use any frequency in the radio
spectrum without having been authorized by the Commission. The Commission, however,
shall not unreasonably withhold or delay the grant of any such authority.


The grantee shall not dispose nor lease its facilities except to entities with radio or
television franchise; Provided, That the grantee shall inform and secure written authorization
to proceed from the NTC, and report the transaction to the NTC within sixty (60) days after
its completion; Provided, further, That the NTC shall determine the corresponding sanction
for any violation of this provision.

SECTION 4. Responsibility to the Public— The grantee shall provide, free of charge,
adequate public service time which is reasonable and sufficient to enable the government,
through said broadcasting stations or facilities of the grantee, to reach the population on
important public issues and relay important public announcements and warnings concerning
public emergencies; provide at all times 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 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.

Public service time referred herein shall be equivalent to a maximum aggregate of ten
percent (10%) of paid commercials or advertisements which shall be allocated based on need
to the executive, legislative, judiciary, constitutional commissions and international
humanitarian organizations duly recognized by statutes; Provided, That the NTC shall
increase the public service time in case of extreme emergency or calamity. The NTC shall
issue rules and regulations for this purpose, the effectivity of which shall commence upon
applicability with other similarly situated broadcast network franchise holders.

SECTION 5. Right of the Government. — 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.

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 the grantee, to temporarily suspend the
operation of any station 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 during the period when they shall
be so operated.

SECTION 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 operate continuously for two (2) years.

SECTION 7. Self-Regulation and Undertaking of Grantee. — The grantee shall not
require any previous censorship of any speech, play or scene or other matter to be broadcast
from its stations, but if such speech, play, act or scene, or other matter should constitute a
violation of the law or infringement of a private right, the grantee shall be free of any
liability, civil or criminal, for such speech, play, act or scene, or other matter: Provided, That


the grantee, during any broadcast shall cut off the airing of 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,
‘farther, That willful failure to do so shall constitute a valid cause for the cancellation of this,
franchise.

SECTION 8. 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 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 9. Commitment to Provide and Promote the Creation of Employment
Opportunities. — The grantee shall create employment opportunities and shall allow on-the-
job training in their franchise operation: Provided, That priority shall be accorded to the
residents where their principal office is located: Provided, further, That the grantee shall
follow the applicable labor standards and allowance entitlement under existing labor laws,
rules and regulations and similar issuances: Provided, finally, That the employment
opportunities or jobs created shall be reflected in the General Information Sheet (GIS) to be
submitted to the Securities and Exchange Commission annually.

SECTION 10. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise.
— The grantee shall not sell, 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 the controlling interest of the grantee be transferred simultaneously or
contemporancously, to any such person, firm, company, corporation or entity without prior
approval of the Congress of the Philippines. Congress shall be informed of any sale, lease,
transfer, grant of usufruct, or assignment of the franchise or the rights and privileges acquired
thereunder, or the merger or transfer of the controlling interest of the grantee, within sixty
(60) days after the completion of said transaction, Failure to report to Congress such change
of ownership shall render the franchise ipso facto revoked. 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.

SECTION 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, the grantee shall apply other methods of
encouraging public participation by citizens and corporations operating public utilities as
allowed by law. Non-compliance therewith shall render the franchise ipso factor revoked.

SECTION 12. 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 Philippine 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.

SECTION 13. Fine. — Failure of the grantee to submit the requisite annual report to
Congress shall be penalized by a fine of Five Hundred Pesos (P500.00) 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 and the same shall be remitted to
the National Treasury.

SECTION 14. Equality Clause. — Except for taxes and customs duties, 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 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 pertaining to the term,
type of service, or territorial coverage authorized by the franchise.

SECTION 15. Repealability and Nonexclusivity Clause. — This franchise shall be
subject to amendment, alteration, or repeal by the Congress of the Philippines when public
interest so requires and shall not be interpreted as an exclusive grant of the privileges herein
provided for.

SECTION 16. 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 17. Repealing Clause. — All laws, decrees, orders, resolutions,
instructions, rules or regulations, and other issuances or parts thereof which are inconsistent
with this Act are hereby repealed, amended, or modified accordingly.

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