Republic of the Philippines
HOUSE OF REPRESENTATIVES //.
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. 5394

Introduced by REP. NEPTALI M. GONZALES IL

EXPLANATORY NOTE

This bill seeks to renew for another twenty-five (25) years the franchise of Aliw
Broadcasting Corporation, a company with AM and FM stations in the Philippines.

Aliw Broadcasting Corporation is a duly registered company with the Securities and
Exchange Commission (SEC), and was granted a legislative franchise under
Republic Act No.7399 on April 13, 1992. Through the years, the broadcast company
dedicated and committed itself to efficient and effective public service by way of
timely, accurate and useful dissemination of information to Filipino listeners.

The company owns and operates radio stations DWIZ 882 khz AM in Manila, DWQ]
95.1 FM in Naga; DWQA 92.3 FM in Legazpi; DYQC 106.7 FM in Cebu; DYQN 89.5
FM in Iloilo; DXQR 93.5 FM in Cagayan de Oro; DXQM 98.7 FM in Davao and DXQS
98.3 FM in General Santos City and DWQT 89.3 PM in Dagupan City.

The annual reports submitted by Aliw Broadcasting show its financial capability for
continuous operations and possible expansion for another twenty-five years (25).
Since its original franchise is expiring in 2017, another legislative authorization to
continue its public service and operation is indispensable.

With the foregoing, the approval of this bill is earnestly and urgently sought.

REP. NEPTALI M. GONZALES II
Lone District, Mandaluyong City


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 5394

Introduced by REP. NEPTALI M. GONZALES II

AN ACT
AMENDING THE FRANCHISE OF ALIW BROADCASTING CORPORATION
GRANTED UNDER REPUBLIC ACT. NO. 7399, AND RENEWING/EXTENDING
THE TERM THEREOF TO ANOTHER TWENTY-FIVE (25) YEARS FROM THE
DATE OF EFFECTIVITY OF THIS ACT

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

SECTION 1, The franchise of Aliw Broadcasting Corporation granted under
Republic Act No. 7399, is hereby amended to read as follows:

“SECTION 1. NATURE AND SCOPE OF FRANCHISE. - SUBJECT TO THE
PROVISIONS OF THE 1987 PHILIPPINE CONSTITUTION AND APPLICABL
LAWS, RULES AND REGULATIONS, THE FRANCHISE GRANTED TO ALIW
BROADCASTING CORPORATION UNDER REPUBLIC ACT NO. 7399,
HEREUNDER REFERRED TO AS THE GRANTEE, ITS SUCCESSORS OR ASSIGNS,
TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN FOR
COMMERCIAL PURPOSES AND IN THE PUBLIC INTEREST, THROUGHOUT THE
PHILIPPINES, RADIO AND/OR TELEVISION BROADCASTING STATIONS,
INCLUDING DIGITAL TELEVISION SYSTEM, INTERNET PROTOCOL (IP) -
RELATED SERVICES AND IP-VALUE-ADDED SERVICES, THROUGH
MICROWAVE, SATELLITE OR WHATEVER MEANS, INCLUDING THE USE OF
ANY NEW TECHNOLOGIES IN TELEVISION AND RADIO SYSTEMS, WITH THE
CORRESPONDING TECHNOLOGICAL AUXILIARIES AND FACILITIES,
SPECIAL BROADCAST AND OTHER PROGRAM AND DISTRIBUTION SERVICES,
AND RELAY STATIONS.”



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"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 AUTHORIZATION FROM 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 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 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,,



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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 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 PRC =

‘LF-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 AND WILLFUL FAILURE TO DO SO
SHALL CONSTITUTE A VALID CAUSE FOR THE CANCELLATION OF THIS
FRANCHISE. “



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“SEC. 7. 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. ”

“SEC. 8. SALE, LEASE, TRANSFER, USUFRUCT, OR ASSIGNMENT OF
FRANCHISE, - THE GRANTEE SHALL NOT LEASE, TRANSFER, GRANT THE
USUFRUCT OF, SELL NOR ASSIGN THIS FRANCHISE OR THE RIGHTS AND
PRIVILEGE 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 PHILIPPIN PROVIDED, THAT CONGRESS SHALL BE
INFORMED OF ANY LEASE, TRANSFER, GRANTING THE USUFRUCT OF, SALE
OR ASSIGNMENT OF FRANCHISE OR THE RIGHTS OR PRIVILEGES ACQUIRED
WITHIN SIXTY (60) DAYS AFTER THE COMPLETION OF SAID TRANSACTION:
PROVIDED, FURTHER, 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 SUBJECT
TO THE SAME CONDITIONS, TERMS, RESTRICTIONS AND LIMITATIONS OF
THIS ACT.”

“SEC. 9. DISPERSAL OF OWNERSHIP. - IN ACCORDANCE WITH THE
CONSTITUTIONAL PROVISION TO ENCOURAGE PUBLIC PARTICIPATION IN


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PUBLIC UTILITIES, THE GRANTEE SHALL OFFER TO FILIPINO CITIZENS AT
LEAST THIRTY PER CENTUM (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 OPERATIONS: 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. NONCOMPLIANCE
THEREWITH SHALL RENDER THE FRANCHISE IPSO FACTO REVOKED. “

“SEC. 10. 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, 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, 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:
PROVIDED, FURTHER, THAT THE FOREGOING SHALL NOT APPLY TO SALE,
LEASE, TRANSFER OR GRANT OF USUFRUCT OF LEGISLATIVE FRANCHISE
WITH PRIOR CONGRESSIONAL APPROVAL. “

“SEC. 11, 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. 12. REPORTORIAL REQUIREMENT. - THE GRANTEE SHALL.
SUBMIT AN ANNUAL REPORT TO THE CONGRESS OF THE PHILIPPINES,


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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 THE
SUCCEEDING YEAR. “

“SEC. 13. PENALTY CLAUSE - ANY GRANTEE WHO FAILS TO SUBMIT
THE ANNUAL REPORT TO CONGRESS WILL BE FINED FIVE HUNDRED PESOS
(P500.00) PER WORKING DAY OF NONCOMPLIANCE. SAID FINE WILL BE
COLLECTED BY THE NTC FROM SAID DELINQUENT FRANCHISE GRANTEE
SEPARATE FROM THE REPORTORIAL PENALTIES IMPOSED BY THE NTC. THE
COLLECTED FUNDS SHALL ACCRUE TO THE MONITORING FUND OF THE
NTC IN LINE WITH ITS SUPERVISORY AND REGULATORY FUNCTIONS. THE
REPORTORIAL COMPLIANCE CERTIFICATE ISSUED BY CONGRESS SHALL BE
REQUIRED BEFORE ANY APPLICATION FOR PERMIT OR CERTIFICATE IS
ACCEPTED BY THE NTC.”

“SEC. 14. 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. 15. 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. 2. Renewal/Extension of the Term of Franchise. - The term of franchise
granted under Republic Act No. 7399 is hereby renewed/extended for a period of
twenty-five (25) years from the date of the effectivity of this Act. This franchise shall


be deemed ipso facto revoked in the event the grantee fails to operate continuously for

two (2) years.

SEC. 3. Acceptance and compliance. - Acceptance of the amendment and
extension/renewal of the 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. Nonacceptance shall render the

franchise void.

SEC. 4. Publication. - This Act shall be published, through the initiative of the
grantee, fifteen (15) days after this Act is signed by the President of the Philippines or

has lapsed into law.
SEC. 5. Effectivity Clause. - This Act shalll take effect fifteen (15) days from the
date of its publication in at least two (2) newspapers of general circulation in the

Philippines.

Approved,