Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House BILL NO. 4974

Introduced by Honorable Leopoldo N. Bataoil

EXPLANATORY NOTE
This bill seeks for the renewal of the franchise of Ultrasonic Broadcasting System, Inc.

The ULTRASONIC BROADCASTING SYSTEM INCORPORATED was granted a
franchise to construct, install operate and maintain radio broadcasting stations in the Philippines
efffective July 06, 1995, under Republic Act 8081. The same law has given the grantee the
rights, privileges, and authority to function for a period of twenty-five (25) years.

For twenty-one (21) years now, the Ultrasonic Broadcasting System Inc. serves as an
important instrument in information dissemination that bridges communication gaps among the
populace of the country. It was able to provide sound and balanced programming, as rendered by
its broadcasting stations, making information easily accessible to the general public. It has also
frequently communicated with the people on important issues that concern the public interest

In three years’ time, the law that has given life and mandate to the Ultrasonic
Broadcasting System Incorporated’s existence and operation will expire. Therefore, this bill
seeks to extend the term of the franchise of Ultrasonic Broadcasting System Incorporated for
another twenty-five (25) years from its original expiration date, for radio and television broadcast
in Luzon, Visayas, and Mindanao

In view of the foregoing, the passage of this bill is earnestly sought



Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

SEVENTEENTH CONGRE;
First Regular Session

4974

HOUSE BILL NO.

Introduced by: REP. LEOPOLDO N. BATAOIL,

AN AC

RENEWING THE FRANCHISE GRANTED TO ULTRASONIC BROADCASTING
SYSTEM INCORPORATED UNDER REPUBLIC ACT. NO. 8081 ENTITLED “AN ACT
GRANTING ULTRASONIC BROADCASTING SYSTEM INCORPORATED A
FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND MAINTAIN RADIO AND
TELEVISION BROADCASTING STATIONS IN THE PHILIPPINES AND FOR OTHER
PURPOSES” 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 1995
Philippine Constitution and applicable laws, rules, and regulations, the franchise granted to
Ultrasonic Broadcasting System Incorporated, hereunder referred to as the grantee, its succ
or assignees, under Republic Act, No. 8081 entitled “An act granting the Subic Broa
Corporation a franchise to construct, install, operate and maintain radio and television
broadcasting stations in the Philippines and for other purposes”. To construct, install, establish,
operate, and maintain for commercial purposes and in the public interest, radio and/or television
broadcasting stations, where frequencies and/or channels are still available for radio and/or
televisions broadcasting including digital television system, 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 in the Philippines, is hereby renewed for another
twenty-five (25) years from the effectivity of this Act.



SECTION 2. The manner of Operation of Stations or Facilities. - The stations or
facilities of the grantee shall be constricted 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 privilege to
use its assigned wavelengths or frequencies and the quality of transmission or reception thereon
as should maximize rendition of the grantee’s services and/or 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 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.

SECTION 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 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.

SECTION 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 take over and operate the stations or facilities grantee, to temporarily
suspend the operation of any stations 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 anytime
after due process.

SECTION 6, The term of Franchise. —This franchise shall be in effect for a period of
twenty-five (25) years from the effectivity of the 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.

SECTION 7. Acceptance and Compliance. — Acceptance of this new franchise shall be
given in writing to the Congress of the Philippines, through the committee on legislative
Franchise 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. Non-acceptance shall render the franchise
void.

SECTION 8. 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 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.

SECTION 9. 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 10. Sale, Lease, Transfer, or Assignment 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 their commercials or legal
entity, not merge with any person, firm, company, 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: 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 thereunder, or the merger, or transfer of the controlling interest, 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
Is, 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 30 percent (30%) or a higher percentage that may thereafter be provided by law of its
outstanding capital stock in any securities exchange in the Philippines with five (5) years from
the commencement of its operations: Provided, That in cases where public offer, if shares is that
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,

SECTION 12. General broadcast Policy Law. ~ The grantee shall comply with and be
subject to the provision of a general broadcast policy law, which Congress may hereafter enact

SECTION 13. 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 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. The reportorial compliance certificate issued by Congress
shall be required before any application for permit or certificate is accepted by the NTC.

SECTION 14. Penalty Clause — Failure of the grantee to submit the requisite annual
report to Congress will be penalized by a fine in the amount of Five hundred pesos (PS00.00) 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.

SECTION 15. Equality Clause, — 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
concerning territory covered by the franchise, the life span of the franchise or the type of service
authorized by the franchise.

SECTION 16, Separability Clause. ~ If any of the sections or provisions of this Act is
held invalid, ail other provisions not affected thereby shall remain valid,


SECTION 17. Repealability 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.

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

Approved,