Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SIXTEENTH CONGRESS
Second Regul:

HOUSE BILL No.___*#

Introduced by Representative Nicasio M. Aliping, Jr.

EXPLANATORY NOTE

This bill seeks to amend and renew the franchise granted to Beta Broadcasting,
System, Inc. under RA No. 8026 approved on May 25, 1995.

Beta Broadcasting System, Inc. is a one hundred per cent (100%) Filipino-owned
domestic corporation. It operates three radio stations serving the Olongapo-Subie and Bataan-
Zambales areas in Region Ill, the Baguio-Benguet areas in the Cordilleras, and the
Pangasinan-La Union areas in Region 1, all of which stations are overwhelmingly listened to.

Throughout its operation, it has established its commitment to public service thru
responsible radio broadcasting with a balanced offering of news and information, public
service announcements and musical entertainment. Beta Broadcasting System, Inc. has now
become a radio broadcasting icon in its areas of coverage and intends to pursue this
commitment to publie service with an even wider reach.

‘The amendment and renewal of its franchise would enable Beta Broadcasting System,
Inc. not only to expand its service commitment nationwide but also to execute long-term
planning and capital build-up taking into account emerging technologies that make the
broadcasting industry capital intensive.

In line with the state policy enunciated in Sec. 24, Art. II of the 1987 Constitution that
“The State recognizes the vital role of communication and information in nation-building.”,
approval of this bill is earnestly requested.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SIXTEENTH CONGRESS
Second Regular Session

HOUSE BILL No.__ 4766

Introduced by Representative Nicasio M. Aliping, Jr.

AN ACT AMENDING AND RENEWING THE FRANCHISE GRANTED TO BETA
BROADCASTING SYSTEM, INC. TO CONSTRUCT, INSTALL,
ESTABLISH, OPERATE AND MAINTAIN RADIO BROADCASTING
STATIONS IN THE PHILIPPINES

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

SECTION 1. Nature and Scope of Franchis ubject to the provisions of the
Constitution and applicable laws, rules and regulations, there is hereby granted to Beta
Broadcasting System, 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 broadcasting stations in the Philippines, where frequencies are still
available for radio broadcasting, through microwave, satellite or whatever means, including
the use of any new technologies in radio systems, with the corresponding technological
auxilis and facilities, special broadcast and other program and distribution services and
relay stations,

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 grantees 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 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 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.

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
anytime after due process.

SEC. 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 comply with any of the following conditions:

(a) Commence operations within one (1) year from the approval of its operating
permit by the NTC;

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

(c) Commence operations within three (3) years from the effectivity of this Act.

SEC. 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. Non-acceptance shall render
the franchise void.

SEC. 8. Bond. - The grantee shall file a bond with the NTC in the amount that the
NTC shall determine to guarantee 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.

SEC. 9. Self-regulation by and Undertaking of the 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.

SEC. 10. 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.

SEC. 11. 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
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. The conditions, terms, restrictions and
limitations set by this Act shall be imposed on any person or entity to which this franchise is
sold, transferred or assigned.

SEC. 12. Dispersal of Ownership. ~ In accordance with the constitutional provision to
encourage public participation in public utilities, the grantee shall offer 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 time
it has achieved the status of a national broadcasting network, A “national broadcasting
network” is hereby defined as one that operates three (3) or more radio stations. Non-
compliance therewith shall render the franchise ipso facto revoked.

SEC. 13. Equality Clause. ~ Any advantage, favor, privilege, exemption or immunity
granted under existing franchise, or which may hereafter be granted for radio broadcasting,
shall 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 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,



SEC. 14. 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. 15. 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. 16. 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. 17. 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. 18. Effectivity Clause. ~ This Act shall take effect fifteen (15) days after its
publication, upon the initiative of the grantee, in at least two (2) newspapers of general
circulation in the Philippines.

Approved,