Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

Introduced by HON. ELEANDRO JESUS F. MADRONA

EXPLANATORY NOTE

Television and Radio plays a significant role in shaping a nation. We have been
witness to its power to unite a whole nation even in a flash. Hence, every Filipino
should have access to a continuous flow of dear and unbiased Information.

On the other hand, communication through both radio and television are also
taking different modes and reaching wider audiences and parties. It is important
therefore that the country is able to ride on the back of developments In broadcast
technology so that its population is better informed and opinions are shaped from
different points of view.

The Introduction of new broadcasting channels will ensure both integrity and
evolution in information that the Filipino nation will receive and digest. A system of
parallelism and neutrality, together with constant introduction and usage of new
‘technology will be brought about by friendly competition.

Uitramedia Broadcasting Corporation incorporated aims to do its share in
promoting constructive competition in the industry. It will avail of new information and
content sources to bring new knowledge and other forms of entertainment to its
targeted audience. it will also teverage on new technologies to reach a wider audience
at lowest cost per recipient, thus creating least cost options to relay information and
content.

In view of the foregoing, approval of this bill is earnestly requested.

ELEANDRO JESUS F. MADRONA.



Republic of the Philippines
HOUSE OF REPRESENTATIVES.
‘Quazon City
FIFTEENTH CONGRESS
Second Regular Session

~ 3948

‘House Bil No.

Introduced by HON. ELEANDRO JESUS F. MADRONA
_ eS

ANACT
GRANTING THE ULTRAMEDIA BROADCASTING CORPORATION, INCORPORATED A
FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN RADIO
AND TELEVISION 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 Franchise. - Subject to the provisions of the
‘Constitution and applicable laws, rules and reguiations, there is hereby granted to Ultramedia
Broadcasting Corporation, incorporated, 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 brosdessting stations in the
Philippines, where frequencies and/or channels are still available for radio andlor television
broadcasting, including digital television system, Internet Protocol (IP) -related services and IP-
Value-added services, through microwave, satelite or whatever means, including the use of eny
few technologies in television and radio sysiems, with the corresponding technological
Telay stations.

SEC. 2. Manner of Operation of Stations of Faciities. - 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 wey diminishing its own right to use its selected
wavelangths or frequencies and the quality of transmission or reception thereon as should
mandmize rendition of the grantes’s services and/or availabilty thereof.

SEC. 3. Prior Approval of the National Telecommunications Commission (NTC). ~The
grantee shall secure from the NTC, hereinafter referred to as the Commission, 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 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 Pubic. - The grantee shail provide adequate public service
fime to enable the government, through the said broadcasting stations or faciities, to reach the
Population on important public issues; provide at ail times sound and balanced programming:
‘assist in the functions of public information and education; conform to the ethics of honest
‘enterprise; and not use ite stations and faciities for the broadcasting of obscene and indecent

_ language, speech, act or scene; or for the dissemination of daliberately false information or
willful misrepresentation, to the detriment of the public interest, or to incite, encounage or assist
in subversive of treasonable acts.

SEC. 5. Right of Government. - A special right is hereby reserved to the Preskient 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 goverment, upon due compensation to the grantee, for the use of aid stations
or facilities during the period when they hall 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 grantea 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 cancelled. This franchise shail be deemed ipso facto revoked in the evert
‘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 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 sity

(60) days from’ the effectivity of this Act. Upon giving such acceptance, the grantee shall

I PAGE 92!


SEC. 8. Bond. - The grantee shall fie a bond with the NTC in the amount that it shall
determine to guarantee compliance with and fulflment 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 fulfiled the same, the bond shall be canceled 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 Grantee. - The grantee shall not require
any previous censorship of any speech, play, act or scane, or other matter to be broadcast from
its stations: Provided, That the grantae, during any broadcast, shail cut off from the air the
‘Speech, play, act or scene, or other matter being broadcast if the tendency thereof is to propose
andlor incite treason, rebellion or sedition; or the language used therein or the theme thereot is
indecent or immoral: Provided, further, that and wilful fallure to do so shall constitute a valid
cause for the cancellation of this franchise.

‘SEC. 10. Warranty in Favor of National and Local Govemments. - The grantee shall hoid
the national, provincial, city and municipal governments of the Philippines harmless from all
claims, accounts, demands or actions arising out of acckients 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, Assignment. - The grantee shall not lease,
transfer, grant the usufruct of, sell nor assign this franchiee or the rights and privilage acquired
thereunder to any person, firm, company, corporation or other commercial or legal entity, aor
merge with any other corporation or entity, nor shall the controlling interest of the grantee be
transferred, whether a6 a whole oF 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 franchive or the rights or privileges acquired
‘within sbdy (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, finaly, That any pereon or entity to which this franchise is sold, transfered or
‘assigned, shali be subject to the same conditions, terms, restrictions and limitations of this Act.

SEC. 12. Dispersal of Ownership. - In accordance with the constitutional provision to
‘encourage public participation in public utiiies, the grantee shall offer to Filipino citizens at least
thity par contum (30%) or a higher percentage thet may hereafter be provided by law of its
outstanding capital stock in any securities exchange in the Phillppines within five (5) years from
the commencement of its operations. Noncompliance therewith shall render the franchise ipso

‘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.

"PAGE 93+


‘SEC. 14. Reportorial Requirament. — The granise shall submit an annual report to the
‘Congress of the Philippines, through the Committee on Legislative Franchises of the House of
Representatives and the Committees on Public Services of the Senate, on its compliance with
the terme and concitions of the franchise and on ite operations on or before April 30 of the
succeeding year.

SEC. 15. 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 non-compliance. Said
fine wii be collected by the NTC from said delinquent franchise grantee separate from the
Teportorial penalties imposed by NTC. The collected funds shall accrue to the monitoring fund of
the NTC in fine 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 NTC.

SEC. 16. 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, shalt become part of this franchise
‘nd shall be accorded immediately and unconditionally to the herein grantee: Provided,
however, That the foregoing shail neither apply to nor affect provisions of broadcasting
franchises conceming territory covered by the franchise, the life spen of the franchise or the
type of service authorized by the franchise.

‘SEC. 17. Seperability Clause. ~ If any of the sections or provisions of this Act is held

SEC. 18. Repoalabilty and Non-exciusivity Clouse. - This franchise shall be subject to
‘@inendment, alteration, or repeal by the Congress of the Philippines when the public interest s0
Tequires and sheli not be interpreted as an exclusive grant of the privileges hereih provided for.

‘SEC. 19. 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. 20 Effectivity Clause. - This Act shall take effact fifteen (18) days from the date of
its publication in at least two (2) newspapers of general circulation in the Philippines.

Approved,

EPAGE 941