Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Second Regular Congress

HOUSE BILL NO. 7287

Introduced by Honorable Juliet Marie D. Ferrer

EXPLANATORY NOTE

Section 24, Article II of the 1987 Constitution provides that “the State
recognizes the vital role of communication and information in nation-building.”
The media services as a conduit that ensures the flow of information in the
country. It therefore plays a crucial role in the development and growth of our
country.

Ultimate Entertainment Inc., is an existing operator of FM broadcast
stations in the Philippines, pursuant to Republic Act No. 8102, “An Act Granting the
Utimate Entertainment, Inc. a Franchise to Construct, Install, Maintain and Operate Radio
Broadeasting Stations Within the Philipines, which took effect on July 7, 1995. It operates
DXUR-FM, on 97.1 MHz with a power of 5 Kw in Davao City; DYUR-FM, on
105.1 Mhz with a power of 10 Kw in Cebu City; and DXUE-FM on 103. 5 Mhz
with a power of 5 Kw in Zamboanga City.

Ultimate Entertainment Inc., has the capacity to continue its contribution
to nation building by the broadcast of relevant, updated, social information and
concerns affecting our country; as it also aims to promote all Filipino music and
all Filipino artists.

The incorporators of Ultimate Entertainment Inc., are of the mindset that
social development is reached effectively by and through broadcasting as its
medium. In this age of advancement in technology and communications, national
issues and development can be transmitted to a wider range of coverage and at
a very fast pace by digital data.

The grant of the renewal of this congressional franchise subject of this

application is earnestly sought so that applicant can continue the operation and
maintenance of its radio broadcast stations in the Philippines.

JULIE RIE D. FERRER


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

Sixteenth Congress
‘Second Regular Session

7287

House Bill No.

Introduced by Honorable Juliet Marie D. Ferrer

AN ACT RENEWING THE FRANCHISE GRANTED TO ULTIMATE
ENTERTAINMENT, INC., UNDER REPUBLIC ACT NO. 8102, ENTITLED “A
FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND MAINTAIN FOR
COMMERCIAL PURPOSES AND IN THE PUBLIC INTEREST RADIO
BROADCASTING STATIONS WITHIN THE PHILIPPINES AND FOR OTHER
PURPOSES”, FOR ANOTHER TWENTYFIVE (25) YEARS FROM THE
EFFECTIVITY OF THIS ACT.

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 the Ultimate Entertainment, 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 within the Philippines 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 is hereby renewed for another
twenty-five (25) years from the effectivity of this Act

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 the minimum interference on the wavelengths or
frequencies of the other existing stations 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 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 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.

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, temporarily suspend the
operation of any station or facility in the interest of public safety, security and
public welfare, or authorize the temporary use and operation thereof by any
agency of the government, upon due compensation to the grantee, for the use of
its 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. Term of Franchise. - This franchise shall be in effect for a
period of twenty-five (25) years from effectivity of this Act, 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. Acceptance and Compliance. - Acceptance of this new
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. 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.

SEC. 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.

SEC. 10.Sale, Lease, Transfer, Grant or Usufruct, or Assignment of
Franchise - The grantee shall not lease, transfer, grant the usufruct of, sell or
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 transfer the controlling interest of
the grantee., whether as a whole or in part, 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 sale, lease, transfer, grant of usufruct of, or
assignment of franchise or the rights or 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. Provided, further. That failure to report
to Congress such change of ownership shall render the franchise jpso facto
revoked. Provided, finally. That 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

SEC. 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,
establishment of cooperatives and other methods of encouraging public
participation by citizens and corporations operating public utilities must be
implemented. Non acceptance therewith shall render the franchise ipso facto
revoked

SEC. 12.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. 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 Representative 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.


SEC 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 (P500.00) per working day of non compliance. The fine will be
collected by the NTC from the delinquent franchise grantee separate from the
reportorial penalties imposed by the NTC.

SEC. 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 such franchise, the life span of the franchise or the type of
service authorized by the franchise.

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 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.

SEC 18.Effectivity Clause. - This Act shall take effect fifteen (15) days

after its publication in the Official Gazette or in a newspaper of general
circulation.

Approved.