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

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. _7845

Introduced by HON. ANTONIO “TONYPET” T. ALBANO

EXPLANATORY NOTE

Broadcasting is the most inexpensive form of information and
entertainment for the people. Radio, television, and cable television have
provided the general public with news that have wide ranging
consequences to their day-to-day activities, and entertainment that perks
and stimulates the creativity of a public longing for holistic growth. Once
upon a time, development communications (or Devcom) was a virtual
beacon for those engaged in broadcasting. It was anchored on the
philosophy that broadcasting, like all forms of communications, has to
have a clearly defined purpose: to help facilitate communion or unity
among peoples and institutions that would contribute to the greater good.

FICTAP BROADCASTING NETWORK INC. is a_ newly-formed
corporation. The company’s incorporators come from many different parts of
the country - from far north all the way to the south. They have a very good
grasp and understanding of the socio-cultural nuances of their respective
communities. They are considered mavens of the industry and their
expertise has been acknowledged locally and abroad.

It is a certainty that FICTAP BROADCASTING NETWORK INC. will
contribute immensely to the positive development of broadcast
communications in the country.

It is on this note that the immediate approval of this bill is earnestly
sought.

Cae Cre

ANTONIO “TONYPET” T. ALBANO


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

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 7845

Introduced by HON. ANTONIO “TONYPET” T. ALBANO

AN ACT
GRANTING FICTAP RADIO BROADCASTING NETWORK INC. A
FRANCHISE TO INSTALL, CONSTRUCT, OPERATE AND MAINTAIN
COMMERCIAL RADIO AND TELEVISION BROADCASTING, AND CABLE
TELEVISION, STATIONS, THROUGHOUT 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 1987 Philippine Constitution and applicable laws, rules
and regulations, there is hereby granted to FICTAP Broadcasting Network,
Inc., hereunder referred to as the grantee, its successors or assignees, a
franchise to construct, install, operate, and maintain, for commercial
purposes and in the public interest, radio and television broadcasting
stations, cable television, digital television, television white space systems,
pay service, through microwave, satellite, terrestrial, or whatever mean, as,
well as the use of any new technology in television systems, with the
corresponding auxiliaries and facilities, special broadcast and other program
and distribution services and relay stations in the Philippines.

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 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 the
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 or 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. The grantee shall not dispose or lease its facilities except to
entities with radio or television broadcasting franchise: Provided, That the
grantee shall inform and secure written authorization to proceed from the
NTC, and report the transaction to the NTC within sixty (60) days after its
completion: Provided, further, That the NTC shall determine the
corresponding sanction for any violation of this provision. In case of
violation/s of any of the provisions of this franchise, the NTC shall have the
authority to revoke or suspend, after due process, the permits, or licenses
issued by the NTC pursuant to the franchise. NTC may recommend to
Congress the revocation of the franchise if there are any violation/s of the
provisions of the franchise.

SECTION 4. Responsibility to the Public. - The grantee shall provide,
free of charge, adequate public service time which is reasonable and
sufficient to enable the government, through the broadcasting stations or
facilities of the grantee, to reach the pertinent populations or portions
thereof, on important public issues and relay important public
announcements and warnings concerning public emergencies and
calamities, as necessity, urgency or law may require; provide at all times
sound and balanced programming; promote public participation; assist in
the functions of public information and education; conform to the ethics of
honest enterprise; promote audience sensibility and empowerment; and not
use its stations or facilities for the broadcasting of obscene or 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.
Public service time referred herein shall be equivalent to a maximum
aggregate of ten percent (10%) of the paid commercials or advertisements
which shall be allocated based on need to the Executive and Legislative
branches, the Judiciary, Constitutional Commissions, and international
humanitarian organizations duly recognized by statutes: Provided, That the
NTC shall increase the public service time in case of extreme emergency or
calamity. The NTC shall issue rules and regulations for this purpose, the
effectivity of which shall commence upon applicability with other similarly
situated broadcast network franchise holders. Pursuant to Republic Act
No.8370, the grantee shall allot a minimum of fifteen percent (15%) of the
daily total air time of the broadcasting network to child-friendly show/s
within its regular programming.

SECTION 5. Right of the Government. - 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 process. 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 stations or facilities during the period when these shall be so
operated.

SECTION 6. Term of Franchise: - This franchise shall be in effect for
a period of twenty-five (25) years from the 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. 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, but if any such
speech, play, act or scene, or other matter should constitute a violation of
the law or infringement of a private right, the grantee shall be free from any
liability, civil or criminal, for such speech, play, act or scene or other matter:
Provided, That the grantee, during any broadcast, shall cut off the airing of
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 8. Warranty in Favor of the National and Local Governments.
The grantee shall hold the national, provincial, city, and municipal
governments of the Philippines free from all claims, liabilities, demands, or
actions arising out of accidents causing injury to persons or damage to
properties, during the construction or operation of the stations of the
grantee.

SECTION 9. Commitment to Provide and Promote the Creation of
Employment Opportunities. - The grantee shall create employment
opportunities and shall allow on-the-job trainings in their franchise
operation: Provided, That priority shall be accorded to the residents of the
place where their principal office is located: Provided, further, That the
grantee shall follow the applicable labor standards and allowance
entitlement under existing labor laws, rules and regulations and similar
issuances: Provided, finally. That the employment opportunities or jobs
created shall be reflected in the General Information Sheet (GIS) to be
submitted to the Securities and Exchange Commission (SEC) annually.

SECTION 10. Sale, Lease, Transfer, Grant of Usufruct, or Assignment
of Franchise. - The grantee shall not sell, lease, transfer, grant the usufruct
of, 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 the controlling


interest of the grantee be transferred simultaneously or contemporaneously,
to any person, firm, company, corporation, or entity without the prior
approval of the Congress of the Philippines. Congress shall be informed of
any sale, lease, transfer, grant of usufruct, or assignment of franchise or the
rights and privileges acquired thereunder, or of the merger or transfer of the
controlling interest of the grantee, within sixty (60) days after the completion
of the said transaction. Failure to report to Congress such change of
ownership shall render the franchise ipso facto revoked. 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.

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 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 operations: Provided, That in cases
where public offer of shares is not applicable, the grantee shall apply other
methods of encouraging public participation by citizens and corporations
operating public utilities as allowed by law. Noncompliance therewith shall
render the franchise ipso facto revoked.

SECTION 12. 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 annual report shall include
an update on the roll-out, development, operation, and/or expansion of
business; audited financial statements; latest GIS officially submitted to
SEC, if applicable; certification of the NTC on the status of its permits and
operations: and an update on the dispersal of ownership undertaking, if
applicable. The reportorial compliance certificate issued by Congress shall
be required before any application for permit or certificate is accepted by the
NTC.

SECTION 13. Fine. - Failure of the grantee to submit the requisite
annual report to Congress shall be penalized by a fine of Five hundred pesos
(P500.00) per working day of noncompliance. The fine shall be collected by
the NTC from the delinquent franchise grantee separate from the reportorial
penalties imposed by the NTC and the same shall be remitted to the
National Treasury.

SECTION 14. 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 territorial coverage, the term, or the
type of service authorized by the franchise.

SECTION 15. 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.

SECTION 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.

SECTION 17. Repealing Clause. — All laws, decrees, orders,
resolutions, instructions, rules and regulations, and other issuances or
parts thereof which are inconsistent with the provisions of this Act are
hereby repealed, amended, or modified accordingly.

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,