Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. a

Introduced by Representative PABLO JOHN F. GARCIA

EXPLANATORY NOTE

Soundstream Broadcasting Corporation (SBC) was incorporated and registered
with the Securities and Exchange Commission for the primary purpose of establishing a
radio and television broadcasting stations in the Province of Isabela and to the extent
that it may be authorized by law. On September 5, 1996, SBC was granted a franchise
to construct, install, operate, and maintain radio and television broadcasting stations in
the Philippines under Republic Act No. 8902. The same law has given the grantee the
rights, privileges, and authority to operate for a period of twenty-five (25) years.

For more than two decades, Soundstream has been an active member of the
Kapisanan ng mga Brodkaster ng Pilipinas (KBP) and established a niche on its area of
operation. Its radio arm, DWMX-FM, is one of the pioneering radio stations in Region 2
and has now become a household name in the region. Through its consistent provision
of high-quality programming, DWMX-FM built a solid foundation with listeners and
advertisers alike. SBC has also been consistent with its commitment to public service
and unfailing in its delivery of timely, truthful, and precise information through its
successful FM programming modification, which includes exciting interactive
competitions interlaced with radio talk shows and unbiased public affairs programs, thus
offering a healthy dose of broadcast for good and informative listening pleasure.

Soundstream Broadcasting Corporation is resolved to improve its programs,
upgrade its services, and expand its broadcasting to television and the intemet. With
SBC's legislative franchise set to expire in 2021, this bill seeks its renewal to enable
SBC to continue performing its significant contribution to the nation.

In view of the foregoing, urgent approval of this meas sstly sought.

Rep. PABLO JOHN F. GARCIA
3rd District, Province of Cebu


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

6571

House Bill No.

Introduced by Representative PABLO JOHN F. GARCIA

AN ACT
RENEWING THE FRANCHISE GRANTED TO
SOUNDSTREAM BROADCASTING CORPORATION
TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE, AND MAINTAIN
RADIO AND TELEVISION BROADCASTING STATIONS FOR COMMERCIAL
PURPOSES IN THE PROVINCE OF ISABELA AND IN OTHER PLACES
IN THE PHILIPPINES UNDER REPUBLIC ACT NO. 8209
FOR ANOTHER TWENTY-FIVE (25) YEARS

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, the franchise
granted to Soundstream Broadcasting Corporation, under Republic Act No. 8209
entitled “An Act Granting The Soundstream Broadcasting Corporation A Franchise To
Construct, Install, Operate And Maintain For Radio And Television Broadcasting
Stations In The Province of Isabela And in Other Places in the Philippines” 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 broadcasting stations in the Philippines, is hereby renewed for
another twenty-five (25) years from the effectivity of this Act.

Section 2. Manner of Operation of Stations of 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 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 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.

Section 6. 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
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.
Non-acceptance shall render the franchise void.

Section 8. Bond. - The grantee shall fle 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.

Section 9. 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 and willful failure to do so shall constitute a valid cause for the
cancellation of this franchise.

Section 10. Warranty in Favor of National and Local Governments. - The
grantee shall hold the national, provincial, city and municipal govemments 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.

Section 11. Sale, Lease, Transfer, Usufruct, Assignment. - The grantee shall
not lease, transfer, grant the usufruct of, sell nor assign this franchise or the rights and
privilege 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:
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 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 the same conditions, terms, restrictions and limitations of
this Act.

Section 12. 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 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 commencement of its operations:
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. Noncompliance therewith
shall render the franchise ipso facto revoked.

Section 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.


Section 14. 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 the succeeding year.

Section 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 will be collected by the NTC from said delinquent franchise
grantee separate from the reportorial penalties imposed by NTC. The collected funds
shall accrue to the monitoring fund of the NTC in line 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.

Section 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, shall
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 conceming territory covered by the
franchise, the life span of the franchise or the type of service authorized by the
franchise: Provided, further, That the foregoing shall not apply to sale, lease, transfer or
grant of usufruct of legislative franchise with prior congressional approval.

Section 17. 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 18. 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.

Section 19. Publication. This Act shall be published, through the initiative of the
Grantee, fifteen (15) days afer this Act is signed by the President of the Philippines or
has lapsed into law.

Section 20. Effectivity Clause. — This Act shall take effect fifteen (15) days
from the date of its publication in at least two (2) newspapers of general circulation in
the Philippines.

Approved,