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

Second Regular Session

HOUSE BILL NO. 7300

INTRODUCED BY REPRESENTATIVE XAVIER JESUS D. ROMUALDO

EXPLANATORY NOTE

Insular Broadcasting System, Inc. (IBSI) was incorporated in 1986 to engage in radio and
television broadcasting and communications. In 1995, Congress, through Republic Act No. 7964,
granted IBSI a franchise to operate radio and television broadcasting stations, including special
broadcast and other broadcast distribution services and relay stations.

Today, IBSI owns and operates two radio stations, DWQZ 97.9 FM Home Radio in Metro
Manila and DWIM 936 AM MIMAROPA in Calapan, Oriental Mindoro. DWIM 936 AM
MIMAROPA broadcasts reports on the news, as well as commentary and analysis on public
issues. On the other hand, DWQZ 97.9 FM Home Radio broadcasts easy listening music and
sentimental love songs. It also provides hourly news updates and public service announcements
DWQZ 97.9 FM Home Radio can also be heard in Batangas, Laguna, Cavite, Rizal, Quezon,
Tarlac, and Pampanga. IBSI now intends to expand its operations to other parts of the country
and currently has pending applications with the National Telecommunications Commission to
operate two (2) FM radio stations in Sipalay, Negro Occidental and Bislig, Surigao del Sur.

Considering that IBSI has made appropriate use of its franchise, complied with the provisions
thereof, invested significantly in broadcasting stations and equipment, and intends to continue
and expand its operations, it is apt for Congress to renew and update IBSI’s franchise to operate
radio and television broadcasting stations, including digital television systems, internet protocol
(IP) related services, and IP value-added services.

Accordingly, the support of the Members of Congress for the prompt and timely passage of this

measure is earnestly sought.

XAVIER JESUS D. ROMUALDO


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 7300
INTRODUCED BY REPRESENTATIVE XAVIER JESUS D. ROMUALDO

AN ACT EXTENDING FOR ANOTHER TWENTY-FIVE (25) YEARS
THE FRANCHISE GRANTED TO INSULAR BROADCASTING SYSTEM, INC.
UNDER REPUBLIC ACT NO. 7964, ENTITLED, “AN ACT GRANTING THE INSULAR
BROADCASTING SYSTEM, INC. A FRANCHISE TO INSTALL, OPERATE AND
MAINTAIN BROADCASTING STATIONS IN THE PHILIPPINES”

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, the franchise granted to Insular
Broadcasting System, Inc., hereunder referred to as the grantee, its successors or assigns, under
Republic Act No. 7964, to construct, install, establish, operate, and maintain, for commercial
purposes and in the public interest, throughout the Philippines, radio and television broadcasting
stations, including digital television systems, internet protocol (IP) related services, and IP value-
added services, through microwave, satellite, or whatever means, including the use of any new

technologies in television and radio systems, with the corresponding technological auxiliaries

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 privilege to use its
assigned wavelengths or frequencies and the quality of transmission or reception thereon as

should maximize the rendition of the grantee’s services and the availability thereof.


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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
fiequency in the radio and television spectrum without authorization from the NTC. The NTC,

however, shall not unreasonably delay or withhold the grant of any such authority.

The grantee shall not dispose or lease its facilities, except to entities with a radio or television
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

SEC. 4. Responsibility to the Public, ~The grantee shall provide, through its broadcasting
stations or facilities, adequate public service time to enable the government to reach the
population on important public issues, provide, at all times, sound, and balanced programming;
promote public participation, such as in community programming; assist in the functions of
public information and education; conform to the ethics of honest enterprise; and not use its
stations o 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 treasonous acts.

SEC. 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 anytime after the observance of 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, temporarily suspend the operation of any
station or facility of the grantee 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


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compensation to the grantee, for the use of its stations or facilities during the period when these

shall be so operated.

SEC. 6. Term of the 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.

SEC. 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
broadcasted 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 from the air a speech, play, act or scene, or other
matter being broadcasted, if the tendency thereof is to propose or incite treason, rebellion, or

sedition, or the language used therein or the theme thereof is indecent or immoral: Provided,

Surther, That willful failure of the grantee to do so shall constitute a valid cause for the

revocation and cancellation of this franchise.

SEC. 8. 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,
liabilities, demands, or actions arising out of accidents that cause death or injury to persons or

damage to property during the construction or operation of the grantee’s stations

SEC. 9. Sale, Lease, Transfer, Gram, Usufruct, or Assignment of the Franchise. — The
grantee shall neither sell, lease, transfer, grant the usufruct of, 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 transfer its
controlling interest, whether as a whole or in parts and whether simultaneously or

contemporaneously, to any such person, firm, company, corporation, or entity without the


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approval of the Congress of the Philippines: Provided, That the Congress shall be informed of
any sale, lease, transfer, grant of usuffuct, or assignment of the franchise, or the rights and
privileges acquired thereunder, or the merger or transfer of the controlling interest of the grantee,
within sixty (60) days after the completion of such transaction: Provided, further, That failure to
report to the Congress such change shall render the franchise ipso facto revoked: Provided,
finally, That any person or entity to which the franchise is sold, transferred, or assigned shall be

subject to the same conditions, terms, restrictions, and limitations of this Act

SEC. 10. Annual Report to the Congress. ~ 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 this franchise and on its operations on or before April 30 of every
year, during the term of the franchise. Such report shall include updates on the development or
expansion of the grantee’s business, the grantee’s audited financial statements, as certified by the
Securities and Exchange Commission, and the grantee’s latest general information sheet
Reportorial compliance certifications issued by the House of Representatives and the Senate

shall be required before any application or petition by the grantee is accepted by the NTC

SEC. 11, Fine. - The grantee shall be penalized with a fine of five hunded pesos
(P500.00) for every working day that it shall fail to submit its annual report to the Congress of
the Philippines. Such fine shall be collected by the NTC and shall be separate and distinct from

the penalties it may impose for non-compliance with its own reportorial requirements.

SEC. 12. Equality Clause. — Except for taxes and customs duties, any advantage, favor,
privilege, exemption, or immunity granted under existing franchises, or which may hereafter be
granted for radio or television broadcasting shall, upon prior review and approval of the
Congress of the Philippines, shall become part of this franchise and shall be accorded
immediately and unconditionally to the 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


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SEC 13. 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 14. Separability Clause. ~ If any provision of this Act is declared invalid or

unconstitutional, the other provisions not affected thereby shall remain in full force and effect
SEC. 15. Repealing Clause. ~ All laws, decrees, executive orders and issuances, rules and
regulations, and other issuances, or parts thereof, that are inconsistent with the provisions of this

Act are hereby repealed or modified accordingly.

SEC 16. 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,