Section 1. Section 1 of Republic Act No. 8169 is hereby
amended to read as follows:
"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 GV Broadcasting System, Inc.,
hereinafter 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 television
broadcasting stations throughout the Philippines, and such other
systems, facilities or structures for the origination, reception,
processing, transmission, broadcast, rebroadcast or distribution of
audio, video, information, and other electronic signals, for the
provision of services such as direct to home/user broadcast via
satellite, pay television, multimedia, local multipoint distribution
systems and value-added services and other similar services, through
electromagnetic waves, fiber optics, satellites and whatever means now
available or which in the future may be developed, with the
corresponding technical auxiliaries or facilities, relay stations,
transmit and receive satellite systems, content production and
distribution facilities and other systems as are essential or
convenient to carry out the purposes of this franchise."
Sec. 2. Sec. 3 of Republic Act No. 8169 is
hereby amended to read as follows:
"Sec. 3. Prior Approval of the National
Telecommunications Commission. — The grantee shall secure from the
National Telecommunications 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. 3. Sec. 5 of Republic Act No. 8169 is
hereby amended to read as follows:
"Sec. 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 a 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."
Sec. 4. Sec. 6 of Republic Act No. 8169 is
hereby amended to read as follows:
"Sec. 6. Term of Franchise. — This franchise shall
be for a term of twenty-five (25) years from the date of effectivity of
this Act, unless sooner revoked or cancelled. This franchise shall be
deemed ipso facto revoked in the event the grantee fails to comply with
any of the following conditions:
"a) Commence operations within one (1) year from the
approval of its permit by the National Telecommunications Commission;
"b) Operate continuously for two (2) years; and
"c) Commence operations within three (3) years from
the effectivity of this Act."
Sec. 5. Sec. 7 of Republic Act No. 8169 is
hereby amended to read as follows:
"Sec. 7. Acceptance and Compliance. — Acceptance
of this franchise shall be given in writing 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."
Sec. 6. A new Sec. 8 is hereby inserted after
Sec. 7 of Republic Act No. 8169 to read as follows:
"Sec. 8. Bond. — The grantee shall file a bond
issued in favor of the National Telecommunications Commission, which
shall determine the amount, to guarantee the 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."
Sec. 7. The present Sec. 8 of Republic Act No.
8169 is renumbered as Sec. 9 and is amended to read as follows:
"Sec. 9. Tax Provisions. — The grantee, its
successors or assigns, shall be liable for all taxes, duties, fees and
charges and other impositions, both national and local, as provided
under the National Internal Revenue Code, Tariff and Customs Code,
Local Government Code and other laws."
Sec. 8. The present Sec. 9 of Republic Act No.
8169 is hereby renumbered as Section 10.
Sec. 9. The present Section 10 of Republic Act No.
8169 is hereby renumbered as Section 11.
Section 10. The present Section 11 of Republic Act
No. 8169 is hereby renumbered as Section 12 and is amended to read as
follows:
"Section 12. Sale, Lease, Transfer, Usufruct. — The
grantee shall not lease, transfer, grant the usufruct of, sell or
assign this franchise nor the right 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 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 the
foregoing limitations shall not apply to: (1) any issuance of shares to
any investor pursuant to or in connection with any increase in the
grantee's authorized capital stock which shall result in the dilution
of the stockholdings of the grantee's then existing stockholders; (2)
any sale, transfer or assignment by the stockholders of the grantee in
favor of a holding company whose stockholders are identical to the
stockholders of the grantee. Any person or entity to which this
franchise is validly sold, transferred or assigned shall be subject to
the same conditions, terms, restrictions and limitations of this Act."
Section 11. A new Section 13 is hereby inserted after
the present Section 11 of Republic Act No. 8169 to read as follows:
"Section 13. Dispersal of Ownership. — In accordance
with constitutional provisions to encourage public participation in
public utilities, the grantee shall offer at least thirty percentum
(30%) of its outstanding capital stock or a higher percentage that may
hereafter be provided by law in any securities exchange in the
Philippines within five (5) years from the time it has achieved the
status of a National Broadcasting Network. A 'National Broadcasting
Network' is hereby defined as one that operates three or more radio
and/or television stations. Non-compliance therewith shall render the
franchise ipso facto revoked."
Section 12. A new Section 14 is hereby inserted after
the new Section 13, to read as follows:
"Section 14. 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 13. The present Section 12 of Republic Act
No. 8169 is hereby renumbered as Section 15.
Section 14. The present Section 13 of Republic Act
No. 8169 is hereby renumbered as Section 16.
Section 15. A new Section 17 is hereby inserted to
read as follows:
"Section 17. Reportorial Requirement. — The grantee
shall submit an annual report to the Congress of the Philippines on its
compliance with the terms and conditions of the franchise and on its
operations within sixty (60) days from the end of every year."
Section 16. Effectivity. — 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: March 12, 1998
|