ASSOCIATED COMMUNICATIONS & WIRELESS SERVICES – UNITED

BROADCASTING NETWORKS, PETITIONER, VS. NATIONAL

TELECOMMUNICATIONS COMMISSION, RESPONDENT.
G.R. No. 144109

Facts:

● In November 1911, Congress enacted Act No. 3846, Sec. 1 of which reads: “No person,
firm, company, association, or corporation shall construct, establish, or operate a radio
transmitting station, or a radio receiving station used for commercial purposes, or a radio
broadcasting station, without having first obtained a franchise therefor from the
Congress of the Philippines
● In 1965, Congress granted Marcos Villaverde, Jr. and Winfred Villaverde a franchise to
construct, install, maintain, and operate radio stations in the country. This franchise was
transferred to Associated Communications & Wireless Services-United
Broadcasting Networks (ACWS) in 1969.
● In 1974, P.D. No. 576-A was issued, Secs. 1 and 6 of which read, respectively:

● Sec. 1. No radio station or television channel may obtain a franchise unless it has
sufficient capital on the basis of equity for its operation for at least one year, including
purchase of equipment.
● Sec. 6. All franchises to operate radio or television broadcasting systems shall
terminate on December 31, 1981. Thereafter, irrespective of any franchise to operate
granted by any office, agency, or person, no radio or television station shall be authorized
to operate without the authority of the Board of Communications and the Secretary of
Public Works and Communications or their successors
● In 1979, Executive Order (EO) 546 was issued integrating and reorganizing certain
agencies into the NTC. Thus, the agency was vested with the powers to “issue Certificate
of Public Convenience (CPC) for the operation of communication utilities and services,
radio communications systems, wire or wireless telephone or telegraph system, radio and
television broadcasting system and other similar public utilities” and to “grant permits for
the use of radio frequencies for wireless telephone and telegraph systems and radio
communication systems including amateur radio stations and radio and television
broadcasting systems.”
● In May 1994, the NTC, the Committee on Legislative Franchises and the Kapisanan ng
mga Brodkaster sa Pilipinas entered into a memorandum of understanding (MoU)
agreeing that NTC could issue and grant permits to operate, which shall be valid for two
years and which the permitee shall file an application for legislative franchise with
Congress not later than Dec. 31, 1994.
Issue:

W/N a legislative franchise is required in this case

Ruling:

YES, a legislative franchise is still required.

● ACWS argues that Act 3846 only applies to radio stations. Act 3846 should be read in
conjunction with P.D. 576-A. Even if the former only refers to radio stations, since
the latter is a directly related law which covers both radio and television stations
(see the bullet point below), it can be said that the requirement under Act 3846 also
applies to television stations.
● P.D. 576-A did not do away with the legislative franchise requirement. As a matter of
fact, its Sec. 1 reads: “No radio or television channel may obtain a franchise unless it
has sufficient capital on the basis of equity for its operation for at least one year,
including purchase of equipment.
● Sec. 6 of the same also reveals that there is no intention to repeal Sec. 1 of Act 3846.
Although the first sentence seems to point to a repeal, the second one reveals that the
requirement was not scrapped. Thereafter, irrespective of any franchise granted by any
office, agency, or person, no radio or television station shall be authorized to operate
without the authority of the Board of Communications and the Secretary of Public Works
and Communications or their successors. Based on the second sentence, instead of a
repeal, what we are given is another requirement aside from a franchise: permission
from the BOC and the Secretary of Public Works and Communications.