Regulation of Radio and TV Ownership

The decree is grounded on the President’s constitutional power to review and approve franchises for public utilities.
The decree addresses the observed tendency of radio and television utilities toward monopoly in ownership and operation.
The decree is justified by the limited number of broadcasting frequencies in the Philippines.
The decree aims to regulate ownership and operation to enhance quality and viability in broadcasting and serve the public interest.
The decree treats radio and television as major vehicles for disseminating information and assigns them responsibility to assist the government in promoting and safeguarding the public welfare.

Section 2 defines “public service” to mean news, educational and cultural presentations, and other programs that inform the public of advances in science, industry, farming, and technology.
“Public service” includes programs about policies and important undertakings in government designed to promote or safeguard the public welfare.
“Public service” includes matters related to the physical, intellectual and moral development of the young.
“Public service” includes traditions, values and activities that constitute the cultural heritage of the nation.

Section 1 prohibits any radio station or television channel from obtaining a franchise unless it has sufficient capital based on equity for its operation for at least one year.
Section 1 requires that the at-least-one-year equity basis include the purchase of equipment.

Section 2 requires every radio station and television channel to allocate at least two hours a day to programs rendering public service.
The obligation applies during broadcast hours normally regarded in the industry as prime time for the particular type of program and its appropriate audience.
Section 2 mandates that the required public service programming must fall within the defined categories of public service.

Section 3 prohibits any person or corporation from owning, operating, or managing more than one radio or television station in one municipality or city.
Section 3 limits radio ownership nationwide to no more than five AM and no more than five FM radio stations.
Section 3 limits television nationwide to no more than five television channels in the entire country.
Section 3 prohibits utilizing any radio or television station by any single-interest group to disseminate information or otherwise influence the public or the government to serve or support the ends of such group.

Section 4 requires any person or corporation that owns more than the authorized number under Section 3 to divest the excess stations or channels.
Section 4 provides that any excess station must be sold through the Board of Communications.
Section 4 requires divestment not later than December 31, 1981.
Section 4 requires that thereafter divestment must be made within one year from the discovery of the offense.

Section 5 provides that failure to divest under Section 4 results in consequences in addition to the penalties in Section 6.
Section 5 subjects the person or corporation guilty of failure to divest to cancellation of the franchise of every excess station.
Section 5 authorizes confiscation of the station and its facilities without compensation.

Section 6 provides that all franchises, grants, licenses, permits, certificates, or other authorities to operate radio or television broadcasting systems terminate on December 31, 1981.
Section 6 requires that after December 31, 1981, no radio or television station shall be authorized to operate without authority of the Board of Communications and the Secretary of Public Works and Communications (or their successors).
Section 6 requires that the Board and the Secretary have the right and authority to assign to qualified parties frequencies, channels, or other means of identifying broadcasting systems.
Section 6 allows final appeal to the Office of the President for conflicts or disagreements with a decision of the Board or the Secretary.
Section 6 requires appeals to be filed within fifteen days from the date the decision is received by the party in interest.

Section 7 imposes criminal liability on any person who violates the decree.
Section 7 provides a penalty of imprisonment for a period ranging from five months to six years.
Section 7 provides a fine of P1,000.00 to P10,000.00, or both imprisonment and fine, at the discretion of the court.
Section 7 provides that if the violation is committed by an association, partnership or corporation, the penalty is imposed on the officers or employees who were responsible for or who committed the violation.