GR 144109; (February, 2003) (Digest)
G.R. No. 144109 ; February 17, 2003
Associated Communications & Wireless Services United Broadcasting Networks, petitioner, vs. National Telecommunications Commission, respondent.
FACTS
Petitioner ACWS operated radio stations under a legislative franchise granted by Republic Act No. 4551 , which was transferred to it in 1969. This franchise was terminated on December 31, 1981, pursuant to Presidential Decree No. 576-A. Following this termination, ACWS continued its broadcast operations under permits granted by the National Telecommunications Commission (NTC). The NTC later sought to clarify the legal requirement for operating a broadcast station, leading to a Department of Justice opinion stating that a legislative franchise remained necessary under Act No. 3846 . Consequently, the NTC issued an order directing ACWS to cease operations due to its lack of a valid congressional franchise. ACWS challenged this order, arguing that subsequent laws and executive orders had impliedly repealed the franchise requirement.
ISSUE
Whether a legislative franchise is required to operate a radio or television broadcasting station in the Philippines.
RULING
Yes, a legislative franchise is required. The Court affirmed the rulings of the NTC and the Court of Appeals. The legal foundation is Act No. 3846 (The Radio Control Law), Section 1 of which explicitly mandates a franchise from Congress for operating a broadcasting station. The Court examined subsequent laws, including P.D. No. 576-A and E.O. No. 546, and found no clear legislative intent to repeal this fundamental requirement. Repeals by implication are not favored. While these later issuances granted the NTC regulatory powers to issue permits and certificates of public convenience, they did not remove the prerequisite of a congressional franchise. The franchise is a distinct grant of privilege from the sovereign, whereas the NTC’s authority pertains to administrative regulation, technical control, and ensuring public convenience. These functions are separate and complementary. Therefore, the NTC correctly ordered ACWS to desist from operating without a valid franchise. The requirement stands until Congress itself sees fit to change the law.