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Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Section 1 of Republic Act No. 8079 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 the First United Broadcasting Corporation (FUBC), its successors or assigns and hereunder referred to as the grantee, its successors or assigns, a franchise to construct, install, operate and maintain for commercial purposes and in the public interest, radio, television and satellite broadcasting stations throughout the Philippines, including multi-channel microwave transmission, repeater stations, translators, satellite transmission, and direct to home user satellite broadcast system, cable or community antennae television system (CATV), multi-point distribution system (MUDS), local multi-point distribution system (LMDS), interactive system of station, transmitting, receiving and switching stations, both for local and international services, lines, fiber optics, microwave, satellite, transmit and receive systems, control signals, audio and video systems, information service bureau, pay and pay per view television, video on demand and public information on demand services, multi-disc read only memory, memory network delivery, packet and frame relay and electronic mail services and other value added. services and all other technologies as are presently available through technical, advances or innovations in the future, as is, or are convenient to or essential to efficiently carry out the purposes of this franchise and to install radio communication facilities for the grantee's private use in its broadcast services, means of distribution including the use of all new technologies in broadcasting as are at present available or to be made available through technological advances or innovations in the future, with the corresponding technological auxiliaries and facilities, special broadcast and other broadcast distribution services, and to install radio communication facilities for the grantee's private use in its broadcast services."

SEC. 2. Section 2 of Republic Act No 8079 is hereby amended to read as follows

"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 the other existing stations or stations which may be established by law without diminishing its own right to use its selected wavelengths or frequencies and the quality of transmission or reception thereon as should maximize rendition of the grantee's services and/or the availability thereof."

SEC. 3. Section 6 of Republic Act No. 8079 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:

1. Commence operations within one (1) year from the approval of its permit by the National Telecommunications Commission;
   
2. Operate continuously for two (2) years; and
   
3. Commence operations within three (3) years from the effectivity of this Act.

SEC. 12. Lease of Equipment. - In order to maximize the use of its facilities or equipment and its satellite facilities, the grantee is hereby authorized to lease to other entities such equipment or facilities and to sublease the excess or unused portion of satellite bandwidth space to other satellite users.

SEC. 5. 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,

(Sgd.) NEPTALI A. GONZALES	(Sgd.) JOSE DE VENECIA JR.
President of the Senate	Speaker of the House of Representatives

This Act which originated in the House of Representatives was finally passed by the House of Representatives and the Senate on December 15, 1997 and February 6, 1998, respectively.

(Sgd.) HEZEL P. GACUTAN	(Sgd.) ROBERTO P. NAZARENO
Secretary of the Senate	Secretary General House of Representatives

Approved:


Lapsed into law on July 09, 1998, without the signature of the President, in accordance with Article VI, Section 27 (1) of the Constitution.