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NTC
Associated Communications & Wireless Services v. NTC | Puno
G.R. No. 144109, February 17, 2003 | 397 SCRA 574
Keywords: Channel 25, legislative franchise v. CPC or permit
NOTE
This digest was adjusted to meet our needs for the June 16 class.
RATIO DECIDENDI
When there is a law requiring a franchise, an administrative agency
cannot allow a public utility to operate without it.
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 x x x
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.
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