ASSOCIATED COMMUNICATIONS & WIRELESS SERVICES UNITED BROADCASTING

NETWORKS,petitioner,
vs.
NATIONAL TELECOMMUNICATIONS COMMISSION, respondent.

Facts: On November 11, 1931, Act No. 3846, entitled "An Act Providing for the Regulation of Radio
Stations and Radio Communications in the Philippines and for Other Purposes," was enacted. This law
basically defined requisites in putting up a radio station namely that the franchise of a radio station may
be put up only when the person wanting so has been granted by congress. Marcos J. Villaverde, Jr. and
Winfred E. Villaverde petitioned and were given the grant to set up their radio station in certain provinces.
The grant guaranteed 50 years of franchise and in 1969, the franchise was transferred to petitioner
Associated Communications & Wireless Services United Broadcasting Network, Inc. (ACWS) where
said company put up radio stations all over the country.

In 1974, P.D. No. 576-A, "Regulating the Ownership and Operation of Radio and Television
Stations and for other Purposes" was issued, and rules regarding the operation of radio and televisions
such as a radio or tv station cannot obtain a franchise unless it had adequate capital and that all
franchises, grants, licenses, permits, certificates or other forms of authority to operate radio or television
broadcasting systems shall be terminated on December 31, 1981.

In 1979, E.O. 546 was enacted fusing the Board of Communications and the Telecommunications
Control Bureau into the National Telecommunications Bureau which had powers and responsibilities such
as:

1. Issue Certificate of Public Convenience 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
2. 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

Upon termination of petitioners franchise on December 31, 1981 pursuant to P.D. No. 576-A, it
continued operating its radio stations under permits granted by the NTC. As these presidential issuances
relating to the radio and television broadcasting industry brought about confusion as to whether the NTC
could issue permits to radio and television broadcast stations without legislative franchise, the NTC
sought the opinion of the Department of Justice on the matter where the DOJ.

The DOJ said that there is confusion in the validity of permits of stations who were granted
permits but do not have the grant of franchise from congress. It believed that the termination of all
franchises granted for the operation of radio and television broadcasting systems effective December 31,
1981 and the vesting of the power to authorize the operation of any radio or television station upon the
Board of Communications and the Secretary of Public Works and Communications and their successors
(NTC) do not imply the abrogation of the requirement of obtaining a franchise. It should be noted that
under Act No. 3846, as amended, a person, firm or entity desiring to operate a radio broadcasting station
must obtain the following:

(a) a franchise from Congress

(b) a permit to construct or install a station from the Secretary of Commerce and Industry
(c) a license to operate the station also from the Secretary of Commerce and Industry

Shortly after the petitioner filed a petition in congress, their application was not discussed therefore
making moot of their application for franchise. The NTC wrote a letter to them telling them to comply with
the requirement of acquiring the franchise from congress which the petitioner claimed to not have
received. The NTC notified the petitioner and other affected companies again that they lacked
requirements to be given permits to continue operation. The NTC also did proper procedure by posting on
the Philippine star a Circular regarding the procedure to reacquire permits to operate radio and tv
stations. The petitioners operations (channel 25) were stopped, their renewal for permits to operate were
denied and the assigned channel (25) to the petitioner was recalled.

Issue: Whether it was necessary to get the franchise from congress to operate a television station.
Whether or not the NTC lacked in doing the proper procedure to execute the denial of permit, the
termination of operations of channel 25

Held: The Petition was DENIED due to the following:

1.) There were no conflicts in the law regarding the requirements from congress and from the
NTC

a. The legal principle that when there are conflicting laws, they are construed liberally
as to try to keep the two applicable

2.) The NTC was not reasonable in terminating operations of channel since it did all its actions
within proper procedure.