124626-1998-Telecommunications and Broadcast Attorneys of
124626-1998-Telecommunications and Broadcast Attorneys of
124626-1998-Telecommunications and Broadcast Attorneys of
SYNOPSIS
Section 11 (b) of R.A. No. 6646 prohibits the sale or donation of print space or air
time for political ads, except to the Commission on Elections. Petitioners challenge the
validity thereof on the ground (1) that it takes property without due process of law and
without just compensation; (2) that it denies radio and television broadcast companies the
equal protection of the laws; and (3) that it is in excess of the power given to the
COMELEC to supervise or regulate the operation of media of communication or
information during the period of election. AICHaS
Radio and television broadcasting companies do not own the airwaves and
frequencies through which they transmit broadcast signals and images. They are merely
given the temporary privilege of using them or franchise, the exercise of the which may
reasonably be burdened with the performance by the grantee of some form of public
service, such as providing print space or air time to Comelec. Section 92 of B.P. Blg. 881
must be deemed incorporated in R.A. No. 7252 granting GMA Network, Inc. a franchise
and does not constitute denial of due process and that B.P. Blg. 881, §92 is not an invalid
amendment of petitioner's franchise but the enforcement of a duty voluntarily assumed by
petitioner in accepting a public grant of privilege.
An administrative agency cannot, in the exercise of lawmaking, amend a statute of
Congress. Therefore §2 of Resolution No. 2983-A of the Comelec providing for payment of
just compensation is invalid.
B.P. Blg. 881, §92 does not single out radio and television stations in providing free
air time. There are important differences in the characteristics of the broadcast media and
the print media, which justify their differential treatment for free speech purposes.
The freedom of television and radio broadcasting is somewhat lesser in scope than
the freedom accorded to newspaper and print media.
What the COMELEC is authorized to supervise or regulate by Art. IX-C, §4 of the
Constitution, among other things, is the use by media of information of their franchises or
permits, while what Congress (not the COMELEC) prohibits is the sale or donation of print
space or air time for political ads. In other words, the object of supervision or regulation is
different from the object of the prohibition.
SYLLABUS
DECISION
MENDOZA , J : p
In Osmeña v. COMELEC , G.R. No. 132231, decided March 31, 1998, 1 we upheld the
validity of §11(b) of R.A. No. 6646 which prohibits the sale or donation of print space or air
time for political ads, except to the Commission on Elections under §90, of B.P. No. 881,
the Omnibus Election Code, with respect to print media, and §92, with respect to
CD Technologies Asia, Inc. 2018 cdasiaonline.com
broadcast media. In the present case, we consider the validity of §92 of B.P. Blg. No. 881
against claims that the requirement that radio and television time be given free takes
property without due process of law; that it violates the eminent domain clause of the
Constitution which provides for the payment of just compensation; that it denies
broadcast media the equal protection of the laws; and that, in any event, it violates the
terms of the franchise of petitioner GMA Network, Inc. dctai
Thus, the law prohibits mass media from selling or donating print space and air time
to the candidates and requires the COMELEC instead to procure print space and air time
for allocation to the candidates. It will be noted that while §90 of B.P. Blg. 881 requires the
COMELEC to procure print space which, as we have held, should be paid for, §92 states
that air time shall be procured by the COMELEC free of charge.
Petitioners contend that §92 of BP Blg. 881 violates the due process clause 6 and
the eminent domain provision 7 of the Constitution by taking air time from radio and
television broadcasting stations without payment of just compensation. Petitioners claim
that the primary source of revenue of the radio and television stations is the sale of air
time to advertisers and that to require these stations to provide free air time is to
authorize a taking which is not "a de minimis temporary limitation or restraint upon the use
of private property." According to petitioners, in 1992, the GMA Network, Inc. lost
P22,498,560.00 in providing free air time of one (1) hour every morning from Mondays to
Fridays and one (1) hour on Tuesdays and Thursdays from 7:00 to 8:00 p.m. (prime time)
and, in this year's elections, it stands to lose P58,980,850.00 in view of COMELEC's
requirement that radio and television stations provide at least 30 minutes of prime time
daily for the COMELEC Time. 8
Petitioners' argument is without merit. All broadcasting, whether by radio or by
television stations, is licensed by the government. Airwave frequencies have to be
allocated as there are more individuals who want to broadcast than there are frequencies
to assign. 9 A franchise is thus a privilege subject, among other things, to amendment by
Congress in accordance with the constitutional provision that "any such franchise or right
granted . . . shall be subject to amendment, alteration or repeal by the Congress when the
common good so requires." 1 0
The idea that broadcast stations may be required to provide COMELEC Time free of
charge is not new. It goes back to the Election Code of 1971 (R.A. No. 6388), which
provided:
SEC. 49. Regulation of election propaganda through mass media. — (a)
The franchises of all radio broadcasting and television stations are hereby
amended so as to require each such station to furnish free of charge, upon
request of the Commission [on Elections], during the period of sixty days before
the election not more than fteen minutes of prime time once a week which shall
be known as "Comelec Time" and which shall be used exclusively by the
Commission to disseminate vital election information. Said "Comelec Time" shall
be considered as part of the public service time said stations are required to
furnish the Government for the dissemination of public information and
education under their respective franchises or permits.
This provision was carried over with slight modi cation by the 1978 Election Code
(P.D. No. 1296), which provided:
SEC. 46. COMELEC Time. — The Commission [on Elections] shall procure
radio and television time to be known as "COMELEC Time" which shall be
allocated equally and impartially among the candidates within the area of
coverage of said radio and television stations. For this purpose, the franchises of
all radio broadcasting and television stations are hereby amended so as to require
such stations to furnish the Commission radio or television time, free of charge,
during the period of the campaign, at least once but not oftener than every other
CD Technologies Asia, Inc. 2018 cdasiaonline.com
day.
Substantially the same provision is now embodied in §92 of B.P. Blg. 881.
Indeed, provisions for COMELEC Time have been made by amendment of the
franchises of radio and television broadcast stations and, until the present case was
brought, such provisions had not been thought of as taking property without just
compensation. Art. XII, §11 of the Constitution authorizes the amendment of franchises
for "the common good." What better measure can be conceived for the common good
than one for free air time for the bene t not only of candidates but even more of the
public, particularly the voters, so that they will be fully informed of the issues in an
election? "[I]t is the right of the viewers and listeners, not the right of the broadcasters,
which is paramount." 1 1
Nor indeed can there be any constitutional objection to the requirement that
broadcast stations give free air time. Even in the United States, there are responsible
scholars who believe that government controls on broadcast media can constitutionally be
instituted to ensure diversity of views and attention to public affairs to further the system
of free expression. For this purpose, broadcast stations may be required to give free air
time to candidates in an election. 1 2 Thus, Professor Cass R. Sunstein of the University of
Chicago Law School, in urging reforms in regulations affecting the broadcast industry,
writes:
Elections. We could do a lot to improve coverage of electoral campaigns.
Most important, government should ensure free media time for candidates.
Almost all European nations make such provision; the United States does not.
Perhaps government should pay for such time on its own. Perhaps broadcasters
should have to offer it as a condition for receiving a license. Perhaps a
commitment to provide free time would count in favor of the grant of a license in
the rst instance . Steps of this sort would simultaneously promote attention to
public affairs and greater diversity of view. They would also help overcome the
distorting effects of "soundbites" and the corrosive nancial pressures faced by
candidates in seeking time on the media. 1 3
In truth, radio and television broadcasting companies, which are given franchises, do
not own the airwaves and frequencies through which they transmit broadcast signals and
images. They are merely given the temporary privilege of using them. Since a franchise is a
mere privilege, the exercise of the privilege may reasonably be burdened with the
performance by the grantee of some form of public service. Thus, in De Villata v. Stanley, 1 4
a regulation requiring interisland vessels licensed to engage in the interisland trade to
carry mail and, for this purpose, to give advance notice to postal authorities of date and
hour of sailings of vessels and of changes of sailing hours to enable them to tender mail
for transportation at the last practicable hour prior to the vessel's departure, was held to
be a reasonable condition for the state grant of license. Although the question of
compensation for the carriage of mail was not in issue, the Court strongly implied that
such service could be without compensation, as in fact under Spanish sovereignty the mail
was carried free. 15
I n Philippine Long Distance Telephone Company v . NTC , 1 6 the Court ordered the
PLDT to allow the interconnection of its domestic telephone system with the international
gateway facility of Eastern Telecom. The Court cited (1) the provisions of the legislative
franchise allowing such interconnection; (2) the absence of any physical, technical, or
economic basis for restricting the linking up of two separate telephone systems; and (3)
CD Technologies Asia, Inc. 2018 cdasiaonline.com
the possibility of increase in the volume of international tra c and more e cient service,
at more moderate cost, as a result of interconnection.
Similarly, in the earlier case of PLDT v. NTC , 1 7 it was held:
Such regulation of the use and ownership of telecommunications systems is in
the exercise of the plenary police power of the State for the promotion of the
general welfare. The 1987 Constitution recognizes the existence of that power
when it provides:
"Sec. 6. The use of property bears a social function, and all
economic agents shall contribute to the common good. Individuals and
private groups, including corporations, cooperatives, and similar collective
organizations, shall have the right to own, establish, and operate economic
enterprises, subject to the duty of the State to promote distributive justice
and to intervene when the common good so demands" (Article XII).
The interconnection which has been required of PLDT is a form of
"intervention" with property rights dictated by "the objective of government to
promote the rapid expansion of telecommunications services in all areas of the
Philippines, . . . to maximize the use of telecommunications facilities available, . .
. in recognition of the vital role of communications in nation building . . . and to
ensure that all users of the public telecommunications service have access to all
other users of the service wherever they may be within the Philippines at an
acceptable standard of service and at reasonable cost" (DOTC Circular No. 90-
248). Undoubtedly, the encompassing objective is the common good. The NTC,
as the regulatory agency of the State, merely exercised its delegated authority to
regulate the use of telecommunications networks when it decreed
interconnection.
It is unfortunate that in the effort to show that there is taking of private property
worth millions of pesos, the unsubstantiated charge is made that by its decision the Court
permits the "grand larceny of precious time," and allows itself to become "the people's
unwitting oppressor." The charge is really unfortunate. In Jackman v. Rosenbaum Co., 2 1
Justice Holmes was so incensed by the resistance of property owners to the erection of
party walls that he was led to say in his original draft, "a statute, which embodies the
community's understanding of the reciprocal rights and duties of neighboring landowners,
does not need to invoke the petty larceny of the police power in its justi cation." Holmes's
brethren corrected his taste, and Holmes had to amend the passage so that in the end it
spoke only of invoking "the police power." 2 2 Justice Holmes spoke of the "petty larceny" of
the police power. Now we are being told of the "grand larceny [by means of the police
power] of precious air time."
Giving Free Air Time a Duty Assumed by Petitioner
Petitioners claim that §92 is an invalid amendment of R.A. No. 7252 which granted
GMA Network, Inc. a franchise for the operation of radio and television broadcasting
stations. They argue that although §5 of R.A. No. 7252 gives the government the power to
temporarily use and operate the stations of petitioner GMA Network or to authorize such
use and operation, the exercise of this right must be compensated.
The cited provision of R.A. No. 7252 states:
SEC. 5. Right of Government. — A special right is hereby reserved to the
President of the Philippines, in times of rebellion, public peril, calamity,
emergency, disaster or disturbance of peace and order, to temporarily take over
CD Technologies Asia, Inc. 2018 cdasiaonline.com
and operate the stations of the grantee, to temporarily suspend the operation of
any station in the interest of public safety, security and public welfare, or to
authorize the temporary use and operation thereof by any agency of the
Government, upon due compensation to the grantee, for the use of said stations
during the period when they shall be so operated.
The basic aw in petitioner's argument is that it assumes that the provision for
COMELEC Time constitutes the use and operation of the stations of the GMA Network,
Inc. This is not so. Under §92 of B.P. Blg. 881, the COMELEC does not take over the
operation of radio and television stations but only the allocation of air time to the
candidates for the purpose of ensuring, among other things, equal opportunity, time, and
the right to reply as mandated by the Constitution. 2 3
Indeed, it is wrong to claim an amendment of petitioner's franchise for the reason
that B.P. Blg. 881, which is said to have amended R.A. No. 7252, actually antedated it. 2 4
The provision of §92 of B.P. Blg. 881 must be deemed instead to be incorporated in R.A.
No. 7252. And, indeed, §4 of the latter statute does.
For the fact is that the duty imposed on the GMA Network, Inc. by its franchise to
render "adequate public service time" implements §92 of B.P. Blg. 881. Undoubtedly, its
purpose is to enable the government to communicate with the people on matters of public
interest. Thus, R.A. No. 7252 provides:
SEC. 4. Responsibility to the Public. — The grantee shall provide adequate
public service time to enable the Government, through the said broadcasting
stations, to reach the population on important public issues; provide at all times
sound and balanced programming; promote public participation such as in
community programming; assist in the functions of public information and
education; conform to the ethics of honest enterprise; and not use its station for
the broadcasting of obscene and indecent language, speech, act or scene, or for
the dissemination of deliberately false information or willful misrepresentation, or
to the detriment of the public interest, or to incite, encourage, or assist in
subversive or treasonable acts. (Emphasis added)
It is noteworthy that §49 of R.A. No. 6388, from which §92 of B.P. Blg. 881 was
taken, expressly provided that the COMELEC Time should "be considered as part of the
public service time said stations are required to furnish the Government for the
dissemination of public information and education under their respective franchises or
permits." There is no reason to suppose that §92 of B.P. Blg. 881 considers the COMELEC
Time therein provided to be otherwise than as a public service which petitioner is required
to render under §4 of its charter (R.A. No. 7252). In sum, B.P. Blg. 881, §92 is not an invalid
amendment of petitioner's franchise but the enforcement of a duty voluntarily assumed by
petitioner in accepting a public grant of privilege.
Thus far, we have con ned the discussion to the provision of §92 of B.P. Blg. 881
for free air time without taking into account COMELEC Resolution No. 2983-A, §2 of which
states:
SEC. 2. Grant of "Comelec Time". — Every radio broadcasting and television
station operating under franchise shall grant the Commission, upon payment of
just compensation, at least thirty (30) minutes of prime time daily, to be known as
"Comelec Time", effective February 10, 1998 for candidates for President, Vice-
President and Senators, and effective March 27, 1998, for candidates for local
elective offices, until May 9, 1998. (Emphasis added)
CD Technologies Asia, Inc. 2018 cdasiaonline.com
This is because the amendment providing for the payment of "just compensation" is
invalid, being in contravention of §92 of B.P. Blg. 881 that radio and television time
given during the period of the campaign shall be "free of charge." Indeed, Resolution No.
2983 originally provided that the time allocation shall be "free of charge," just as §92
requires such time to be given "free of charge." The amendment appears to be a
reaction to petitioners' claim in this case that the original provision was
unconstitutional because it allegedly authorized the taking of property without just
compensation.
The Solicitor General, relying on the amendment, claims that there should be no
more dispute because the payment of compensation is now provided for. It is basic,
however, that an administrative agency cannot, in the exercise of lawmaking, amend a
statute of Congress. Since §2 of Resolution No. 2983-A is invalid, it cannot be invoked by
the parties.
Law Allows Flextime for Programming by Stations, Not Con scation of Air Time by
COMELEC
It is claimed that there is no standard in the law to guide the COMELEC in procuring
free air time and that "theoretically the COMELEC can demand all of the air time of such
stations." 2 5 Petitioners do not claim that COMELEC Resolution No. 2983-A arbitrarily
sequesters radio and television time. What they claim is that because of the breadth of the
statutory language, the provision in question is susceptible of "unbridled, arbitrary and
oppressive exercise." 2 6
The contention has no basis. For one, the COMELEC is required to procure free air
time for candidates "within the area of coverage" of a particular radio or television
broadcaster so that it cannot, for example, procure such time for candidates outside that
area. At what time of the day and how much time the COMELEC may procure will have to
be determined by it in relation to the overall objective of informing the public about the
candidates, their quali cations and their programs of government. As stated in Osmeña v.
COMELEC , the COMELEC Time provided for in §92, as well as the COMELEC Space
provided for in §90, is in lieu of paid ads which candidates are prohibited to have under
§11(b) of R.A. No. 6646. Accordingly, this objective must be kept in mind in determining
the details of the COMELEC Time as well as those of the COMELEC Space.
There would indeed be objection to the grant of power to the COMELEC if §92 were
so detailed as to leave no room for accommodation of the demands of radio and
television programming. For were that the case, there could be an intrusion into the
editorial prerogatives of radio and television stations.
Differential Treatment of Broadcast Media Justified
Petitioners complain that B.P. Blg. 881, §92 singles out radio and television stations
to provide free air time. They contend that newspapers and magazines are not similarly
required as, in fact, in Philippine Press Institute v. COMELEC 2 7 we upheld their right to the
payment of just compensation for the print space they may provide under §90.
The argument will not bear analysis. It rests on the fallacy that broadcast media are
entitled to the same treatment under the free speech guarantee of the Constitution as the
print media. There are important differences in the characteristics of the two media,
however, which justify their differential treatment for free speech purposes. Because of the
physical limitations of the broadcast spectrum, the government must, of necessity,
CD Technologies Asia, Inc. 2018 cdasiaonline.com
allocate broadcast frequencies to those wishing to use them. There is no similar
justification for government allocation and regulation of the print media. 2 8
In the allocation of limited resources, relevant conditions may validly be imposed on
the grantees or licensees. The reason for this is that, as already noted, the government
spends public funds for the allocation and regulation of the broadcast industry, which it
does not do in the case of the print media. To require the radio and television broadcast
industry to provide free air time for the COMELEC Time is a fair exchange for what the
industry gets.
From another point of view, this Court has also held that because of the unique and
pervasive in uence of the broadcast media, "[n]ecessarily . . . the freedom of television and
radio broadcasting is somewhat lesser in scope than the freedom accorded to newspaper
and print media." 2 9
The broadcast media have also established a uniquely pervasive presence
in the lives of all Filipinos. Newspapers and current books are found only in
metropolitan areas and in the poblaciones of municipalities accessible to fast
and regular transportation. Even here, there are low income masses who nd the
cost of books, newspapers, and magazines beyond their humble means. Basic
needs like food and shelter perforce enjoy high priorities.
On the other hand, the transistor radio is found everywhere. The television
set is also becoming universal. Their message may be simultaneously received by
a national or regional audience of listeners including the indifferent or unwilling
who happen to be within reach of a blaring radio or television set. The materials
broadcast over the airwaves reach every person of every age, persons of varying
susceptibilities to persuasion, persons of different I.Q.s and mental capabilities,
persons whose reactions to in ammatory or offensive speech would be di cult
to monitor or predict. The impact of the vibrant speech is forceful and immediate.
Unlike readers of the printed work, the radio audience has lesser opportunity to
cogitate, analyze, and reject the utterance. 3 0
Petitioners' assertion therefore that §92 of B.P. Blg. 881 denies them the equal
protection of the law has no basis. In addition, their plea that §92 (free air time) and §11(b)
of R.A. No. 6646 (ban on paid political ads) should be invalidated would pave the way for a
return to the old regime where moneyed candidates could monopolize media advertising
to the disadvantage of candidates with less resources. That is what Congress tried to
reform in 1987 with the enactment of R.A. No. 6646. We are not free to set aside the
judgment of Congress, especially in light of the recent failure of interested parties to have
the law repealed or at least modified.
Requirement of COMELEC Time, a Reasonable Exercise of the State's Power to
Regulate Use of Franchises
Finally, it is argued that the power to supervise or regulate given to the COMELEC
under Art. IX-C, §4 of the Constitution does not include the power to prohibit. In the rst
place, what the COMELEC is authorized to supervise or regulate by Art. IX-C, §4 of the
Constitution, 3 1 among other things, is the use by media of information of their franchises
or permits, while what Congress (not the COMELEC) prohibits is the sale or donation of
print space or air time for political ads. In other words, the object of supervision or
regulation is different from the object of the prohibition. It is another fallacy for petitioners
to contend that the power to regulate does not include the power to prohibit. This may
have force if the object of the power were the same.
CD Technologies Asia, Inc. 2018 cdasiaonline.com
In the second place, the prohibition in §11(b) of R.A. No. 6646 is only half of the
regulatory provision in the statute. The other half is the mandate to the COMELEC to
procure print space and air time for allocation to candidates. As we said in Osmeña v.
COMELEC .
The term political "ad ban," when used to describe §11(b) of R.A. No. 6646,
is misleading, for even as §11(b) prohibits the sale or donation of print space and
air time to political candidates, it mandates the COMELEC to procure and itself
allocate to the candidates space and time in the media. There is no suppression
of political ads but only a regulation of the time and manner of advertising.
Narvasa, C .J ., Regalado, Davide, Jr., Bellosillo, Melo, Puno, Kapunan, Martinez and
Quisumbing, JJ., concur.
Separate Opinions
ROMERO , J ., dissenting :
I assent in most part to the well-considered opinion written by Mr. Justice Vicente V.
Mendoza in his ponencia, particularly, in holding that petitioner TELEBAP lacks locus standi
in ling the instant petition and in declaring that Section 92 of Batas Pambansa Blg. 881 is
a legitimate exercise of police power of the State.
The grant of franchise to broadcast media is a privilege burdened with
responsibilities. While it is, primordially, a business enterprise, it nevertheless, also
addresses in many ways certain imperatives of public service. In Stone vs. Mississippi
(101, U.S. 814, cited in Cruz, Constitutional Law, 1995 ed., p. 40.), a case involving a
franchise to sell lotteries which petitioner claims to be a contract which may not be
impaired, the United States Supreme Court opined.
" . . . (T)he Legislature cannot bargain away the police power of a State.
CD Technologies Asia, Inc. 2018 cdasiaonline.com
Irrevocable grants of property and franchises may be made if they do not impair
the supreme authority to make laws for the right government of the State; but no
Legislature can curtail the power of its successors to make such laws as they
may deem proper in matters of police. . .
dctai
In this case, the assailed law, in my view, has not failed in meeting the standards set
forth for its lawful exercise, i.e., (a) that its utilization is demanded by the interests of the
public, and (b) that the means employed are reasonably necessary, and not unduly
oppressive, for the accomplishment of the purposes and objectives of the law.
I cannot consider COMELEC Resolution No. 2983-A, particularly Section 2 thereof,
as being in contravention of B.P. No. 881. There is nothing in the law that prohibits the
COMELEC from itself procuring airtime, perhaps longer than that which can reasonably be
allocated, if it believes that in so opting, it does so for the public good.
I vote to DISMISS the petition.
PANGANIBAN , J ., dissenting :
"In a 1968 opinion, the American Supreme Court made clear that the
absence of such reasonable and de nite standards in a legislation of its
character is fatal. Where, as in the case of the above paragraphs, the majority of
the Court could discern 'an overbreadth that makes possible oppressive or
capricious application' of the statutory provisions, the line dividing the valid from
the constitutionally in rm has been crossed . Such provisions offend the
constitutional principle that 'a governmental purpose to control or prevent
activities constitutionally subject to state regulation may not be achieved by
means which sweep unnecessarily broadly and thereby invade the area of
protected freedoms.'
"It is undeniable, therefore, that even though the governmental purpose be
legitimate and substantial, they cannot be pursued by means that broadly sti e
fundamental personal liberties when the end can be more narrowly achieved. For
precision of regulation is the touchstone in an area so closely related to our most
precious freedoms." 1 5
As a rule, a statute may be said to be vague and invalid if "it leaves law enforcers (in
this case, the Comelec) unbridled discretion in carrying our its provisions and becomes an
arbitrary flexing of the government muscle." 1 6
Moreover, the extent of the actual taking of air time is enormous, exorbitant and
unreasonable. In their Memorandum, 1 7 petitioners allege (and this has not been rebutted
at all) that during the 1992 election period, GMA Network has been compelled to donate
P22,498,560 worth of advertising revenues; and for the current election period, GMA
stands to lose a staggering P58,980,850. Now, clearly and most obviously, these amounts
are not inconsequential or de minimis. They constitute arbitrary taking on a grand scale!
American jurisprudence is replete with citations showing that "[l]egislative regulation
of public utilities must not have the effect of depriving an owner of his property without
due process of law, nor of con scating or appropriating private property without due
process of law, nor of con scating or appropriating private property without just
compensation, nor of limiting or prescribing irrevocably vested rights or privileges lawfully
acquired under a charter or franchise." The power to regulate is subject to these
constitutional limits. 1 8 Consequently, "rights under a franchise cannot be taken or
damaged for a public use without the making of just compensation therefor." 1 9 To do so
is clearly beyond the power of the legislature to regulate.
II
ASSUMING THAT THE STATE OWNS AIR LANES,
BROADCAST COMPANIES ALREADY PAY RENTAL THEREFOR.
Let me grant for the moment and for the sake of argument that the State owns the
air lanes and that, by its grant of a franchise, it should thus receive compensation for the
CD Technologies Asia, Inc. 2018 cdasiaonline.com
use of said frequencies. I say, however, that by remitting unreasonably high "annual fees
and charges," which as earlier stated amounts to millions of pesos yearly, television
stations are in effect paying rental fees for the use (not just the regulation) of said
frequencies. Except for the annual inspection conducted by the NTC, no other signi cant
service is performed by the government in exchange for the enormous fees charged the
stations. Evidently, the sums collected by the NTC exceed the cost of services performed
by it, and are therefor more properly understood as rental fees for the use of the
frequencies granted them. 2 0
Since the use of the air frequencies is already paid for annually by the broadcast
entities, there is no basis for the government, through the Comelec, to compel unbridled
donation of the air time of said companies without due process and without payment of
just compensation. dctai
In fact, even in the case of state-owned resources referred to earlier — like oil,
minerals and coal — once the license to exploit and develop them is granted to a private
corporation, the government can no longer arbitrarily con scate or appropriate them
gratis under the guise of serving the common good. Crude oil, for instance, once
explored, drilled, and re ned is thereafter considered the property of the authorized
explorer (or refiner) which can sell it to the public and even to the government itself. The
State simply cannot demand free gasoline for the operation of public facilities even if
they benefit the people in general. It still has to pay compensation therefor.
III
AIRWAVES USELESS WITHOUT HUGE
INVESTMENT OF BROADCAST COMPANIES
Setting up and operating a credible broadcasting network requires billions of pesos
in investments. It is precisely the broadcast licensee's use of a state-granted franchise or
privilege which occasions its acquisition of private property in the form of broadcast
facilities and its production of air time. These properties are distinct from its franchise. 2 1
The 1996 Audited Consolidated Balance Sheet of Petitioner GMA, on le with the SEC,
shows that its "property and equipment," which it uses in its broadcast function, amount to
over one billion pesos or, to be exact, P1,245,741,487. 2 2 This does not include the cost of
producing the programs to be broadcast, talent fees and other aspects of broadcasting. In
their Memorandum, 2 3 petitioners explain that the total cost for GMA to stay on the air (for
television) at present is approximately P136,100 per hour, which includes electricity,
depreciation, repairs and maintenance, technical facilities, salaries, and so on. The point is:
The franchise holders can recover their huge investments only by selling air time to
advertisers. This is their "product," their valuable property which Section 92 forcibly takes
from them in massive amounts without payment of just compensation.
It is too simplistic to say that because the Constitution allows Congress to alter
franchises, ergo, an unbridled taking of private property may be allowed. If such
appropriation were only, to use the words of PPI vs. Comelec, de minimis or insigni cant —
say, one hour once or twice a month — perhaps, it can be justi ed by the promotion of the
"common good." But a taking in the gargantuan amount of over P58 million from Petitioner
GMA for the 1998 election season alone is an actual seizure of its private investment, and
not at all a reasonable "compensation" or "alteration" for the "common good." Certainly, this
partakes of CONFISCATION of private property.
Note should be made, too, of the fact that what Section 92 takes away is air time. Air
time is the " nished product" after a station uses its own broadcast facilities. The
frequency is just the specific "route" or "channel" by which this medium reaches the TV sets
of the general public. Technically, therefore, the wholesale alteration by Section 92 of all
broadcast franchises would appear unrelated to the compelled donations. While the
express modi cation is in the franchise, what Section 92 really does is that it takes away
the end product of the facilities which were set up through the use of the entrepreneurs'
investments and the broadcasters' work.
EPILOGUE
By way of epilogue, I must point out that even Respondent Comelec expressly
recognizes the need for just compensation. Thus, Section 2 of its Resolution No. 2983-A
states that "[e]very radio broadcasting and television station operating under franchise
shall grant the Commission, upon payment of just compensation, at least thirty (30)
minutes of prime time daily to be known as 'Comelec Time' . . ." And yet, even with such a
judicious legal position taken by the very agency tasked by the Constitution to administer
elections, the majority still insists on an arbitrary seizure of precious property produced
and owned by private enterprise.
That Petitioner GMA is a viable, even pro table, enterprise 2 4 is no argument for
seizing its pro ts. The State cannot rob the rich to feed the poor in the guise of promoting
the "common good." Truly, the end never justifies the means.
It cannot be denied that the amount and the extent of the air time demanded from
GMA is huge and exorbitant, amounting, I repeat, to over P58 million for the 1998 election
season alone. If the air time required from "every radio and television station" in the country
in the magnitude stated in the aforesaid Comelec Resolution 2983-A is added up and
costed, the total would indeed be staggering — in several hundred million pesos.
Smacking of undisguised discrimination is the fact that in PPI vs. Comelec, this
Court has required payment of print media ads but, in this case, compels broadcast
stations to donate their end product on a massive scale. The simplistic distinction given —
that radio and TV stations are mere grantees of government franchises while newspaper
companies are not — does not justify the grand larceny of precious air time. This is a
violation not only of private property, but also of the constitutional right to equal protection
itself. The proffered distinction between print and broadcast media is too insigni cant and
too imsy to be a valid justi cation for the discrimination. The print and broadcast media
are equal in the sense that both derive their revenues principally from paid ads. They
should thus be treated equally by the law in respect of such ads.
To sum up , the Bill of Rights of our Constitution expressly guarantees the following
rights:
1. No person, whether rich or poor, shall be deprived of property without due
process. 2 5
2. Such property shall not be taken by the government, even for the use of
the general public, without rst paying just compensation to the
CD Technologies Asia, Inc. 2018 cdasiaonline.com
owner. 2 6
3. No one, regardless of social or nancial status, shall be denied equal
protection of the law. 2 7
The majority, however, peremptorily brushes aside all these sacred guarantees and
prefers to rely on the nebulous legal theory that broadcast stations are mere recipients of
state-granted franchises which can be altered or withdrawn anytime or otherwise
burdened with post facto elephantine yokes. By this short-circuited rationalization, the
majority blithely ignores the private entrepreneurs' billion-peso investments and the
broadcast professionals' grit and toil in transforming these invisible franchises into
merchandisable property; and conveniently forgets the grim reality that the taking of
honestly earned media assets is unbridled, exorbitant and arbitrary. Worse, the
government, 2 8 against which these constitutional rights to property were in the rst place
written, prudently agrees to respect them and to pay adequate compensation for their
taking. But ironically, the majority rejects the exemplary observance by the government of
the people's rights and insists on the confiscation of their private property.
I have always believed that the Supreme Court is the ever vigilant guardian of the
constitutional rights of the citizens and their ultimate protector against the tyrannies of
their own government. I am afraid that by this unfortunate Decision, the majority, in this
instance, has instead converted this honorable and majestic Court into the people's
unwitting oppressor.
WHEREFORE, I vote to GRANT the petition and to declare Section 92 of the Omnibus
Election Code UNCONSTITUTIONAL and VOID.
Purisima, J., concurs.
Footnotes
1. Reiterated in Kapisanan ng mga Broadkaster sa Pilipinas (Negros Occidental Chapter) v.
COMELEC, (res.), G.R. No. 132749, April 2, 1998.
2. Emergency Powers Cases [Araneta v. Dinglasan ], 84 Phil. 368 (1949), Iloilo Palay and Corn
Planters Ass'n v. Feliciano , 121 Phil. 358 (1965); Philconsa v. Gimenez , 122 Phil. 894
(1965); CLU v. Executive Secretary , 194 SCRA 317 (1991).
3. Lawyers League for a Better Philippines v. Aquino , G.R. Nos. 73748, 73972 and 73990, May
22, 1986; In re Bermudez, 145 SCRA 160 (1986); Tatad v. Garcia, Jr. , 243 SCRA 436, 473
(1995) (Mendoza, J., concurring).
7. Id., §9 provides: "Private Property shall not be taken for public use without just
compensation."
8. Memorandum for Petitioners, pp. 21-28.
9. Eastern Broadcasting Corp. (DYRE) v. Dans, Jr ., 137 SCRA 628 (1985); Red Lion
Broadcasting Corp. Co. v. FCC , 395 U.S. 367, 23 L.Ed.2d. 371 (1969). See The Radio Act
(Act No. 3846, as amended), §3(c) & (d).
10. Art. XII, §11.
11. Red Lion Broadcasting Corp. v. FCC, 395 U.S. at 390, 23 L.Ed.2d at 389.
12. E.g., OWEN M. FISS, THE IRONY OF FREE SPEECH 2-3 (1996) ("Surely the state can be an
oppressor, but it may also be a source of freedom. . . In some instances,
instrumentalities of the state will try to sti e free and open debate, and the First
Amendment is the tried-and-true mechanism that stops or prevents such abuse of state
power. In other instances, however, the state may have to further the robustness of
public debate. . . It may have to allocate public resources. . . to those whose voices
would not otherwise be heard in the public square."); CASS R. SUNSTEIN, DEMOCRACY
AND THE PROBLEM OF FREE SPEECH 50-51 (1993) ("The idea that threats to speech
stem from the government is undoubtedly correct, but as usually understood, it is far too
simple. Sometimes threats come from what seems to be the private sphere, and, much
more fundamentally, these threats could not be made without legal entitlements that
enable some private actors but not others to speak and to be heard. . . [Government
regulation] may therefore be necessary.")
13. CASS R. SUNSTEIN, id. at 85 (emphasis added).
14. 32 Phil. 541 (1915).
15. The Court said:
Considerable expenditures of public money have been made in the past and
continue to be made annually for the purpose of securing the safety of vessels plying
in Philippine waters. [Here the Court enumerated many government facilities to make
the coastwise transportation safe.] Can it be fairly contended that a regulation is
unreasonable which requires vessels licensed to engage in the interisland trade, in
whose behalf the public funds are so lavishly expended, to hold themselves in
readiness to carry the public mails when duly tendered for transportation, and to give
such reasonable notice of their sailing hours as will insure the prompt dispatch of all
mails ready for delivery at the hours thus designated? Id., at 552.
24. B.P. Blg. 881 took effect on Dec. 3, 1985, whereas R.A. No. 7252 took effect on March 20,
1992.
25. Memorandum for Petitioners, p. 17.
26. Ibid.
27. 244 SCRA 272 (1995).
28. In the United States, because of recognition of these differences in the characteristics of
news media, it has been held that broadcast stations may be required to give persons
subjected to personal attack during discussion of an important public issue the right to
reply (Red Lion Broadcasting Corp. v. FCC, 395 U.S. 367, 23 L.Ed.2d 371 (1969)), but a
similar "right of reply" is inapplicable to newspapers. It was pointed out that a statute
providing for such right "operates as a command in the same sense as a statute or
regulation forbidding [the newspaper] to publish speci ed matter. . . [It] exacts a penalty
on the basis of the content of a newspaper. The rst phase of the penalty [is] exacted in
terms of the cost in printing and in taking up space that could be devoted to other
material the newspaper may have preferred to print. . . [Faced with such a penalty,]
editors might well conclude that the safe course is to avoid controversy. . . [Thus, the
government-enforced] right of access inescapably 'dampens the vigor and limits the
variety of public debate.'" ( Miami Herald Pub. Co. v. Tornillo , 418 U.S. 241, 4 L.Ed.2d 730
(1974))
29. Eastern Broadcasting (DYRE) Corporation v. Dans, Jr., 137 SCRA at 635.
30. Id. at 635-636.
31. This provision reads: "The Commission may, during the election period, supervise or
CD Technologies Asia, Inc. 2018 cdasiaonline.com
regulate the enjoyment or utilization of all franchises or permits for the operation of
transportation and other public utilities, media of communication or information, all
grants, special privileges, or concessions granted by the Government or any subdivision,
agency, or instrumentality thereof, including any government-owned or controlled
corporation or its subsidiary. Such supervision or regulation shall aim to ensure equal
opportunity, time, and space, and the right to reply, including reasonable, equal rates
therefor, for public information campaigns and forums among candidates in connection
with the objective of holding free, orderly, honest, peaceful, and credible elections."
13. Supra.
14. See Section 11, Article XII of the 1987 Constitution.
PANGANIBAN, J., dissenting:
1. §92 of BP Blg. 881 (Omnibus Election Code) provides:
"Sec. 92. Comelec time. — The Commission shall procure radio and
television time to be known as "Comelec Time" which shall be allocated equally
and impartially among the candidates within the area of coverage of all radio and
television stations. For this purpose, the franchise of all radio broadcasting and
television stations are hereby amended so as to provide radio or television time,
free of charge, during the period of the campaign."
8. Ibid., §5.
9. Ibid., §8 citing Los Angeles v. Los Angeles Gas & Electric Corp., 251 US 32, 64 L ed. 121, 40 S
Ct 76; United States v. Brooklyn Union Gas Co. (CA 2 NY) 168 F 2d 391; South California
Gas Co. v. Los Angeles, 50 Cal 2d 713, 329 P 2d 289. Also in Eight Ave. Coach Corp. v.
New York, 286 NY 84, 35 NE 2d 907.
10. See footnote no. 3.
11. 36 Am Jur 2d, §8 Franchises, citing Grand Turk Western R . Co. v. South Bend, 227 US 544,
57 L ed. 633, 33 S Ct 303; Wilcox Consolidated Gas Co., 212 US 19, 53 L ed. 382, 29 S Ct
192; Wilmington & W . R. Co. v. Reid, 13 Wall (US) 264, 20 L ed 568; Arkansas State
Highway Commission v. Arkansas Power & Light Co., 231 Ark 307, 330 SW 2d 77; and
others.
12. §11, Art. XII of the Constitution provides:
"Sec. 11. No franchise, certificate, or any other form of authorization for the
operation of a public utility shall be granted except to citizens of the Philippines
or to corporations or associations organized under the laws of the Philippines at
least sixty per centum of whose capital is owned by such citizens, nor shall such
franchise, certi cate or authorization be exclusive in character or for a longer
period than fty years. Neither shall any such franchise or right be granted except
under the condition that it shall be subject to amendment, alteration, or repeal by
the Congress when the common good so requires. The State shall encourage
equity participation in public utilities by the general public. The participation of
foreign investors in the governing body of any public utility enterprise shall be
limited to their proportionate share in its capital, and all the executive and
managing o cers of such corporation or association must be citizens of the
Philippines.
13. 244 SCRA at p. 279.
14. Blo Umpar Adiong v. Comelec, 207 SCRA 712, 719, March 31, 1992, per Gutierrez, J ., cited
in Memorandum for Petitioners, p. 15.
15. Gonzales vs. Comelec, 27 SCRA 835, 871, April 18, 1969, per Fernando, J .
16. People vs. Nazario, 165 SCRA 186, 195, August 31, 1988, per Sarmiento, J .
17. See pp. 20-27 for the detailed computation.
18. Agbayani, Aguedo F., Commentaries and Jurisprudence on the Commercial Laws of the
Philippines, p. 560, 1993 ed.; citing Fisher vs. Yangco Steamship Company, 31 Phil 1,
(1915), referring to Chicago etc. R. Co. vs. Minnesota, 134 U.S. 418, Minneapolis Eastern
R. Co. vs. Minnesota, 134 U.S. 467, Chicago etc. R. Co. vs. Wellman, 143 U.S. 339, Smyth
vs. Ames, 169 U.S. 466, 524, Henderson Bridge Co. vs. Henderson City, 173 U.S. 592, 614.
21. 36 Am Jur 2d pp. 724 and 727; citing Gordon v Appeal Tax Ct . 3 How (US) 133, 11 L ed.
529; Bridgeport v New York & N . H . R. Co., 36 Conn 255; Consolidated Gas Co. v
Baltimore, 101 Md 541, 61 A 532.
22. In the case of ABS-CBN Broadcasting Corporation, the amount is much larger:
P3,196,912,000, per its Audited Consolidated Financial Report as of December 31, 1996,
on file with the SEC.
23. At p. 20. See also Annex B of said Memorandum.
24. This is not to say that all broadcast networks are pro table. A comparative study of their
Financial Statements on file with the SEC shows that a majority are not really profitable.
25. §1, Art. III of the Constitution.