Question & AnswerQ&A (Republic Act No. 8213)
GHT Network, Inc. is granted the franchise under Republic Act No. 8213.
The franchise allows GHT Network, Inc. to construct, install, establish, operate, and maintain radio and/or television broadcasting stations for commercial purposes and in the public interest in the Philippines.
The franchise covers multi-channel multi-point distribution system (MMDS), local multi-channel multi-point distribution system (LMDS), and other future technologies in broadcasting for telecasting and broadcasting of various television programs.
The operation must result only in minimum interference on the wavelengths or frequencies of existing stations or new stations, without diminishing the grantee's rights to its frequencies or quality of transmission.
The grantee must secure appropriate permits and licenses from the National Telecommunications Commission (NTC) and must not use any frequency without authorization from the Commission.
The grantee must provide adequate public service time, sound and balanced programming, assist government public information and education functions, conform to ethical standards, and avoid broadcasting obscene, indecent, false, or subversive content.
During times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, the President can temporarily take over or suspend operation of the stations to protect public safety, with due compensation to the grantee.
The franchise is valid for 25 years from the date of effectivity of the Act unless revoked or cancelled earlier.
The franchise is automatically revoked if the grantee fails to commence operations within one year after NTC permit approval, fails to operate continuously for two years, or fails to commence operations within three years from the Act's effectivity.
The grantee must pay taxes on real estate, buildings, and personal property like other taxpayers, a value-added tax or a franchise tax of 5% on gross receipts (whichever is higher), and income taxes under the National Internal Revenue Code.
No, the grantee cannot lease, transfer, sell, assign, or merge its franchise or controlling interest without prior approval from the Congress of the Philippines.
The grantee must offer at least 30% of its outstanding capital stock in the Philippines securities exchange within five years after becoming a national broadcasting network (defined as operating three or more stations). Noncompliance leads to automatic franchise revocation.
The grantee must not require prior censorship but must cut off broadcasts that incite treason, rebellion, sedition, or contain indecent or immoral content; failure to do so can lead to franchise cancellation.
The invalidity of any section does not affect the remaining provisions, which shall remain valid.
No, the franchise is nonexclusive and subject to amendment, alteration, or repeal by Congress in the public interest.
The grantee must submit an annual report to Congress on compliance with franchise terms and operations within 60 days after the end of each year.