Question & AnswerQ&A (Republic Act No. 8214)
Republic Act No. 8214 grants Mr. Amado L. Ola a franchise to construct, install, establish, operate, and maintain radio and television broadcasting stations in the Philippines for commercial purposes and in the public interest.
The franchise is granted for a term of twenty-five (25) years from the date of effectivity of the Act, unless sooner revoked or cancelled.
The franchise is ipso facto revoked if the grantee fails to commence operations within one (1) year from the approval of its permit by the National Telecommunications Commission, fails to operate continuously for two (2) years, or fails to commence operations within three (3) years from the effectivity of the Act.
The grantee must secure permits and licenses from the National Telecommunications Commission (NTC) and is prohibited from using any frequency without authorization from the Commission.
The grantee must provide adequate public service time for government information, ensure sound and balanced programming, assist in public information and education, conform to honest enterprise ethics, and refrain from broadcasting obscene, indecent, false, or subversive content.
The President may temporarily take over and operate the stations, suspend operations, or authorize government agency use of the stations during war, rebellion, emergencies, or disturbances upon due compensation to the grantee.
Yes. The grantee cannot lease, transfer, sell, or assign the franchise or its rights without prior approval from the Congress of the Philippines, except for dispersal of ownership as provided by law.
The grantee must offer at least 30% of its outstanding capital stock in any Philippine securities exchange within five (5) years after achieving national broadcasting network status, defined as operating three or more stations.
The grantee must pay taxes on properties as others do, in addition to paying either value-added tax under RA 7716 or a franchise tax of 5% per annum on gross receipts, whichever is higher, plus income taxes under existing tax laws.
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 is valid cause for franchise cancellation.
The grantee is required to submit an annual report to Congress within sixty (60) days after each calendar year on its compliance with franchise terms and operations.
If any provision is invalidated, all other unaffected provisions shall remain valid according to the separability clause.