Question & AnswerQ&A (Republic Act No. 8451)
The Baganian Broadcasting Corporation is granted the franchise to construct, install, establish, operate, and maintain radio and/or television broadcasting stations throughout the Philippines.
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 shall be deemed ipso facto revoked if the grantee: (a) fails to commence operations within one (1) year from the approval of its permit by the National Telecommunications Commission; (b) fails to operate continuously for two (2) years; or (c) fails to commence operations within three (3) years from the effectivity of the Act.
The grantee must secure appropriate permits and licenses from the NTC for the construction and operation of its stations and facilities and must obtain authorization from the Commission to use any frequency. The NTC shall not unreasonably withhold or delay such authority.
The grantee must provide adequate public service time for the government to reach the population on important public issues, ensure sound and balanced programming, assist in public information and education, conform to ethics of honest enterprise, and avoid broadcasting obscene, indecent, deliberately false information, or content inciting subversion or treason.
In times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, the President can temporarily take over, suspend operation, or authorize government use of the stations, with due compensation to the grantee.
The grantee must pay regular taxes on real estate, buildings, and personal property, plus either the value-added tax (VAT) under Republic Act No. 7716 or a franchise tax of five percent (5%) per annum on all gross receipts of the broadcasting business, whichever is higher, along with income taxes as required under existing laws.
No prior censorship is required. However, the grantee must cut off from the air any broadcast that incites treason, rebellion, or sedition, or contains indecent or immoral language or themes. Failure to do so may result in cancellation of the franchise.
No. Any transfer, lease, sale, assignment, merger, or transfer of controlling interest requires prior approval from the Congress of the Philippines, and the new entity is subject to the same conditions of the franchise.
The grantee must offer at least 30% of its outstanding capital stock to the public in securities exchanges within five (5) years after achieving the status of a national broadcasting network (operating three or more stations). Noncompliance results in automatic revocation of the franchise.