Question & AnswerQ&A (Republic Act No. 8685)
The franchise grants PEC Broadcasting Corporation the right to construct, install, establish, operate, and maintain radio and/or television stations anywhere in the Philippines for commercial purposes and in the public interest, subject to constitution and laws.
The grantee must commence operations within one year from NTC permit approval, operate continuously for two years, and commence operations within three years from the effectivity of the Act.
NTC must approve and issue permits and licenses for construction and operation of stations; the grantee cannot use frequencies without NTC authorization; NTC cannot unreasonably delay or withhold approvals.
In times of war, rebellion, public peril, calamity, emergency, disaster, or peace and order disturbance for public safety, security, and welfare with due compensation to the grantee.
The grantee must avoid broadcasting obscene or indecent language, willful misrepresentation, false information, or materials inciting subversive or treasonable acts; they must also provide balanced programming and public service time.
The grantee must file a bond with the NTC to guarantee compliance with franchise conditions; failure to comply results in forfeiture of the bond and franchise revocation.
The franchise cannot be leased, transferred, sold, assigned, or merged without prior approval of Congress; any transferee must comply with the original conditions and limitations.
A network operating three or more radio and/or television stations, which triggers the requirement to publicly offer at least 30% of its outstanding capital stock within five years.
The grantee must not require prior censorship but must cut off broadcasts inciting treason, rebellion, sedition, or containing indecent or immoral content to avoid franchise cancellation.
The franchise is valid for 25 years from the date of effectivity of the Act, unless sooner revoked or cancelled.