Question & AnswerQ&A (Republic Act No. 8718)
The Baycomms Broadcasting Corporation is granted the franchise under Republic Act No. 8718.
The franchise allows Baycomms Broadcasting Corporation to construct, install, establish, operate, and maintain commercial radio and/or television broadcasting stations throughout the Island of Mindanao.
The stations or facilities must be operated so as to result only in the minimum interference on the wavelengths or frequencies of existing stations or legally established stations, without diminishing their own transmission quality or rights to use their selected wavelengths or frequencies.
They must secure the appropriate permits and licenses from the National Telecommunications Commission and must not use any frequency without authorization from the Commission.
They must provide adequate public service time to the government for important public issues, maintain sound and balanced programming, assist in public information and education, conform to honest enterprise ethics, and avoid broadcasting obscene, indecent, false, or subversive content.
The President may temporarily take over or suspend operations during times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, with due compensation to the grantee.
The franchise is granted for twenty-five (25) years from the date of effectivity of the Act unless sooner revoked or cancelled.
The franchise shall be ipso facto revoked if the grantee fails to commence operations within one (1) year from NTC permit approval, fails to operate continuously for two (2) years, or fails to commence operations within three (3) years from the effectivity of the Act.
Yes, any sale, lease, transfer, grant of usufruct, assignment, merger, or transfer of controlling interest requires prior approval of the Congress of the Philippines.
The grantee must offer at least thirty percent (30%) of its outstanding capital stock in any Philippine securities exchange within five (5) years from achieving the status of a national broadcasting network (defined as operating three or more stations). Noncompliance results in ipso facto revocation.
The grantee shall pay the same taxes on their properties as other firms, pay value-added tax under RA 7716 on gross receipts, and continue paying income taxes as per the National Internal Revenue Code and applicable executive orders.
The grantee shall not require prior censorship but must cut off from the air any broadcast that incites treason, rebellion, sedition, or contains indecent or immoral language or themes. Failure to do so may lead to franchise cancellation.
The grantee must file a bond with the National Telecommunications Commission to guarantee compliance. If conditions are unmet after three (3) years from NTC permit approval, the bond shall be forfeited, and the franchise revoked.
The grantee must submit an annual report to Congress on compliance with the franchise terms and operations within sixty (60) days after each year-end.
Yes, the franchise is subject to amendment, alteration, or repeal by Congress when public interest requires, and it is not an exclusive grant.