QuestionsQuestions (Republic Act No. 8718)
RA 8718 grants Baycomms Broadcasting Corporation (and its successors/assigns) a franchise, subject to the Constitution and applicable laws, to construct, install, establish, operate and maintain radio and/or television broadcasting stations throughout the Island of Mindanao where frequencies/channels are available, including technological auxiliaries, special broadcast/program distribution services, and relay stations, for commercial purposes and in the public interest.
They must be constructed and operated to result at most in minimum interference on the wavelengths/frequencies of existing stations or stations that may be established by law. This must not diminish the franchisee’s right to use its selected wavelengths/frequencies and must maximize the quality/availability of its services.
The franchisee must secure from the National Telecommunications Commission (NTC) the appropriate permits and licenses for construction and operation. It cannot use any frequency in the radio/television spectrum without NTC authorization, which the NTC should not unreasonably withhold or delay.
It must provide adequate public service time to enable government reach on important public issues, provide at all times sound and balanced programming, assist public information and education functions, conform to ethics of honest enterprise, and not broadcast obscene/indecent content or deliberately false information/willful misrepresentation to the detriment of public interest, nor incite/encourage/assist subversive or treasonable acts.
In times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, the President may temporarily take over and operate the stations/facilities, temporarily suspend their operation for public safety/security/welfare, or authorize temporary use/operation by any government agency upon due compensation to the grantee.
The text states the radio spectrum is finite, part of national patrimony, and its use is a privilege conferred by the State that may be withdrawn anytime after due process.
The term is 25 years from the date of effectivity unless sooner revoked or cancelled. It is deemed ipso facto revoked if the grantee fails to comply with: (1) commence operations within 1 year from approval of its NTC permit; (2) operate continuously for 2 years; and (3) commence operations within 3 years from the effectivity of the Act.
Acceptance must be given in writing within 60 days after effectivity. Upon acceptance, the grantee may exercise the franchise privileges. Nonacceptance renders the franchise void.
The grantee is liable for the same taxes on real estate/buildings and personal property exclusive of the franchise as other persons/corporations. It must also pay VAT under RA 7716, as amended, on all gross receipts of its radio/TV business transacted under the franchise. It remains liable for income taxes under Title II of the NIRC pursuant to EO 72 unless amended/repealed.
The grantee must file returns with and pay taxes due to the Commissioner of Internal Revenue (or authorized representatives) in accordance with the NIRC, and its returns are subject to audit by the Bureau of Internal Revenue.
The grantee shall not require previous censorship of any speech/play/act/scene or other matter to be broadcast. However, during any broadcast, it must cut off from the air any speech/play/act/scene or other matter if the tendency is to propose/incite treason, rebellion, or sedition, or if the language/theme is indecent or immoral; willful failure allows cancellation of the franchise.
The grantee must hold national, provincial, and municipal governments harmless from claims, accounts, demands, or actions arising from accidents or injuries (to property or persons) caused by the construction or operation of its stations.
The grantee cannot lease, transfer, grant usufruct, sell, or assign the franchise/rights, nor merge with another entity, nor transfer controlling interest (whole or in parts, and even simultaneously or contemporaneously) to any person/entity without prior approval of Congress. Any transferee must be subject to the same conditions/limitations of the Act.
The grantee must offer at least 30% of outstanding capital stock (or higher percentage required by later law in an appropriate exchange) within 5 years from achieving status as a national broadcasting network. A national broadcasting network is defined as operating 3 or more radio and/or TV stations. Noncompliance renders the franchise ipso facto revoked.
It must comply with and be subject to a general broadcast policy law which Congress may enact in the future.
The grantee must submit an annual report to Congress on compliance with franchise terms and on its operations within 60 days from the end of every year.