Question & AnswerQ&A (Republic Act No. 8717)
The main purpose of Republic Act No. 8717 is to grant E.M. Orosco & Sons, Inc. 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 grantee must construct and operate stations or facilities in a way that results only in minimum interference with wavelengths or frequencies of existing stations or other stations established by law, without diminishing its right to use its selected wavelengths or frequencies and maintaining the quality of transmission or reception.
The grantee must secure the appropriate permits and licenses from the National Telecommunications Commission (NTC) before constructing and operating its stations and facilities, and must not use any frequency without authorization from the NTC.
The grantee must provide adequate public service time for government communication, ensure sound and balanced programming, assist in public information and education, adhere to honest enterprise ethics, and avoid broadcasting obscene or indecent content or deliberately false information that harms the public interest or incites subversive acts.
The President may temporarily take over, suspend operations, or authorize government agency use of the grantee's stations during war, rebellion, public peril, calamity, emergency, disaster, or disturbances of peace and order, with due compensation to the grantee.
The franchise is granted for a term of twenty-five (25) years from the date of effectivity, unless revoked or cancelled sooner.
The franchise is automatically 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 Act's effectivity.
The grantee must pay the same taxes on real estate, buildings, and personal property as others, pay value-added tax on gross receipts from the radio/television business, and continue paying income taxes under the National Internal Revenue Code.
The grantee shall not require prior censorship but must cut off broadcasts that incite treason, rebellion, or sedition, or contain indecent or immoral content; failure to do so may result in franchise cancellation.
No, the grantee cannot lease, transfer, sell, assign, or merge its franchise or controlling interest without prior approval from the Congress of the Philippines.
The grantee must offer at least 30% of its outstanding capital stock in a Philippine securities exchange within five (5) years of becoming a national broadcasting network, defined as operating three or more radio or television stations, or else the franchise is revoked.
The grantee must submit an annual report to Congress on its compliance with franchise terms and operations within 60 days after the end of each year.
It takes effect fifteen (15) days after its publication in at least two newspapers of general circulation in the Philippines.