Question & AnswerQ&A (Republic Act No. 9478)
The Free Air Broadcasting Network Corp. is granted the franchise under Republic Act No. 9478.
The franchise is granted to construct, install, establish, operate, and maintain radio and/or television broadcasting stations in the Philippines for commercial purposes and in the public interest.
The franchise is granted for a term of twenty-five (25) years from the date of effectivity of the Act unless revoked or cancelled earlier.
The franchise shall be ipso facto revoked if the grantee fails to commence operations within one year from the approval of its operating permit by the NTC, fails to operate continuously for two years, or fails to commence operations within three years from the effectivity of the Act.
No, the franchise is nontransferable. The grantee shall not lease, transfer, sell, assign, or merge the franchise or controlling interest without prior approval from Congress. Any violation results in automatic revocation of the franchise.
The grantee must secure appropriate permits and licenses from the National Telecommunications Commission (NTC) and cannot use any frequency without prior authorization from the Commission.
The President may temporarily take over, suspend, or authorize government agency use of the stations/facilities during war, rebellion, public peril, calamity, emergency, disaster, or peace disturbances, with due compensation to the grantee.
The grantee must not broadcast obscene or indecent material, deliberately false information, or content inciting subversive or treasonable acts. They must immediately cut off the broadcast of content inciting treason, rebellion, sedition, or containing indecent or immoral language or themes.
Any aggrieved person has the right to reply in the same or any other program using the grantee's facilities to respond to any remarks, reports, statements, or commentary they find objectionable.
The grantee must file a bond in favor of the NTC to guarantee compliance with the franchise conditions. The amount is determined by the NTC. Failure to fulfill the conditions after three years from the permit approval leads to forfeiture of the bond and automatic revocation of the franchise.
The grantee is subject to all taxes, duties, fees, or charges under the National Internal Revenue Code and other applicable laws. They must file tax returns in the locality of their principal place of business, and these returns are subject to audit by the Bureau of Internal Revenue.
Any advantage, favor, privilege, exemption, or immunity granted under existing or future franchises (except taxes) shall immediately and unconditionally apply to the grantee, except those concerning franchise territory, lifespan, or service type.
The grantee must submit an annual report to Congress within sixty (60) days from the end of each year detailing compliance with franchise terms and operational status.
If any section or provision is held invalid, all other unaffected provisions shall remain valid and effective.
Congress may amend, alter, or repeal the franchise at any time when the public interest requires and the franchise is not exclusive.