QuestionsQuestions (Republic Act No. 9652)
RA 9652 grants the franchise to construct, install, establish, operate, and maintain radio and/or television broadcasting stations in the Philippines for commercial purposes and in the public interest, including use of frequencies/channels still available, and covering related services such as digital broadcasting, IP-related services, IP value-added services, and distribution/relay services through microwave, satellite, or other means/new technology.
It must be operated in a manner that results at most in minimum interference with the wavelengths/frequencies of existing stations or those that may be established by law, without diminishing its own right to use selected wavelengths/frequencies and the quality of transmission or reception.
The grantee must secure from the National Telecommunications Commission (NTC) the necessary permits and licenses for construction and operation, and it must not use any frequency in the radio/TV spectrum without NTC authorization.
No. Section 3(a) states that the NTC shall not unreasonably withhold or delay the grant of authority.
The grantee must provide adequate public service time for government information on important issues; provide sound and balanced programming; assist in public information and education; conform to ethical and honest enterprise standards; and not broadcast obscene/indecent content or deliberately false/willfully misrepresented information to the detriment of the 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, temporarily suspend operations, or authorize temporary use/operation by a government agency upon due compensation.
It states that the radio spectrum is finite, part of national patrimony, and its use is a privilege conferred by the State that may be withdrawn anytime after due process.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 franchise term is 25 years from the date of effectivity of the Act.
The franchise is deemed ipso facto revoked if the grantee fails to: (1) commence operations within one year from approval of its operating permit by the NTC; (2) operate continuously for two years; and/or (3) commence operations within three years from effectivity of the Act.
The grantee must give written acceptance within 60 days from effectivity and then exercise the franchise privileges. Nonacceptance renders the franchise void.
The bond, issued in favor of the NTC, guarantees compliance with franchise conditions. After three years from NTC permit approval, if the grantee fulfilled the conditions, the bond shall be cancelled; otherwise, it is forfeited and the franchise ipso facto revoked.
The grantee shall not require previous censorship. However, during any broadcast, it must cut off from the air any speech/play/act/scene or other matter if it tends to incite treason, rebellion, or sedition, or if the language/theme is indecent or immoral; willful failure to do so is a valid cause for cancellation of the franchise.
The grantee must hold the national, provincial, city, and municipal governments harmless from claims arising from accidents or injuries (to property or persons) caused by construction or operation of the grantee’s stations.
No transfer/assignment/lease/usufruct/sale of the franchise or rights is allowed, and controlling interest cannot be transferred without prior approval of Congress. Any party to which it is sold/transferred/assigned is subject to the same conditions of the Act.
The grantee must offer at least 30% of its outstanding capital stock (or higher if later required by law) in any Philippine securities exchange within five years from achieving “national broadcasting network” status. A national broadcasting network is defined as operating three or more radio and/or television stations. Noncompliance results in ipso facto revocation.
Any advantage/favor/privilege/exemption/immunity in existing or future broadcasting franchises becomes part of RA 9652 and must be accorded immediately and unconditionally to the grantee. Exceptions: it does not apply to provisions concerning territory covered, franchise life span, or type of service authorized.
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.