QuestionsQuestions (Republic Act No. 9171)
RA 9171 grants Muslim Development Multipurpose Cooperative (and its successors/assigns) a franchise to construct, install/establish, operate and maintain for commercial purposes and in the public interest radio broadcasting stations in the Philippines, including use of microwave, satellite, or other means/technologies, with technological auxiliaries, special broadcast/program/distribution services, and relay stations, where frequencies are still available.
It must be constructed and operated to result in only minimum interference on wavelengths/frequencies of existing stations or those legally established, without diminishing its own right to use selected wavelengths/frequencies and without reducing transmission/reception quality necessary to maximize service and availability.
The grantee must secure appropriate permits and licenses from the NTC and cannot use any frequency in the radio spectrum without NTC authorization; however, the NTC shall not unreasonably withhold or delay such authority.
The grantee must provide adequate public service time for government to reach the population on important public issues; maintain sound and balanced programming; assist in public information and education; conform to the ethics of honest enterprise; and must 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 operations, or authorize temporary government use of the facilities upon due compensation during the period of such government operation.
The franchise 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 (1) commence operations within 1 year from approval of its operating permit/provisional authority by the NTC; (2) operate continuously for 2 years; and (3) commence operations within 3 years from effectivity of the Act.
Acceptance must be given in writing within 60 days from effectivity; upon acceptance, the grantee exercises the franchise privileges. Non-acceptance renders the franchise void.
The grantee must file a bond in favor of the NTC to guarantee compliance. If, after 3 years from NTC permit approval, it fulfilled the conditions, the bond is cancelled; otherwise, the bond is forfeited to the government and the franchise is ipso facto revoked.
The grantee is subject to all taxes, duties, fees, and other impositions under the NIRC (as amended) and other applicable laws. It preserves specific tax exemptions/incentives granted under relevant law and extends rights/benefits/exemptions accorded to existing and future telecommunications franchises. It must file income tax returns where facilities are located and pay the income tax to the BIR, subject to audit.
The grantee shall not require previous censorship. 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/sedition or is indecent/immoral; willful failure to do so is a valid cause for cancellation of the franchise.
Any person aggrieved by a remark/report/commentary/statement by broadcasters using the grantee’s facilities has the right to reply in the same program or any other program the aggrieved party may choose.
The grantee holds the national, provincial, city, and municipal governments harmless from claims/actions arising from accidents or injuries (to property or persons) caused by construction or operation of the stations.
No. The grantee cannot lease, transfer, grant usufruct of, sell, assign the franchise or its rights/privileges, merge, or transfer controlling interest (whole or in parts) to another entity without prior approval of Congress. Any assignee must be subject to the same conditions as the Act.
At least 30% of outstanding capital stock (or higher if later required by law in a securities exchange in the Philippines) must be offered within 5 years from achieving the status of a national broadcasting network (defined as operating 3 or more radio and/or television stations). Noncompliance renders the franchise ipso facto revoked.
The grantee must submit an annual report to Congress on compliance with franchise terms and conditions and on its operations within 60 days from the end of every year.
It takes effect 15 days from the date of its publication, upon the initiative of the grantee, in at least two (2) newspapers of general circulation in the Philippines.