Question & AnswerQ&A (Republic Act No. 8623)
The Nation Broadcasting Corporation is granted the franchise under Republic Act No. 8623.
The franchise grants the authority to construct, install, establish, operate, and maintain radio and television broadcasting stations throughout the Philippines for commercial purposes and in the public interest.
The grantee must operate in a way that results only in minimum interference to other stations, secure necessary permits and licenses from the National Telecommunications Commission, provide balanced programming, avoid broadcasting obscene or false information, and assist in public information and education.
The NTC must grant the appropriate permits and licenses for the construction and operation of the grantee's stations and facilities and authorize the use of frequencies, without unreasonably withholding or delaying approvals.
In times of war, rebellion, public peril, calamity, or disturbance of peace and order, the President may temporarily take over, operate, suspend, or authorize government use of the grantee's stations or facilities, with due compensation to the grantee.
The franchise is granted for twenty-five (25) years from the date of effectivity, unless sooner revoked or canceled.
The franchise will be revoked if the grantee fails to commence operations within one year from NTC approval, fails to operate continuously for two years, fails to commence operations within three years from effectivity, or fails to comply with dispersal of ownership requirements within five years after becoming a national broadcasting network.
The grantee must provide adequate public service time for government use, maintain balanced and sound programming, support public information and education, and refrain from broadcasting obscene, indecent, false, or subversive content.
The grantee must pay taxes on real estate, buildings, personal property, and value-added tax on gross receipts from its broadcasting business, as well as income taxes under applicable laws.
The grantee cannot lease, transfer, sell, assign, or merge the franchise or controlling interest without prior approval from Congress, with specific exceptions concerning share issuances or sales for capital raising provided they comply with constitutional limitations.
The grantee must not require prior censorship but must cut off broadcasts that incite treason, rebellion, sedition, or contain indecent or immoral language or themes. Failure to do so may lead to franchise cancellation.
The grantee holds the national and local governments harmless from all claims arising out of accidents or injuries caused by the construction or operation of their stations.
The grantee must submit an annual report to Congress on its compliance with the franchise's terms and on its operations.
The grantee must accept the franchise in writing within sixty days from the effectivity of the Act; failure to accept renders the franchise void.
A national broadcasting network is defined as one which operates three or more radio and/or television stations.