QuestionsQuestions (Republic Act No. 10954)
RA 9214 grants Newsounds Broadcasting Network, Inc. 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, using frequencies/channels available, including microwave, satellite, or other means and new technologies, with required broadcast and distribution services and relay stations.
The stations/facilities must be constructed and operated in a manner that results only in minimum interference on wavelengths/frequencies of existing stations or other stations established by law, without diminishing the grantee’s right to use its selected wavelengths/frequencies and the quality of transmission/reception.
The grantee must secure appropriate permits and licenses from the NTC and must not use any frequency without authorization. The NTC shall not unreasonably withhold or delay the grant of such authority.
The grantee must provide adequate public service time for government to reach the population on important issues; provide sound and balanced programming; assist public information and education; conform to ethics of honest enterprise; not broadcast obscene/indecent language or deliberately false information/willful misrepresentation to the detriment of public interest; and not incite, encourage, or 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 grantee’s stations/facilities, temporarily suspend operations, or authorize government agencies to temporarily use and operate them upon due compensation.
The franchise lasts 25 years from effectivity unless sooner revoked/cancelled. It is deemed ipso facto revoked if the grantee fails to: commence operations within 1 year from approval of its NTC operating/provisional authority; operate continuously for 2 years; and commence operations within 3 years from the effectivity of the Act.
Acceptance must be 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 with franchise conditions. If after 3 years from NTC permit approval the conditions are fulfilled, the bond is cancelled; otherwise it is forfeited in favor of the government and the franchise is ipso facto revoked.
No previous censorship is required for speech/play/act/scene or other matters to be broadcast. However, during any broadcast, the grantee must cut off from the air any matter that tends to incite treason/rebellion/sedition, or is indecent or immoral; willful failure is a valid cause for cancellation.
The grantee must hold national, provincial, city, and municipal governments free from claims, accounts, demands, or actions arising from accidents or injuries (to property or persons) caused by construction or operation of the grantee’s stations.
The grantee may not lease, transfer, grant usufruct of, sell, assign, or merge, nor transfer controlling interest (whole or in parts, whether simultaneously or contemporaneously) to another entity without prior approval of Congress, except as allowed by the specified provisos (e.g., certain share issuances/dilution in connection with capital increase; transfers/sales of shares to investors; transfers to a holding company with identical stockholders; combinations for raising capital/financing) consistent with constitutional limitations.
Once it has status of a national broadcasting network (operates 3+ media/TV stations), the grantee must publicly offer at least 30% of its common stocks within 5 years. No single person/entity may own more than 5% of the stock offered. Also, an offer through the Philippine stock exchange of at least 30% of the number of shares of a holding company owning a majority of the grantee’s capital stock is deemed compliance. Non-compliance renders the franchise ipso facto revoked.
No. The grantee is not exempt from any tax obligations to the government.
The grantee must comply with and be subject to a general broadcast policy law that Congress may enact in the future.
The grantee must submit an annual report to Congress on compliance with franchise terms/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.