Question & AnswerQ&A (Republic Act No. 7963)
The Cebu Broadcasting Company, its successors or assigns, is granted the franchise to operate radio and television broadcasting stations in the Philippines.
The franchise is granted for a term of twenty-five (25) years from the date of approval of the Act, unless sooner revoked or cancelled.
If the grantee fails to operate continuously for two (2) years, the franchise shall be deemed ipso facto revoked.
The grantee must secure the appropriate permits and licenses from the National Telecommunications Commission (NTC) before using any frequency.
The grantee must provide reasonable public service time for government use, offer sound and balanced programming, promote public participation, assist in public information and education, conform to ethics of honest enterprise, and avoid broadcasting obscene, indecent, false, or subversive content.
The President of the Philippines may temporarily take over and operate the stations, suspend operation, or authorize government use during rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order with due compensation.
The grantee must pay a franchise tax equivalent to three percent (3%) of all gross receipts from the radio/television business transacted under the franchise.
At least thirty percent (30%) of the common stock must be offered to the public within three years, with no single person or entity allowed to own more than five percent (5%) of the stock offerings.
No, the grantee cannot lease, transfer, sell, assign, or merge the franchise or control ownership without prior approval from Congress.
The grantee must cut off any speech, play, act, or scene that incites treason, rebellion, sedition, or contains indecent or immoral language or themes.
The grantee shall hold the government harmless from all claims arising out of accidents or injuries caused by the construction or operation of their stations.
No, the franchise is not exclusive and may be amended, altered, or repealed by Congress when public interest requires.
The Act takes effect fifteen (15) days after its publication in at least two newspapers of general circulation in the Philippines.