QuestionsQuestions (Republic Act No. 7963)
RA 7963 grants the Cebu Broadcasting Company (and its successors/assigns) the franchise, subject to the Constitution and existing laws, to construct, install, operate, and maintain radio and television broadcasting stations for commercial purposes and in the public interest, including technological auxiliaries/facilities, special broadcast/broadcast distribution services, relay stations, and communication facilities for its private use in its broadcast services.
The existing and future stations/facilities must be constructed and operated to result in minimum interference on wavelengths/frequencies of other stations established by law, without diminishing its own right to use its selected frequencies and without reducing the quality of transmission/reception, maximizing service rendition and/or availability.
The grantee must secure from the National Telecommunications Commission (NTC) the appropriate permits and licenses for its stations; it may not use any frequency in the radio/TV spectrum without NTC authorization. The NTC must not unreasonably withhold or delay the authority.
The grantee must provide reasonable public service time for the government to reach the population on important public issues; provide at all times sound and balanced programming; promote public participation such as community programming; assist public information and education functions; conform to ethics of honest enterprise; and must not broadcast obscene/indecent language or deliberately false information/willful misrepresentation to the detriment of public interest, or incite/encourage/assist subversive or treasonable acts.
In times of rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, the President may temporarily take over and operate the stations, temporarily suspend operations of any station for public safety/security/public welfare, or authorize temporary government agency use and operation upon due compensation during the period of such government action.
The franchise term is 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 is deemed ipso facto revoked.
The grantee must give written acceptance within sixty (60) days after approval. Upon acceptance, it may exercise the privileges. Nonacceptance renders the franchise void.
The grantee pays the same taxes on its real estate, buildings, and personal property (exclusive of this franchise) as other persons/corporations. It also pays a franchise tax equivalent to 3% of all gross receipts from the radio/TV business transacted under the franchise, in lieu of all taxes on this franchise or earnings therefrom; however, it remains liable for income taxes under Title 11 of the NIRC pursuant to Section 2 of Executive Order No. 72 unless amended or repealed.
The grantee must file the return with and pay the tax to the Commissioner of Internal Revenue or his duly authorized representative under the NIRC, and the return is subject to audit by the Bureau of Internal Revenue.
Within three (3) years from effectivity, the grantee must make a public offering through the stock exchanges of at least 30% of its common stock. No single person or entity may own more than 5% of the stock offerings.
The grantee shall not require previous censorship of any speech/play/act/scene or other matter broadcast/telecast. However, it must cut off from the air any speech/play/act/scene or matter if its tendency is to propose/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 harmless the national, provincial, and municipal governments from claims, accounts, demands, or actions arising out of accidents or injuries (to property or persons) caused by the construction or operation of its stations.
The grantee cannot lease, transfer, grant usufruct, sell, or assign the franchise or rights/privileges acquired, nor transfer control of ownership, nor merge without prior approval of Congress. Any transferee/control transferee must be subject to all conditions and limitations of the Act.
If any section/provision is held invalid, all other provisions not affected remain valid.
Section 14 requires compliance with and being subject to any general broadcast policy law Congress may enact in the future. Section 15 states the franchise is subject to amendment/alteration/repeal by Congress when public interest requires, and it is nonexclusive (not an exclusive grant of the privileges).
It takes effect fifteen (15) days from publication in at least two (2) newspapers of general circulation in the Philippines.