Franchise for Southern Broadcasting Network

RA 8147 grants Southern Broadcasting Network, its successors or assigns, the right and privilege to construct, install, establish, and operate commercial radio and television broadcasting stations in the Philippines, subject to applicable laws and constitutional limits.

It is subject to the Constitution and to provisions not inconsistent with Act No. 3846 (regulation of radio stations), Commonwealth Act No. 146 (Public Service Act), and their amendments, and other applicable laws.

In times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order.

Yes. It requires due compensation to the grantee for the use of the stations during the period they are operated.

The President may permit construction of the stations (or any of them) on public domain land, subject to terms and conditions the President prescribes.

It continues for 25 years from the date the first of the stations is placed in operation.

The franchise shall be void unless construction is begun two (2) years from approval of the Act and completed within four (4) years from the same date.

The grantee must file a bond of P200,000 to guarantee full compliance with franchise conditions.

If after two (2) years from approval the grantee has fulfilled the conditions, or as soon thereafter as the grantee fulfills them, the government shall cancel the bond.

The grantee shall not require any previous censorship of any speech, play, or other matter to be broadcast.

During any broadcast, the grantee may cut off content if its tendency is to propose and/or incite treason, rebellion, or sedition, or if the language/theme is indecent or immoral.

It does not take effect, and no power thereunder may be exercised, until the National Telecommunications Commission (NTC) allots the frequencies/channels and issues a license for their use.

On reasonable notice, it may change, cancel, or modify in whole or in part the allotments whenever, in its judgment, the public interest requires that frequencies be used for other purposes (by government or other licensed entities), or for any reason the public interest so requires.

Stations must be constructed and operated, and frequencies selected, to avoid interference with existing stations and to permit expansion of the grantee’s services.

The grantee must hold national, provincial, and municipal governments harmless from all claims or actions arising from accidents or injuries (to persons or property) caused by the construction or operation of its stations.

It states no private property shall be taken without proper condemnation proceedings and just compensation; and the franchise authority to take/occupy land is limited to land required for the actual necessary purposes of the franchise.

The grantee must keep accounts of gross receipts and furnish a copy to the Commission on Audit Chairman and the Treasurer of the Philippines not later than January 31 each year for the preceding year; its books are subject to official inspection and audit, and the audit/approval is final and conclusive evidence of gross receipts, subject to appeal to courts under laws of the Philippines.

After the audit and approval of accounts, within ten (10) days, the grantee must pay the Treasurer of the Philippines 3% of all gross receipts from business transacted under the franchise; franchise tax is stated to be in lieu of other taxes, license fees, and administrative supervisory/regulatory fees (except real property taxes under 14(a) and income taxes).

The grantee cannot lease, transfer, grant usufruct of, sell, or assign the franchise (or rights/privileges acquired) nor merge with another for the same purpose without Congress’ approval first had.