Question & AnswerQ&A (Republic Act No. 8116)
The Vimcontu Broadcasting Corporation is granted the franchise under Republic Act No. 8116.
The franchise allows Vimcontu Broadcasting Corporation to construct, install, operate, and maintain commercial radio and television broadcasting stations, including technological auxiliaries, special broadcast services, relay stations, and private communications facilities within the Philippines.
The stations must be constructed and operated to cause only minimum interference with other stations' frequencies without diminishing the quality of their own transmission or reception.
Yes, they must secure appropriate permits and licenses from the National Telecommunications Commission and cannot use any frequency without its authorization.
They must provide reasonable public service time for government information, maintain sound and balanced programming, promote public participation, assist in public education and information, conform to ethical standards, and avoid broadcasting obscene, indecent, false, or subversive content.
The President may temporarily suspend station operations or authorize government use of the stations during rebellion, public peril, calamity, or other emergencies, with due compensation to the grantee.
The franchise is granted for twenty-five (25) years from the date of approval unless revoked or cancelled earlier.
The franchise shall be deemed ipso facto revoked.
They must pay taxes on their properties like other entities and are subject to a 3% franchise tax on gross receipts from their broadcasting business, in lieu of other taxes on the franchise or its earnings, but they remain liable for income taxes.
Yes, within three years, they must publicly offer at least 30% of their common stock through stock exchanges, with no single person or entity owning more than 5% of this offering.
No prior censorship is required, but the grantee must cut off any broadcast content that incites rebellion, treason, sedition, or contains indecent or immoral language, or face cancellation of the franchise.
No, it cannot be sold, leased, transferred, or assigned without prior approval from the Congress of the Philippines, and any such transaction is subject to the same franchise conditions.
Only the affected section is invalidated; the remaining provisions remain valid and enforceable.
No, the franchise is not exclusive and may be amended, altered, or repealed by Congress when public interest requires.
It took effect fifteen (15) days after its publication in at least two newspapers of general circulation in the Philippines.