QuestionsQuestions (Republic Act No. 7297)
RA 7297 grants ZOE Broadcasting Network, Inc. (and its successors or assigns) the franchise to construct, install, operate, and maintain radio and television broadcasting stations in the island of Luzon, including auxiliary/special broadcast services and relay stations, and to install radio communication facilities for its private use in its broadcast services—subject to the Constitution and applicable laws.
The grantee must construct and operate its stations in a manner that results only in minimum interference on wavelengths/frequencies of other existing stations, without diminishing its own right to use its selected frequencies and the quality of transmission/reception, and to maximize rendition and availability.
Under Section 3, the grantee must secure the appropriate permits and licenses from the National Telecommunications Commission (NTC) and must not use any frequency in the spectrum without NTC authorization.
The grantee must provide adequate public service time for government information on important issues; provide sound and balanced programming at all times; promote public participation (including community programming); assist public information and education functions; conform to ethics of honest enterprise; and avoid broadcasting obscene/indecent language or deliberately false or willfully misrepresented information, and avoid inciting/encouraging/assisting 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 the stations, temporarily suspend operations in the interest of public safety/security/welfare, or authorize temporary government use/operation upon due compensation.
The franchise is for 25 years from the date of effectivity unless sooner revoked/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 60 days after approval. Upon acceptance, it may exercise the privileges granted. Nonacceptance renders the franchise void.
The grantee pays the same taxes on its real estate/buildings/personal property (exclusive of the franchise) as other entities. Additionally, it pays a franchise tax equivalent to 3% of all gross receipts from the radio/TV business under the franchise, in lieu of all taxes on the franchise or earnings thereof. It remains liable for income taxes under Title II of the NIRC pursuant to E.O. 72 unless amended or repealed.
It must file the return and pay the tax due with the Commissioner of Internal Revenue or his authorized representative according to the NIRC; the return is subject to audit by the Bureau of Internal Revenue.
No prior censorship is required (Section 9). If a broadcast content violates law or infringes a private right, the grantee is generally free from civil/criminal liability for that speech/scene. However, the grantee must cut off from the air content that tends to incite treason/rebellion/sedition or is indecent/immoral; willful failure is a valid cause for cancellation of the franchise.
National, provincial, and municipal governments are held harmless from all claims/demands/actions arising from accidents/injuries to property or persons caused by the construction or operation of the grantee’s stations.
The grantee may not lease, transfer, grant usufruct, sell, or assign the franchise or rights/privileges, nor transfer controlling interest, without prior approval of Congress. Any assignee/transferee must be subject to the same conditions of the franchise.
The separability clause provides that if one section/provision is held invalid, the remaining provisions not affected remain valid.
It is subject to amendment/alteration/repeal by Congress when public interest requires, and it is not to be interpreted as an exclusive grant of the privileges therein.
Under Section 15, 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 publication in at least two newspapers of general circulation in the Philippines.