Question & AnswerQ&A (Republic Act No. 7163)
The Progressive Broadcasting Corporation is granted the franchise to construct, install, operate, and maintain radio and television broadcasting stations for commercial purposes under Republic Act No. 7163.
The franchise covers Metro Manila and Regions I, VI, and VII in the Philippines.
The franchise is granted for a term of twenty-five (25) years from the date of effectivity of the Act, unless sooner revoked or cancelled.
The grantee must secure appropriate permits and licenses from the National Telecommunications Commission (NTC), especially regarding frequency assignment and equipment for its stations.
The President may temporarily take over or suspend operations in times of rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order for public safety, security and welfare.
The grantee must provide reasonable public service time, promote sound and balanced programming, assist in public information and education, conform to ethics, avoid obscene or indecent content, and not disseminate false information or incite subversive acts.
The grantee is liable to pay regular taxes on real estate, buildings, and personal property; and a franchise tax of three percent (3%) of gross receipts from its radio/television business, which is in lieu of taxes on the franchise or its earnings. It remains liable for income taxes unless amended by law.
No, any lease, sale, transfer, usufruct, or assignment of the franchise or controlling interest requires prior approval of the Congress of the Philippines.
The franchise shall be deemed ipso facto revoked if the grantee fails to operate within two years from the effectivity of the Act or one year from the NTC certificate grant, whichever is later.
The franchise is not exclusive and may be amended, altered, or repealed by the Congress of the Philippines as the public interest requires.