QuestionsQuestions (Republic Act No. 9652)
The franchise authorizes the grantee to construct, install, establish, operate, and maintain radio and/or television broadcasting stations for commercial purposes and in the public interest in the Philippines, including use of available frequencies/channels and coverage via digital radio/TV, IP-related services, and IP value-added services, through microwave, satellite, or other means including new technologies and related facilities and relay stations.
The stations must be operated in a way that results at most in minimum interference on the wavelengths/frequencies of existing and other legally established stations, without diminishing the grantee’s right to use its selected wavelengths/frequencies and the quality of transmission/reception.
The grantee must secure permits and licenses from the National Telecommunications Commission for the construction and operation of its stations and facilities; it cannot use any frequency in the spectrum without NTC authorization.
The NTC shall not unreasonably withhold or delay the grant of authority.
Provide adequate public service time for government access to the public on important issues; maintain sound and balanced programming at all times; assist in public information and education; conform to ethics of honest enterprise; and not broadcast obscene/indecent language, deliberately false information or willful misrepresentation to the detriment of the public interest, or content that incites/encourages/assists subversive or treasonable acts.
To temporarily take over and operate the stations/facilities, temporarily suspend operations, or authorize temporary use/operation by any government agency upon due compensation to the grantee during the period of such government use.
It states that the radio spectrum is a finite resource part of national patrimony and use thereof is a privilege conferred by the State that may be withdrawn anytime after due process.
Twenty-five (25) years from the date of effectivity of the Act unless sooner revoked or cancelled.
If the grantee fails to comply with: (1) commence operations within one (1) year from NTC approval of its operating permit; (2) operate continuously for two (2) years; and (3) commence operations within three (3) years from the Act’s effectivity.
The grantee must give written acceptance within sixty (60) days from effectivity, and upon acceptance it may exercise the franchise privileges; nonacceptance renders the franchise void.
The bond issued in favor of the NTC guarantees compliance with franchise conditions. If after three (3) years from permit approval the grantee fulfilled the conditions, the bond shall be cancelled by the Commission; otherwise, it is forfeited in favor of the government and the franchise is ipso facto revoked.
The grantee shall not require previous censorship. However, during any broadcast, it must cut off from the air any speech/play/act/scene or other matter if it proposes/incites treason, rebellion, or sedition; or if the language/theme is indecent or immoral; willful failure is a valid cause for cancellation of the franchise.
The grantee must hold the national, provincial, city, and municipal governments harmless from all claims, accounts, demands, or actions arising from accidents or injuries to persons or property caused by construction or operation of the grantee’s stations.
The grantee may not lease, transfer, grant usufruct of, sell, or assign the franchise or rights acquired thereunder, nor transfer controlling interest (as a whole or in parts), without prior approval of Congress. Any transferee/assignee must be subject to the same conditions, terms, restrictions, and limitations.
To encourage public participation, the grantee must offer at least 30% (or higher if later required by law) of its outstanding capital stock in any securities exchange within five (5) years from achieving the status of a national broadcasting network (defined as operating three or more radio and/or TV stations). Noncompliance results in ipso facto franchise revocation.
Any advantage, favor, privilege, exemption, or immunity granted under existing or future broadcasting franchises becomes part of this franchise and must be accorded immediately and unconditionally. The proviso limits this by stating it does not apply to provisions of broadcasting franchises concerning territory covered, life span of the franchise, or type of service authorized.
The grantee must submit an annual report to Congress on compliance with franchise terms and conditions and on its operations within sixty (60) days from the end of every year.
It takes effect fifteen (15) days from the date of its publication, upon the initiative of the grantee, in at least two (2) newspapers of general circulation in the Philippines.