QuestionsQuestions (Republic Act No. 8995)
It grants a franchise to construct, install, establish, operate, and maintain radio and/or television broadcasting stations for commercial purposes in the public interest throughout the Philippines, using frequencies/channels still available, including through microwave, satellite, or other means and new technologies.
They must be constructed and operated in a manner that results in minimum interference with wavelengths/frequencies of existing stations or those that may be established by law, without diminishing the grantee’s right to use its selected frequencies and without reducing the quality of transmission/reception as needed to maximize its services.
No. Under Section 3, the grantee must secure appropriate permits and licenses from the NTC and must not use any frequency without authorization.
The NTC shall not unreasonably withhold or delay the grant of authority for construction/operation permits and frequency use.
The grantee must provide adequate public service time for government information on important issues; provide sound and balanced programming at all times; assist public information and education; conform to ethics of honest enterprise; and must not broadcast obscene/indecent content, deliberately false information or willful misrepresentation to the detriment of the public interest, or content inciting/encouraging/assisting subversive or treasonable acts.
In times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, the President may temporarily take over and operate the stations, suspend operations, or authorize temporary use/operation by a government agency upon due compensation to the grantee.
It states that the radio spectrum is a finite resource part of national patrimony; its use is a privilege conferred by the State and may be withdrawn anytime after due process.
The franchise term is twenty-five (25) years from the date of effectivity of the Act. Effectivity is 15 days from publication in at least two newspapers of general circulation, upon the initiative of the grantee (Section 20).
Failure to: (1) commence operations within one (1) year from NTC approval of operating permit or provisional authority; (2) operate continuously for two (2) years; and (3) commence operations within three (3) years from the effectivity of the Act.
The grantee must give written acceptance within sixty (60) days from effectivity. Nonacceptance renders the franchise void.
The grantee must file a bond issued in favor of the NTC to guarantee compliance. If after three (3) years from NTC permit approval the grantee has fulfilled the conditions, the bond is cancelled; otherwise, the bond is forfeited in favor of the government and the franchise is ipso facto revoked.
They are subject to all taxes, duties, fees, and charges under the National Internal Revenue Code of 1997 (as amended) and other applicable laws. The Act also clarifies it does not repeal specific tax exemptions granted by other relevant laws.
The grantee shall not require any previous censorship of speech, play, act, scene, or other matter to be broadcast, but it must cut off from the air any content if it tends to incite treason/rebellion/sedition or is indecent/immoral; willful failure constitutes a valid cause for cancellation of the franchise.
They have the right to reply in the same program or any other program they choose.
The grantee may not lease, transfer, grant usufruct of, sell, or assign the franchise/rights to any entity, nor merge, nor transfer controlling interest (whether wholly or partially), without prior approval of Congress. Any transferee must be subject to the same conditions/terms/restrictions.
Within five (5) years from achieving the status of a national broadcasting network, the grantee must offer at least 30% of its outstanding capital stock (or higher percentage as may be required by later law) in any Philippine securities exchange. Noncompliance renders the franchise ipso facto revoked.
Yes. The franchise is subject to amendment, alteration, or repeal by Congress when public interest so requires, and it is not an exclusive grant of the privileges.
It must submit an annual report to Congress on compliance with franchise terms and its operations within sixty (60) days from the end of every year.