Franchise for Advanced Media Broadcasting System

The grantee must construct and operate its stations/facilities in a way that results in only the minimum interference on the wavelengths or frequencies of other existing stations.
Operations must not diminish the grantee’s own right to use its selected wavelengths or frequencies.
The grantee must maximize the quality of transmission or reception and the availability of its services.
The interference limitation applies without restricting other stations that may be established by law.

The grantee must secure from the National Telecommunications Commission (NTC) the appropriate permits and licenses for its stations.
The grantee must not use any frequency in the radio/television spectrum without NTC authorization.
The NTC must not unreasonably withhold or delay the grant of authority for such frequencies.

The grantee must provide adequate public service time so government can reach the population on important public issues.
The grantee must provide sound and balanced programming at all times.
The grantee must assist in functions of public information and education.
The grantee must conform to the ethics of honest enterprise.
The grantee must not use its stations to broadcast or telecast:
- obscene and indecent language, speech, act, scene, or other matter; or
- deliberately false information or willful misrepresentation to the detriment of the public interest; or
- material that incites, encourages, or assists in subversive or treasonable acts.

A special right is reserved to the President of the Philippines in times of:
- rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order.
The President may:
- temporarily take over and operate the grantee’s stations; and/or
- temporarily suspend the operation of any station in the interest of public safety, security and public welfare; and/or
- authorize temporary use and operation by any government agency.
Such actions require due compensation to the grantee for the use of the stations during the period of government operation.

The franchise term is twenty-five (25) years from the date of approval of the Act, unless sooner revoked or cancelled.
If the grantee fails to operate continuously for two (2) years, the franchise is ipso facto revoked.
The franchise becomes effective upon the grantee’s acceptance in writing.
After written acceptance, the grantee must exercise the privileges granted.
Nonacceptance renders the franchise void.

The grantee and its successors/assigns must pay the same taxes on real estate, buildings, and personal property (exclusive of the franchise) that other persons or corporations are required to pay.
The grantee must also pay a franchise tax at a percentage prescribed by law on all gross receipts from the radio/television business transacted under the franchise.
The grantee remains liable for income taxes payable under Title II of the National Internal Revenue Code pursuant to Section 2 of Executive Order No. 72, unless that enactment is amended or repealed.
Where amended or repealed, the change applies to that income tax liability.
The grantee must:
- file the tax return with the Commissioner of Internal Revenue or a duly authorized representative; and
- pay the tax due in accordance with the National Internal Revenue Code.
The return is subject to audit by the Bureau of Internal Revenue.

The grantee must not require previous censorship of any speech, play, act, scene, or other matter for broadcasting and/or telecasting.
The grantee must cut off from the air any speech, play, act, scene, or other matter during broadcast/telecast if:
- its tendency is to propose and/or incite treason, rebellion, or sedition; or
- the language used or the theme thereof is indecent or immoral.
Willful failure to cut off such content constitutes a valid cause for cancellation of this franchise.

The grantee must hold the national, provincial, and municipal governments of the Philippines harmless from all claims, accounts, demands, or actions arising from accidents or injuries (to property or persons).
Such claims must be caused by the construction or operation of the grantee’s stations.

The grantee must not:
- lease, transfer, grant the usufruct of, sell, or assign the franchise; or
- transfer the rights and privileges acquired under the franchise,
- to any person, firm, company, corporation, or other commercial or legal entity.
The grantee must not transfer the controlling interest of the grantee to any such private person or entity without prior approval of the Congress of the Philippines.
Any person or entity to which the franchise is sold, transferred, or assigned must be subject to the same conditions, terms, restrictions, and limitations of the Act.

The grantee must comply with a general broadcast policy law that Congress may enact in the future.

If any section or provision of Republic Act No. 8061 is held invalid, the remaining sections and provisions not affected remain valid (separability clause).
The franchise is subject to amendment, alteration, or repeal by Congress when the public interest so requires.
The franchise must not be interpreted as an exclusive grant of the privileges provided.

Republic Act No. 8061 takes effect upon its approval.
The Act lapsed into law on June 15, 1995 without the President’s signature, pursuant to Section 27(1), Article VI of the Constitution.
The Act is identified as June 15, 1995 and is described with publication data 91 OG No. 37, 5913 (September 11, 1995).