AN ACT GRANTING THE AURORA TECHNOLOGICAL INSTITUTE (ATI) INC. A FRANCHISE TO CONSTRUCT
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AN ACT GRANTING THE AURORA TECHNOLOGICAL INSTITUTE (ATI) INC. A FRANCHISE TO CONSTRUCT
Republic Act No. 10027
March 13, 2010
Case Overview and Summary
Summary of Republic Act No. 10027Nature and Scope of Franchise (Section 1):
- Grants Aurora Technological Institute (ATI) Inc. a franchise to construct, install, establish, operate and maintain radio, television, and satellite broadcasting stations throughout the Philippines.
- Covers various broadcasting technologies, including multi-channel microwave transmission, repeater stations, translators, satellite transmission, direct-to-home user satellite broadcast system, cable or community antennae television system (CATV), multi-point distribution system (MUDS), local multi-point distribution system (LMDS), interactive systems, transmitting, receiving and switching stations, lines, fiber optics, microwave, satellite, transmit and receive systems, control signals, audio and video systems, information service bureau, pay and pay-per-view television, video on demand and public information on demand services, multi-disc read-only memory, memory network delivery, packet and frame relay and electronic mail services, and other value-added services.
- Allows the installation of radio communication facilities for the grantee's private use in its broadcast services.
Manner of Operation of Stations or Facilities (Section 2):
- The stations or facilities shall be constructed and operated in a manner that results in minimum interference on the wavelengths or frequencies of existing stations or other stations established by law.
Prior Approval of the National Telecommunications Commission (Section 3):
- The grantee shall secure appropriate permits and licenses from the National Telecommunications Commission (NTC) for the construction and operation of its stations and facilities.
- The grantee shall not use any frequency in the radio/television spectrum without authorization from the NTC.
- The NTC shall not unreasonably withhold or delay the grant of any such authority.
Responsibility to the Public (Section 4):
- The grantee shall provide adequate public service time to enable the government to reach the population on important public issues.
- The grantee shall provide sound and balanced programming, assist in public information and education, conform to the ethics of honest enterprise, and not broadcast obscene, indecent, or false content.
Right of Government (Section 5):
- The President of the Philippines has the right, in times of war, rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order, to temporarily take over and operate the stations or facilities of the grantee, or to temporarily suspend their operation in the interest of public safety, security and public welfare.
- The government may authorize the temporary use and operation of the stations or facilities by any agency, upon due compensation to the grantee.
- The radio spectrum is part of the national patrimony, and its use is a privilege conferred by the State that may be withdrawn anytime after due process.
Term of Franchise (Section 6):
- The franchise is valid for twenty-five (25) years from the date of effectivity of this Act, unless sooner revoked or cancelled.
- The franchise shall be deemed ipso facto revoked if the grantee fails to:
(a) Commence operations within one (1) year from the approval of its operating permit by the NTC;
(b) Operate continuously for two (2) years; and
(c) Commence operations within three (3) years from the effectivity of this Act.
Acceptance and Compliance (Section 7):
- Acceptance of the franchise shall be given in writing within sixty (60) days from the effectivity of this Act.
- Upon giving such acceptance, the grantee shall exercise the privileges granted under this Act.
- Non-acceptance shall render the franchise void.
Bond (Section 8):
- The grantee shall file a bond issued in favor of the NTC, with an amount determined by the NTC, to guarantee compliance with the conditions of the franchise.
- If after three (3) years from the date of the approval of its permit by the NTC, the grantee has fulfilled the conditions, the bond shall be cancelled by the NTC.
- Otherwise, the bond shall be forfeited in favor of the government, and the franchise ipso facto revoked.
Self-regulation by and Undertaking of Grantee (Section 9):
- The grantee shall not require any previous censorship of any speech, play, act or scene, or other matter to be broadcast from its stations.
- However, the grantee shall cut off from the air any content that proposes or incites treason, rebellion or sedition, or uses indecent or immoral language or theme.
- Willful failure to do so shall constitute a valid cause for the cancellation of the franchise.
Warranty in Favor of National and Local Governments (Section 10):
- The grantee shall hold the national, provincial, city and municipal governments of the Philippines harmless from all claims, accounts, demands or actions arising out of accidents or injuries, whether to property or to persons, caused by the construction or operation of the stations of the grantee.
Non-transferability of Franchise (Section 11):
- The grantee shall not lease, transfer, grant the usufruct of, sell nor assign this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation or other commercial or legal entity, nor merge with any other corporation or entity, nor shall the controlling interest of the grantee be transferred, whether as a whole or in parts and whether simultaneously or contemporaneously, to any such person, firm, company, corporation or entity without the prior approval of the Congress of the Philippines.
- Any person or entity to which this franchise is sold, transferred or assigned shall be subject to the same conditions, terms, restrictions and limitations of this Act.
Equality Clause (Section 12):
- Any advantage, favor, privilege, exemption or immunity granted under existing franchise, or which may hereafter be granted for radio and/or television broadcasting, shall ipso facto become part of this franchise and shall be accorded immediately and unconditionally to the herein grantee.
- However, this shall not apply to provisions concerning territory covered by the franchise, the life span of the franchise or the type of service authorized by the franchise.
General Broadcast Policy Law (Section 13):
- The grantee shall comply with and be subject to the provisions of a general broadcast policy law, which Congress may hereafter enact.
Reportorial Requirement (Section 14):
- The grantee shall submit an annual report to the Congress of the Philippines on its compliance with the terms and conditions of the franchise and on its operations within sixty (60) days from the end of every year.
Separability Clause (Section 15):
- If any of the sections or provisions of this Act is held invalid, all other provisions not affected thereby shall remain valid.
Repealing and Nonexclusivity Clause (Section 16):
- This franchise shall be subject to amendment, alteration or repeal by the Congress of the Philippines when the public interest so requires.
- This franchise shall not be interpreted as an exclusive grant of the privileges herein provided for.
Effectivity Clause (Section 17):
- This Act shall take effect fifteen (15) days after its publication, upon the initiative of the grantee, in at least two (2) newspapers of general circulation in the Philippines.
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Law
AN ACT GRANTING THE AURORA TECHNOLOGICAL INSTITUTE (ATI) INC. A FRANCHISE TO CONSTRUCT
Republic Act No. 10027
•March 13, 2010
Republic of the PhilippinesCONGRESS OF THE PHILIPPINESMetro Manila
Fourteenth CongressThird Regular Session
Begun and held in Metro Manila, on Monday, the twenty-seventh day of July, two thousand nine.
REPUBLIC ACT NO. 10027
AN ACT GRANTING THE AURORA TECHNOLOGICAL INSTITUTE (ATI) INC. A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN FOR EDUCATIONAL, SCIENTIFIC, CULTURAL AND COMMERCIAL PURPOSES, RADIO, TELEVISION AND SATELLITE BROADCASTING STATIONS ANYWHERE IN THE PHILIPPINES, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Nature and Scope of Franchise. - Subject to the provisions of the Constitution and applicable laws, rules and regulations, there is hereby granted to Aurora Technological Institute (ATI) Inc., hereunder referred to as the grantee, its successors or assigns, a franchise to construct, install, establish, operate and maintain for educational, scientific, cultural and commercial purposes, radio, television and satellite broadcasting stations throughout the Philippines, including multi-channel microwave transmission, repeater stations, translators, satellite transmission, and direct-to-home user satellite broadcast system, cable or community antennae television system (CATV),...
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