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Republic Acts

AN ACT GRANTING THE FREE AIR BROADCASTING NETWORK CORP. A FRANCHISE TO CONSTRUCT

Republic Act No. 9478

Republic of the Philippines
Congress of the Philippines

Metro Manila

Thirteenth Congress
Third Regular Session


Begun and held in Metro Manila, on Monday, the twenty-fourth day of July, two thousand six.

Republic Act No. 9478

AN ACT GRANTING THE FREE AIR BROADCASTING NETWORK CORP. A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN RADIO AND TELEVISION BROADCASTING STATIONS NATIONWIDE

Be it enacted by the Senate and the 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 Free Air Broadcasting Network Corp., hereunder referred to as the grantee, a franchise to construct, install, establish, operate and maintain for commercial purposes and in the public interest, radio and/or television broadcasting stations in the Philippines, where frequencies and/or channels are still available for radio and/or television broadcasting, through microwave, satellite or whatever means, including the use of any new technologies in television and radio systems, with the corresponding technological auxiliaries...

Summary of Republic Act No. 9478

Nature and Scope of Franchise (Section 1):
- Grants Free Air Broadcasting Network Corp. a franchise to construct, install, establish, operate and maintain radio and/or television broadcasting stations nationwide for commercial purposes and in the public interest.
- Allows the use of microwave, satellite or any new technologies, including auxiliaries, facilities, special broadcast services, and relay stations.

Manner of Operation (Section 2):
- Stations shall operate in a manner that results in minimum interference with existing stations.
- Operations shall not exceed the required power to cover the allowed area.

Prior Approval of NTC (Section 3):
- Grantee must secure appropriate permits and licenses from the National Telecommunications Commission (NTC) for construction and operation.
- NTC shall not unreasonably withhold or delay granting such authority.

Responsibility to the Public (Section 4):
- Provide adequate public service time for government to reach the population on important issues.
- Provide sound and balanced programming.
- Assist in public information and education functions.
- Conform to ethics of honest enterprise.
- Not broadcast obscene, indecent, false or subversive content.

Right of Government (Section 5):
- The President can temporarily take over, suspend operations, or authorize government use of stations during war, rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order, with due compensation.
- The radio spectrum is part of the national patrimony, and its use is a privilege that may be withdrawn after due process.

Term of Franchise (Section 6):
- The franchise is valid for 25 years from the date of effectivity, unless sooner revoked or cancelled.
- The franchise shall be deemed revoked if the grantee fails to:
    - Commence operations within 1 year from NTC permit approval.
    - Operate continuously for 2 years.
    - Commence operations within 3 years from the effectivity of this Act.

Acceptance and Compliance (Section 7):
- Acceptance of the franchise must be given in writing within 60 days from the effectivity of this Act.
- Non-acceptance shall render the franchise void.

Bond (Section 8):
- The grantee shall file a bond, determined by the NTC, to guarantee compliance with the franchise conditions.
- If the grantee fulfills the conditions within 3 years from the permit approval, the bond shall be cancelled; otherwise, it shall be forfeited to the government, and the franchise revoked.

Tax Provisions (Section 9):
- The grantee shall be subject to all applicable taxes, duties, fees, charges and impositions under the National Internal Revenue Code of 1997 and other laws.
- Specific tax exemptions, incentives or privileges granted under relevant laws shall not be repealed.
- All rights, privileges, benefits and exemptions accorded to existing and future broadcasting franchises shall be extended to the grantee.

Self-regulation and Undertaking (Section 10):
- The grantee shall not require prior censorship of any broadcast content.
- The grantee shall cut off content that incites treason, rebellion, sedition, or contains indecent or immoral language; failure to do so shall be a valid cause for franchise cancellation.

Obligation of the Grantee (Section 11):
- Any person aggrieved by remarks, reports, statements or commentary by broadcasters using the grantee's facilities shall have the right to reply in the same or any other program.

Warranty in Favor of Governments (Section 12):
- The grantee shall hold the national, provincial, city and municipal governments harmless from all claims, accounts, demands or actions arising out of accidents or injuries caused by the construction or operation of its stations.

Nontransferability of Franchise (Section 13):
- The grantee shall not lease, transfer, grant usufruct, sell, assign or merge the franchise or controlling interest without prior approval of the Congress.
- Any transfer in violation of this section shall render the franchise revoked.

Equality Clause (Section 14):
- Except for taxes, any advantage, favor, privilege, exemption or immunity granted under existing or future franchises shall become part of this franchise.
- This does not apply to provisions concerning territory, life span or type of service.

General Broadcast Policy Law (Section 15):
- The grantee shall comply with any general broadcast policy law that Congress may enact.

Reportorial Requirement (Section 16):
- The grantee shall submit an annual report to Congress on its compliance with the franchise terms and operations within 60 days from the end of every year.

Separability Clause (Section 17):
- If any section or provision is held invalid, all other provisions not affected shall remain valid.

Repealing and Nonexclusivity Clause (Section 18):
- This franchise shall be subject to amendment, alteration or repeal by Congress when the public interest so requires.
- This franchise shall not be interpreted as an exclusive grant of the privileges provided.

Effectivity Clause (Section 19):
- This Act shall take effect 15 days from the date of its publication in at least two newspapers of general circulation in the Philippines, upon the initiative of the grantee.

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