AN ACT GRANTING THE PROGRESSIVE BROADCASTING CORPORATION A FRANCHISE TO CONSTRUCT
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AN ACT GRANTING THE PROGRESSIVE BROADCASTING CORPORATION A FRANCHISE TO CONSTRUCT
Republic Act No. 7163
November 17, 1991
Case Overview and Summary
Summary of Republic Act No. 7163Nature and Scope of Franchise (Section 1):
- Grants Progressive Broadcasting Corporation (the grantee) a franchise to construct, install, operate and maintain radio broadcasting stations and television stations for commercial purposes in Metro Manila, Regions I, VI, and VII.
- Allows the grantee to install radio communication facilities for its private use in broadcast services.
Manner of Operation (Section 2):
- Stations shall be operated in a manner that results in minimum interference with other existing or future stations.
- The grantee's right to use its selected wavelengths or frequencies and transmission/reception quality shall not be diminished.
Prior Approval of NTC (Section 3):
- The grantee shall secure appropriate permits and licenses from the National Telecommunications Commission (NTC) for technical aspects, particularly frequency assignment and equipment.
- NTC shall not unreasonably withhold or delay the grant of authority or impose unnecessary requirements that would impede the service.
Responsibility to the Public (Section 4):
- The grantee shall provide reasonable service time for the government to reach the population on important public issues.
- The grantee shall provide sound and balanced programming, promote public participation, assist in public information and education, conform to ethics of honest enterprise, and not broadcast obscene or indecent content or false information.
Right of Government (Section 5):
- The President may temporarily take over and operate the grantee's stations, suspend operation, or authorize temporary use by any government agency during rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order, with compensation to the grantee.
Term of Franchise (Section 6):
- The franchise is valid for twenty-five (25) years from the effectivity of this Act, unless sooner revoked or cancelled.
- The franchise shall be deemed revoked if the grantee fails to operate within two (2) years from the effectivity of this Act or one (1) year from the grant of certificate of public convenience by NTC, whichever is later.
- The term expires if the grantee suspends operation or fails to operate continuously for two (2) years, except for reasons outside its control.
Acceptance and Compliance (Section 7):
- Acceptance of the franchise shall be given in writing within sixty (60) days after approval of this Act.
- Refusal or failure to accept or operate within the prescribed period shall render the franchise void.
Tax Provisions (Section 8):
- The grantee shall pay the same taxes on real estate, buildings and personal property as other persons or corporations.
- The grantee shall pay a franchise tax equivalent to three percent (3%) of all gross receipts from the radio/television business, in lieu of all taxes on this franchise or earnings thereof.
- The grantee shall continue to be liable for income taxes payable under the National Internal Revenue Code.
Warranty in favor of National and Local Governments (Section 9):
- The grantee shall hold the national, provincial and municipal governments harmless from all claims, accounts, demands or actions arising out of accidents or injuries caused by the construction or operation of the stations, attributable solely to the act or omission of the grantee.
Sale, Lease, Transfer, Usufruct, etc. (Section 10):
- The grantee shall not lease, transfer, grant the usufruct of, sell or assign this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation or other commercial or legal entity without the prior approval of the Congress of the Philippines.
- Any entity to which this franchise is sold, transferred or assigned shall be subject to all the same conditions, terms, restrictions and limitations of this Act.
Public Ownership (Section 11):
- In adherence to the constitutional mandate, the grantee shall comply with the enabling law implementing the democratization of ownership of all public interest.
Separability Clause (Section 12):
- If any section or provision of this Act is held invalid, all other provisions not affected shall remain valid.
Repealing Clause (Section 13):
- This franchise shall be subject to amendment, alteration or repeal by the Congress of the Philippines when the public interest so requires and shall not be interpreted as an exclusive grant of the privileges provided.
Effectivity Clause (Section 14):
- This Act shall take effect fifteen (15) days from the date of its publication in at least two (2) newspapers of general circulation.
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AN ACT GRANTING THE PROGRESSIVE BROADCASTING CORPORATION A FRANCHISE TO CONSTRUCT
Republic Act No. 7163
•November 17, 1991
Republic of the Philippines
Congress of the Philippines
Metro Manila
Eighth Congress
Republic Act No. 7163             November 17, 1991
AN ACT GRANTING THE PROGRESSIVE BROADCASTING CORPORATION A FRANCHISE TO CONSTRUCT, INSTALL, OPERATE AND MAINTAIN FOR COMMERCIAL PURPOSES RADIO BROADCASTING STATIONS AND TELEVISION STATIONS IN METRO MANILA AND IN REGIONS I, VI, AND VII, 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 the Progressive Broadcasting Corporation, hereunder referred to as the grantee, its successors or assigns a franchise to construct, install, operate and maintain for commercial purpose and in the public interest radio broadcasting stations and televisions in Metro Manila and in Regions 1, VI and VII with the corresponding technological auxiliaries or facilities for special broadcast and other program and distribution services and relay stations, and to install radio communication facilities...
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