AN ACT GRANTING THE RADIO PHILIPPINES NETWORK
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AN ACT GRANTING THE RADIO PHILIPPINES NETWORK
Republic Act No. 9250
February 19, 2004
Case Overview and Summary
Summary of Republic Act No. 9250Nature and Scope of Franchise (Section 1):
- Grants Radio Philippines Network, Inc. (the grantee) a franchise to construct, install, establish, operate and maintain radio and/or television broadcasting stations in the Philippines for commercial purposes and in the public interest.
- Allows the use of microwave, satellite or any new technologies, including auxiliaries, facilities, special broadcast, program distribution services and relay stations.
Manner of Operation (Section 2):
- Stations shall be operated in a manner that results in minimum interference on existing stations' wavelengths or frequencies.
- 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 must secure appropriate permits and licenses from the National Telecommunications Commission (NTC) for construction and operation.
- The grantee cannot use any frequency without NTC's authorization, which shall not be unreasonably withheld or delayed.
Responsibility to the Public (Section 4):
- The grantee shall provide adequate public service time for 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 ethics of honest enterprise.
- The grantee shall not broadcast obscene, indecent, false information, or content that incites subversive or treasonable acts.
Right of Government (Section 5):
- The President can temporarily take over, suspend operations, or authorize temporary use of the grantee's 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- The radio spectrum is part of the national patrimony and its use is a privilege that may be withdrawn after due process.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: (a) commence operations within 1 year from NTC permit approval, (b) operate continuously for 2 years, and (c) commence operations within 3 years from the Act's effectivity.
Acceptance and Compliance (Section 7):
- The grantee must accept the franchise in writing within 60 days from the Act's effectivity.
- 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 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 payment of all taxes, duties, fees, charges and other impositions under the National Internal Revenue Code of 1997, as amended, and other applicable 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 likewise be extended to the grantee.
Self-regulation by and Undertaking of Grantee (Section 10):
- The grantee shall not require previous censorship of any speech, play, act or scene to be broadcast.
- The grantee shall cut off from the air any content that incites treason, rebellion or sedition, or is indecent or immoral.
- Willful failure to do so shall constitute a valid cause for franchise cancellation.
Obligation of the Grantee (Section 11):
- Any person aggrieved by any remark, report, statement, commentary or the like by broadcasters using the grantee's facilities shall have the right to reply in the same program or in any other program of their choice.
Warranty in Favor of National and Local Governments (Section 12):
- The grantee shall hold the national, provincial, city and municipal governments free 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 grantee's stations.
Sale, Lease, Transfer, Usufruct, Etc. (Section 13):
- 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 entity to which this franchise is sold, transferred or assigned, shall be subject to the same conditions, terms, restrictions and limitations of this Act.
Dispersal of Ownership (Section 14):
- In accordance with the constitutional provision to encourage public participation in public utilities, the grantee shall offer at least 30% of its outstanding capital stock or a higher percentage provided by law in any securities exchange in the Philippines within 5 years from the time it has achieved the status of a national broadcasting network (defined as one that operates 3 or more radio and/or television stations).
- Non-compliance shall render the franchise ipso facto revoked.
General Broadcast Policy Law (Section 15):
- 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 16):
- 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 60 days from the end of every year.
Equality Clause (Section 17):
- Any advantage, favor, privilege, exemption, or immunity granted under existing franchises, or may hereafter be granted, shall ipso facto become part of this franchise and shall be accorded immediately and unconditionally to the grantee, except for provisions concerning territory covered, life span of the franchise, or type of service authorized.
Separability Clause (Section 18):
- If any section or provision of this Act is held invalid, all other provisions not affected thereby shall remain valid.
Repealing and Non-exclusivity Clause (Section 19):
- 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 20):
- This Act shall take effect 15 days from the date of its publication, upon the initiative of the grantee, in at least 2 newspapers of general circulation in the Philippines.
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Law
AN ACT GRANTING THE RADIO PHILIPPINES NETWORK
Republic Act No. 9250
•February 19, 2004
Republic of the Philippines
Congress of the Philippines
Metro Manila
Twelfth CongressThird Regular Session
Begun and held in Metro Manila, on Monday, the twenty-second day of July, two thousand three.
Republic Act No. 9250             February 19 2004
AN ACT GRANTING THE RADIO PHILIPPINES NETWORK, INC., A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN RADIO AND TELEVISION BROADCASTING STATIONS IN THE PHILIPPINES
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 Radio Philippines Network, Inc., hereunder referred to as the grantee, its successors or assigns, 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...
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