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PHILIPPINE LAWS, STATUTES & CODES
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REPUBLIC ACT NO. 7223 - AN ACT
GRANTING GATEWAY U.H.F. TELEVISION BROADCASTING, INC., A FRANCHISE TO
CONSTRUCT, INSTALL, OPERATE AND MAINTAIN FOR COMMERCIAL PURPOSES UHF
TELEVISION BROADCASTING STATIONS IN THE PHILIPPINES, AND FOR OTHER
PURPOSES 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 Gateway U.H.F. Television Broadcasting Inc., hereunder referred to as the grantee, its successors or assigns a franchise to construct, install, operate and maintain for commercial purposes and in the public interest UHF television broadcasting stations in the Philippines with the corresponding technological auxiliaries or facilities, special broadcast distribution services and relay stations: provided, however, that only one (1) UHF channel shall be allocated to any given locality. Sec. 2. Manner of Operation of Stations or Facilities. — The stations or facilities of the grantee shall be constructed and operated in a manner as will at most result only in the minimum interference on the wavelengths or frequencies of the existing stations or other stations which may be established in accordance with law of other telecommunications services grantees without in any way diminishing its own right to use its selected wavelengths or frequencies and the quality of transmission or reception thereon as should maximize rendition of the grantee's services and/or the availability thereof. Sec. 3. Prior Approval of the National Telecommunications Commission. — The grantee shall secure from the National Telecommunications Commission the appropriate permits and licenses for its stations and shall not use any frequency in the television spectrum without having been authorized by the Commission. The Commission, however, shall not unreasonably withhold or delay the grant of any such authority. Sec. 4. Responsibility to the Public. — The grantee shall provide reasonable public service time to enable the Government, through the said UHF television stations, to reach the population on important public issues; provide at all times sound and balanced programming; promote public participation such as in community programming; assist in the functions of public information and education; conform to the ethics of honest enterprise; and not use its station for the broadcasting of obscene and indecent language, speech, act or scene, or for the dissemination of deliberately false information or willful misrepresentation to the detriment of the public interest, or to incite, encourage, or assist in subversive or treasonable acts. Sec. 5. Rates for Services. — The grantee shall fix just and reasonable rates for subscription, excluding the cost of installation, subject to the regulations of the National Telecommunications Commission and other proper regulatory agencies of the Government. Sec. 6. Right of Government. — A special right is hereby reserved to the President of the Philippines, in times of rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order, to temporarily take over and operate the stations of the grantee, to temporarily suspend the operation of any station in the interest of public safety, security and public welfare, or to authorize the temporary use and operation thereof by any agency of the Government, upon due compensation to the grantee, for use of said stations during the period when they shall be so operated. Sec. 7. Term of Franchise. — This franchise shall be for a term of twenty-five (25) years from the date of effectivity of this Act unless sooner revoked or cancelled. In the event the grantee fails to operate continuously for two (2) years from the effectivity of this franchise or anytime thereafter, this franchise shall be deemed ipso facto revoked. Sec. 8. Public Ownership. — In compliance with the constitutional mandate to democratize ownership of public utilities, the herein grantee shall make public offering through the stock exchanges of at least thirty (30%) of its common stocks within a period of three (3) years from the date of effectivity of this Act: provided, that no single person or entity shall be allowed to own more than five percent (5%) of the stock offerings. Sec. 9. Tax Provisions. — The grantee, its
successors or assigns shall be liable to pay the same taxes on their
real estate, buildings and personal property, exclusive of this
franchise, as other persons or corporations are now or hereafter may be
required by law to pay. In addition thereto, the grantee, its
successors or assigns shall pay a franchise tax equivalent to five (5%)
of all gross receipts of the television business transacted under this
franchise by the grantee, its successors or assigns and the said
percentage shall be in lieu of all taxes on this franchise or earnings
thereof: provided, that the grantee, its successors or assigns shall
continue to be liable for income taxes payable under Title II of the
National Internal Revenue Code pursuant to Sec. 2 of Executive Order
No. 72 unless the latter enactment is amended or repealed, in which
case the amendment or repeal shall be applicable thereto. Approved: March 11, 1992 |
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