Title
Extension of Cebu Broadcasting Co. Franchise
Law
Republic Act No. 11339
Decision Date
Apr 27, 2019
Cebu Broadcasting Company is granted a 25-year extension of its franchise to operate radio and television broadcasting stations, ensuring compliance with public service obligations and regulatory oversight by the National Telecommunications Commission.
A

Questions (Republic Act No. 11339)

Republic Act No. 11339 extends for another twenty-five (25) years the franchise granted to Cebu Broadcasting Company to construct, install, operate, and maintain radio and television broadcasting stations in the Philippines.

The franchise includes the operation through microwave, satellite, or any new technology in television and radio systems including digital television systems.

The grantee must secure the appropriate permits and licenses from the National Telecommunications Commission (NTC) and must not use any frequency without NTC authorization.

The franchise shall be deemed ipso facto revoked if the grantee fails to operate continuously for two (2) years.

The grantee must provide adequate public service time, sound and balanced programming, assist in public information and education, conform to ethics, avoid broadcasting obscene or indecent language, false information, or inciting subversive acts.

The President may temporarily take over, suspend, or authorize government use of the stations or facilities in times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, with due compensation.

The grantee must submit an annual report to Congress on compliance and operations by April 30 each year, and failure to report results in a fine of Five hundred pesos (P500) per working day.

No. The grantee shall not sell, lease, transfer, grant usufruct, assign, merge, or transfer controlling interest without prior approval from Congress and must notify Congress within 60 days after such transaction.

The grantee must offer at least 30% of its outstanding capital stock to Filipino citizens in any Philippine securities exchange within five years from commencement of operations, or implement other methods to encourage public participation.

Noncompliance with the ownership dispersal requirement shall render the franchise ipso facto revoked.

No. The franchise is not exclusive and is subject to amendment, alteration, or repeal by Congress when public interest so requires.

A fine of Five hundred pesos (P500.00) per working day of noncompliance shall be imposed, collected separately by the National Telecommunications Commission (NTC).

The grantee shall create employment opportunities, allow on-the-job training, prioritize residents where principal offices are located, follow labor laws, and report jobs created in the General Information Sheet submitted annually to the Securities and Exchange Commission.


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