QuestionsQuestions (Republic Act No. 11669)
RA 11669 renews the franchise of Enrique M. Orozco & Sons, Inc. (presently known as Real Radio Network, Inc.) to construct, install, establish, operate, and maintain radio and television broadcasting stations for commercial purposes and in the public interest, for another 25 years, including use of available frequencies/channels and digital TV through microwave, satellite, or other means, and new technologies.
The franchise is effective for 25 years from the effectivity of the Act. The Act takes effect 15 days after publication in the Official Gazette or in a newspaper of general circulation.
The stations/facilities must be constructed and operated in a manner that results at most in the minimum interference on wavelengths/frequencies of existing and future stations, without diminishing the grantee’s own authorized use and ensuring maximizing quality of transmission/reception.
The grantee must secure appropriate permits and licenses from the NTC and must not use any frequency in the radio spectrum without NTC authorization. The NTC should not unreasonably withhold or delay the authority.
The NTC may revoke or suspend, after due process, the permits or licenses it issued. It may also recommend to Congress the revocation of the franchise for violations.
The grantee must provide free-of-charge adequate public service time (up to a maximum aggregate of 10% of paid commercials/advertisements, allocated by specified branches/organizations), ensure sound and balanced programming, promote public participation, assist in public information/education, conform to ethics, promote audience sensibility and empowerment including closed captioning, and not broadcast obscene/indecent material, deliberately false information or willful misrepresentation to the detriment of public interest, or content that incites/encourages/assists subversive or treasonable acts.
It is equivalent to a maximum aggregate of 10% of paid commercials/advertisements, allocated based on the needs of the Executive and Legislative branches, the Judiciary, Constitutional Commissions, and international humanitarian organizations duly recognized by statutes.
The NTC must increase public service time in cases of extreme emergency or calamity and issue rules/regulations for this purpose.
Pursuant to Republic Act No. 8370 (Children’s Television Act of 1997), the grantee must allot at least 15% of the daily total air time of each broadcasting network/station to child-friendly shows within its regular programming.
Because the radio spectrum is finite and part of national patrimony, the use is a privilege that may be withdrawn after due process. The President may, in times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, temporarily take over and operate the stations, temporarily suspend operations, or authorize temporary government use by other agencies upon due compensation.
If the grantee fails to operate continuously for two (2) years, the franchise is deemed ipso facto revoked.
The grantee shall not require previous censorship of any speech/play/act/scene or other matter to be broadcast. If broadcast content violates the law or infringes a private right, the grantee is generally free from civil/criminal liability for that content. However, during broadcast, it must cut off airing if the tendency is to propose/incite treason, rebellion, or sedition, or if the language/theme is indecent or immoral. Willful failure to do so is a valid cause for cancellation of the franchise.
The grantee must hold national, provincial, city, and municipal governments free from claims/liabilities/demands/actions arising from accidents causing injury or property damage during construction or operation of the stations.
The grantee must create employment opportunities and accept on-the-job trainees, giving priority to residents of where its principal office is located, and comply with applicable labor standards and allowances under existing labor laws/rules.
The grantee must submit an annual compliance and operations report to Congress (House Committee on Legislative Franchises; Senate Committee on Public Services) on or before April 30 each year during the franchise term. It must include: update on commencement/operation/expansion, audited financial statements, latest GIS (if applicable), NTC certification on status of permits/operations, and update on dispersal of ownership undertaking (if applicable).
Failure to submit the requisite annual report to Congress is penalized by a fine of PHP 500 per working day of noncompliance to the NTC, collected separately from NTC reportorial penalties and remitted to the Bureau of the Treasury.
The grantee may not sell, lease, transfer, grant usufruct of, or assign the franchise/rights/privileges, nor merge with another entity, nor transfer controlling interest, without prior approval of Congress. It must inform Congress within 60 days after completion of any transaction. Failure to report renders the franchise ipso facto revoked. Any transferee/assignee is subject to the same conditions in the Act.
Within five years from effectivity, the grantee must offer Filipino citizens at least 30% of its outstanding capital stock (or higher if later required by law) in a Philippine securities exchange; if public offer of shares is not applicable, other methods must be implemented. Noncompliance renders the franchise ipso facto revoked.