Question & AnswerQ&A (Republic Act No. 10178)
The franchise grants Reliance Broadcasting Unlimited, Inc. the right to construct, install, establish, operate, and maintain commercial radio and television broadcasting stations in the Philippines, including digital and IP-related services, subject to applicable laws and the Constitution.
The franchise is valid for twenty-five (25) years unless sooner revoked or cancelled.
The franchise is ipso facto revoked if the grantee fails to commence operations within one (1) year from NTC approval, fails to operate continuously for two (2) years, or fails to commence operations within three (3) years from the effectivity of the Act.
The grantee must secure the appropriate permits and licenses from the NTC and shall not use any frequency without NTC authorization.
The grantee must provide adequate public service time for government use, maintain sound and balanced programming, assist in public information and education, conform to ethics, and avoid broadcasting obscene, indecent, false, or subversive content.
In times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, the President can temporarily take over the stations or facilities for public safety, security, and welfare, with due compensation to the grantee.
The franchise cannot be leased, transferred, sold, assigned, merged, or have its controlling interest transferred without prior approval from Congress. Any transferee is bound by the same terms and conditions.
The grantee must offer at least 30% of its outstanding capital stock in any Philippine securities exchange within five years after achieving the status of a national broadcasting network, defined as operating three or more radio and/or television stations.
The grantee is not to require prior censorship but must cut off broadcasts inciting treason, rebellion, or sedition, or containing indecent or immoral language; failure to do so can lead to franchise cancellation.
The grantee must submit an annual report to Congress within sixty (60) days from year-end on compliance with franchise terms and its operations.