Question & AnswerQ&A (Republic Act No. 11668)
The franchise renewed under Republic Act No. 11668 grants GV Broadcasting System, Inc., presently known as Cignal TV, Inc., the right to construct, install, establish, operate, and maintain radio and television broadcasting stations throughout the Philippines for commercial purposes, including the use of digital television systems and new technologies in broadcasting.
The franchise is renewed for another twenty-five (25) years from the effectivity of the Act unless sooner revoked or cancelled.
The Grantee must secure the appropriate permits and licenses from the NTC for the construction and operation of its stations or facilities and must not use any frequency in the radio spectrum without authorization from the NTC.
The Grantee is required to provide free public service time equivalent to a maximum of ten percent (10%) of paid commercials or advertisements to enable the government to disseminate important public information and emergency warnings. It must also ensure sound and balanced programming, promote public participation, assist in public information and education, and conform to ethics against broadcasting obscene or indecent language or false information.
The Grantee must allocate a maximum aggregate of ten percent (10%) of paid commercials or advertisements for free public service time.
The President has the special right, in times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, to temporarily take over and operate the stations or facilities of the Grantee, suspend their operations, or authorize government use with due compensation.
The franchise is revoked ipso facto if the Grantee fails to operate continuously for two (2) years or if the Grantee fails to report to Congress any sale, lease, transfer, grant of usufruct, or assignment of franchise or controlling interest within sixty (60) days after completion of such transaction, or in case of noncompliance with the dispersal of ownership requirement.
The Grantee must offer at least thirty percent (30%) of its outstanding capital stocks to Filipino citizens or implement other methods to encourage public participation within five (5) years from the effectivity of the Act. Noncompliance renders the franchise ipso facto revoked.
No. The Grantee cannot sell, lease, transfer, grant the usufruct of, or assign the franchise or its rights without prior approval of Congress. Failure to inform Congress within sixty (60) days after such transaction also results in automatic revocation of the franchise.
The Grantee shall be fined Five hundred pesos (P500.00) per working day of noncompliance, payable to the Bureau of the Treasury. This is in addition to any penalties that the NTC may impose.
Pursuant to Republic Act No. 8370, the Grantee must allot a minimum of fifteen percent (15%) of the daily total air time to child-friendly shows within its regular programming.
The NTC may revoke or suspend permits or licenses issued to the Grantee for violations after due process and may recommend to Congress the revocation of the franchise.
No. The franchise is non-exclusive and may be amended, altered, or repealed by Congress when public interest so requires.
The Grantee shall not require prior censorship but must cut off any broadcast that incites treason, rebellion, sedition, or uses indecent or immoral language or themes. Failure to do so is valid cause for the franchise's cancellation.
The Grantee must create employment opportunities and accept on-the-job trainees, giving priority to residents where its principal office is located, and comply with labor standards under existing laws.