Question & AnswerQ&A (Republic Act No. 11316)
The franchise extended by Republic Act No. 11316 was granted to PBN Broadcasting Network, Inc.
The franchise is extended for another twenty-five (25) years from the effectivity of the Act.
The franchise authorizes the construction, installation, establishment, operation, and maintenance of radio and/or television broadcasting stations, including digital television systems, microwaves, satellites, and use of any new technology related to television and radio broadcasting, along with technological auxiliaries, program and distribution services, and relay stations in the Philippines.
The grantee must secure prior approval and the necessary permits and licenses from the National Telecommunications Commission (NTC) and must not use any frequency without NTC authorization.
The grantee may dispose or lease its facilities only to entities with a radio or television broadcasting franchise, must inform and secure written authorization from the NTC, and report the transaction within sixty (60) days of completion. Violations may result in sanctions determined by the NTC.
The grantee must provide free adequate public service airtime to enable the government to reach the public on important issues, relay important announcements, promote public participation, and maintain balanced programming. Public service time is limited to a maximum aggregate of ten percent (10%) of paid commercials but can be increased by the NTC during emergencies.
The President has the special right to temporarily take over and operate the stations or facilities, suspend operations, or authorize government use during war, rebellion, public peril, calamity, or emergency, with due compensation to the grantee.
The franchise is ipso facto revoked if the grantee fails to operate continuously for two (2) years.
The grantee is not required to censor content before broadcast but must cut off the broadcast of material inciting treason, rebellion, or sedition, or containing indecent or immoral language. Failure to comply is cause for franchise cancellation.
The grantee must create employment opportunities, allow on-the-job training, prioritize residents near its principal office, comply with labor laws, and reflect employment data in its annual General Information Sheet submitted to the Securities and Exchange Commission.
The grantee cannot sell, lease, transfer, grant usufruct, assign the franchise or its controlling interest without prior approval of Congress and must inform Congress within sixty (60) days after the transaction. Failure to report results in ipso facto revocation.
The grantee must offer at least thirty percent (30%) of its outstanding capital stock to Filipino citizens through a public offering within five (5) years of commencing operations or use other legally allowed methods to encourage public participation. Noncompliance results in franchise revocation.
The grantee must submit an annual report to Congress covering compliance, operations, financial statements, permits status, and ownership dispersal by April 30 of each year. Failure to submit incurs a fine.
A fine of Five Hundred Pesos (P500.00) per working day of noncompliance is imposed, to be collected by the NTC and remitted to the National Treasury.
Yes, under the Repeatability and Nonexclusivity Clause, Congress may amend, alter, or repeal the franchise when the public interest so requires.