Question & AnswerQ&A (Republic Act No. 11240)
Republic Act No. 11240 extends for another twenty-five (25) years the franchise granted to Philippine Broadcasting Corporation to construct, install, operate, and maintain radio and television broadcasting stations in the Philippines.
The franchise includes operation through microwave, satellite, any new technology in television and radio systems, digital television systems, and corresponding technological auxiliaries and facilities.
The grantee must provide free adequate public service time, provide sound and balanced programming, promote public participation, assist in public information and education, avoid broadcasting obscene or false information, and ensure audience empowerment including closed captioning.
The grantee must secure appropriate permits from the National Telecommunications Commission (NTC) and cannot use any frequency without NTC authorization. The stations must operate with minimum interference to other stations' wavelengths or frequencies.
The franchise shall be deemed ipso facto revoked if the grantee fails to operate continuously for two (2) years.
The President may temporarily take over and operate the stations or facilities, suspend their operation, or authorize government use thereof during times of war, rebellion, public peril, calamity, emergency, disaster, or peace disturbances, with due compensation to the grantee.
The grantee must submit an annual report to Congress on its compliance with the franchise terms and operations by April 30 each year. The NTC requires a reportorial compliance certificate from Congress before accepting applications for permits or certificates.
A fine of Five hundred pesos (P500.00) per working day of noncompliance shall be collected by the NTC from the grantee and remitted to the National Treasury.
The grantee cannot sell, lease, transfer, assign, grant usufruct, merge, or transfer controlling interest without prior approval from Congress. Failure to report any such transaction to Congress within 60 days renders the franchise ipso facto revoked.
The grantee must offer at least thirty percent (30%) of its outstanding capital stock to Filipino citizens in any securities exchange within five years from the start of operations to encourage public participation. Noncompliance results in ipso facto revocation of the franchise.