QuestionsQuestions (Republic Act No. 11240)
RA 11240 extends for another twenty-five (25) years the broadcasting franchise granted to the Philippine Broadcasting Corporation (PBC) under RA 7962, allowing it to construct, install, establish, operate, and maintain radio and/or television broadcasting stations (including digital TV) and related services in the public interest.
Section 1 states the franchise is extended for 25 years from the effectivity of the Act. Section 6 similarly provides that the franchise is in effect for 25 years from the effectivity of the Act, unless sooner revoked or cancelled.
The stations or facilities must be constructed and operated in a manner that, at most, results only in the minimum interference on wavelengths or frequencies of existing stations or other stations that may be established by law, without diminishing PBC’s own privilege to use its assigned frequencies and without impairing transmission/reception quality.
PBC must secure appropriate permits and licenses from the National Telecommunications Commission (NTC). It must not use any frequency without NTC authorization; however, NTC must not unreasonably withhold or delay authority.
PBC may not dispose or lease facilities except to entities with a radio or television franchise. It must inform and secure written authorization to proceed from the NTC, and report the transaction to the NTC within 60 days after completion.
NTC is tasked to determine the corresponding sanction for any violation of the provision that facilities may only be disposed/leased to franchise holders and subject to NTC authorization and reporting requirements.
PBC must provide free adequate public service time for government announcements and emergency/calamity warnings; maintain sound and balanced programming; promote public participation; assist public information and education; conform to ethics of honest enterprise; promote audience sensibility and empowerment including closed captioning; and avoid broadcasting obscene/indecent content, deliberately false information/willful misrepresentation, 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 need to reach the executive, legislative, judiciary, constitutional commissions, and international humanitarian organizations recognized by statutes.
During war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, the President may temporarily take over and operate PBC’s stations/facilities, temporarily suspend operations for public safety/security/welfare, or authorize temporary government agency use/operation with due compensation.
The franchise is deemed ipso facto revoked if the grantee fails to operate continuously for two (2) years.
PBC shall not require previous censorship of any speech/play/act/scene/matter to be broadcast. If the content violates law or infringes a private right, PBC is free from civil or criminal liability for that speech/play/act/scene/matter—subject to the obligation to cut off airing if the broadcast tendency proposes/incites treason, rebellion, or sedition, or if the language/theme is indecent or immoral.
Willful failure to cut off the airing of prohibited content constitutes a valid cause for cancellation of the franchise.
PBC must hold national, provincial, city, and municipal governments free from claims, liabilities, demands, or actions arising from accidents causing injury or damage to properties during construction or operation of the stations.
PBC must create employment opportunities and allow on-the-job trainings in franchise operation, give priority to residents where its principal office is located, comply with applicable labor standards and entitlements, and reflect the jobs created in the General Information Sheet (GIS) submitted annually to the SEC.
PBC cannot sell/lease/transfer/grant usufruct/assign the franchise or its rights, nor merge or transfer controlling interest, without prior approval of Congress. It must also inform Congress within 60 days after completion of any such transaction, and failure to report results in ipso facto revocation.
PBC must offer at least 30% (or higher if later required by law) of its outstanding capital stock to Filipino citizens in a securities exchange within 5 years from commencement of operations. If noncompliant, the franchise is ipso facto revoked.
Under Section 12, PBC must submit an annual report to Congress (through specified House/Senate committees) on compliance and operations on or before April 30 each year. A reportorial compliance certificate issued by Congress is required before NTC accepts any permit/certificate application. Under Section 13, failure to submit the report is penalized by a fine of PHP 500 per working day of noncompliance, collected by NTC and remitted to the National Treasury.