QuestionsQuestions (Republic Act No. 10178)
It grants the grantee the franchise to construct, install, establish, operate and maintain, for commercial purposes and in the public interest, radio and television broadcasting stations in the Philippines, including digital systems and IP-related services (with corresponding technological auxiliaries), and related broadcast/program distribution and relay services through microwave, satellite, or other means where frequencies/channels are available.
The stations/facilities must be constructed and operated to cause at most minimum interference on the wavelengths/frequencies of existing stations or those later established by law, while not diminishing the grantee’s right to use selected wavelengths/frequencies and the quality of transmission/reception.
The grantee must secure from the NTC the appropriate permits and licenses for construction and operation, and may not use any frequency in the radio/TV spectrum without NTC authorization; the NTC must not unreasonably withhold or delay such authority.
The grantee must provide adequate public service time for government information on important public issues; ensure sound and balanced programming; assist in public information and education; conform to ethics of honest enterprise; and must not broadcast obscene/indecent language or deliberately false information/willful misrepresentation or content that incites, encourages, or assists subversive or treasonable acts.
In times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, the President may temporarily take over and operate the stations/facilities, temporarily suspend operations, or authorize temporary government use/operation upon due compensation.
The radio spectrum is a finite resource and part of national patrimony; its use is a privilege conferred by the State and may be withdrawn anytime after due process.
The franchise is effective for 25 years unless sooner revoked/cancelled. It is deemed ipso facto revoked if the grantee fails to comply with: (a) commence operations within one year from approval of its operating permit by NTC; (b) operate continuously for two years; and (c) commence operations within three years from effectivity of the Act.
Acceptance must be given in writing within 60 days from effectivity; upon acceptance the grantee may exercise franchise privileges. Nonacceptance renders the franchise void.
The grantee must file a bond with the NTC in an amount determined by the NTC to guarantee compliance. If after three years from approval of its permit by the NTC the grantee has fulfilled the conditions, the bond is cancelled; otherwise the bond is forfeited to the government and the franchise is ipso facto revoked.
The grantee shall not require previous censorship. However, during any broadcast it must cut off from the air any speech/play/act/scene or other matter if it tends to propose/incite treason, rebellion, or sedition, or if the language/theme is indecent or immoral; willful failure to do so is a valid cause for cancellation of the franchise.
The grantee must hold the national and local governments harmless from all claims, accounts, demands, or actions arising from accidents or injuries (to property or persons) caused by the construction or operation of the grantee’s stations.
No. The grantee may not lease, transfer, grant usufruct, sell, or assign the franchise or acquired rights, nor merge, nor transfer controlling interest (whole or parts) to another entity without prior approval of Congress.
Within five years after achieving national broadcasting network status (defined as operating three or more radio and/or TV stations), the grantee must offer at least 30% (or a higher percentage required by later law) of its outstanding capital stock in a securities exchange in the Philippines. Noncompliance renders the franchise ipso facto revoked.
It provides that any advantage/favor/privilege/exemption/immunity granted under existing or future broadcasting franchises becomes part of this franchise and is accorded immediately and unconditionally to the grantee, but it does not apply to or affect franchise territory, life span, or type of service authorized by the franchise.
Under Section 15, the grantee must submit an annual report to Congress on compliance with franchise terms and on operations within 60 days from the end of every year.
It takes effect 15 days after its publication, upon the initiative of the grantee, in at least two newspapers of general circulation in the Philippines.