Franchise renewal for Eagle Broadcasting Corp.

Republic Act No. 10773
The Philippine Jurisprudence case involves the renewal of a broadcasting corporation's franchise, with provisions for permits, public service obligations, temporary takeover, compliance with regulations, prohibition on leasing, offering of capital stock, application of broadcast policy, submission of annual reports, and the ability for Congress to amend or repeal the Act.

Questions (Republic Act No. 10773)

RA 10773 renews the franchise of Eagle Broadcasting Corporation to construct, install, establish, operate and maintain radio and/or television broadcasting stations (including digital systems and related services) in the Philippines, renewed for another 25 years from November 3, 2018.

The franchise term is counted from November 3, 2018.

The grantee must construct and operate in a manner that results only in minimum interference on wavelengths/frequencies of existing stations, without diminishing its right to use selected frequencies and the quality of transmission/reception.

The grantee must secure appropriate permits and licenses from the NTC and must not use any frequency in the radio/TV spectrum without NTC authorization; the NTC must not unreasonably withhold or delay authority.

Provide adequate public service time for government information on important public issues; provide sound and balanced programming at all times; assist in functions of public information and education; conform to ethics of honest enterprise; and avoid broadcasting obscenity/indecent language or deliberately false information or willful misrepresentation harmful to public interest.

It prohibits broadcasting of obscene/indecent language, speech, act or scene, dissemination of deliberately false information or willful misrepresentation to the detriment of public interest, and incitement/encouragement/assistance of subversive or treasonable acts.

The President may temporarily take over and operate the stations/facilities, temporarily suspend their operation for public safety/security/welfare, or authorize a temporary government agency operation/use upon due compensation to the grantee.

The franchise is deemed ipso facto revoked if the grantee fails to operate continuously for two (2) years.

Acceptance must be given in writing to Congress (through specified committees) within 60 days from effectivity. Upon acceptance, the grantee exercises franchise privileges. Nonacceptance renders the franchise void.

The grantee shall not require prior censorship; during any broadcast, it must cut off from the air if the speech/play/act/scene or other matter tends to incite treason/rebellion/sedition, or if the language/theme is indecent or immoral. Willful failure to do so is a valid cause for cancellation.

No. The grantee cannot lease, transfer, grant usufruct, sell, assign, or merge—or transfer controlling interest—without prior approval of Congress.

Congress must be informed within 60 days after completion of the transaction; failure to report renders the franchise ipso facto revoked.

Within five years from achieving status of a national broadcasting network, the grantee must offer at least 10% (or a higher percentage required by future law) of its outstanding capital stock to Filipino citizens, in line with the constitutional policy on public participation in public utilities.

A national broadcasting network is defined as one that operates at least three (3) radio/television stations.

The grantee must submit an annual report to Congress on compliance with franchise terms and its operations on or before April 30 of the succeeding year. A reportorial compliance certificate issued by Congress is required before any NTC application for permit/certificate is accepted.

A fine of P500.00 per working day of noncompliance; it is collected by the NTC from the delinquent grantee, separate from any NTC reportorial penalties, and the collected funds accrue to the NTC monitoring fund.

Any advantage/favor/privilege/exemption/immunity granted under existing or future broadcasting franchises (upon prior review and approval of Congress) becomes part of and is accorded immediately and unconditionally to the grantee, except it does not apply to provisions about territory covered, franchise life span, or type of service authorized; it also does not apply to franchises sold/leased/transferred/assigned with prior Congressional approval.

It takes effect 15 days after its publication in at least two newspapers of general circulation; publication must be initiated by the grantee 15 days after the Act is signed by the President or lapses into law.


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