QuestionsQuestions (Republic Act No. 10820)
RA 10820 renews the franchise for another twenty-five (25) years from the effectivity of the Act, unless sooner revoked or cancelled.
It is deemed ipso facto revoked if the grantee fails to operate continuously for two (2) years.
It is subject to the 1987 Philippine Constitution and applicable laws, rules, and regulations.
It must be constructed and operated to result only in minimum interference with existing stations or those that may be established by law, without diminishing its own assigned wavelength/frequency privileges or the quality of transmission/reception.
The grantee must secure appropriate NTC permits and licenses for construction and operation, and must not use any frequency without NTC authorization; however, the NTC shall not unreasonably withhold or delay such authority.
Provide adequate public service time; maintain sound and balanced programming; assist public information and education; conform to ethics of honest enterprise; not broadcast obscene/indecent content or deliberately false information; and not incite/encourage/assist 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 for public safety/security/welfare, or authorize temporary government use upon due compensation.
It emphasizes that spectrum use is a privilege granted by the State as part of national patrimony; the privilege may be withdrawn by the State through the required due process.
Acceptance must be given within sixty (60) days from effectivity. Nonacceptance renders the franchise void.
No. The grantee shall not require previous censorship of any speech/play/act/scene/other matter to be broadcast. However, it must cut off from the air content if it tends to 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.
The grantee must hold the national and local governments free from claims, accounts, demands, or actions arising from accidents or injuries to property or persons caused by construction or operation of the stations.
The grantee cannot lease, transfer, grant usufruct of, sell, or assign the franchise/rights/privileges, nor merge or transfer controlling interest, without prior approval of Congress.
Congress must be informed within sixty (60) days after completion of the transaction (lease/transfer/assignment/merger or transfer of controlling interest). Failure to report renders the franchise ipso facto revoked.
The grantee must offer at least 30% of its outstanding capital stock (or higher if later required by law) to Filipino citizens in any securities exchange within five (5) years from the commencement of operations. If public offer is not applicable, cooperatives/other methods must be implemented. Noncompliance renders the franchise ipso facto revoked.
The grantee must submit an annual report to Congress on compliance and operations on or before April 30 every year. A reportorial compliance certificate issued by Congress is required before any application for permit or certificate is accepted by the NTC.
A fine of Five Hundred Pesos (P500.00) per working day of noncompliance, collected by the NTC from the delinquent grantee, separate from any other tab reportorial penalties imposed by the NTC.
It ensures that any advantage/favor/privilege/exemption granted to other radio/TV broadcasting franchises (subject to prior review and approval by Congress) becomes part of the grantee’s franchise immediately and unconditionally. It does not affect provisions on franchise territory, franchise life span, or type of service authorized.