QuestionsQuestions (Republic Act No. 10818)
The franchise is renewed for another twenty-five (25) years from April 18, 2016, subject to the Act’s conditions (e.g., unless sooner revoked or cancelled).
It is deemed ipso facto revoked if the grantee fails to operate continuously for two (2) years.
The grantee must secure appropriate permits and licenses from the National Telecommunications Commission (NTC) and may not use any frequency in the radio/television spectrum without NTC authorization; the NTC must not unreasonably withhold or delay authority.
They must be constructed and operated in a manner that results in only minimum interference on assigned wavelengths/frequencies of existing stations, without diminishing the grantee’s assigned privileges or transmission/reception quality.
The grantee must: (1) provide adequate public service time for government information on important issues; (2) provide sound and balanced programming; (3) assist public information and education; (4) conform to ethics of honest enterprise; and (5) avoid broadcasting obscene/indecent content, deliberately false information, willful misrepresentation to detriment of the public interest, or incitement/assistance to 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, temporarily suspend operations for public safety/security/welfare, or authorize temporary government use upon due compensation to the grantee.
It treats the radio spectrum as a finite resource part of national patrimony; use is a privilege conferred by the State and may be withdrawn any time after due process.
Acceptance must be given in writing to Congress (House Committee on Legislative Franchises and Senate Committee on Public Services) within sixty (60) days from effectivity of the Act. Nonacceptance renders the franchise void.
No. The grantee shall not require any previous censorship of any speech/play/act/scene or other matter to be broadcast.
The grantee must cut off from the air the broadcast if the tendency is to propose/incite treason, rebellion, or sedition, or if 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, provincial, city, and municipal governments free from claims, accounts, demands, or actions arising out of accidents or injuries (to property or persons) caused by the construction or operation of the stations.
The grantee may not lease, transfer, grant usufruct of, sell, or assign the franchise/rights or merge/transfer controlling interest without prior approval of Congress. Congress must be informed within sixty (60) days after completion of any reportable transaction, and failure to report renders the franchise ipso facto revoked. Any transferee must be subject to the Act’s same conditions.
The grantee must offer at least 30% of its outstanding capital stock (or higher as later required by law) to Filipino citizens in a securities exchange within five (5) years from commencement; if public offer isn’t applicable, cooperatives/other methods must be implemented. Noncompliance renders the franchise ipso facto revoked.
It requires reporting to Congress on compliance with franchise terms and operations. The annual report must be submitted on or before April 30 of every year during the franchise term to the House Committee on Legislative Franchises and the Senate Committee on Public Services.
Failure is penalized with a fine of PHP 500 per working day of noncompliance. The fine is collected by the NTC, separate from NTC’s other reportorial penalties, accruing to the NTC monitoring fund.