Question & AnswerQ&A (Republic Act No. 11320)
Republic Act No. 11320 renews for another twenty-five (25) years the franchise granted to ABC Development Corporation, now known as TV5 Network, Inc., to construct, install, operate, and maintain radio and television broadcasting stations in the Philippines.
The franchise covers radio and/or television broadcasting stations, including digital television systems, that may operate through microwave, satellite, terrestrial, or any other means, including the use of new technologies in television and radio systems.
The grantee must secure the appropriate permits and licenses from the National Telecommunications Commission (NTC) before constructing and operating its stations or facilities and cannot use any frequency without NTC authorization.
The grantee must provide free public service time equivalent to a maximum of ten percent (10%) of paid advertisements, enable government announcements, provide balanced programming, promote public participation, assist in public education and information, and avoid broadcasting obscene or deliberately false information.
The President of the Philippines has the right, during war, rebellion, public peril, calamity, emergency, or disturbance of peace, to temporarily take over, suspend operation of, or authorize government use of the stations or facilities, with due compensation to the grantee.
The franchise is valid for twenty-five (25) years from the effectivity of the Act unless revoked or cancelled earlier. It shall be automatically revoked if the grantee fails to operate continuously for two (2) years.
The grantee cannot sell, lease, transfer, grant usufruct, assign the franchise, merge, or transfer controlling interest without prior approval from Congress. Failure to report such transactions within sixty (60) days to Congress results in automatic revocation of the franchise.
The grantee must offer at least thirty percent (30%) of its outstanding capital stock to Filipino citizens through a public offering on a Philippine securities exchange within five (5) years from operation commencement, or use other legal methods to encourage public participation.
The grantee must submit an annual report to Congress detailing compliance with the franchise terms, operations, financial statements, SEC filings, NTC certification, and ownership dispersal. This report is due annually on or before April 30.
Failure to submit the annual report will be penalized with a fine of Five hundred pesos (P500.00) per working day of noncompliance, collected by the NTC and remitted to the National Treasury.
The grantee must not require prior censorship but is required to cut off broadcasts that incite treason, rebellion, sedition, or contain indecent or immoral content. Failure to comply can lead to cancellation of the franchise.
The grantee holds the national and local governments free from all claims arising from accidents causing injury or damage during construction or operation of its stations.
No, the franchise is nonexclusive and subject to amendment, alteration, or repeal by Congress when the public interest so requires.