QuestionsQuestions (Republic Act No. 11109)
The franchise is renewed for another 25 years from approval, allowing Manila Broadcasting Company (and its successors/assignees) to construct, install, operate, and maintain for commercial purposes and in the public interest radio and television broadcasting stations in the Philippines, including technological auxiliaries/facilities, special broadcast and other broadcast distribution services, relay stations, and communication facilities for its private use in broadcast services.
It begins from the approval of the Act (Section 1 states renewal is for 25 years from approval; Section 6 states the franchise is in effect for 25 years from the effectivity of the Act). For exam purposes, cite both provisions: renewal is from approval and the franchise is in effect for 25 years from the effectivity of the Act unless sooner revoked/cancelled.
The stations/facilities must be constructed and operated in a manner that results only in minimum interference on wavelengths or frequencies of existing or other stations, without diminishing the grantee’s own privilege to use assigned frequencies and the quality of transmission/reception.
The grantee must secure appropriate permits and licenses from the National Telecommunications Commission (NTC). It cannot use any frequency without NTC authorization; the NTC must not unreasonably withhold or delay authority.
The grantee must provide, free of charge, adequate public service time equivalent to a maximum aggregate of 10% of paid commercials/advertisements. It must be allocated based on need to the executive, legislative, judiciary, constitutional commissions, and international humanitarian organizations duly recognized by statutes.
The NTC shall increase the public service time in case of extreme emergency or calamity, and issue rules/regulations for that purpose effective upon applicability with other similarly situated franchise holders.
The grantee must provide sound and balanced programming, promote public participation, assist public information and education functions, conform to ethics of honest enterprise, promote audience sensibility and empowerment including closed captioning, and must not broadcast obscene/indecent language or deliberately false information or willful misinterpretation to the detriment of the public interest, nor incite/encourage/assist subversive or treasonable acts.
The President may (1) temporarily take over and operate the stations/facilities; (2) temporarily suspend operation of any station/facility for public safety/security/welfare; or (3) authorize temporary government use/operation of the facilities by any agency upon due compensation to the grantee.
It is deemed ipso facto revoked if the grantee fails to operate continuously for two (2) years.
The grantee must continue to maintain its status as a publicly-held corporation to comply with the constitutional mandate to democratize ownership of public utilities.
No previous censorship is required for any speech/play/act/scene or other matter to be broadcast. However, during any broadcast, the grantee must cut off from the air any content whose tendency is to incite treason, rebellion, or sedition, or is indecent or immoral; willful failure to do so is a valid cause for cancellation.
The grantee holds the national, provincial, city, and municipal governments free from claims/liabilities/demands/actions arising from accidents causing injuries or property damage during construction or operation of its stations.
The grantee must create employment opportunities and allow on-the-job trainings. Priority must be given to residents in areas where its offices are located, and it must follow applicable labor standards under existing labor laws. Employment opportunities/jobs created must be reflected in the General Information Sheet (GIS) submitted to the SEC annually.
The grantee remains subject to all applicable taxes, duties, fees, and charges under R.A. No. 8424 (National Internal Revenue Code of 1997), as amended, and other applicable laws.
The grantee may not sell, lease, transfer, grant usufruct of, or assign the franchise or the rights acquired, nor merge, nor transfer controlling interest (whether whole or in part) without prior approval of Congress and compliance with legal requirements in other statutes. Any transferee must be subject to the same conditions/limitations of the Act.
The grantee must submit an annual report to Congress through the House Committee on Legislative Franchises and Senate Committee on Public Services on compliance and operations on or before April 30 each year. A reportorial compliance certificate issued by Congress is required before any NTC application is accepted. Failure to submit the annual report incurs a fine of P500 per working day of noncompliance, collected by the NTC separately from NTC reportorial penalties and remitted to the National Treasury.
Any advantage/favor/privilege/exemption/immunity granted under existing or future radio/TV franchises (upon prior review and approval of Congress) must become part of this franchise and be accorded immediately and unconditionally. Exceptions: it does not apply to or affect provisions concerning franchise territory, franchise life span, or type of service authorized.
Section 16: separability clause—if any provision is held invalid, others remain valid. Section 17: nonexclusivity/amendment/repeal clause—Congress may amend/alter/repeal when public interest requires; franchise is not exclusive. Section 18: repealing clause—laws and issuances inconsistent with the Act are repealed/amended/modified accordingly.
It takes effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation.