Question & AnswerQ&A (Republic Act No. 11354)
The franchise is granted to Southern Broadcasting Network, Inc. to construct, install, establish, operate, and maintain commercial radio and/or television broadcasting stations in the Philippines, including digital television systems and associated technologies, for another twenty-five years.
It requires the stations or facilities to be constructed and operated to cause minimum interference on the wavelengths or frequencies of existing or other lawful stations, while maintaining quality transmission and maximizing the grantee's services.
The grantee must secure appropriate permits and licenses from the National Telecommunications Commission (NTC) and cannot use any radio/television frequency without NTC authorization.
The grantee must provide free public service airtime for government announcements and emergencies, maintain balanced programming, promote public participation, assist public education, prohibit obscene or false broadcasts, and allocate up to 10% of advertising time for public service announcements.
The President may temporarily take over or suspend the operations during war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, with due compensation to the grantee.
The franchise is valid for twenty-five (25) years from the effectivity of the Act unless revoked earlier. It is revoked ipso facto if the grantee fails to operate continuously for two years.
The grantee must not require prior censorship but must cut off any broadcast inciting treason, rebellion, sedition, or containing indecent or immoral content. Failure to do so can lead to franchise cancellation.
The grantee must submit an annual report to Congress on compliance and operations by April 30 each year, and this report is a prerequisite for NTC to accept permit applications.
A fine of Five hundred pesos (P500) per working day of noncompliance, collected by the NTC and remitted to the National Treasury.
The franchise cannot be sold, leased, transferred, granted for usufruct, assigned, merged, or have controlling interest transferred without prior approval of Congress. Failure to report changes within 60 days results in automatic revocation.
The grantee must offer at least thirty percent (30%) of its outstanding capital stock to Filipino citizens through a securities exchange within five years, or apply other methods promoting public participation, failing which the franchise is revoked.
Any advantages, privileges, or exemptions granted under other franchises for radio/television shall apply immediately and unconditionally to this franchise, except those related to territorial coverage, term, or service type.
Failure to operate for two years continuously, failure to report to Congress changes in ownership, willful failure to cut off improper broadcasts, or noncompliance with ownership and reportorial requirements.
Fifteen (15) days after its publication in the Official Gazette or a newspaper of general circulation.