QuestionsQuestions (Republic Act No. 11354)
It is renewed for another twenty-five (25) years from the effectivity of the Act (Sec. 1 and Sec. 6).
The term runs from the effectivity of RA 11354 (Sec. 1 and Sec. 6). Since the Act takes effect fifteen (15) days after publication (Sec. 18), the 25-year period starts after that effectivity.
The franchise is deemed ipso facto revoked if the grantee fails to operate continuously for two (2) years (Sec. 6).
The stations/facilities must be constructed and operated so that they result at most only in the minimum interference on wavelengths/frequencies of existing stations, without diminishing its privilege to use assigned wavelengths/frequencies and the quality of transmission/reception (Sec. 2).
The grantee must secure appropriate permits and licenses from the NTC, and it shall not use any frequency in the radio/television spectrum without NTC authorization (Sec. 3).
The NTC shall not unreasonably withhold or delay the grant of authority (Sec. 3).
It must provide free of charge adequate public service time, maintain sound and balanced programming, promote public participation, assist public information/education, conform to ethics of honest enterprise, promote audience sensibility/empowerment including closed captioning, and refrain from obscene/indecent language or deliberately false information or incitement of subversive/treasonable acts (Sec. 4).
Public service time is equivalent to a maximum aggregate of ten percent (10%) of paid commercials/advertisements, allocated based on need to the executive, legislative, judiciary, constitutional commissions, and international humanitarian organizations duly recognized by statute (Sec. 4).
It can be increased in case of extreme emergency or calamity. The NTC shall issue rules for this purpose (Sec. 4).
The President may temporarily take over and operate the stations, temporarily suspend operations, or authorize temporary use/operation by a government agency during war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, with due compensation (Sec. 5).
The grantee shall not require previous censorship. However, during any broadcast it must cut off from the air any matter that tends to incite treason/rebellion/sedition or if the language/topic is indecent or immoral; willful failure is a valid cause for cancellation of the franchise (Sec. 7).
The grantee must hold the national/provincial/city/municipal governments free from claims, liabilities, demands, or actions arising from accidents causing injury or property damage during construction or operation of the stations (Sec. 8).
The grantee must create employment opportunities and allow on-the-job trainings; it must prioritize residents in areas where its offices are located; must comply with applicable labor standards and related legal issuances; and must reflect employment created in the General Information Sheet submitted annually to the SEC (Sec. 9).
The grantee cannot sell, lease, transfer, grant usufruct, or assign the franchise/rights, nor merge, nor transfer controlling interest without prior approval of Congress. Congress must be informed within 60 days after the completion of such transactions (Sec. 10).
Failure to report to Congress renders the franchise ipso facto revoked (Sec. 10).
The grantee must offer at least 30% (or higher as may be later required by law) of its outstanding capital stock to Filipino citizens in a securities exchange in the Philippines within five (5) years from commencement of operations, or apply other allowed methods if public offering is not applicable. Noncompliance renders the franchise ipso facto revoked (Sec. 11).
The grantee must submit an annual report to Congress (through the House Committee on Legislative Franchise and Senate Committee on Public Services) on compliance and operations on or before April 30 each year. Failure to submit is penalized by a fine of P500 per working day of noncompliance, collected by the NTC and remitted to the National Treasury (Sec. 12 and Sec. 13).
Any advantage/favor/privilege/exemption/immunity granted under existing or future broadcasting franchises (upon prior review and approval of Congress) becomes part of this franchise and is accorded immediately and unconditionally, except to taxes and customs duties. It does not apply to or affect provisions concerning territorial coverage, term, or the type of service authorized (Sec. 14).