QuestionsQuestions (Republic Act No. 11555)
The franchise is renewed for another twenty-five (25) years, effective for twenty-five (25) years from the effectivity of the Act. The Act takes effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation.
Baycomms may construct, install, establish, operate, and maintain for commercial purposes and in the public interest radio and television broadcasting stations, including digital and pay television systems, through microwave, satellite, or whatever means, including use of new technology, plus technological auxiliaries and facilities, special broadcast and other program and distribution services, and relay stations in the Philippines.
They must be constructed and operated in a manner that results only in the minimum interference on wavelengths or frequencies of existing stations or other stations that may be established by law, without diminishing the grantee’s own privilege to use assigned frequencies and the quality of transmission/reception.
The grantee must secure from the NTC the appropriate permits and licenses for construction and operation, and must not use any frequency in the radio/television spectrum without NTC authorization. The NTC cannot unreasonably withhold or delay authority.
After due process, the NTC may revoke or suspend permits or licenses it issued pursuant to the franchise, and may recommend to Congress the revocation of the franchise for violations.
The grantee must provide free of charge adequate public service time to enable government access on important public issues, relay emergency and calamity announcements/warnings, provide at all times balanced programming, promote public participation, assist in public information and education, conform to ethics of honest enterprise, promote audience sensibility and empowerment including closed captioning, and avoid broadcasting obscene/indecent language or deliberately false information/willful misrepresentation that is detrimental to public interest, or content inciting/encouraging/assisting subversive or treasonable acts.
It is equivalent to a maximum aggregate of ten percent (10%) of the paid commercials/advertisements, allocated based on need of the Executive and Legislative branches, the Judiciary, Constitutional Commissions, and international humanitarian organizations duly recognized by statutes.
The NTC shall increase the public service time in extreme emergency or calamity, and will issue rules whose effectivity begins upon applicability with other similarly situated broadcast franchise holders.
The grantee must allot a minimum of fifteen percent (15%) of the daily total airtime of each broadcasting network to child-friendly shows within its regular programming.
In times of war, rebellion, public peril, calamity, emergency, or disturbance of peace and order, the President may temporarily take over and operate the stations/facilities, temporarily suspend operations for public safety/security/welfare, or authorize temporary use/operation by a government agency upon due compensation.
It is deemed ipso facto revoked if the grantee fails to operate continuously for two (2) years.
The grantee shall not require previous censorship of speech/play/act/scene or other matters to be broadcast. However, it must cut off airing if the tendency proposes/incites treason, rebellion, or sedition, or if language/theme is indecent or immoral. Willful failure to do so constitutes a valid cause for cancellation of the franchise.
The grantee cannot sell, lease, transfer, grant usufruct of, or assign the franchise/rights, merge, or transfer controlling interest without prior approval of Congress. Congress must be informed within sixty (60) days after completion of such transaction. Failure to report renders the franchise ipso facto revoked.
Within five (5) years from commencement of operations, the grantee must offer to Filipino citizens at least thirty percent (30%) (or a higher percentage if later required by law) of its outstanding capital stock in a securities exchange in the Philippines; if public offer is not applicable, use other lawful methods to encourage public participation. Noncompliance renders the franchise ipso facto revoked.
Baycomms must submit an annual report to Congress through the House Committee on Legislative Franchises and the Senate Committee on Public Services on or before April 30 of every year during the franchise term. It must include: update on roll-out/development/operation/expansion; audited financial statements; latest GIS officially submitted to SEC if applicable; certification from NTC on status of permits/operations; and update on dispersal of ownership undertaking if applicable.
The reportorial compliance certificate issued by Congress is required before any application for permit or certificate is accepted by the NTC.
Failure to submit the P500.00 per working day of noncompliance is imposed. The NTC collects the fine separate from reportorial penalties it may impose, and remits it to the Bureau of the Treasury.
Equality Clause: advantages/favors/privileges/exemptions from existing or future broadcasting franchises, if reviewed and approved by Congress, become part of this franchise and are accorded immediately and unconditionally, except those affecting territorial coverage, term, or type of service. Nonexclusivity/Repeatability: the franchise is subject to amendment/alteration/repeal by Congress when public interest requires and is not an exclusive grant.