QuestionsQuestions (Republic Act No. 11669)
The franchise is renewed for another twenty-five (25) years, and it takes effect for twenty-five (25) years from the effectivity of the Act, unless sooner revoked or cancelled.
It may construct, install, establish, operate, and maintain for commercial purposes and in the public interest radio and television broadcasting stations in the Philippines, including digital television systems, via microwave, satellite, or whatever means, and use of new technology with corresponding technological auxiliaries and facilities, special broadcast and program/distribution services, and relay stations.
The grantee must construct and operate its stations in a manner that results at most in minimum interference on wavelengths/frequencies of existing stations or other stations established by law, without diminishing its own privilege to use its assigned frequencies and without reducing the quality of transmission/reception.
The grantee must secure appropriate permits and licenses from the NTC and may not use any frequency without NTC authorization. The NTC may not unreasonably withhold or delay granting authority.
After due process, the NTC may revoke or suspend the permits or licenses it issued pursuant to the franchise. It may also recommend to Congress the revocation of the franchise.
It must provide free of charge adequate public service time to enable government broadcasting of important public issues and urgent announcements/warnings during emergencies and calamities; maintain 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 not broadcast obscene/indecent language, deliberately false information, willful misrepresentation to the detriment of public interest, or content inciting/encouraging/assisting subversive or treasonable acts.
It must be equivalent to a maximum aggregate of ten percent (10%) of paid commercials or advertisements, allocated based on need to 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 case of extreme emergency or calamity, and shall issue rules/regulations for this purpose with effectivity aligned with other similarly situated broadcast network franchise holders.
Pursuant to the Children’s Television Act of 1997 (RA 8370), the grantee must allot at least fifteen percent (15%) of the daily total air time of each broadcasting network or station to child-friendly shows within its regular programming.
In times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, the President may temporarily take over and operate the stations/facilities, temporarily suspend station operations for public safety/security/welfare, or authorize temporary use/operation by a government agency upon due compensation during the period of such operation.
It is deemed ipso facto revoked if the grantee fails to operate continuously for two (2) years.
The grantee shall not require previous censorship. If broadcast content violates the law or infringes a private right, the grantee is generally free from civil/criminal liability for that speech/play/act/scene/matter, but it must cut off airing during broadcast if the tendency proposes/incites treason, rebellion, or sedition, or if the language/theme is indecent or immoral. Willful failure can be a valid cause for franchise cancellation.
The grantee must submit an annual report on compliance and operations to Congress (via the House Committee on Legislative Franchises and Senate Committee on Public Services) on or before April 30 of every year during the franchise term, including specified items such as commencement/update, audited financial statements, latest GIS (if applicable), NTC certification, and update on dispersal of ownership.
Failure to submit the requisite annual report to Congress is penalized by a fine of Five hundred pesos (P500.00) per working day of noncompliance.
The reportorial compliance certificate issued by Congress is required before any application for permit or certificate is accepted by the NTC.
The grantee cannot sell, lease, transfer, grant usufruct of, or assign the franchise/rights without prior approval of Congress, nor merge with another entity, nor transfer controlling interest simultaneously/contemporaneously to another person/entity without prior Congress approval. It must inform Congress within sixty (60) days after completion of any transaction; failure to report results in ipso facto revocation.
The grantee must offer at least thirty percent (30%) of its outstanding capital stocks to Filipino citizens in a securities exchange in the Philippines within five (5) years from effectivity (or implement other methods if public offer of shares is not applicable). Noncompliance results in ipso facto revocation.
Any advantage/favor/privilege/exemption/immunity granted under existing or future broadcasting franchises (after prior review and approval by Congress) becomes part of this franchise and must be accorded immediately and unconditionally to the grantee. Limits: it does not apply to provisions concerning territorial coverage, term, or the type of service authorized.