Renewal of Eagle Broadcasting Franchise

Interference limits and transmission quality

Section 2 requires the grantee to construct and operate stations and facilities in a manner that results, at most, in minimum interference on wavelengths or frequencies of existing stations or other stations that may be established by law.
Section 2 further requires that operation must not diminish the grantee’s right to use its selected wavelengths or frequencies.
Section 2 mandates maintaining or maximizing the quality of transmission or reception to maximize rendition of the grantee’s services and/or the availability thereof.

National Telecommunications Commission (NTC) permits

Section 3 requires the grantee to secure from the National Telecommunications Commission (NTC) the appropriate permits and licenses for operation of its stations and facilities.
Section 3 prohibits using any frequency in the radio/television spectrum without NTC authorization.
Section 3 directs that the NTC shall not unreasonably withhold or delay the grant of such authority.

Public service and broadcast conduct

Section 4 requires the grantee to provide adequate public service time so that government, through the grantee’s broadcasting stations or facilities, can reach the population on important public issues.
Section 4 requires sound and balanced programming at all times.
Section 4 requires the grantee to assist in public information and education functions.
Section 4 prohibits the grantee from using its stations and facilities to broadcast obscene and indecent language, speech, act or scene, or to disseminate deliberately false information or willful misrepresentation to the detriment of the public interest.
Section 4 prohibits broadcasting that would incite, encourage, or assist in subversive or treasonable acts.

Government takeover and control of spectrum

Section 5 reserves to the President of the Philippines a special right in times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order.
Section 5 authorizes the President to temporarily take over and operate the grantee’s stations or facilities.
Section 5 authorizes the President to temporarily suspend operation of any grantee station or facility for public safety, security, and public welfare.
Section 5 authorizes the President to authorize temporary use and operation by any government agency, upon due compensation to the grantee, during the period of government operation.
Section 5 states that the radio spectrum is a finite resource part of the national patrimony and that use is a privilege; it may be withdrawn anytime after due process.

Term, continuous operation condition

Section 6 sets the franchise effectiveness for twenty-five (25) years, beginning November 3, 2018, unless sooner cancelled.
Section 6 provides that the franchise is deemed ipso facto revoked if the grantee fails to operate continuously for two (2) years.

Acceptance, voidness, and undertaking

Section 7 requires written acceptance of the franchise to be given to Congress of the Philippines, through the Committee on Legislative Franchises of the House of Representatives and the Committee on Public Services of the Senate, within sixty (60) days from the franchise effectivity.
Section 7 provides that upon giving acceptance, the grantee shall exercise the privileges granted under the Act.
Section 7 provides that nonacceptance renders the franchise void.

Self-regulation; cut-off duty; cancellation cause

Section 8 prohibits requiring any previous censorship of speech, play, act, scene, or other matter broadcast from the grantee’s station.
Section 8 requires the grantee, during any broadcast, to cut off from the air the speech, play, act, scene, or other matter if its tendency is to propose and/or incite treason, rebellion, or sedition.
Section 8 requires the cut-off if the language used or the theme thereof is indecent or immoral.
Section 8 provides that willful failure to cut off as required constitutes a valid cause for cancellation of this franchise.

Government immunity for accidents and injuries

Section 9 requires the grantee to hold national, provincial, city, and municipal governments of the Philippines free from all claims, accounts, demands, or actions arising from accidents or injuries—whether to property or persons—caused by the grantee’s construction or operation of stations.

Restrictions on transfer and ownership change

Section 10 prohibits the grantee from leasing, transferring, granting usufruct of, selling, or assigning the franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation, or other commercial or legal entity.
Section 10 prohibits the grantee from merging with any other corporation or entity.
Section 10 prohibits transferring the grantee’s controlling interest, whether as a whole or in parts, and whether simultaneously or contemporaneously, to such persons or entities, without the prior approval of Congress of the Philippines.
Section 10 requires Congress to be informed within sixty (60) days after completion of any lease, transfer, grant of usufruct, sale, or assignment of the franchise or related rights and privileges.
Section 10 provides that failure to report the change of ownership to Congress results in the franchise being deemed ipso facto revoked.
Section 10 provides that any person or entity to which the franchise is sold, transferred, or assigned shall be subject to the same conditions, terms, restrictions, and limitations of the Act.

Dispersal of ownership to citizens

Section 11 requires the grantee, consistent with encouraging public participation in public utilities, to offer Filippine citizens at least ten percent (10%) of its outstanding capital stock or a higher percentage that may be required by law in a securities exchange in the Philippines.
Section 11 requires offering such ownership within five (5) years from the time the grantee achieves the status of a national broadcasting network.
Section 11 defines a national broadcasting network as operating at least three (3) radio/television stations.
Section 11 provides that noncompliance renders the franchise deemed ipso facto revoked.

Compliance with future general broadcast policy

Section 12 requires the grantee to comply with and be subject to the provisions of a general broadcast policy law that Congress may enact in the future.

Parity clause for privileges under other franchises

Section 13 provides that any advantage, favor, privilege, exemption, or immunity granted under existing franchises, or later granted for radio and/or television broadcasting upon prior review and approval of Congress, shall become part of this franchise for the grantee.
Section 13 provides that such additional advantages are accorded immediately and unconditionally to the grantee.
Section 13 excludes from this parity rule franchise provisions concerning territory covered, life span, and type of service authorized.
Section 13 excludes from this parity rule sale, lease, transfer, grant of usufruct, or assignment of a legislative franchise with prior Congressional approval.

Annual reporting and NTC permit condition

Section 14 requires the grantee to submit an annual report to Congress through the Committee on Legislative Franchise of the House of Representatives and the Committee on Public Services of the Senate on compliance with the franchise terms and conditions and on its operations.
Section 14 requires submission on or before April 30 of the succeeding year.
Section 14 provides that the reportorial compliance certificate issued by Congress must be required before any application for a permit or certificate is accepted by the NTC.

Penalty for late annual reporting

Section 15 imposes a fine of five hundred pesos (P500.00) per working day of noncompliance on any grantee that fails to submit the annual report to Congress.
Section 15 directs that the fine is collected by the NTC from the delinquent franchise grantee separately from reportorial penalties imposed by the NTC.
Section 15 provides that collected funds accrue to the monitoring fund of the NTC for its supervisory and regulatory functions.

Separability and legislative amendability

Section 16 provides that if any section or provision of the Act is held invalid, all other provisions not affected remain valid.
Section 17 provides that the franchise is subject to amendment, alteration, or repeal by Congress when the public interest requires.
Section 17 provides that the franchise is not interpreted as an exclusive grant of the privileges provided.

Publication and effectivity

Section 18 requires publication, through initiative of the grantee, fifteen (15) days after the Act is signed by the President or after it lapses into law.
Section 19 provides that the Act takes effect fifteen (15) days after publication in at least two (2) newspapers of general circulation.

Dates and enactment

The Act is Republic Act No. 10773 and is approved on May 03, 2016.
Republic Act No. 10773 renews the franchise term for twenty-five (25) years beginning November 3, 2018.
The grantee must file written acceptance within sixty (60) days from effectivity under Section 7.
The grantee must submit the annual report on or before April 30 under Section 14.
Publication rules require activity fifteen (15) days after presidential signature or lapse into law, and effectivity requires another fifteen (15) days after publication in at least two (2) newspapers.