Franchise for Information Broadcast Unlimited, Inc.

Minimum interference and operational standards

Section 2 requires stations and facilities to be constructed and operated so that they result in at most the minimum interference on wavelengths/frequencies of existing stations or those later established by law.
Section 2 requires that the grantee’s operation must be done without diminishing its own right to use its selected wavelengths or frequencies.
Section 2 requires that the manner of operation maximize rendition of the grantee’s services and/or availability thereof.
Section 2 requires maintaining the quality of transmission or reception on the selected wavelengths or frequencies.

Prior NTC permits and spectrum authorization

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

Public responsibility and content restrictions

Section 4 requires the grantee to provide adequate public service time to enable the government to reach the population on important public issues through the grantee’s facilities.
Section 4 requires sound and balanced programming at all times.
Section 4 requires the grantee to assist in the functions of public information and education.
Section 4 requires conformity with the ethics of honest enterprise.
Section 4 prohibits using stations and facilities for broadcasting obscene and indecent language, speech, act or scene, or for dissemination of deliberately false information or willful misrepresentation to the detriment of the public interest.
Section 4 prohibits use of stations and facilities to incite, encourage or assist in subversive or treasonable acts.

Government special rights during emergencies

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 allows the President to temporarily take over and operate the grantee’s stations or facilities.
Section 5 allows the President to temporarily suspend operation of any station or facility in the interest of public safety, security and public welfare.
Section 5 allows the President to authorize temporary use and operation by any government agency.
Section 5 requires due compensation to the grantee for such temporary operation/use during the period of government operation.
Section 5 declares that the radio spectrum is a finite resource forming part of the national patrimony, and that use is a privilege conferred by the State that may be withdrawn anytime after due process.

Franchise term, automatic revocation triggers

Section 6 provides that the franchise term is twenty-five (25) years from the date of effectivity of the Act, unless sooner revoked or cancelled.
Section 6 provides that the franchise is ipso facto revoked if the grantee fails to comply with specified operational conditions.
Section 6 requires commencing operations within one (1) year from the approval of the grantee’s operating permit by the NTC.
Section 6 requires operating continuously for two (2) years.
Section 6 requires commencing operations within three (3) years from the effectivity of the Act.

Acceptance, bond, and compliance consequences

Section 7 requires written acceptance of the franchise within sixty (60) days from the effectivity of the Act.
Section 7 provides that upon giving such acceptance, the grantee shall exercise the privileges granted.
Section 7 states that nonacceptance renders the franchise void.
Section 8 requires the grantee to file a bond issued in favor of the NTC.
Section 8 provides that the NTC determines the amount of the bond to guarantee compliance with and fulfillment of franchise conditions.
Section 8 provides that if after three (3) years from approval of the permit the grantee has fulfilled the same, the bond shall be cancelled by the NTC.
Section 8 provides that otherwise, the bond is forfeited in favor of the government and the franchise is ipso facto revoked.

Content self-regulation and censorship limits

Section 9 prohibits the grantee from requiring previous censorship of any speech, play, act or scene, or other matter to be broadcast.
Section 9 provides that during any broadcast, the grantee must cut off from the air the speech, play, act or scene, or other matter being broadcast if its tendency is to propose and/or incite treason, rebellion or sedition.
Section 9 requires cut-off if the language used or the theme thereof is indecent or immoral.
Section 9 declares that a willful failure to cut off as required constitutes a valid cause for cancellation of this franchise.

Government and third-party protection rules

Section 10 requires the grantee to hold national, provincial, city and municipal governments of the Philippines harmless from all claims, accounts, demands or actions arising out of accidents or injuries to property or persons caused by the construction or operation of the grantee’s stations.

Transfer limits and congressional approval

Section 11 prohibits the grantee from leasing, transferring, granting the usufruct of, selling, or assigning the franchise or rights and privileges acquired under the franchise.
Section 11 prohibits transferring the controlling interest of the grantee, whether as a whole or in parts and whether simultaneously or contemporaneously, to any person, firm, company, corporation or other entity.
Section 11 requires prior approval of Congress of the Philippines for any prohibited franchise transfer or transfer of controlling interest.
Section 11 provides that any person or entity to which the franchise is sold, transferred or assigned is subject to the same conditions, terms, restrictions and limitations of the Act.

Ownership dispersal requirement for networks

Section 12 requires the grantee, to encourage public participation in public utilities, to offer at least thirty per centum (30%) of its outstanding capital stock (or a higher percentage if provided by law) in any securities exchange in the Philippines.
Section 12 requires the offering to be made within five (5) years from the time it has achieved the status of a national broadcasting network.
Section 12 defines a “national broadcasting network” as operating three (3) or more radio and/or television stations.
Section 12 provides that noncompliance renders the franchise ipso facto revoked.

Equality clause and franchise parity

Section 13 requires that any advantage, favor, privilege, exemption or immunity granted under existing franchises, or which may be granted for radio and/or television broadcasting in the future, ipso facto becomes part of this franchise.
Section 13 requires immediate and unconditional accord of such added benefits to the grantee.
Section 13 excludes from this equality effect franchise provisions concerning territory covered, life span, or type of service authorized.

Future general broadcast policy compliance

Section 14 requires the grantee to comply with and be subject to any general broadcast policy law that Congress may hereafter enact.

Annual reporting to Congress

Section 15 requires the grantee to submit an annual report to the Congress of the Philippines.
Section 15 requires the annual report to cover compliance with franchise terms and conditions and the grantee’s operations.
Section 15 imposes a deadline of sixty (60) days from the end of every year for submission of the annual report.

Separability, amendment, repeal, and exclusivity

Section 16 provides separability: if any section or provision 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 so requires.
Section 17 states the franchise is not to be interpreted as an exclusive grant of the privileges provided.

Issuance, effectivity, and publication rule

Republic Act No. 9652 is titled “AN ACT GRANTING THE INFORMATION BROADCAST UNLIMITED, INC. A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN RADIO AND TELEVISION BROADCASTING STATIONS IN THE PHILIPPINES.”
The Act is dated July 12, 2009 and approved by President GLORIA MACAPAGAL-ARROYO (with the President’s signature appearing in the approval lines).
Section 18 provides that the Act takes effect fifteen (15) days from the date of its publication, upon the initiative of the grantee, in at least two (2) newspapers of general circulation in the Philippines.
The Act lapsed into law on JUL 12 2009 without the signature of the President, in accordance with Article VI, Section 27 (1) of the Constitution.