Operation standards and interference control
- The grantee must construct and operate its stations or facilities to result only in the minimum interference on the wavelengths or frequencies of existing stations or other stations that may be established by law.
- The interference standard must be met without diminishing the grantee’s right to use its selected wavelengths or frequencies.
- The grantee’s operations must maximize the quality of transmission or reception on its selected frequencies and channels and the availability of its services.
NTC permits and frequency authorization
- The grantee must secure from the National Telecommunications Commission (NTC) the appropriate permits and license for operation of its stations and facilities.
- The grantee must not use any frequency in the radio/television spectrum without NTC authorization.
- The NTC must not unreasonably withhold or delay the grant of such authority.
Public service obligations and content limits
- The grantee must provide adequate public service time so the government may reach the population on important public issues through the grantee’s stations or facilities.
- The grantee must provide at all times sound and balanced programming.
- The grantee must assist in public information and education.
- The grantee must conform to the ethics of honest enterprise.
- The grantee must not use 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.
- The grantee must not use its stations and facilities to incite, encourage, or assist in subversive or treasonable acts.
Government right to take over and spectrum control
- A special right is reserved to the President of the Philippines during war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order to:
- temporarily take over and operate the grantee’s stations or facilities; or
- temporarily suspend the operation of any station or facility for public safety, security and public welfare; or
- authorize the temporary use and operation of the stations or facilities by any government agency with due compensation to the grantee during the period of such government use.
- The radio spectrum is treated as a finite resource that is part of the national patrimony, and its use is a privilege conferred by the State that may be withdrawn any time after due process.
Franchise acceptance, compliance, and voiding
- Acceptance of the franchise must be given in writing to Congress of the Philippines, through the:
- Committee on Legislative Franchises of the House of Representatives, and
- Committee on Public Services of the Senate.
- The written acceptance must be filed within sixty (60) days from the effectivity of the Act.
- Upon giving acceptance, the grantee must exercise the privileges granted under the Act.
- Any noncompliance with this acceptance requirement renders the franchise void under Section 7.
Undertaking on censorship and automatic cancellation trigger
- The grantee must not require previous censorship of any speech, play, act or scene, or other matter for broadcast.
- During any broadcast, the grantee must cut off from the air any speech, play, act or scene, or other matter being broadcast if it tends to:
- propose and/or incite treason, rebellion or sedition, or
- use language that is indecent or immoral, or
- present an indecent or immoral theme.
- A willful failure to cut off the broadcast when required constitutes a valid cause for cancellation of this franchise under Section 8.
Government indemnity for accidents and injuries
- The grantee must hold the national, provincial, city and municipal governments harmless from all claims, accounts, demands, or actions arising out of accidents or injuries—whether to property or to persons—caused by the grantee’s construction or operation of its stations.
Restrictions on transfers, mergers, and ownership changes
- The grantee must not lease, transfer, grant the usufruct of, sell, or assign the franchise or the rights and privileges acquired under it to any person, firm, company, corporation, or other commercial or legal entity.
- The grantee must not merge with any other corporation or entity.
- The grantee must not transfer its controlling interest, whether as a whole or in parts, and whether simultaneously or contemporaneously, to any such person, entity, or organization without prior approval of Congress of the Philippines.
- Congress must be informed within sixty (60) days after the completion of any lease, transfer, granting of usufruct, sale, or assignment of franchise or rights and privileges acquired, through the required reporting mechanism.
- Failure to report the change of ownership to Congress within the sixty (60) days period results in ipso facto revoked franchise status under Section 10.
- Any person or entity that buys, receives, or is assigned the franchise or rights is subject to the same conditions, terms, restrictions, and limitations of the Act.
Congress review, future broadcast policy law, and parity
- The grantee must comply with and be subject to the provisions of a general broadcast policy law that Congress may hereafter enact.
- The franchise contains a parity clause: any advantage, favor, privilege, exemption, or immunity granted under existing franchise, or granted for radio and/or television broadcasting in the future, upon prior review and approval of Congress, must become part of this franchise and be accorded immediately and unconditionally to the grantee.
- The parity clause does not apply to franchise provisions concerning:
- the territory covered,
- the life span of the franchise, or
- the type of service authorized by the franchise.
- The parity clause does not apply to sale, lease, transfer, grant of usufruct, or assignment of a legislative franchise with prior Congressional approval.
Reporting to Congress and NTC monitoring penalties
- The grantee must submit an annual report to Congress through the:
- Committee on Legislative Franchises of the House of Representatives, and
- Committee on Public Services of the Senate.
- The annual report must cover compliance with the franchise terms and conditions and the grantee’s operations.
- The annual report deadline is on or before April 30 of the succeeding year.
- If the grantee fails to submit the annual report, the Act imposes a fine of PHP 500.00 per working day of noncompliance.
- The NTC must collect the fine from the delinquent franchise grantee separate from reportorial penalties imposed by the NTC.
- Collected fines must accrue to the monitoring fund of the NTC in line with its supervisory and regulatory functions.
- Congress’s reportorial compliance certificate must be required before the NTC accepts any application for permit or certificate.
Special content self-regulation and enforcement
- During broadcasts, the grantee must enforce immediate air-cutoff when broadcast content is tending toward treason, rebellion or sedition, or is indecent or immoral in language or theme.
- Willful non-enforcement of the cutoff requirement triggers a valid cause for cancellation of the franchise.
Publication, effectivity, and franchise conditions
- The Act must be published through the grantee’s initiative fifteen (15) days after the Act is signed by the President or lapses into law.
- The Act takes effect fifteen (15) days after publication in at least two (2) newspapers of general circulation in the Philippines.
Separability, amendment/repeal, and nonexclusive grant
- If any section or provision of the Act is held invalid, all other provisions not affected remain valid under the separability rule.
- The franchise remains subject to amendment, alteration, or repeal by Congress when the public interest requires.
- The franchise is not interpreted as an exclusive grant of the privileges provided in the Act.
Issuance details: number, date, and passage
- The law is Republic Act No. 10772.
- The law is titled: “AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE GRANTED TO CHRISTIAN ERA BROADCASTING SERVICE INTERNATIONAL INCORPORATED AS PROVIDED UNDER REPUBLIC ACT NO. 7618.”
- The Act is approved on May 03, 2016.
- The Senate approval documents show FRANKLIN M. DRILON as President of the Senate and BENIGNO S. AQUINO III as President of the Philippines, with FELICIANO BELMONTE JR. as Speaker of the House of Representatives.
- Publication in the Official Gazette is shown as 112 OG No. 24, 3672 (June 13, 2016).
- The franchise renewal term under Section 1 is stated to begin July 1, 2017.
Earlier franchise basis and specified predecessor
- The renewed franchise is granted as a renewal of the franchise provided under Republic Act No. 7618.