Authority to operate and permitted broadcasting
- The Grantee may construct, install, establish, operate, and maintain for commercial purposes and in the public interest radio and television broadcasting stations in the Philippines (Section 1).
- The franchise applies where frequencies and channels are still available for radio and television broadcasting, including digital television system, through microwave, satellite, or whatever means, and through the use of any new technology in radio and television systems (Section 1).
- The franchise covers broadcast system auxiliaries and facilities, special broadcast and other program and distribution services, and relay stations (Section 1).
- The Grantee must construct and operate stations in a manner that results in minimum interference on wavelengths or frequencies of existing stations or those that may be established by law, while preserving the quality of its own assigned wavelengths or frequencies (Section 2).
National Telecommunications Commission permits and revocation
- The Grantee must secure from the National Telecommunications Commission (NTC) the appropriate permits and licenses for construction and operation of its stations or facilities (Section 3).
- The Grantee must not use any frequency in the radio spectrum without NTC authorization (Section 3).
- The NTC must not unreasonably withhold or delay grant of such authority (Section 3).
- If there is a violation of the franchise provisions, the NTC may revoke or suspend the permits or licenses it issued after due process (Section 3).
- For violations, the NTC may recommend to Congress the revocation of the franchise (Section 3).
Public service obligations and programming standards
- The Grantee must provide, free of charge, adequate public service time reasonable and sufficient to enable government access through the Grantee’s stations/facilities to pertinent populations or portions for important public issues and relay important announcements and warnings on public emergencies and calamities, as necessity, urgency, or law may require (Section 4).
- The Grantee must provide sound and balanced programming at all times (Section 4).
- The Grantee must promote public participation and assist in public information and education functions (Section 4).
- The Grantee must conform to the ethics of honest enterprise (Section 4).
- The Grantee must promote audience sensibility and empowerment, including closed captioning (Section 4).
- The Grantee must not use its stations/facilities to broadcast obscene or indecent language, speech, act, or scene; to disseminate deliberately false information or willful misrepresentation to the detriment of public interest; or to incite, encourage, or assist in subversive or treasonable acts (Section 4).
Public service time and children’s programming
- The public service time must be equivalent to a maximum aggregate of ten percent (10%) of paid commercials or advertisements (Section 4).
- Allocation of the 10% public service time must be based on need to the Executive and Legislative branches, the Judiciary, Constitutional Commissions, and international humanitarian organizations duly recognized by statutes (Section 4).
- The NTC must increase the public service time in case of extreme emergency or calamity (Section 4).
- The NTC must issue rules and regulations for increased public service time, with effectivity commencing upon applicability with other similarly situated broadcast network franchise holders (Section 4).
- The Grantee must allot a minimum of fifteen percent (15%) of the daily total air time of each broadcasting network or station to child-friendly shows within regular programming, in line with Republic Act No. 8370 (Section 4).
Government reserve powers in emergencies
- The radio spectrum is a finite resource part of the national patrimony, and its use is a privilege conferred by the State that may be withdrawn anytime after due process (Section 5).
- A special right is reserved to the President of the Philippines to temporarily take over and operate the Grantee’s stations or facilities during war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order (Section 5).
- The President may temporarily suspend operation of any station or facility in the interest of public safety, security, and public welfare (Section 5).
- The President may authorize temporary use and operation by any government agency upon due compensation to the Grantee for the period of such temporary operation (Section 5).
Speech, self-regulation, and franchise cancellation
- The Grantee must not require any previous censorship of any speech, play, act, or scene, or other matter for broadcast (Section 7).
- If a broadcast constitutes a violation of law or infringement of a private right, the Grantee is free from civil or criminal liability for that speech, play, act, or scene, or other matter (Section 7).
- During any broadcast, the Grantee must cut off the airing of speech, play, act, or scene, or other matter if its tendency is to propose or incite treason, rebellion, or sedition, or if the language used is indecent or immoral (Section 7).
- Willful failure to cut off such airing constitutes a valid cause for cancellation of the franchise (Section 7).
Government immunity for accidents
- The Grantee must hold the national, provincial, city, and municipal governments free from all claims, liabilities, demands, or actions arising from accidents causing injury to persons or damage to properties during construction or operation of the stations (Section 8).
Employment creation and reporting through GIS
- The Grantee must create employment opportunities and accept on-the-job trainees in franchise operations (Section 9).
- Priority in employment must be accorded to residents of the place where the Grantee’s principal office is located (Section 9).
- The Grantee must comply with applicable labor standards and allowance entitlement under existing labor laws, rules and regulations, and similar issuances (Section 9).
- Employment opportunities or jobs created must be reflected in the General Information Sheet (GIS) submitted to the Securities and Exchange Commission (SEC) annually (Section 9).
Ownership, transfers, and congressional approval
- The Grantee may not sell, lease, transfer, grant usufruct of, or assign the franchise or the rights and privileges acquired thereunder, to any person or entity, nor merge with any other corporation or entity (Section 10).
- The Grantee may not allow transfer of controlling interest simultaneously or contemporaneously to any person or entity without prior approval of Congress (Section 10).
- The Grantee must inform Congress—through the Office of the Speaker of the House of Representatives and the Office of the Senate President—of any sale, lease, transfer, grant of usufruct, or assignment; or of merger or transfer of controlling interest, within sixty (60) days after completion of the transaction (Section 10).
- Failure to report changes of ownership to Congress renders the franchise ipso facto revoked (Section 10).
- Any person or entity to which the franchise is sold, transferred, or assigned is subject to the same conditions, terms, restrictions, and limitations of Republic Act No. 11669 (Section 10).
Dispersal of ownership to citizens
- The Grantee must offer to Filipino citizens at least thirty percent (30%) of its outstanding capital stocks (or a higher percentage if later provided by law) in any securities exchange in the Philippines within five (5) years from the effectivity of Republic Act No. 11669 (Section 11).
- Where public offer of shares is not applicable, other methods to encourage public participation by citizens and corporations operating public utilities must be implemented (Section 11).
- Noncompliance with dispersal requirements renders the franchise ipso facto revoked (Section 11).
Annual compliance report to Congress
- The Grantee must submit an annual report on compliance with franchise terms and on its operations to Congress through the Committee on Legislative Franchises of the House of Representatives and the Committee on Public Services of the Senate, on or before April 30 of every year during the term of the franchise (Section 12).
- The annual report must include: an update on commencement of activities, development, operation, and expansion of business; audited financial statements; the latest GIS officially submitted to the SEC, if applicable; a certification of the NTC on status of permits and operations; and an update on the dispersal of ownership undertaking, if applicable (Section 12).
- The reportorial compliance certificate issued by Congress must be required before any application for permit or certificate is accepted by the NTC (Section 12).
Fine for failure to submit reports
- Failure to submit the required annual report to Congress is penalized by a fine of Five hundred pesos (P500.00) per working day of noncompliance to the NTC (Section 13).
- The fine is collected separately from reportorial penalties imposed by the NTC (Section 13).
- The fine must be remitted to the Bureau of the Treasury (Section 13).
Equality clause for broadcasting franchises
- Any advantage, favor, privilege, exemption, or immunity granted under existing franchises, or later granted for radio and television broadcasting, becomes part of Republic Act No. 11669 and must be accorded to the Grantee immediately and unconditionally, upon prior review and approval of Congress (Section 14).
- This equality clause does not affect broadcasting franchise provisions concerning territorial coverage, the term, or the type of service authorized by the franchise (Section 14).
Amendment, repeal, and nonexclusivity
- Congress may amend, alter, or repeal the franchise when the public interest so requires (Section 15).
- The franchise is not interpreted as an exclusive grant of the privileges provided (Section 15).
Separability and repeal of inconsistent issuances
- If any section or provision is held invalid, the remaining provisions not affected remain valid (Section 16).
- All laws, decrees, orders, resolutions, instructions, rules and regulations, and other issuances or parts inconsistent with Republic Act No. 11669 are repealed, amended, or modified accordingly (Section 17).
Effectivity and legislative dates
- Republic Act No. 11669 is approved on March 29, 2022.
- The Act takes effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation (Section 18).
- The Act originated in the House of Representatives and was passed by the House on August 2, 2021, amended by the Senate on December 6, 2021, with amendments concurred in by the House on December 14, 2021.