AN ACT GRANTING THE INFORMATION BROADCAST UNLIMITED

Case Overview and Summary

Summary of Republic Act No. 9652

Nature and Scope of Franchise (Section 1):
- Grants Information Broadcast Unlimited, Inc. (the grantee) a franchise to construct, install, operate and maintain radio and/or television broadcasting stations in the Philippines.
- Covers commercial purposes and public interest.
- Includes digital radio and television systems, internet protocol (IP) related services, and IP value-added services.
- Allows the use of new technologies in radio and television broadcasting.

Manner of Operation (Section 2):
- Stations shall be operated in a manner that results in minimum interference with existing stations.
- The grantee has the right to use its selected wavelengths or frequencies.

Prior Approval of NTC (Section 3):
- The grantee must secure permits and licenses from the National Telecommunications Commission (NTC) for construction and operation.
- The NTC shall not unreasonably withhold or delay granting such authority.

Responsibility to the Public (Section 4):
- The grantee shall provide adequate public service time for the government.
- Provide sound and balanced programming.
- Assist in public information and education functions.
- Conform to ethics of honest enterprise.
- Not broadcast obscene, indecent, false or treasonable content.

Right of Government (Section 5):
- The President can temporarily take over or suspend operations during war, rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order.
- The government can temporarily use the facilities upon due compensation.
- The radio spectrum is part of the national patrimony and can be withdrawn after due process.

Term of Franchise (Section 6):
- The franchise is valid for twenty-five (25) years from the date of effectivity.
- It shall be revoked if the grantee fails to:
- Commence operations within one (1) year from NTC permit approval.
- Operate continuously for two (2) years.
- Commence operations within three (3) years from effectivity of the Act.

Acceptance and Compliance (Section 7):
- The grantee must accept the franchise in writing within sixty (60) days from effectivity.
- Non-acceptance shall render the franchise void.

Bond (Section 8):
- The grantee shall file a bond determined by the NTC to guarantee compliance.
- The bond shall be cancelled after three (3) years if the grantee has fulfilled the conditions, otherwise forfeited.

Self-regulation by Grantee (Section 9):
- The grantee shall not require previous censorship.
- The grantee must cut off treasonable, rebellious, seditious, indecent or immoral content during broadcast.
- Willful failure to do so is a valid cause for franchise cancellation.

Warranty in Favor of Governments (Section 10):
- The grantee shall hold the national, provincial, city and municipal governments harmless from claims or actions arising out of accidents or injuries caused by its operations.

Non-transferability of Franchise (Section 11):
- The grantee cannot lease, transfer, sell or assign the franchise or controlling interest without prior approval of Congress.
- Any transferee shall be subject to the same conditions and limitations.

Dispersal of Ownership (Section 12):
- The grantee shall offer at least 30% of its outstanding capital stock in a securities exchange in the Philippines within five (5) years of achieving national broadcasting network status.
- A "national broadcasting network" is defined as one that operates three (3) or more radio and/or television stations.
- Non-compliance shall render the franchise revoked.

Equality Clause (Section 13):
- Any advantage or privilege granted to existing or future broadcasting franchises shall also apply to this franchise, except for provisions on territory, life span or type of service.

General Broadcast Policy Law (Section 14):
- The grantee shall comply with any general broadcast policy law that Congress may enact.

Reportorial Requirement (Section 15):
- The grantee shall submit an annual report to Congress on its compliance and operations within sixty (60) days from the end of every year.

Separability Clause (Section 16):
- If any section or provision is held invalid, the other provisions shall remain valid.

Repealability and Non-exclusivity Clause (Section 17):
- The franchise is subject to amendment, alteration or repeal by Congress when public interest requires.
- It shall not be interpreted as an exclusive grant of privileges.

Effectivity Clause (Section 18):
- The Act shall take effect fifteen (15) days from its publication in at least two (2) newspapers of general circulation, upon the initiative of the grantee.