AN ACT GRANTING THE RELIANCE BROADCASTING UNLIMITED

Case Overview and Summary

Summary of Republic Act No. 10178

Nature and Scope of Franchise (Section 1):
- Grants Reliance Broadcasting Unlimited, Inc. (the grantee) a franchise to construct, install, establish, operate and maintain radio and television broadcasting stations in the Philippines for commercial purposes and public interest.
- Covers radio and television broadcasting, including digital systems, IP-related services, IP-value-added services, through microwave, satellite or any new technologies.
- Includes corresponding technological auxiliaries, facilities, special broadcast, program distribution services and relay stations.

Manner of Operation (Section 2):
- Stations or facilities shall be operated in a manner that results in minimum interference on existing stations' wavelengths or frequencies.
- The grantee's right to use its selected wavelengths or frequencies and transmission/reception quality shall not be diminished.

Prior Approval of NTC (Section 3):
- The grantee shall secure appropriate permits and licenses from the National Telecommunications Commission (NTC) for construction and operation of stations and facilities.
- The grantee shall not use any frequency without NTC's authorization, which shall not be unreasonably withheld or delayed.

Responsibility to the Public (Section 4):
- The grantee shall provide adequate public service time for the government to reach the population on important public issues.
- The grantee shall provide sound and balanced programming, assist in public information and education, conform to ethics of honest enterprise.
- The grantee shall not broadcast obscene, indecent language, false information, or content that incites subversive or treasonable acts.

Right of Government (Section 5):
- The President has the right to temporarily take over, suspend operations, or authorize temporary use of the grantee's stations or facilities during war, rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order, with due compensation to the grantee.
- The radio spectrum is part of the national patrimony, and its use is a privilege that may be withdrawn after due process.

Term of Franchise (Section 6):
- The franchise is valid for 25 years, unless sooner revoked or cancelled.
- The franchise shall be deemed revoked if the grantee fails to:
- Commence operations within 1 year from NTC's operating permit approval.
- Operate continuously for 2 years.
- Commence operations within 3 years from the effectivity of this Act.

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

Bond (Section 8):
- The grantee shall file a bond with the NTC in an amount determined by the NTC to guarantee compliance with the franchise conditions.
- If the grantee fulfills the conditions within 3 years from the permit approval, the bond shall be cancelled; otherwise, it shall be forfeited in favor of the government, and the franchise revoked.

Self-regulation by the Grantee (Section 9):
- The grantee shall not require previous censorship of any broadcast matter.
- The grantee shall cut off from the air any broadcast matter that incites treason, rebellion, sedition, or is indecent or immoral.
- Willful failure to do so shall constitute a valid cause for franchise cancellation.

Warranty in Favor of National and Local Governments (Section 10):
- The grantee shall hold the national, provincial, city and municipal governments harmless from all claims, accounts, demands or actions arising out of accidents or injuries caused by the construction or operation of the grantee's stations.

Nontransferability of Franchise (Section 11):
- The grantee shall not lease, transfer, grant usufruct, sell, assign or merge the franchise or rights acquired thereunder to any person, firm, company, corporation or other entity without prior approval of the Congress.
- The conditions, terms, restrictions and limitations of this Act shall be imposed on any entity to which the franchise is sold, transferred or assigned.

Dispersal of Ownership (Section 12):
- The grantee shall offer at least 30% or a higher percentage provided by law of its outstanding capital stock in any securities exchange in the Philippines within 5 years from achieving the status of a national broadcasting network (defined as operating 3 or more radio and/or television stations).
- Non-compliance shall render the franchise revoked.

Equality Clause (Section 13):
- Any advantage, favor, privilege, exemption or immunity granted under existing or future broadcasting franchises shall become part of this franchise, except for provisions concerning territory covered, life span of the franchise or type of service authorized.

General Broadcast Policy Law (Section 14):
- The grantee shall comply with and be subject to the provisions of a general broadcast policy law that Congress may enact.

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

Separability Clause (Section 16):
- If any section or provision of this Act is held invalid, all other provisions not affected shall remain valid.

Repealability and Nonexclusivity Clause (Section 17):
- This franchise shall be subject to amendment, alteration or repeal by the Congress when the public interest so requires, and shall not be interpreted as an exclusive grant of the privileges provided.

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