July 28, 2022
REPUBLIC ACT NO. 11907
AN ACT GRANTING ORO BROADCASTING NETWORK, INC. A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE, AND MAINTAIN RADIO AND TELEVISION BROADCASTING STATIONS IN THE PHILIPPINES
SECTION 1.Nature and Scope of Franchise. — Subject to the provisions of the Constitution and applicable laws, rules and regulations, there is hereby granted to Oro Broadcasting Network, Inc., hereunder referred to as the Grantee, its successors or assignees, a franchise to construct, install, establish, operate, and maintain for commercial purposes and in the public interest, radio and television broadcasting stations in the Philippines, where frequencies and channels are still available for radio and television broadcasting, including digital television system, through microwave, satellite or whatever means, as well as the use of any new technology in radio and television systems, with the corresponding technological auxiliaries and facilities, special broadcast and other program and distribution services and relay stations.
SECTION 2.Manner of Operation of Stations or Facilities. — The stations or facilities of the...
Nature and Scope of Franchise (Section 1):
- Grants Oro Broadcasting Network, Inc. (the Grantee) a franchise to construct, install, establish, operate, and maintain radio and television broadcasting stations in the Philippines.
- Allows the use of any available frequencies, channels, and new technologies for radio and television broadcasting.
Manner of Operation (Section 2):
- The Grantee's stations shall operate in a manner that results in minimum interference with existing stations.
- The Grantee shall not diminish its own privilege to use assigned wavelengths or frequencies.
Prior Approval of NTC (Section 3):
- The Grantee must secure appropriate permits and licenses from the National Telecommunications Commission (NTC) for construction and operation.
- The NTC shall not unreasonably withhold or delay the grant of authority.
- The NTC can revoke or suspend permits/licenses after due process for violations.
- The NTC may recommend to Congress the revocation of the franchise for violations.
Responsibility to the Public (Section 4):
- The Grantee shall provide free public service time equivalent to 10% of paid commercials, allocated to government branches, judiciary, constitutional commissions, and international humanitarian organizations.
- The NTC can increase public service time in emergencies or calamities.
- The Grantee shall allot 15% of daily total air time to child-friendly shows as per the Children's Television Act of 1997.
- The Grantee shall not broadcast obscene, indecent, false, or subversive content.
Right of the Government (Section 5):
- The President can temporarily take over, suspend operations, or authorize government use of the Grantee's stations during war, rebellion, peril, calamity, emergency, or disturbance, with due compensation.
Term of Franchise (Section 6):
- The franchise is valid for 25 years from the effectivity of the Act, unless revoked or cancelled sooner.
- The franchise is deemed revoked if the Grantee fails to operate continuously for 2 years.
Self-regulation and Undertaking (Section 7):
- The Grantee shall not require prior censorship but shall cut off broadcasts that incite treason, rebellion, sedition, or are indecent or immoral.
- Willful failure to do so shall constitute a valid cause for cancellation of the franchise.
Warranty to the Government (Section 8):
- The Grantee shall hold the national and local governments free from claims, liabilities, demands, or actions arising from accidents during construction or operation.
Employment Opportunities (Section 9):
- The Grantee shall create employment opportunities and accept on-the-job trainees, prioritizing residents of the principal office location.
- The Grantee shall comply with applicable labor standards and allowances.
- Employment opportunities shall be reflected in the General Information Sheet submitted to the Securities and Exchange Commission annually.
Sale, Transfer, or Assignment of Franchise (Section 10):
- The Grantee cannot sell, lease, transfer, grant usufruct, or assign the franchise or rights without prior approval of Congress.
- The Grantee must inform Congress within 60 days after any such transaction.
- Failure to report shall render the franchise revoked.
- Any entity to which the franchise is transferred shall be subject to the same conditions.
Dispersal of Ownership (Section 11):
- The Grantee shall offer at least 30% of its outstanding capital stock to Filipino citizens in a securities exchange within 5 years from the effectivity of the Act.
- Noncompliance shall render the franchise revoked.
Reportorial Requirement (Section 12):
- The Grantee shall submit an annual report on compliance and operations to Congress on or before April 30 every year.
- The report shall include updates on activities, development, operation, expansion, audited financial statements, GIS, NTC certification, and ownership dispersal.
- A reportorial compliance certificate from Congress shall be required before the NTC accepts any application.
Fine (Section 13):
- Failure to submit the annual report shall be penalized by a fine of P500 per working day of noncompliance, remitted to the Bureau of the Treasury.
Equality Clause (Section 14):
- Any advantage or privilege granted to other broadcasting franchises shall be accorded to the Grantee, except for territorial coverage, term, or type of service.
Repealability and Nonexclusivity (Section 15):
- The franchise is subject to amendment, alteration, or repeal by Congress in the public interest and shall not be interpreted as an exclusive grant.
Separability Clause (Section 16):
- If any section is held invalid, other provisions shall remain valid.
Repealing Clause (Section 17):
- All laws, orders, rules, and regulations inconsistent with the Act are repealed, amended, or modified accordingly.
Effectivity (Section 18):
- The Act shall take effect 15 days after publication in the Official Gazette or a newspaper of general circulation.