Granting a Radio and Television Broadcasting Franchise to Prime Broadcasting Network, Inc.
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Granting a Radio and Television Broadcasting Franchise to Prime Broadcasting Network, Inc.
Republic Act No. 11833
June 2, 2022
Case Overview and Summary
Summary of Republic Act No. 11833:Nature and Scope of Franchise (Section 1):
- Grants Prime Broadcasting Network, Inc. (the Grantee) a franchise to construct, install, establish, operate, and maintain radio and television broadcasting stations in the Philippines, including digital television systems and new technologies.
- Allows the use of microwave, satellite, or any means for broadcasting.
- Covers special broadcast, program distribution services, and relay stations.
Manner of Operation (Section 2):
- Stations must be operated in a way that results in minimum interference with existing stations.
- The Grantee's privilege to use assigned frequencies and quality of transmission should be maximized.
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 granting such 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 a maximum of 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 a minimum of 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 treasonable content.
Right of the Government (Section 5):
- The radio spectrum is part of the national patrimony, and its use is a privilege that can be withdrawn.
- The President can temporarily take over, suspend operations, or authorize government use of the Grantee's stations during war, rebellion, peril, calamity, emergency, disaster, 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 shall be 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 must cut off broadcasts that incite treason, rebellion, sedition, or are indecent or immoral.
- Willful failure to do so shall be a valid cause for cancellation of the franchise.
Warranty to Government (Section 8):
- The Grantee shall hold the national, provincial, city, and municipal 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 where the principal office is located.
- The Grantee shall comply with applicable labor standards and entitlements.
- Employment opportunities shall be reflected in the General Information Sheet submitted to the SEC 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 from Congress.
- The Grantee must inform Congress within 60 days after such transactions.
- 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 of 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 permit applications.
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 under existing or future broadcasting franchises shall be accorded to the Grantee, except for provisions on territorial coverage, term, or type of service.
Repealability and Nonexclusivity (Section 15):
- 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.
Separability Clause (Section 16):
- If any section is held invalid, other provisions shall remain valid.
Repealing Clause (Section 17):
- All laws, decrees, orders, rules, and issuances inconsistent with this 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.
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Law
Granting a Radio and Television Broadcasting Franchise to Prime Broadcasting Network, Inc.
Republic Act No. 11833
•June 2, 2022
June 2, 2022
REPUBLIC ACT NO. 11833
AN ACT GRANTING PRIME 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 Prime 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 or 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 Grantee shall be constructed and operated in a manner...
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