June 2, 2022
REPUBLIC ACT NO. 11839
AN ACT GRANTING GVM RADIO/TV CORPORATION A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE, AND MAINTAIN RADIO BROADCASTING STATIONS IN CEBU CITY AND OTHER AREAS 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 GVM Radio/TV Corporation, 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 broadcasting stations in Cebu City and other areas in the Philippines, where frequencies and channels are still available for radio broadcasting, through microwave, satellite or whatever means, as well as the use of any new technology in radio broadcasting 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...
Summary of Republic Act No. 11839
Nature and Scope of Franchise
- Grants GVM Radio/TV Corporation (the Grantee) a franchise to construct, install, establish, operate, and maintain radio broadcasting stations in Cebu City and other areas in the Philippines where frequencies are available. (Section 1)
- Allows the use of any new technology in radio broadcasting systems and corresponding technological auxiliaries or facilities.
Manner of Operation
- Stations or facilities shall be constructed and operated in a manner that results in minimum interference on existing stations' wavelengths or frequencies. (Section 2)
Prior Approval of NTC
- The Grantee must secure appropriate permits and licenses from the National Telecommunications Commission (NTC) for construction and operation of stations or facilities. (Section 3)
- The NTC shall not unreasonably withhold or delay the grant of authority.
- The NTC has the authority to revoke or suspend permits or licenses after due process for any violation of the franchise provisions.
- The NTC may recommend to Congress the revocation of the franchise for any violation.
Responsibility to the Public
- The Grantee shall provide free public service time equivalent to a maximum of 10% of paid commercials or advertisements, allocated to the government branches, judiciary, constitutional commissions, and international humanitarian organizations. (Section 4)
- The NTC shall increase public service time in case of extreme emergency or calamity.
- The Grantee shall provide sound and balanced programming, promote public participation, assist in public information and education, conform to ethics, promote audience sensibility and empowerment, and not broadcast obscene or indecent content or false information.
Right of the Government
- The President has the right to temporarily take over, suspend operations, or authorize temporary use of the Grantee's stations or facilities in times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, with due compensation. (Section 5)
Term of Franchise
- The franchise is effective for 25 years from the effectivity of the Act, unless sooner revoked or cancelled. (Section 6)
- The franchise shall be deemed ipso facto revoked if the Grantee fails to operate continuously for 2 years.
Self-regulation and Undertaking of the Grantee
- The Grantee shall not require previous censorship but shall cut off the airing of speech, play, act or scene that proposes or incites treason, rebellion, or sedition, or is indecent or immoral. (Section 7)
- Willful failure to do so shall constitute a valid cause for cancellation of the franchise.
Warranty in Favor of National and Local Governments
- The Grantee shall hold the national, provincial, city, and municipal governments free from all claims, liabilities, demands, or actions arising out of accidents causing injury or damage during construction or operation. (Section 8)
Employment Opportunities
- The Grantee shall create employment opportunities and accept on-the-job trainees, with priority to residents of the place where the principal office is located. (Section 9)
- The Grantee shall comply with applicable labor standards and allowance entitlement.
- Employment opportunities created shall be reflected in the General Information Sheet submitted to the Securities and Exchange Commission annually.
Sale, Transfer, or Assignment of Franchise
- The Grantee shall not sell, lease, transfer, grant usufruct, or assign the franchise or rights and privileges without prior approval of Congress. (Section 10)
- The Grantee shall inform Congress of any such transaction within 60 days after completion.
- Failure to report such change of ownership shall render the franchise ipso facto revoked.
- Any entity to which the franchise is transferred shall be subject to the same conditions, terms, restrictions, and limitations.
Dispersal of Ownership
- The Grantee shall offer at least 30% of its outstanding capital stock to Filipino citizens in any securities exchange in the Philippines within 5 years from the effectivity of the Act. (Section 11)
- Noncompliance shall render the franchise ipso facto revoked.
Reportorial Requirement
- The Grantee shall submit an annual report on its compliance with the franchise terms and conditions and its operations to Congress on or before April 30 of every year. (Section 12)
- The annual report shall include updates on activities, development, operation, expansion, audited financial statements, General Information Sheet, NTC certification, and dispersal of ownership undertaking.
- The reportorial compliance certificate issued by Congress shall be required before any application for permit or certificate is accepted by the NTC.
Fine
- Failure to submit the requisite annual report shall be penalized by a fine of 500 pesos per working day of noncompliance, remitted to the Bureau of the Treasury. (Section 13)
Equality Clause
- Any advantage, favor, privilege, exemption, or immunity granted under existing or future franchises for radio broadcasting, upon prior review and approval of Congress, shall become part of this franchise and be accorded to the Grantee, except for provisions concerning territorial coverage, term, or type of service. (Section 14)
Repealability and Nonexclusivity Clause
- This franchise shall be subject to amendment, alteration, or repeal by Congress when the public interest so requires and shall not be interpreted as an exclusive grant. (Section 15)
Separability Clause
- If any section or provision is held invalid, all other provisions not affected shall remain valid. (Section 16)
Repealing Clause
- All laws, decrees, orders, resolutions, instructions, rules and regulations, and other issuances inconsistent with this Act are hereby repealed, amended, or modified accordingly. (Section 17)
Effectivity
- This Act shall take effect 15 days after its publication in the Official Gazette or in a newspaper of general circulation. (Section 18)
Nature and Scope of Franchise
- Grants GVM Radio/TV Corporation (the Grantee) a franchise to construct, install, establish, operate, and maintain radio broadcasting stations in Cebu City and other areas in the Philippines where frequencies are available. (Section 1)
- Allows the use of any new technology in radio broadcasting systems and corresponding technological auxiliaries or facilities.
Manner of Operation
- Stations or facilities shall be constructed and operated in a manner that results in minimum interference on existing stations' wavelengths or frequencies. (Section 2)
Prior Approval of NTC
- The Grantee must secure appropriate permits and licenses from the National Telecommunications Commission (NTC) for construction and operation of stations or facilities. (Section 3)
- The NTC shall not unreasonably withhold or delay the grant of authority.
- The NTC has the authority to revoke or suspend permits or licenses after due process for any violation of the franchise provisions.
- The NTC may recommend to Congress the revocation of the franchise for any violation.
Responsibility to the Public
- The Grantee shall provide free public service time equivalent to a maximum of 10% of paid commercials or advertisements, allocated to the government branches, judiciary, constitutional commissions, and international humanitarian organizations. (Section 4)
- The NTC shall increase public service time in case of extreme emergency or calamity.
- The Grantee shall provide sound and balanced programming, promote public participation, assist in public information and education, conform to ethics, promote audience sensibility and empowerment, and not broadcast obscene or indecent content or false information.
Right of the Government
- The President has the right to temporarily take over, suspend operations, or authorize temporary use of the Grantee's stations or facilities in times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, with due compensation. (Section 5)
Term of Franchise
- The franchise is effective for 25 years from the effectivity of the Act, unless sooner revoked or cancelled. (Section 6)
- The franchise shall be deemed ipso facto revoked if the Grantee fails to operate continuously for 2 years.
Self-regulation and Undertaking of the Grantee
- The Grantee shall not require previous censorship but shall cut off the airing of speech, play, act or scene that proposes or incites treason, rebellion, or sedition, or is indecent or immoral. (Section 7)
- Willful failure to do so shall constitute a valid cause for cancellation of the franchise.
Warranty in Favor of National and Local Governments
- The Grantee shall hold the national, provincial, city, and municipal governments free from all claims, liabilities, demands, or actions arising out of accidents causing injury or damage during construction or operation. (Section 8)
Employment Opportunities
- The Grantee shall create employment opportunities and accept on-the-job trainees, with priority to residents of the place where the principal office is located. (Section 9)
- The Grantee shall comply with applicable labor standards and allowance entitlement.
- Employment opportunities created shall be reflected in the General Information Sheet submitted to the Securities and Exchange Commission annually.
Sale, Transfer, or Assignment of Franchise
- The Grantee shall not sell, lease, transfer, grant usufruct, or assign the franchise or rights and privileges without prior approval of Congress. (Section 10)
- The Grantee shall inform Congress of any such transaction within 60 days after completion.
- Failure to report such change of ownership shall render the franchise ipso facto revoked.
- Any entity to which the franchise is transferred shall be subject to the same conditions, terms, restrictions, and limitations.
Dispersal of Ownership
- The Grantee shall offer at least 30% of its outstanding capital stock to Filipino citizens in any securities exchange in the Philippines within 5 years from the effectivity of the Act. (Section 11)
- Noncompliance shall render the franchise ipso facto revoked.
Reportorial Requirement
- The Grantee shall submit an annual report on its compliance with the franchise terms and conditions and its operations to Congress on or before April 30 of every year. (Section 12)
- The annual report shall include updates on activities, development, operation, expansion, audited financial statements, General Information Sheet, NTC certification, and dispersal of ownership undertaking.
- The reportorial compliance certificate issued by Congress shall be required before any application for permit or certificate is accepted by the NTC.
Fine
- Failure to submit the requisite annual report shall be penalized by a fine of 500 pesos per working day of noncompliance, remitted to the Bureau of the Treasury. (Section 13)
Equality Clause
- Any advantage, favor, privilege, exemption, or immunity granted under existing or future franchises for radio broadcasting, upon prior review and approval of Congress, shall become part of this franchise and be accorded to the Grantee, except for provisions concerning territorial coverage, term, or type of service. (Section 14)
Repealability and Nonexclusivity Clause
- This franchise shall be subject to amendment, alteration, or repeal by Congress when the public interest so requires and shall not be interpreted as an exclusive grant. (Section 15)
Separability Clause
- If any section or provision is held invalid, all other provisions not affected shall remain valid. (Section 16)
Repealing Clause
- All laws, decrees, orders, resolutions, instructions, rules and regulations, and other issuances inconsistent with this Act are hereby repealed, amended, or modified accordingly. (Section 17)
Effectivity
- This Act shall take effect 15 days after its publication in the Official Gazette or in a newspaper of general circulation. (Section 18)