Granting Christian Music Power, Inc. a Franchise to Construct, Establish, Operate, and Maintain Radio Broadcasting Stations in the Philippines

Case Overview and Summary

Summary of Republic Act No. 11580

Nature and Scope of Franchise (Section 1):
- Grants Christian Music Power, Inc. (the grantee) a franchise to construct, establish, operate, and maintain radio broadcasting stations in the Philippines, with corresponding facilities and services.

Manner of Operation (Section 2):
- The stations shall be operated in a manner that results in minimum interference with existing stations.
- The grantee shall not diminish its privilege to use assigned wavelengths or frequencies.

Prior Approval of NTC (Section 3):
- The grantee shall 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 for violations, and recommend revocation of the franchise to Congress.

Responsibility to the Public (Section 4):
- The grantee shall provide free public service time, equivalent to 10% of paid commercials, for government agencies and international humanitarian organizations.
- The grantee shall promote public participation, education, and ethical programming.
- The grantee shall not broadcast obscene, indecent, false, or subversive content.

Right of the Government (Section 5):
- The President can temporarily take over or suspend operations during war, rebellion, calamity, or emergency, with due compensation.

Term of Franchise (Section 6):
- The franchise is valid for 25 years from effectivity, unless revoked or cancelled.
- The franchise is deemed revoked if the grantee fails to operate continuously for 2 years.

Self-regulation by Grantee (Section 7):
- The grantee shall not require prior censorship but shall cut off airing of treasonous, rebellious, seditious, indecent, or immoral content.
- Willful failure to do so is a valid cause for cancellation of the franchise.

Warranty to Government (Section 8):
- The grantee shall hold the government free from claims 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 labor standards and allowances.

Sale, Transfer, or Assignment of Franchise (Section 10):
- The grantee shall not sell, lease, transfer, or assign the franchise without prior approval of Congress.
- Congress shall be informed within 60 days after such transaction.
- Failure to report shall render the franchise revoked.

Dispersal of Ownership (Section 11):
- The grantee shall offer at least 30% of outstanding capital stocks to Filipino citizens within 5 years, to encourage public participation.
- Noncompliance shall render the franchise revoked.

Reportorial Requirement (Section 12):
- The grantee shall submit an annual report to Congress on compliance and operations by April 30 every year.
- The report shall include business updates, financial statements, NTC certification, and ownership dispersal update.

Fine (Section 13):
- Failure to submit the annual report shall be penalized with a fine of P500 per working day of noncompliance, remitted to the Bureau of the Treasury.

Equality Clause (Section 14):
- Any advantage granted to existing or future 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 is not an exclusive grant.

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

Repealing Clause (Section 17):
- All laws 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.