July 30, 2021
REPUBLIC ACT NO. 11579
AN ACT GRANTING SERVOTRON INDUSTRIES, INC. A FRANCHISE TO CONSTRUCT, INSTALL, OPERATE, AND MAINTAIN RADIO AND TELEVISION BROADCASTING STATIONS THROUGHOUT 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 Servotron Industries, Inc., hereunder referred to as the grantee, its successors or assignees, a franchise to construct, install, operate, and maintain for commercial purposes and in the public interest, radio and/or television broadcasting stations where frequencies and/or channels are still available for radio and/or television broadcasting, including digital television system, through microwave, satellite or whatever means, as well as the use of any new technology in television and radio, systems, with the corresponding technological auxiliaries and facilities, special broadcast and other program and distribution services and relay stations throughout the Philippines.
SECTION 2.Manner of Operation of Stations or Facilities. — The stations or facilities of the grantee shall be...
Nature and Scope of Franchise (Section 1):
- Grants Servotron Industries, Inc. a franchise to construct, install, operate, and maintain radio and/or television broadcasting stations throughout the Philippines for commercial purposes and public interest.
- Allows the use of available frequencies/channels, digital television systems, microwave, satellite, new technologies, and auxiliaries/facilities.
- Covers special broadcast, program distribution services, and relay stations.
Manner of Operation (Section 2):
- Stations/facilities to be operated in a manner that results in minimum interference on existing stations' wavelengths/frequencies.
- Grantee's privilege to use assigned wavelengths/frequencies and transmission/reception quality shall not be diminished.
Prior Approval of NTC (Section 3):
- Grantee must secure permits/licenses from NTC for construction and operation of stations/facilities.
- NTC shall not unreasonably withhold or delay granting such authority.
- NTC can revoke or suspend permits/licenses after due process for franchise violations.
- NTC may recommend to Congress the revocation of franchise for violations.
Responsibility to the Public (Section 4):
- Provide free and reasonable public service time for government, public issues, announcements, and warnings.
- Provide sound and balanced programming, promote public participation, assist in public information and education.
- Conform to ethics of honest enterprise, promote audience sensibility and empowerment, including closed captioning.
- Not broadcast obscene/indecent content, false information, or incite subversive/treasonable acts.
- Public service time shall be maximum 10% of paid commercials/ads, allocated to government branches, Judiciary, Constitutional Commissions, and recognized international humanitarian organizations.
- NTC can increase public service time during extreme emergencies/calamities.
- Allocate minimum 15% of daily total airtime to child-friendly shows per Children's Television Act of 1997.
Right of the Government (Section 5):
- Radio spectrum is part of national patrimony, and its use is a privilege that can be withdrawn.
- President can temporarily take over/operate stations during war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order.
- President can temporarily suspend operations for public safety/welfare or authorize temporary use by government agency with due compensation.
Term of Franchise (Section 6):
- Franchise is effective for 25 years from the Act's effectivity, unless sooner revoked or cancelled.
- Franchise is deemed revoked if grantee fails to operate continuously for 2 years.
Self-regulation and Undertaking (Section 7):
- No prior censorship, but grantee is free from liability for broadcast violating law/private rights.
- Grantee must cut off broadcast tending to propose/incite treason, rebellion, sedition, or indecent/immoral content.
- Willful failure to do so is valid cause for franchise cancellation.
Warranty to National and Local Governments (Section 8):
- Grantee shall hold national, provincial, city, and municipal governments free from claims/liabilities arising from accidents during construction or operation.
Employment Opportunities (Section 9):
- Grantee shall create employment opportunities and accept on-the-job trainees.
- Priority shall be given to residents where grantee's principal office is located.
- Grantee shall comply with applicable labor standards and allowance entitlement.
- Employment opportunities shall be reflected in the annual GIS submitted to SEC.
Sale, Lease, Transfer, Grant of Usufruct, or Assignment (Section 10):
- Grantee cannot sell, lease, transfer, grant usufruct, or assign franchise/rights without prior approval of Congress.
- Congress must be informed within 60 days after such transaction.
- Failure to report ownership change shall revoke franchise ipso facto.
- Any entity receiving the franchise shall be subject to the same conditions/terms.
Dispersal of Ownership (Section 11):
- Grantee shall offer at least 30% of outstanding capital stocks to Filipino citizens in a securities exchange within 5 years to encourage public participation.
- If public offer is not applicable, other methods of public participation must be implemented.
- Noncompliance shall revoke franchise ipso facto.
Reportorial Requirement (Section 12):
- Grantee shall submit an annual report on compliance and operations to Congress through respective committees on or before April 30.
- Report shall include business updates, audited financial statements, latest GIS, NTC certification, and update on dispersal of ownership.
- Reportorial compliance certificate from Congress is required before NTC accepts permit/certificate applications.
Fine (Section 13):
- Failure to submit annual report shall be penalized by a fine of P500 per working day of noncompliance, collected by NTC and remitted to Bureau of Treasury.
Equality Clause (Section 14):
- Any advantage/privilege granted under existing/future franchises for radio/TV broadcasting shall be accorded to this grantee upon Congress' approval, except for territorial coverage, term, or type of service.
Repealability and Nonexclusivity (Section 15):
- Franchise is subject to amendment, alteration, or repeal by Congress in public interest.
- Franchise shall not be interpreted as an exclusive grant of privileges.
Separability Clause (Section 16):
- If any section/provision is held invalid, other provisions shall remain valid.
Repealing Clause (Section 17):
- All laws/issuances inconsistent with this Act are repealed, amended, or modified accordingly.
Effectivity (Section 18):
- Act shall take effect 15 days after publication in the Official Gazette or a newspaper of general circulation.
- Grants Servotron Industries, Inc. a franchise to construct, install, operate, and maintain radio and/or television broadcasting stations throughout the Philippines for commercial purposes and public interest.
- Allows the use of available frequencies/channels, digital television systems, microwave, satellite, new technologies, and auxiliaries/facilities.
- Covers special broadcast, program distribution services, and relay stations.
Manner of Operation (Section 2):
- Stations/facilities to be operated in a manner that results in minimum interference on existing stations' wavelengths/frequencies.
- Grantee's privilege to use assigned wavelengths/frequencies and transmission/reception quality shall not be diminished.
Prior Approval of NTC (Section 3):
- Grantee must secure permits/licenses from NTC for construction and operation of stations/facilities.
- NTC shall not unreasonably withhold or delay granting such authority.
- NTC can revoke or suspend permits/licenses after due process for franchise violations.
- NTC may recommend to Congress the revocation of franchise for violations.
Responsibility to the Public (Section 4):
- Provide free and reasonable public service time for government, public issues, announcements, and warnings.
- Provide sound and balanced programming, promote public participation, assist in public information and education.
- Conform to ethics of honest enterprise, promote audience sensibility and empowerment, including closed captioning.
- Not broadcast obscene/indecent content, false information, or incite subversive/treasonable acts.
- Public service time shall be maximum 10% of paid commercials/ads, allocated to government branches, Judiciary, Constitutional Commissions, and recognized international humanitarian organizations.
- NTC can increase public service time during extreme emergencies/calamities.
- Allocate minimum 15% of daily total airtime to child-friendly shows per Children's Television Act of 1997.
Right of the Government (Section 5):
- Radio spectrum is part of national patrimony, and its use is a privilege that can be withdrawn.
- President can temporarily take over/operate stations during war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order.
- President can temporarily suspend operations for public safety/welfare or authorize temporary use by government agency with due compensation.
Term of Franchise (Section 6):
- Franchise is effective for 25 years from the Act's effectivity, unless sooner revoked or cancelled.
- Franchise is deemed revoked if grantee fails to operate continuously for 2 years.
Self-regulation and Undertaking (Section 7):
- No prior censorship, but grantee is free from liability for broadcast violating law/private rights.
- Grantee must cut off broadcast tending to propose/incite treason, rebellion, sedition, or indecent/immoral content.
- Willful failure to do so is valid cause for franchise cancellation.
Warranty to National and Local Governments (Section 8):
- Grantee shall hold national, provincial, city, and municipal governments free from claims/liabilities arising from accidents during construction or operation.
Employment Opportunities (Section 9):
- Grantee shall create employment opportunities and accept on-the-job trainees.
- Priority shall be given to residents where grantee's principal office is located.
- Grantee shall comply with applicable labor standards and allowance entitlement.
- Employment opportunities shall be reflected in the annual GIS submitted to SEC.
Sale, Lease, Transfer, Grant of Usufruct, or Assignment (Section 10):
- Grantee cannot sell, lease, transfer, grant usufruct, or assign franchise/rights without prior approval of Congress.
- Congress must be informed within 60 days after such transaction.
- Failure to report ownership change shall revoke franchise ipso facto.
- Any entity receiving the franchise shall be subject to the same conditions/terms.
Dispersal of Ownership (Section 11):
- Grantee shall offer at least 30% of outstanding capital stocks to Filipino citizens in a securities exchange within 5 years to encourage public participation.
- If public offer is not applicable, other methods of public participation must be implemented.
- Noncompliance shall revoke franchise ipso facto.
Reportorial Requirement (Section 12):
- Grantee shall submit an annual report on compliance and operations to Congress through respective committees on or before April 30.
- Report shall include business updates, audited financial statements, latest GIS, NTC certification, and update on dispersal of ownership.
- Reportorial compliance certificate from Congress is required before NTC accepts permit/certificate applications.
Fine (Section 13):
- Failure to submit annual report shall be penalized by a fine of P500 per working day of noncompliance, collected by NTC and remitted to Bureau of Treasury.
Equality Clause (Section 14):
- Any advantage/privilege granted under existing/future franchises for radio/TV broadcasting shall be accorded to this grantee upon Congress' approval, except for territorial coverage, term, or type of service.
Repealability and Nonexclusivity (Section 15):
- Franchise is subject to amendment, alteration, or repeal by Congress in public interest.
- Franchise shall not be interpreted as an exclusive grant of privileges.
Separability Clause (Section 16):
- If any section/provision is held invalid, other provisions shall remain valid.
Repealing Clause (Section 17):
- All laws/issuances inconsistent with this Act are repealed, amended, or modified accordingly.
Effectivity (Section 18):
- Act shall take effect 15 days after publication in the Official Gazette or a newspaper of general circulation.