Renewing for Another 25 Years the Franchise Granted to Broadcast Enterprises and Affiliated Media, Inc. under RA No. 8098

Case Overview and Summary

Summary of Republic Act No. 11482

Renewal of Franchise
- Renews the franchise granted to Broadcast Enterprises and Affiliated Media, Inc. under Republic Act No. 8098 for another 25 years to construct, install, operate, and maintain radio and television broadcasting stations in the Philippines. (Section 1)
- The franchise shall be in effect for 25 years from the effectivity of this Act, unless sooner revoked or cancelled. (Section 6)

Manner of Operation
- The stations shall be constructed and operated in a manner that results in minimum interference on existing stations' wavelengths or frequencies. (Section 2)

Prior Approval from NTC
- The grantee shall secure appropriate permits and licenses from the National Telecommunications Commission (NTC) for construction and operation of stations. (Section 3)
- The grantee shall not dispose or lease its facilities except to entities with radio or television broadcasting franchise, and shall inform and secure written authorization from the NTC. (Section 3)
- The NTC has the authority to revoke or suspend permits or licenses issued pursuant to the franchise, after due process, in case of violation/s. (Section 3)

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 grantee shall allot a minimum of 15% of daily total air time to child-friendly shows. (Section 4)
- The grantee shall not broadcast obscene, indecent, or false content, or incite subversive or treasonable acts. (Section 4)

Right of the Government
- The President has the right to temporarily take over, suspend, or authorize temporary use of the stations during times of war, public peril, calamity, or disturbance of peace and order, with due compensation to the grantee. (Section 5)

Self-regulation and Undertaking
- The grantee shall not require previous censorship but shall cut off airing of content that incites treason, rebellion, sedition, or is indecent or immoral. Willful failure to do so shall constitute a valid cause for cancellation of the franchise. (Section 7)

Warranty to the Government
- The grantee shall hold the national and local governments free from claims, liabilities, demands, or actions arising out of accidents during construction or operation of stations. (Section 8)

Employment Opportunities
- The grantee shall create employment opportunities and allow on-the-job trainings, prioritizing residents of the place where the principal office is located, and following applicable labor standards. (Section 9)

Sale, Lease, Transfer, or Assignment of Franchise
- The grantee shall not sell, lease, transfer, grant usufruct, or assign the franchise or rights acquired thereunder without prior approval of Congress. (Section 10)
- Congress shall be informed of any such transaction within 60 days after completion. Failure to report shall render the franchise ipso facto revoked. (Section 10)

Dispersal of Ownership
- The grantee shall offer at least 30% of its outstanding capital stock to Filipino citizens in a securities exchange within 5 years from commencement of operations. Non-compliance shall render the franchise ipso facto revoked. (Section 11)

Reportorial Requirement
- The grantee shall submit an annual report to Congress on or before April 30 of every year, including updates on operations, audited financial statements, NTC certification, and dispersal of ownership. (Section 12)
- Failure to submit the annual report shall be penalized by a fine of P500 per working day of non-compliance, collected by the NTC and remitted to the Bureau of the Treasury. (Section 13)

Equality Clause
- Any advantage, favor, privilege, exemption, or immunity granted under existing or future broadcasting franchises shall become part of this franchise, except for provisions concerning territorial coverage, term, or type of service. (Section 14)

Repealability and Non-exclusivity 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 of privileges. (Section 15)

Separability Clause
- If any section or provision of this Act is held invalid, all other provisions not affected shall remain valid. (Section 16)

Repealing Clause
- All laws, decrees, orders, resolutions, instructions, rules and regulations 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)