Renewing for Another 25 Years the Franchise Granted to FBS Radio Network, Inc. under Republic Act No. 8114

Case Overview and Summary

Nature and Scope of Franchise

- Renews the franchise granted to FBS Radio Network, Inc. under Republic Act No. 8114 for another 25 years to construct, install, operate, and maintain radio and television broadcasting stations, including digital television systems, in the Philippines. (Section 1)
- Allows the use of new technologies in television and radio systems. (Section 1)

Manner of Operation

- Stations must be operated in a way that results in minimum interference with existing stations. (Section 2)

Regulatory Approval

- Requires prior approval from the National Telecommunications Commission (NTC) for construction and operation of stations. (Section 3)
- Prohibits disposal or lease of facilities except to entities with broadcasting franchises, subject to NTC approval. (Section 3)

Responsibilities to the Public

- Requires the grantee to provide free public service time equivalent to 10% of paid commercials for government agencies, the judiciary, constitutional commissions, and recognized international humanitarian organizations. (Section 4)
- Mandates sound and balanced programming, promotion of public participation, assistance in public information and education, and adherence to ethical standards. (Section 4)
- Prohibits broadcasting of obscene, indecent, false, or subversive content. (Section 4)

Government Rights

- Reserves the President's right to temporarily take over, suspend operations, or authorize government use of stations during times of war, public peril, calamity, or disturbance of peace and order, with due compensation. (Section 5)

Term and Revocation

- Sets the franchise term to 25 years from the law's effectivity, subject to revocation for failure to operate continuously for 2 years. (Section 6)

Self-Regulation and Liability

- Allows the grantee to self-regulate content but requires cutting off broadcasts that incite treason, rebellion, sedition, or are indecent or immoral, under penalty of franchise cancellation. (Section 7)

Warranty and Liability

- Requires the grantee to hold the national and local governments free from claims arising from accidents during construction or operation. (Section 8)

Employment Opportunities

- Mandates the grantee to create employment opportunities and accept on-the-job trainees, prioritizing residents of the principal office location and following labor standards. (Section 9)

Transfer of Franchise

- Prohibits the sale, lease, transfer, grant of usufruct, or assignment of the franchise without prior Congressional approval and requires reporting such transactions within 60 days. (Section 10)

Ownership Dispersal

- Requires the grantee to offer at least 30% of its outstanding capital stock to Filipino citizens within 5 years of operations through a securities exchange or other methods of public participation. (Section 11)

Reporting Requirement

- Mandates the submission of an annual report to Congress on compliance with franchise terms, operations, financial statements, permits status, and ownership dispersal by April 30 each year. (Section 12)
- Imposes a fine of PHP 500 per working day for failure to submit the annual report. (Section 13)

Other Provisions

- Includes an equality clause to extend advantages granted to other broadcasting franchises. (Section 14)
- Allows amendment, alteration, or repeal of the franchise by Congress in the public interest. (Section 15)
- Includes separability and repealing clauses. (Sections 16-17)
- Sets the law's effectivity 15 days after publication in the Official Gazette or a newspaper of general circulation. (Section 18)