Renewing for Another 25 Years the Radio and Television Franchise Granted to Romeo Cabrestante Servando, Now Known as Rolin Broadcasting Enterprises, Inc.

Case Overview and Summary

Summary of Republic Act No. 11588

Nature and Scope of Franchise (Section 1):
- Renews the franchise granted to Rolin Broadcasting Enterprises, Inc. (formerly Romeo Cabrestante Servando) for another 25 years.
- Allows the grantee to construct, install, establish, operate, and maintain radio and/or television broadcasting stations, including digital television systems, in the Province of Palawan.
- Permits the use of new technologies in television and radio systems.

Manner of Operation of Stations or Facilities (Section 2):
- Stations or facilities shall be operated in a manner that results in minimum interference with existing or future stations.
- The grantee's privilege to use assigned wavelengths or frequencies shall not be diminished.

Prior Approval of the National Telecommunications Commission (NTC) (Section 3):
- The grantee must secure appropriate permits and licenses from the NTC for construction and operation of stations or facilities.
- 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.
- The NTC may recommend to Congress the revocation of the franchise for any violation.

Responsibility to the Public (Section 4):
- The grantee shall provide free public service time, equivalent to a maximum of 10% of paid commercials or advertisements, to be allocated to the government branches, Constitutional Commissions, and international humanitarian organizations.
- The NTC may increase public service time in case of emergencies or calamities.
- The grantee shall allot a minimum of 15% of daily total airtime to child-friendly shows, as per the Children's Television Act of 1997.
- The grantee shall not broadcast obscene, indecent, or false content, or incite subversive or treasonable acts.

Right of the Government (Section 5):
- The radio spectrum is part of the national patrimony, and its use is a privilege that may be withdrawn after due process.
- The President may temporarily take over, suspend operations, or authorize temporary use of the stations or facilities during times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, with due compensation to the grantee.

Term of Franchise (Section 6):
- The franchise shall be in effect for 25 years from the effectivity of this Act, unless sooner revoked or cancelled.
- The franchise shall be deemed revoked if the grantee fails to operate continuously for 2 years.

Self-regulation by and Undertaking of the Grantee (Section 7):
- The grantee shall not require previous censorship but shall cut off the 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.

Warranty in Favor of the National and Local Governments (Section 8):
- The grantee shall hold the national, provincial, city, and municipal governments free from claims, liabilities, demands, or actions arising out of accidents causing injury or damage during construction or operation of stations.

Commitment to Provide and Promote the Creation of Employment Opportunities (Section 9):
- The grantee shall create employment opportunities and accept on-the-job trainees, prioritizing residents of the place where the principal office is located.
- The grantee shall follow applicable labor standards and allowance entitlement under existing labor laws.
- The employment opportunities created shall be reflected in the General Information Sheet (GIS) submitted to the Securities and Exchange Commission (SEC) annually.

Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise (Section 10):
- The grantee shall not sell, lease, transfer, grant the usufruct of, or assign the franchise or rights and privileges acquired thereunder without prior approval of Congress.
- Congress shall be informed of any such transaction within 60 days after completion.
- Failure to report such change of ownership shall render the franchise revoked.
- Any entity to which the franchise is sold, transferred, or assigned shall be subject to the same conditions, terms, restrictions, and limitations of this Act.

Dispersal of Ownership (Section 11):
- The grantee shall offer at least 30% or a higher percentage of its outstanding capital stock in any securities exchange in the Philippines within 5 years from the effectivity of this Act, to encourage public participation in public utilities.
- Noncompliance shall render the franchise revoked.

Reportorial Requirement (Section 12):
- The grantee shall submit an annual report to Congress on or before April 30 of every year, detailing compliance with the terms and conditions of the franchise and its operations.
- The annual report shall include updates on business roll-out, development, operation and/or expansion; audited financial statements; latest GIS submitted to the SEC; certification from the NTC on the status of permits and operations; and an update on the 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 (Section 13):
- Failure to submit the requisite annual report to Congress shall be penalized by a fine of Five hundred pesos (P500.00) per working day of noncompliance, to be collected by the NTC and remitted to the Bureau of the Treasury.

Equality Clause (Section 14):
- Any advantage, favor, privilege, exemption, or immunity granted under existing or future franchises for radio and/or television broadcasting, upon prior review and approval of Congress, shall become part of this franchise and shall be accorded immediately and unconditionally to the grantee, except for provisions concerning territorial coverage, term, or type of service authorized.

Repealability and Nonexclusivity Clause (Section 15):
- 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 the privileges provided.

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

Repealing Clause (Section 17):
- All laws, decrees, orders, resolutions, instructions, rules and regulations, and other issuances or parts thereof which are inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

Effectivity (Section 18):
- This Act shall take effect 15 days after its publication in the Official Gazette or in a newspaper of general circulation.