RA 7303 grants the grantee, subject to the Constitution and applicable laws, the franchise to construct, install, operate, and maintain radio broadcasting stations in the island of Mindanao (for commercial purposes and public interest), including technological auxiliaries/facilities, special broadcast and other program/distribution services, relay stations, and radio communication facilities for the grantee’s private use in its broadcast services.

It must be constructed and operated to result in the minimum interference on selected wavelengths/frequencies of other existing stations (and those established by law), without diminishing its right to use its selected frequencies and while maximizing the quality of transmission/reception and the availability/quality of its services.

The grantee must secure appropriate permits and licenses from the National Telecommunications Commission (NTC) and must not use any frequency without NTC authorization.

The NTC shall not unreasonably withhold or delay the grant of authority for the grantee’s use of frequencies.

The grantee must provide reasonable public service time for government use on important public issues; maintain sound and balanced programming; promote public participation such as community programming; assist public information and education functions; conform to honest enterprise ethics; and must not broadcast obscene/indecent content, deliberately false information or willful misrepresentation, content detrimental to public interest, or incite/encourage subversive or treasonable acts.

In times of rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, the President may temporarily take over and operate the stations, temporarily suspend operation of any station for public safety/security/welfare, or authorize temporary use/operation by any government agency, upon due compensation to the grantee.

The franchise is for 25 years from the date of effectivity unless sooner revoked or cancelled. If the grantee fails to operate continuously for two (2) years, the franchise is deemed ipso facto revoked.

Acceptance must be given in writing within 60 days after effectivity. Upon acceptance, the grantee may exercise the franchise privileges. Nonacceptance renders the franchise void.

The grantee must pay the same taxes on its real estate, buildings, and personal property (exclusive of the franchise) as other persons/corporations. It must also pay a franchise tax equivalent to 3% of all gross receipts from the radio business transacted under the franchise; this percentage is in lieu of all taxes on the franchise or earnings thereof, while the grantee continues to be liable for income taxes under Title II of the NIRC pursuant to EO 72 unless amended or repealed.

The grantee must file returns with and pay the tax due to the Commissioner of Internal Revenue (or duly authorized representative) under the NIRC. The returns are subject to audit by the Bureau of Internal Revenue.

Within three (3) years from effectivity, the grantee must make a public offering through the stock exchange of at least 30% of its common stock. No single person or entity may own more than 5% of the stock offerings.

The grantee must hold the national, provincial, and municipal governments harmless from all claims, accounts, demands, or actions arising from accidents or injuries (to property or persons) caused by the construction or operation of its stations.

The grantee cannot lease, transfer, grant usufruct of, sell, or assign the franchise or its rights/privileges, nor transfer controlling interest (as a whole or in parts, whether simultaneously or contemporaneously) to any private entity, without prior approval of Congress. Any assignee/transferee is subject to all conditions and limitations of the Act.

Only the invalid section/provision is affected; all other sections not affected remain valid.

Section 13: the franchise may be amended/altered/repealed by Congress when public interest requires; it is not an exclusive grant. Section 14: the grantee must comply with and is subject to any general broadcast policy law that may be enacted in the future.

The grantee must submit an annual report to Congress on compliance with franchise terms and on its operations within 60 days from the end of every year.

It takes effect 15 days after publication in at least two (2) newspapers of general circulation in the Philippines.