Operation and Interference Management
- Stations must be operated to minimize interference with existing or future stations.
- Grantee has the right to use allotted frequencies or wavelengths without diminishing transmission or reception quality.
Regulatory Approval
- Grantee must obtain permits and licenses from the National Telecommunications Commission (NTC) before construction and operation.
- No frequency use allowed without NTC authorization.
- NTC must not unreasonably delay or withhold approvals.
Public Service Obligations
- Provide sufficient public service time for government to address key public issues.
- Ensure balanced, honest programming that supports public information and education.
- Prohibited from broadcasting obscene, indecent, false, or subversive content.
Presidential Authority
- President may temporarily take over or suspend stations during emergencies such as war, rebellion, calamity, or public disorder.
- Temporary government use of facilities requires due compensation.
- The radio spectrum is a national patrimony; franchise can be withdrawn with due process.
Franchise Duration and Revocation
- Franchise valid for 25 years unless earlier revoked.
- Automatic revocation if grantee fails to commence operations within one year post-NTC permit, fails to operate continuously for two years, or fails to commence operations within three years from franchise effectivity.
Acceptance of Franchise
- Franchise acceptance must be in writing within 60 days of the Act's effectivity.
- Failure to accept renders the franchise void.
Bond Requirement
- Grantee to file a bond with NTC guaranteeing compliance with franchise conditions.
- Bond cancelled after three years if conditions are met, otherwise forfeited and franchise revoked.
Tax Obligations
- Grantee liable for taxes on properties and income.
- Must pay Value Added Tax under R.A. No. 7716 on gross receipts.
- Income tax obligations remain under the National Internal Revenue Code.
- Tax returns filed to and audited by Bureau of Internal Revenue.
Content Regulation and Self-Censorship
- No prior censorship required, but grantee must cut off broadcasts inciting treason, rebellion, sedition, or containing indecent or immoral content.
- Failure to comply may cause franchise cancellation.
Indemnity to Government
- Grantee indemnifies government from claims or damages resulting from station construction or operations.
Restrictions on Franchise Transfer
- Franchise or rights cannot be leased, sold, transferred, assigned, merged, or have controlling interest transferred without Congress approval.
- Successors bound by same franchise conditions.
Ownership Dispersal Requirement
- At least 30% of outstanding capital stock must be offered publicly within 5 years upon becoming a national broadcasting network (operating 3+ stations).
- Failure to comply leads to automatic franchise revocation.
Compliance with Future Broadcast Laws
- Grantee subject to general broadcasting policies that Congress may enact.
Separability Clause
- Invalidity of any provision does not affect the rest of the Act.
Nonexclusivity and Congress' Power
- Franchise is not exclusive and can be amended or repealed by Congress as public interest requires.
Reporting Duties
- Annual compliance and operation report to Congress within 60 days from year-end required.
Effectivity
- Act effective 15 days after publication in two newspapers of general circulation.