Operation and Interference Control
- The grantee must operate stations minimizing interference with existing or future stations.
- Use of selected wavelengths/frequencies and quality of transmission must be maximized without exceeding power necessary to cover the authorized area.
Permits and Regulation by National Telecommunications Commission (NTC)
- Construction and operation require securing permits and licenses from the NTC.
- Use of frequencies without NTC authorization is prohibited.
- NTC must not unreasonably withhold or delay granting such permits.
Public Service and Programming Responsibilities
- Adequate public service time must be provided to disseminate government information on important issues.
- Programming must be sound, balanced, educational, and truthful.
- Broadcasting obscene, indecent, or deliberately false information, or inciting subversion or treason, is prohibited.
Presidential Authority and National Interest
- The President may temporarily take over or suspend operations of the stations during war, emergency, or public peril for public safety and welfare.
- Such takeovers must be compensated.
- The radio spectrum is a national patrimony, usage is a privilege subject to withdrawal with due process.
Term and Conditions for Continuity of Franchise
- Franchise is granted for 25 years, subject to earlier revocation or cancellation.
- Franchise is ipso facto revoked if the grantee fails to:
- Commence operations within one year from NTC permit approval.
- Operate continuously for two years.
- Commence operation within three years from law effectivity.
Acceptance Requirement
- Grantee must accept the franchise in writing within 60 days of the law's effectivity.
- Failure to accept results in the franchise becoming void.
Bond Requirement
- Grantee must file a bond in favor of the NTC guaranteeing compliance.
- Bond amount to be determined by the NTC.
- Bond is cancelled after three years if compliance is met; else, forfeited and franchise revoked.
Taxation Obligations
- Grantee liable for taxes on property like others.
- Must pay either Value-Added Tax or a franchise tax of 5% (or rate prescribed by law) on all gross receipts from the broadcast business, whichever is higher.
- Income tax liability continues unless amended by law.
- Tax returns and payments filed with the Bureau of Internal Revenue subject to audit.
Self-regulation and Broadcast Standards
- No prior censorship required by the franchise.
- Grantee must cut off from air any content inciting treason, rebellion, sedition or containing indecent or immoral language.
- Willful failure to do so may cause franchise cancellation.
Hold Harmless Clause for Government
- Grantee holds national and local governments harmless from any claims arising from operations or construction related to its stations.
Restrictions on Transfer and Sale
- Franchise or related rights cannot be leased, sold, transferred, assigned, merged, or have controlling interest changed without prior Congressional approval.
- Transferee is bound by the same terms and conditions.
Compliance with Future Broadcast Policies
- Grantee must comply with any future general broadcast policy law enacted by Congress.
Separability
- Invalidity of any provision does not affect the validity of the remaining provisions.
Amendability and Non-exclusivity
- Franchise subject to amendment, alteration, or repeal by Congress as public interest may require.
- Franchise is not exclusive.
Annual Reporting
- Grantee required to submit annual reports to Congress on compliance and operations within 60 days after each year ends.
Effectivity
- Act takes effect 15 days after publication in at least two newspapers of general circulation.
- Law lapsed into effect without the President's signature as per constitutional provision.