Operation and Interference
- Stations must be operated to minimize interference with existing or future stations.
- The grantee retains the right to use selected frequencies and maintain transmission quality.
Permits and Licenses from NTC
- The National Telecommunications Commission (NTC) must grant permits and licenses prior to construction and operation.
- Unauthorized use of frequencies is prohibited.
- NTC shall not unreasonably delay or withhold authorization.
Public Responsibility and Programming
- The grantee must provide adequate public service airtime for government communication.
- Programming must be sound, balanced, support public education and information, and adhere to ethical standards.
- Stations must not broadcast obscene, indecent, false, or misleading information.
- Content inciting subversion or treason is prohibited.
Government Rights in Emergencies
- The President may temporarily:
- Take over, operate, or authorize government use of the stations during war, rebellion, calamity, or public emergencies.
- Suspend operations for public safety and welfare.
- Compensation must be provided for temporary use.
- The radio spectrum is state property and use is a privilege subject to withdrawal with due process.
Franchise Term and Conditions
- Term: 25 years from effectivity.
- Grounds for automatic revocation include failure to:
- Commence operations within one year of NTC permit approval.
- Operate continuously for two years.
- Start operations within three years of franchise effectivity.
Acceptance and Compliance
- Acceptance of the franchise must be submitted in writing within 60 days of effectivity.
- Failure to accept voids the franchise.
Bond Requirement
- The grantee must post a bond, amount set by NTC, guaranteeing compliance.
- Bond is canceled upon fulfillment after three years or forfeited if conditions are unmet.
- Forfeiture results in automatic franchise revocation.
Taxation
- The grantee pays standard taxes on real estate and personal property.
- Subject to value-added tax on gross receipts from radio/TV business.
- Income tax liability continues as provided under National Internal Revenue Code and EO No. 72.
- Tax returns subject to Bureau of Internal Revenue audit.
Self-Regulation and Broadcast Content
- No prior censorship is required.
- During broadcasts, the grantee must cut off any content inciting treason, rebellion, or sedition or containing indecent or immoral language/themes.
- Failure to comply is valid ground for franchise cancellation.
Government Indemnity
- The grantee is liable for accidents or injuries related to station construction or operation.
- Must hold the national and local governments harmless from related claims.
Restrictions on Transfer and Assignment
- The franchise and rights cannot be sold, leased, transferred, assigned, or merged without Congressional approval.
- Transferees are bound by the same terms and conditions.
Ownership Dispersal
- Upon becoming a national broadcasting network (operating 3+ stations), the grantee must offer at least 30% outstanding capital stock to the public within 5 years.
- Failure to comply results in automatic franchise revocation.
Compliance with General Broadcast Policy Law
- The grantee must adhere to future general broadcast policies enacted by Congress.
Separability Clause
- Invalidity of any provision does not affect the rest of the Act.
Repeal and Non-Exclusivity
- Congress may amend or repeal the franchise as public interest requires.
- The franchise is non-exclusive.
Reportorial Duties
- The grantee must submit an annual report to Congress within 60 days after the calendar year.
- Reports cover compliance and operational status.
Effectivity
- The Act takes effect 15 days after publication in two newspapers of general circulation.