Extension of Cebu Broadcasting Co. Franchise

The grantee's stations must operate with minimal interference to existing or legally established stations.
This mandate ensures the grantee’s assigned wavelengths or frequencies and quality of transmission/reception are preserved while maximizing service availability.

The grantee must secure all appropriate permits and licenses from the NTC for construction and operation.
No use of frequencies is allowed without NTC authorization.
NTC shall not unreasonably withhold or delay permit grants.
Disposal or leasing of facilities is prohibited except to entities with broadcasting franchises.
Written authorization from the NTC is required before disposal/lease, and NTC must be notified within 60 days after completion.
NTC determines sanctions for any violations related to disposal or leasing.

Adequate public service time must be provided to inform the population on public issues.
Programming must be sound, balanced, and assist public information and education.
The grantee must adhere to ethical broadcasting standards, avoiding obscene/indecent content.
Deliberate dissemination of false information or content promoting subversive, treasonable acts is prohibited.

Radio spectrum use is a privilege and part of the national patrimony, subject to withdrawal with due process.
The President can temporarily take over or suspend stations during war, rebellion, public emergencies, or similar situations.
Temporary government use of the grantee's stations requires due compensation.

The franchise is valid for 25 years from effectivity unless revoked or cancelled earlier.
Failure to operate continuously for two years results in ipso facto revocation of the franchise.

Written acceptance must be submitted to Congress within 60 days from effectivity.
Acceptance is a prerequisite for exercising privileges; nonacceptance voids the franchise.

No prior censorship required for broadcasts.
The grantee is not liable for unlawful content unless it fails to cut off broadcasts inciting treason, rebellion, sedition, or containing indecent/immoral language or themes.
Willful failure to cut off such content may result in franchise cancellation.

The grantee shall indemnify the national and local governments from any claims or liabilities arising from accidents during construction or operation of facilities.

The grantee must create employment and provide on-the-job training.
Priority is given to residents near the principal office.
Compliance with labor standards and allowance entitlements is mandatory.
Employment data must be included in the General Information Sheet submitted annually to the Securities and Exchange Commission.

Sale, lease, transfer, usufruct grant, assignment, merger, or controlling interest transfer requires prior Congressional approval.
Congress must be informed within 60 days after such transactions.
Failure to report results in ipso facto revocation.
Successors are subject to the same franchise conditions.

At least 30% of outstanding capital stock must be offered to Filipino citizens within five years of operations.
If public stock offering is not applicable, cooperatives or alternative public participation methods must be implemented.
Noncompliance causes ipso facto revocation.

Annual compliance reports must be submitted to Congress by April 30 each year covering operations and franchise compliance.
Congress issues reportorial compliance certificates, which the NTC requires before accepting permit applications.

Failure to submit annual reports results in a fine of Five Hundred Pesos (P500) per working day.
The NTC collects fines separately from its other penalties.

Any advantages or privileges granted under other broadcasting franchises, except taxes and customs duties, shall apply to this franchise upon Congressional approval.
This does not affect territorial coverage, franchise term, or service type provisions.

Congress may amend, alter, or repeal the franchise at any time in the public interest.
The franchise does not confer exclusive rights to the grantee.

All inconsistent laws, regulations, or issuances are repealed, amended, or modified accordingly.

The Act takes effect 15 days after publication in the Official Gazette or a newspaper of general circulation.