Manner of Operation of Stations or Facilities
- Stations/facilities must minimize interference with other existing or future stations.
- Grantee retains right to use frequencies without diminishing transmission/reception quality.
- Operations should maximize service rendition and availability.
Prior Approval of the National Telecommunications Commission (NTC)
- Operation requires obtaining appropriate permits and licenses from the NTC.
- No use of frequencies without NTC authorization.
- NTC shall not unreasonably withhold or delay approval.
Responsibility to the Public
- Must provide adequate public service time for government to communicate important issues.
- Programming must be sound, balanced, ethical, and honest.
- Prohibited from broadcasting obscene, indecent language or deliberately false/misleading information.
- Must not incite subversive or treasonable acts.
Right of Government
- President may temporarily take over or suspend operations during war, rebellion, public calamity, emergency, or disturbances.
- Temporary government use requires due compensation to the grantee.
- Use of the radio spectrum is a State-conferred privilege and is revocable after due process.
Term of Franchise
- Valid for 25 years from November 3, 2018, unless earlier cancelled.
- Franchise is automatically revoked if grantee fails to operate continuously for two (2) years.
Acceptance and Compliance
- Grantee must give written acceptance within 60 days from effectivity.
- Exercise of franchise rights depends on acceptance.
- Failure to accept renders franchise void.
Self-regulation by and Undertaking of the Grantee
- No prior censorship required for broadcast contents.
- Must cut off broadcasts inciting treason, rebellion, sedition or those containing indecent/immoral themes.
- Willful failure to comply may lead to franchise cancellation.
Warranty in Favor of the National and Local Governments
- Grantee holds government entities free from claims or liabilities arising from accidents due to construction or operation of stations.
Sale, Lease, Transfer, Usufruct, or Assignment of Franchise
- No transfer, lease, sale, assignment, merger or change of controlling interest without prior Congressional approval.
- Congress must be informed within 60 days upon completion of such transactions.
- Failure to report leads to automatic revocation of franchise.
- Any successors to franchise rights are bound by same conditions and limitations.
Dispersal of Ownership
- Grantee must offer at least 10% of outstanding capital stock to Filipino citizens on a Philippine securities exchange within 5 years after becoming a national broadcasting network.
- A national broadcasting network is one operating at least three radio/television stations.
- Noncompliance results in automatic franchise revocation.
General Broadcast Policy Law
- Grantee must comply with future general broadcast policy legislation enacted by Congress.
Parity Clause
- Any advantages or privileges granted to other franchises will automatically and immediately apply to this franchise (excluding territorial coverage, franchise duration, and service type).
- Does not apply to sale/transfer/assignment of franchise rights which require Congressional approval.
Reportorial Requirement
- Grantee must submit an annual report on franchise compliance and operations to Congress by April 30 each year.
- Reportorial compliance certificate from Congress is prerequisite for permit applications to NTC.
Penalty Clause
- Failure to submit annual report results in fine of P500 per working day.
- Fine collected by NTC for monitoring fund purposes.
- Penalties are separate from other NTC sanctions.
Separability Clause
- Invalidity of any provision does not affect remaining provisions of the Act.
Repealability and Nonexclusivity Clause
- Franchise may be amended, altered, or repealed by Congress as public interest requires.
- Franchise is nonexclusive in nature.
Publication
- Grantee must cause publication of the Act within 15 days after presidential signing or lapse into law.
Effectivity
- Act takes effect 15 days after publication in at least two newspapers of general circulation.