Manner of Operation of Stations or Facilities
- Operations must minimize interference with wavelengths/frequencies of existing or future stations.
- Does not diminish grantee’s right to use assigned wavelengths/frequencies or quality of transmission/reception.
- Emphasizes maximization of service availability and quality.
Prior Approval of the National Telecommunications Commission (NTC)
- Grantee must secure appropriate permits and licenses from NTC for construction and operation.
- Usage of frequencies requires NTC authorization.
- NTC shall not unreasonably withhold/delay authorizations.
- Facility disposal or leasing limited to entities with broadcasting franchises.
- Requires prior written authorization from NTC and reporting within 60 days post-transaction.
- Sanctions for violations as determined by NTC.
Responsibility to the Public
- Grantee must provide free and adequate public service time, equivalent to max 10% of paid advertisements.
- Time allocated primarily to government branches and recognized humanitarian organizations.
- Public service time can be increased during emergencies or calamities.
- Broadcast content must be sound, balanced, ethical, promote public participation, education, closed captioning.
- Prohibits broadcast of obscene/indecent content, false information, or incitement of subversion.
- NTC to issue implementing rules.
Rights of the Government
- Radio spectrum is a finite national patrimony and a privilege subject to withdrawal after due process.
- President may temporarily take over, suspend, or authorize government use of stations in times of war, rebellion, emergencies.
- Compensation to grantee required during such government use.
Term of Franchise
- Valid for 25 years from effectivity, unless revoked or cancelled sooner.
- Automatically revoked if the grantee fails to operate continuously for two years.
Self-regulation by the Grantee
- No prior censorship required for broadcast content.
- Grantee is not liable for unlawful content broadcast unless failing to cut off inciting speech or indecent content.
- Failure to cut such content will be grounds for franchise cancellation.
Warranty in Favor of Government
- Grantee holds national and local governments free from claims arising from accidents causing injury or damages during station construction or operation.
Commitment to Provide Employment Opportunities
- Grantee must create jobs and allow on-the-job training.
- Employment priority to residents near principal office.
- Must comply with labor laws and standards.
- Employment reported annually in General Information Sheet to SEC.
Sale, Lease, Transfer, or Assignment of Franchise
- Prohibited without prior approval of Congress.
- Congress must be informed within 60 days after transaction.
- Failure to report results in automatic franchise revocation.
- Acquirer subject to same franchise terms and conditions.
Dispersal of Ownership
- At least 30% of outstanding capital stock must be offered to Filipino citizens within 5 years.
- If public offering not applicable, other lawful methods to encourage Filipino participation must be used.
- Failure to comply causes automatic franchise revocation.
Reportorial Requirements
- Annual report to Congress on compliance and operations required by April 30 each year.
- Reports include business updates, financial statements, SEC filings, NTC certifications, and ownership status.
- NTC requires Congressional compliance certificate before issuing permits or certificates.
Penalties for Non-compliance
- Failure to submit annual report results in fine of P500 per working day.
- Fine levied by NTC, remitted to National Treasury, separate from other penalties.
Equality Clause
- Advantages or privileges granted under existing or future franchises, upon Congress approval, shall apply to this franchise.
- Does not affect territorial coverage, term, or type of authorized service.
Amendability and Nonexclusivity
- Franchise subject to amendment, alteration, or repeal by Congress as public interest requires.
- Franchise is not exclusive.
Separability Clause
- Invalidity of any provision does not affect other provisions.
Repealing Clause
- Laws and regulations inconsistent with this Act are repealed, amended, or modified accordingly.
Effectivity
- Takes effect 15 days after publication in the Official Gazette or a newspaper of general circulation.