Manner of Operation of Stations or Facilities
- Stations must operate to minimize interference with frequencies of other stations
- Maintains the grantee’s privilege to use assigned wavelengths without quality compromise
- Emphasis on maximizing service quality and availability
Prior Approval of the National Telecommunications Commission (NTC)
- Authorization from NTC required for construction and operation of stations
- No use of frequencies without NTC approval
- NTC must not unreasonably withhold or delay permits
- Disposal or leasing of facilities only to entities with broadcasting franchises
- Requires informing and securing NTC written authorization before transactions
- Transactions must be reported to NTC within 60 days after completion
- Sanctions determined by NTC for violations
Responsibility to the Public
- Grantee must provide free public service time for government use on public issues and emergencies
- Programming must be sound, balanced, promote public participation, and conform to ethical standards
- No broadcasting of obscene, indecent content, false information, or incitement to subversion
- Public service time capped at 10% of paid commercials, adjustable during emergencies
- NTC to issue implementing rules and regulations
Special Rights Reserved to the Government
- Radio spectrum is national patrimony and usage is a state-granted privilege
- President may temporarily take over stations during war, rebellion, calamity, or emergencies
- Temporary suspension or use of stations may be authorized for public safety
- Compensation to grantee for government use during such periods
Term of Franchise
- Valid for 25 years from effectivity unless revoked or cancelled earlier
- Franchise revoked ipso facto if grantee ceases continuous operation for 2 years
Self-Regulation and Content Control by Grantee
- No prior censorship of broadcast content required
- Grantee not liable for illegal or infringing content broadcasted unless willfully neglecting to stop incitement or indecency
- Obligation to cut off broadcasts inciting treason, rebellion, sedition, or indecent/immoral content
- Failure to comply a ground for franchise revocation
Warranty in Favor of the Government
- Grantee holds all government levels free from claims arising from accidents or damages during station operations
Employment Creation Commitment
- Grantee must create jobs and allow on-the-job training within franchise operations
- Priority hiring to residents near principal office
- Compliance with labor laws and reporting of employment in Securities and Exchange Commission (SEC) annual submissions
Restrictions on Transfer and Assignment
- Sale, lease, transfer, usufruct, or assignment of franchise or controlling interest prohibited without prior Congressional approval
- Congress to be informed within 60 days post-transaction
- Failure to report results in automatic revocation
- Successor entities bound by same franchise conditions
Dispersal of Ownership
- At least 30% of outstanding capital stock must be offered to Filipino citizens via securities exchange or other methods within 5 years
- Aims to encourage public participation as mandated by the Constitution
- Noncompliance causes automatic franchise revocation
Annual Reporting Requirements
- Grantee must submit annual reports to Congressional committees on Legislative Franchises and Public Services
- Reports include compliance, business updates, audited financial statements, GIS filed with SEC, NTC certification, and ownership dispersal status
- Report submission required for NTC permit applications
Penalties for Non-Compliance on Reporting
- Fine of 500 pesos per working day for failing to submit annual reports
- Collected by NTC separately and remitted to the National Treasury
Equality Clause
- Any advantage or privilege granted to other broadcasting franchises shall also apply to this franchise, except for territorial coverage, term, or type of service
- Applies only upon prior Congressional approval
Conditions on Franchise Amendments
- Franchise is subject to amendment, alteration, or repeal by Congress as public interest requires
- Not exclusive, allowing other franchises
Separability Clause
- Invalidity of any law provision does not affect the validity of remaining provisions
Repealing Clause
- Laws or regulations inconsistent with the Act are repealed, amended, or modified accordingly
Effectivity of the Act
- Act takes effect 15 days after publication in the Official Gazette or newspaper of general circulation