Law Summary
Operation and Interference
- The grantee must construct and operate stations minimizing interference with existing or legally established stations.
- The right to use assigned wavelengths or frequencies must not be diminished, ensuring quality transmission and maximum service availability.
National Telecommunications Commission (NTC) Approval
- The grantee must secure the appropriate permits and licenses from the NTC to operate its stations.
- Use of any radio/television frequency requires authorization by the NTC.
Public Service Obligations
- The grantee must allocate free public service time equivalent to 10% of paid commercial time for government use and international humanitarian organizations.
- Public service time may be increased by NTC during emergencies or calamities.
- Programming must be sound, balanced, promote participation, provide public information and education, adhere to ethics, and avoid obscene or false broadcasts.
- Radio and TV content should not incite subversive acts or spread false information.
Labor Standards Compliance
- The grantee and its successors must comply with existing labor laws and regulations applicable to the broadcast industry.
Government Rights in Emergencies
- The President may temporarily take over, operate, or suspend the grantee’s stations during war, rebellion, public peril, disaster, or serious peace disturbances.
- Temporary use by government agencies must include due compensation to the grantee.
Franchise Duration and Revocation
- The franchise is valid for 25 years unless revoked or cancelled.
- Failure to operate continuously for two years leads to automatic revocation.
Acceptance of Franchise
- The franchise must be accepted in writing within 60 days from effectivity.
- Non-acceptance renders the franchise void.
Tax Obligations
- The grantee remains subject to all applicable national and local taxes and fees under existing tax laws.
Self-Regulation and Censorship
- The grantee must not practice prior censorship but must refrain from airing content inciting treason, rebellion, or containing indecent or immoral language.
- Failure allows for franchise cancellation.
Hold Harmless Clause
- The grantee holds the national and local governments harmless from claims or damages arising from station construction or operation.
Restrictions on Transfer and Assignment
- The franchise cannot be sold, leased, transferred, assigned, or have controlling interest transferred without Congressional approval.
- Any transferee assumes all franchise conditions.
Compliance with Future Broadcast Policies
- The grantee must comply with future general broadcast policy laws enacted by Congress.
Annual Reporting
- The grantee must submit an annual report to Congress on franchise compliance and operations by April 30 each year.
Equality Clause
- Any advantage or privilege granted to other broadcast franchises, upon Congressional approval, applies immediately and unconditionally to this grantee, except for territorial coverage, franchise lifespan, or authorized services.
Separability Clause
- Invalidity of any provision does not affect the validity of the remaining provisions.
Amendment and Nonexclusivity
- Congress may amend, alter, or repeal the franchise as public interest requires.
- The franchise is non-exclusive.
Effectivity
- The Act takes effect 15 days after publication in the Official Gazette or a newspaper of general circulation.