Manner of Operation of Stations or Facilities
- Operations must minimize interference with wavelengths or frequencies of existing or legally established stations.
- Must maintain the right to use selected wavelengths or frequencies without diminishing transmission or reception quality.
Prior Approval of the National Telecommunications Commission (NTC)
- Required to secure appropriate permits and licenses from the NTC.
- Prohibition on using any radio or television frequency without NTC authorization.
- NTC must not unreasonably delay or withhold approvals.
Responsibility to the Public
- Provide adequate public service time for government information dissemination.
- Maintain sound, balanced programming promoting public participation.
- Assist in public information and education functions.
- Adhere to ethics of honest enterprise.
- Prohibit transmission of obscene, indecent, false, or misleading content detrimental to the public interest.
- Prevent content inciting subversive or treasonable acts.
Right of Government During Emergencies
- The President may temporarily take over or suspend operations during war, rebellion, emergencies, calamities, or disturbances.
- Government authorized to operate or use facilities with due compensation to the grantee.
Term of Franchise
- Valid for twenty-five (25) years from the Act's effectivity.
- Franchise automatically revoked if operations cease continuously for two (2) years.
Acceptance and Compliance
- Franchise acceptance must be in writing within 60 days of effectivity.
- Failure to accept renders the franchise void.
- Upon acceptance, the grantee must exercise franchise privileges.
Tax Provisions
- Grantee liable for taxes on real estate, buildings, and personal property, excluding the franchise.
- Franchise tax of three percent (3%) on gross receipts from business under the franchise.
- Franchise tax is in lieu of all other taxes on the franchise or its earnings, except income taxes.
- Mandatory filing of tax returns and subject to audit by the Bureau of Internal Revenue.
Self-Regulation and Undertaking
- No prior censorship required except grantee must cut off broadcasts inciting treason, rebellion, sedition, or displaying indecent/immoral content.
- Failure to cut off such content is valid cause for franchise cancellation.
Sale, Lease, Transfer, Usufruct, or Assignment
- No leasing, transferring, selling, assigning, or merging of the franchise or controlling interest without Congressional approval.
- Any entity acquiring the franchise is subject to the same conditions and restrictions.
Warranty in Favor of Governments
- Grantee holds national, provincial, and municipal governments harmless from claims or damages related to construction or operation of stations and equipment.
Separability Clause
- Invalidity of any provision does not affect the validity of other provisions.
Repealability and Nonexclusivity
- Franchise subject to amendment, alteration, or repeal by Congress as public interest requires.
- Franchise is not an exclusive privilege.
Reportorial Requirement
- Annual report submission to Congress within 60 days after each year’s end detailing compliance and operations.
Effectivity Clause
- Act takes effect fifteen (15) days after publication in two newspapers of general circulation.