Operational Restrictions and Interference
- Stations must operate to minimize interference with other existing or lawful stations.
- The grantee maintains the right to use its selected wavelengths or frequencies fully without diminished transmission or reception quality.
Regulation by National Telecommunications Commission (NTC)
- Grantee must secure appropriate permits and licenses from the NTC before construction and operation.
- Use of frequencies without NTC authorization is prohibited.
- NTC must not unreasonably delay or withhold permits or licenses.
Public Service Obligations and Programming Standards
- Grantee must allocate adequate public service time for government information dissemination.
- Programming must be sound, balanced, and support public information and education.
- Must adhere to ethics of honest enterprise.
- Broadcasts must not contain obscene or indecent content or deliberately false or misleading information.
- Prohibition against inciting or assisting subversive or treasonable acts.
Government Rights during Emergencies
- The President may temporarily take over, operate, or suspend stations during war, rebellion, public peril, calamity, emergency, disaster, or peace disturbances.
- Temporary use by government agencies allowed with due compensation.
- Spectrum is a finite national patrimony; granted franchise is a state privilege revocable after due process.
Franchise Term and Conditions for Revocation
- Franchise valid for 25 years unless revoked or cancelled earlier.
- Ipso facto revocation occurs if grantee fails to:
- Commence operations within 1 year after NTC permit approval.
- Operate continuously for 2 years.
- Commence operations within 3 years of Act's effectivity.
Acceptance and Compliance
- Grantee must accept the franchise in writing within 60 days of the Act's effectivity.
- Failure to accept renders the franchise void.
Bond Requirement
- Grantee must file a bond with NTC guaranteeing compliance with franchise conditions; amount determined by NTC.
- Bond cancellable after 3 years if conditions fulfilled.
- Bond forfeiture results in franchise revocation.
Tax Obligations
- Grantee liable for taxes on real estate, buildings, and personal property as applicable.
- Must pay value-added tax (VAT) on gross receipts under RA 7716.
- Income tax liability remains under the National Internal Revenue Code.
- Tax returns subject to Bureau of Internal Revenue audit.
Self-Regulation and Content Control
- No prior censorship required on broadcasts.
- Grantee must immediately cut off broadcasts inciting treason, rebellion, sedition, or containing indecent/immoral content.
- Failure to comply can lead to franchise cancellation.
Hold Harmless Provision
- Grantee shall hold government entities harmless from claims arising from accidents or injuries related to station construction or operation.
Restrictions on Transfer and Ownership Changes
- Franchise or rights cannot be leased, transferred, sold, assigned, or have usufruct granted without congressional approval.
- No merger or transfer of controlling interest without Congress consent.
- Successors subject to same terms and conditions.
Ownership Dispersal Requirement
- At least 30% of outstanding capital stock must be offered in any Philippine securities exchange within 5 years after achieving national broadcasting network status.
- "National broadcasting network" defined as operating 3 or more stations.
- Noncompliance results in ipso facto revocation.
Compliance with Future Broadcast Policy
- Grantee will comply with future general broadcast policy laws enacted by Congress.
Separability Clause
- Invalidity of any provision does not affect the validity of the remaining provisions.
Amendability and Non-Exclusivity
- Franchise subject to amendment, alteration, or repeal by Congress for public interest.
- Not an exclusive grant of privileges.
Annual Reporting Requirement
- Grantee must submit an annual report to Congress within 60 days after year-end on franchise compliance and operations.
Effectivity
- Act takes effect 15 days after publication in two newspapers of general circulation.