Operational Standards for Stations and Facilities
- Operations must minimize interference with existing or future wavelength/frequency users.
- The grantee retains the right to use selected frequencies while maximizing service quality and availability.
Regulatory Approvals and Permits
- The grantee must obtain necessary permits and licenses from the National Telecommunications Commission (NTC) before constructing or operating any facility.
- Frequencies cannot be used without NTC authorization.
- The NTC is expected not to unreasonably withhold or delay approvals.
Right of Ingress and Egress for Infrastructure
- The grantee can install poles, supports, and lay underground cables with prior DPWH approval, including excavations in public areas.
- Disturbed public property must be restored to standards set by the DPWH.
- Failure to repair within 10 days after notice gives the DPWH the right to perform repairs and charge the grantee double.
Public Service Obligations
- The grantee must provide airtime for governmental informational and educational content.
- Programming must be sound, balanced, promote public participation, and adhere to ethical standards.
- Transmission of obscene, indecent, false, or subversive content is prohibited.
Government's Special Rights During Emergencies
- The President may temporarily take over, suspend, or authorize government operation of the grantee’s facilities during war, rebellion, calamity, emergency, or peace disturbances, with due compensation.
- Use of frequencies is a state-granted privilege and may be withdrawn following due process.
Term and Conditions of Franchise
- The franchise lasts 25 years from effectivity unless revoked or cancelled earlier.
- Automatic revocation occurs if the grantee fails to commence operations within one year of NTC approval, fails to operate continuously for two years, or does not commence operations within three years of the Act’s effectivity.
Acceptance and Exercise of Franchise
- Written acceptance must be given within 60 days of effectivity; failure voids the franchise.
- Exercise of franchise privileges follows acceptance.
Bond Requirement
- The grantee must post a bond, as determined by the NTC, guaranteeing compliance with franchise terms.
- Bond cancels after three years upon fulfillment; otherwise, forfeiture leads to franchise revocation.
Taxation and Fiscal Obligations
- The grantee is subject to all relevant taxes, duties, fees under the National Internal Revenue Code and other laws.
- Existing tax exemptions or incentives remain unaffected.
- Tax returns are filed where the principal business is located and are subject to Bureau of Internal Revenue audit.
Content Regulation and Censorship Responsibilities
- No pre-broadcast censorship is required.
- The grantee must cut off broadcasts inciting treason, rebellion, sedition, or containing indecent or immoral content.
- Failure to do so can result in franchise cancellation.
Indemnification of Government Entities
- The grantee holds the national and local governments harmless against claims arising from accidents or injuries linked to their facilities.
Restrictions on Transfer and Assignment
- The franchise and related rights cannot be leased, assigned, sold, or merged without Congressional approval.
- Any unauthorized transfer leads to automatic revocation.
Compliance with Future Cable Television Policies
- The grantee is subject to all future general cable television laws enacted by Congress.
Reportorial Requirements
- An annual report on franchise compliance and operations must be submitted to Congress within 60 days after each calendar year.
Separability Clause
- Invalidity of any provision does not affect the remaining provisions.
Amendments and Non-Exclusive Rights
- Congress may amend or repeal the franchise as public interest requires.
- This franchise is non-exclusive.
Effectivity
- The Act takes effect 15 days after publication in two newspapers of general circulation, initiated by the grantee.