Operation of Stations and Minimizing Interference
- Stations must be constructed and operated to minimize interference with existing or legally established stations.
- The grantee retains the right to use its selected frequencies without quality compromise.
Regulatory Approvals
- The grantee must secure permits and licenses from the National Telecommunications Commission (NTC) for construction and operation.
- Use of frequencies without NTC authorization is prohibited.
- The NTC must not unreasonably delay or withhold approval.
Public Service Obligations and Ethical Standards
- The grantee must provide adequate airtime for government use on public issues.
- Programming must be sound, balanced, informative, and educational.
- All broadcasts must conform to ethical standards and avoid obscene, indecent, false, or subversive content.
Government's Special Rights in Emergencies
- The President may temporarily take over, suspend, or authorize use of the stations during war, rebellion, public peril, calamity, or emergency.
- Compensation must be paid for government use.
- The radio spectrum is a national patrimony and the franchise is a State-granted privilege subject to withdrawal after due process.
Franchise Term and Conditions for Revocation
- The franchise term is 25 years from effectivity, unless revoked or cancelled earlier.
- Ipso facto revocation occurs if the grantee:
- Fails to commence operations within 1 year after NTC permit approval;
- Does not operate continuously for 2 years;
- Fails to commence operations within 3 years from the franchise effectivity.
Acceptance of Franchise
- Written acceptance required within 60 days from effectivity.
- Non-acceptance renders the franchise void.
Bond Requirement
- The grantee must file a bond with the NTC to guarantee compliance.
- The bond amount is determined by the NTC.
- Bond is cancelled if conditions are fulfilled within 3 years after permit approval.
- Failure to comply results in forfeiture of bond and revocation of franchise.
Tax Obligations
- The grantee is liable for taxes on real estate, buildings, and personal property like other taxpayers.
- Must pay value-added tax on gross receipts under Republic Act No. 7716.
- Income taxes payable under the National Internal Revenue Code remain applicable.
- Tax returns and payments must be filed with and made to the Bureau of Internal Revenue (BIR).
Self-Regulation and Broadcast Conduct
- No prior censorship required for broadcasts.
- Grantee must cut off content inciting treason, rebellion, sedition, or that is indecent or immoral.
- Failure to comply is grounds for franchise cancellation.
Hold Harmless Provision
- The grantee must indemnify the national and local governments from claims related to accidents or injuries caused by station construction or operation.
Restrictions on Transfer and Assignment
- Franchise or controlling interest cannot be leased, transferred, sold, assigned, or merged without Congressional approval.
- Transferees are bound by the same franchise conditions.
Ownership Dispersal Requirement
- At least 30% of outstanding capital stock must be offered in a Philippine securities exchange within 5 years of becoming a national broadcasting network.
- A national broadcasting network operates three or more radio and/or television stations.
- Non-compliance causes automatic revocation.
Compliance with Future Broadcast Policy
- The grantee must comply with any general broadcast policy law enacted by Congress.
Separability Clause
- Invalidity of any provision does not affect the validity of remaining provisions.
Amendability and Non-Exclusivity
- Congress may amend, alter, or repeal the franchise as public interest requires.
- Franchise is non-exclusive.
Annual Reporting
- The grantee must submit an annual compliance and operations report to Congress within 60 days after each calendar year.
Effectivity
- The Act takes effect 15 days after publication in two newspapers of general circulation in the Philippines.