Operational Guidelines and Interference Minimization
- Stations/facilities must minimize interference with existing or legally established stations.
- The grantee must not diminish its own quality or transmission rights to reduce interference.
- Radiated power should only cover the authorized operational area.
Permits and Licenses from NTC
- The grantee must secure all required permits and licenses from the National Telecommunications Commission (NTC).
- No frequency use is allowed without NTC authorization.
- The NTC should not unreasonably withhold or delay granting permits.
Public Service Responsibilities
- The grantee shall provide time for government communication on public issues.
- Programming must be sound and balanced at all times.
- The grantee must assist in public information, education, and uphold honest enterprise ethics.
- Prohibited from broadcasting obscene, indecent content, false information, or content inciting subversion or treason.
Government's Special Rights
- The President may temporarily take over or suspend operations during war, rebellion, public peril, calamity, emergency, disaster, or peace disturbances.
- Temporary use by the government must come with due compensation.
- The radio spectrum is a state-owned limited resource and may be withdrawn with due process.
Franchise Term and Conditions for Revocation
- The franchise lasts 25 years unless revoked or canceled.
- It is automatically revoked if the grantee fails to commence operations within 1 year of NTC permit approval, operate continuously for 2 years, or commence within 3 years after the Act's effectivity.
Acceptance of Franchise
- Grantee must accept the franchise in writing within 60 days of the Act's effectivity.
- Nonacceptance voids the franchise.
Bond Requirement
- The grantee must post a bond to guarantee compliance with franchise conditions.
- If conditions are met within 3 years of NTC permit approval, bond is cancelled; otherwise, forfeited and franchise revoked.
Tax Obligations
- The grantee and successors are subject to all applicable taxes under the National Internal Revenue Code.
- Existing tax exemptions or privileges are not repealed.
- Benefits accorded to other broadcasting franchises similarly apply.
- Tax returns filed locally and subject to Bureau of Internal Revenue audit.
Content Regulation and Self-Censorship
- No prior censorship of speech or content before broadcast, except the grantee must cut off broadcast if content incites treason, rebellion, sedition, or is indecent/immoral.
- Failure to cut off such content can lead to franchise cancellation.
Right of Reply
- Aggrieved persons have the right to reply in the same or other program using the grantee’s facilities.
Indemnity to Government
- The grantee must hold the national and local governments harmless from claims arising from accidents or injuries caused by stations’ construction or operation.
Nontransferability of Franchise
- The franchise and rights cannot be leased, transferred, sold, assigned, merged, or have controlling interest transferred without prior Congressional approval.
- Violations automatically revoke the franchise.
Equality Clause
- The grantee is entitled to the same advantages, privileges, exemptions, and immunities granted to existing and future franchises, except for territorial scope, franchise duration, or authorized services.
Compliance with Future Broadcast Policies
- The grantee must comply with a general broadcast policy law that Congress may enact in the future.
Annual Reporting to Congress
- The grantee must submit an annual report on franchise compliance and operational status within 60 days after each calendar year ends.
Separability Clause
- If any provision is declared invalid, other unaffected provisions remain valid.
Amendment, Nonexclusivity and Public Interest
- Congress may amend, alter, or repeal the franchise when public interest requires.
- The franchise is nonexclusive and does not grant exclusive privileges.
Effectivity
- The Act takes effect 15 days after publication in two newspapers of general circulation initiated by the grantee.