Operation Standards and Interference
- Operations must minimize interference on wavelengths or frequencies of existing or lawful future stations.
- The grantee maintains rights to use selected frequencies without diminishing transmission or reception quality.
Regulatory Approvals and Permits
- The grantee must secure permits and licenses from the National Telecommunications Commission (NTC) before construction and operation.
- Use of any frequency without NTC authorization is prohibited.
- The NTC is tasked not to unreasonably withhold or delay approvals.
Public Service Obligations
- The grantee must provide adequate airtime for government communication on important public issues.
- Programming must be sound, balanced, and supportive of public information and education.
- Broadcasting of obscene language, false information, or material inciting treason or rebellion is prohibited.
Government's Special Rights
- The President may temporarily take over, suspend operation, or authorize government use of stations during emergencies such as war, rebellion, calamity, or public peril.
- Compensation to the grantee is required when stations are operated by the government temporarily.
- The franchise and use of radio spectrum are privileges that can be withdrawn after due process.
Franchise Term and Conditions for Revocation
- The franchise term is 25 years from the law's effectivity unless revoked earlier.
- Automatic revocation occurs if the grantee fails to:
- Commence operations within one year of NTC approval.
- Operate continuously for at least two years.
- Start operations within three years from the law’s effectivity.
Acceptance of Franchise
- The grantee must accept the franchise in writing within 60 days from law effectivity.
- Failure to accept renders the franchise void.
Bond Requirement
- The grantee must post a bond with the NTC to guarantee compliance with franchise conditions.
- The bond will be cancelled after three years if conditions are met, else forfeited and franchise revoked.
Tax Obligations
- The grantee is subject to all applicable taxes, duties, fees, and charges under the National Internal Revenue Code and other laws.
- Existing tax exemptions or incentives are not repealed.
- The grantee shall file tax returns at their principal place of business and is subject to Bureau of Internal Revenue audits.
Self-regulation and Censorship
- No prior censorship is required for broadcasts.
- The grantee must cut off any broadcast that incites treason, rebellion, or contains indecent/immoral content.
- Failure to do so may lead to franchise cancellation.
Right of Reply
- Individuals aggrieved by remarks or statements broadcasted via the grantee’s facilities are entitled to reply in the same or another program.
Hold Harmless Clause
- The grantee must indemnify government entities from claims arising from accidents or injuries related to the stations' construction or operation.
Nontransferability of Franchise
- The franchise cannot be leased, transferred, sold, assigned, or merged without prior Congressional approval.
- Violation results in automatic revocation.
- Any transferee is subject to the same terms and conditions.
Equality Clause
- The grantee is entitled to all advantages and benefits granted to existing or future franchises, excluding territory, term length, or service type differences.
Compliance with General Broadcast Law
- The grantee is subject to any future general broadcast policy law enacted by Congress.
Annual Reporting Requirement
- The grantee must submit an annual compliance and operational report to Congress within 60 days after each calendar year.
Separability
- Invalidation of any provision does not affect the validity of the remaining provisions.
Repealability and Nonexclusivity
- The franchise may be amended, altered, or repealed by Congress in the public interest.
- The franchise is not exclusive.
Effectivity
- The law takes effect 15 days after publication in two major newspapers, initiated by the grantee.