Operation and Interference
- Broadcasting facilities must be constructed and operated with minimum interference to other stations.
- NBC retains the right to use allocated frequencies without reduction in transmission quality.
Regulatory Approval by NTC
- NBC must secure permits and licenses from the National Telecommunications Commission (NTC) for construction and operation.
- Use of radio/television frequencies requires prior authorization from NTC.
- NTC must not unreasonably withhold or delay granting permits.
Public Service Responsibility
- NBC must allocate sufficient airtime for government to reach the public on important issues.
- Obliged to provide sound, balanced programming and support public information and education.
- Must adhere to ethical broadcasting standards.
- Prohibited from airing obscene or indecent language, false information, or material inciting subversive acts.
Government’s Special Rights
- President may take over, suspend, or authorize government use of NBC’s stations during war, emergency, calamity, or public danger.
- Compensation required for temporary government operation.
- Radio spectrum considered national patrimony; franchise and usage privileges subject to withdrawal after due process.
Franchise Term and Conditions
- Franchise valid for 25 years from enactment unless revoked or canceled earlier.
- Automatic revocation if NBC (a) does not commence operations within one year of NTC permit approval, (b) fails to operate continuously for two years, or (c) does not begin operations within three years from effectivity.
Acceptance of Franchise
- NBC must formally accept the franchise in writing within 60 days of the law’s effectivity.
- Failure to accept voids the franchise.
Bond Requirement
- NBC required to post a bond in favor of NTC as compliance guarantee.
- Bond amount is determined by NTC.
- Bond cancelled if NBC complies with franchise conditions after 3 years; otherwise, forfeited and franchise revoked.
Tax Obligations
- NBC liable for regular taxes on real estate, buildings, personal property.
- Must pay value-added tax on gross receipts under Republic Act No. 7716.
- Income taxes remain applicable under existing law.
- Tax payments and returns are subject to Bureau of Internal Revenue audits.
Self-Regulation and Content Control
- NBC not required to exercise prior censorship on broadcasts.
- Must cut off broadcasts that incite treason, rebellion, or contain indecent or immoral content.
- Failure to comply may result in franchise cancellation.
Government Hold Harmless Warranty
- NBC assumes liability for all claims arising from accidents or injuries related to station construction or operation.
- Holds national and local governments harmless from such claims.
Restrictions on Transfer and Ownership
- Franchise and rights cannot be leased, transferred, sold, assigned, or merged without Congress approval.
- Exceptions include stock transfers/sales for ownership dispersal or capital raising consistent with constitutional limits.
- Transferees subject to same franchise terms.
Ownership Dispersal Requirement
- NBC must offer at least 30% of outstanding capital stock on Philippine securities exchange within 5 years after becoming a national broadcasting network (operating 3 or more stations).
- Noncompliance leads to automatic franchise revocation.
Compliance with Future Broadcast Policy
- NBC must adhere to any general broadcast policy laws enacted later by Congress.
Separability Clause
- Invalidity of any provision does not affect the validity of other provisions in the Act.
Amendability and Non-Exclusivity
- Congress may amend, alter, or repeal franchise for public interest.
- Franchise grant is non-exclusive.
Reportorial Requirements
- NBC must submit annual reports to Congress within 60 days after each calendar year’s end detailing franchise compliance and operations.
Effectivity
- The Act takes effect 15 days after publication in two newspapers of general circulation in the Philippines.