Operation Standards of Broadcasting Stations
- Stations must be constructed and operated to minimize interference with existing or authorized stations.
- Interference must be kept to a minimum without diminishing the grantee’s right to use its frequencies or affect transmission quality.
Requirement for NTC Approval
- The grantee must secure permits and licenses from the National Telecommunications Commission (NTC) before constructing or operating stations.
- Use of frequencies without NTC authorization is prohibited.
- NTC must not unreasonably withhold or delay approval.
Public Service Obligations and Programming Ethics
- Stations must allocate adequate public service airtime for government dissemination on important issues.
- Programming must be sound, balanced, honest, and assist public information and education.
- Obscene, indecent content and dissemination of false or misleading information that harms public interest or incites subversive acts are prohibited.
Government’s Reserved Rights
- The President may, during war, rebellion, emergencies, or public safety concerns, temporarily take over, suspend, or authorize government use of the stations.
- Due compensation to the grantee is mandated when government exercises such rights.
- The radio spectrum is public patrimony; franchise use is a privilege subject to withdrawal after due process.
Franchise Term and Conditions for Revocation
- The franchise term is 25 years unless revoked or cancelled sooner.
- Automatic revocation if the grantee:
- Does not start operations within one year from NTC permit approval.
- Does not operate continuously for two years.
- Does not commence operations within three years from the law’s effectivity.
Acceptance of Franchise
- The grantee must accept the franchise in writing within 60 days of the law’s effectivity.
- Failure to accept voids the franchise.
Bond Requirement
- Grantee must file a compliance bond with NTC, amount set by the commission.
- Bond is canceled after three years if conditions are met; otherwise, forfeited and franchise revoked.
Broadcasting Content Self-Regulation
- No prior censorship required.
- Grantee must cut off broadcasts that incite treason, rebellion, or contain indecent/immoral language or themes.
- Failure to cut off such content constitutes cause for franchise cancellation.
Indemnification of Government
- Grantee holds national and local governments harmless from claims related to accidents or injuries caused by station operations.
Nontransferability and Ownership Restrictions
- Franchise and rights cannot be leased, transferred, sold, assigned, or merged without Congress approval.
- Conditions of the Act bind any successor or assignee.
Ownership Dispersal Requirement
- At least 30% of outstanding capital stock must be offered in the Philippine securities exchange within five years of becoming a national broadcasting network.
- A national broadcasting network operates three or more radio and/or television stations.
- Noncompliance results in automatic franchise revocation.
Equality Clause
- Any benefits or exemptions granted to other broadcasting franchises apply immediately and unconditionally to this franchise.
- Territory, franchise life, or type of service provisions are exempt from this clause.
Compliance With Future Broadcast Policies
- The grantee must comply with any general broadcast policy law enacted by Congress.
Reportorial Obligations
- Annual report on franchise compliance and operations must be submitted to Congress within 60 days after each calendar year.
Separability Clause
- If any provision is declared invalid, other valid parts remain effective.
Amendability and Nonexclusivity
- Congress may amend, alter, or repeal the franchise when public interest requires.
- The franchise is nonexclusive.
Effectivity
- The Act takes effect 15 days after publication in two newspapers of general circulation upon the grantee’s initiative.