Operation of Stations
- Stations must be operated to cause minimum interference with other stations' frequencies.
- Grantee retains full right to use its selected frequencies and ensure quality transmissions.
National Telecommunications Commission (NTC) Approval
- Grantee must secure all necessary NTC permits and licenses before operating.
- Use of frequencies without NTC authorization is prohibited.
- NTC cannot unreasonably delay or withhold permits.
Public Service and Content Responsibility
- Grantee must allocate adequate airtime for government public information.
- Programming must be sound, balanced, honest, and educational.
- Stations prohibited from broadcasting obscene, indecent, false, or misleading content that harms public interest or incites subversive acts.
Government's Special Rights
- President may temporarily take over or suspend operation of stations during rebellion, emergencies, or public peril.
- Temporary use of stations by the government requires due compensation to the grantee.
Franchise Term
- Franchise valid for 25 years from approval date.
- Franchise considered revoked if station operation ceases for two consecutive years.
Acceptance of Franchise
- Franchise becomes effective only upon written acceptance by the grantee.
- Failure to accept means franchise void.
Tax Obligations
- Grantee liable for taxes on properties like other taxpayers.
- Must pay 3% franchise tax on gross receipts from broadcasting operations.
- Income taxes also applicable per existing laws.
- Returns filed and paid to Commissioner of Internal Revenue; subject to audit.
Self-Regulation and Censorship
- No prior censorship required for broadcast material.
- Grantee must cut off broadcasts that incite treason, sedition, or contain indecent content.
- Failure to enforce this is valid ground for franchise cancellation.
Indemnity to Government
- Grantee must hold national and local governments harmless from claims arising from station operations including accidents or injuries.
Restrictions on Transfer of Franchise
- Franchise and associated rights cannot be sold, leased, assigned, or transferred without Congressional approval.
- Transferees subject to same law conditions.
Compliance with Future Laws
- Grantee required to follow any general broadcast policy laws enacted by Congress.
Separability Clause
- Invalidity of any provision does not affect other valid provisions of the law.
Amendability and Nonexclusivity
- Congress may amend, repeal, or alter franchise as public interest requires.
- Franchise is not exclusive.
Effectivity
- Law takes effect 15 days after publication in two newspapers of general circulation.