Law Summary
Operational Manner of Broadcasting Stations
- Stations must be constructed and operated to minimize interference with other stations
- Right to use selected wavelengths or frequencies preserved
- Quality of transmission or reception must be maximized to ensure service availability
Permits and Licenses from National Telecommunications Commission (NTC)
- Grantee must secure permits and licenses from the NTC before operating stations
- Use of any frequency without NTC authorization is prohibited
- NTC shall not unreasonably withhold or delay granting such licenses or permits
Public Service Obligations and Programming Standards
- Provide adequate public service time for government communication on important issues
- Maintain sound, balanced programming and promote community participation
- Assist public information and education functions
- Adhere to ethics of honest enterprise
- Prohibit broadcasting obscene or indecent content
- Ban dissemination of deliberately false information or willful misrepresentation detrimental to public interest
- Prevent any broadcast inciting or assisting in subversive or treasonable acts
Government's Special Rights Over Stations
- President may temporarily take over or suspend operation of stations during rebellion, public peril, calamity, emergency, disaster, or peace disturbance
- Temporary use or operation by government agencies allowed with due compensation to the grantee
Duration and Revocation of the Franchise
- Franchise valid for 25 years from approval date unless revoked or cancelled sooner
- Franchise automatically revoked if grantee fails to operate continuously for 2 years
Acceptance and Effectivity of Franchise
- Franchise effective only upon written acceptance by the grantee
- Non-acceptance renders the franchise void
Taxation Obligations
- Grantee liable to pay applicable taxes on real estate, buildings, and personal property
- Must pay a franchise tax of 3% on all gross receipts from the radio/television business under this franchise
- Continues to be liable for income taxes as prescribed by law
- Tax returns filed and payments made to the Commissioner of Internal Revenue
- Subject to Bureau of Internal Revenue audit
Self-Regulation and Content Control
- No prior censorship of speech, acts, or scenes to be broadcast
- Obligation to cut off broadcasts inciting treason, rebellion, sedition, or containing indecent or immoral content
- Failure to cut off such content is grounds for franchise cancellation
Indemnification of Government Entities
- Grantee holds national, provincial, and municipal governments harmless from claims arising from accidents or injuries related to station construction or operation
Restrictions on Transfer or Assignment
- Franchise or rights granted cannot be leased, transferred, sold, or assigned without prior Congressional approval
- Transferee subject to all franchise conditions, terms, and limitations
Compliance with Future Broadcast Policy Laws
- Grantee required to comply with any general broadcast policy law that Congress may enact thereafter
Separability Clause
- Invalidity of any provision does not affect the validity of the remaining provisions
Amendment and Non-Exclusivity of Franchise
- Congress may amend, alter, or repeal the franchise when public interest requires
- Franchise is nonexclusive, does not grant exclusive privileges
Effectivity and Publication
- Act takes effect 15 days after publication in two newspapers of general circulation
- Law lapsed into effect without presidential signature according to constitutional provision