Operation of Broadcasting Facilities
- The grantee must operate stations to minimize interference with existing or future stations.
- The operation should not diminish the grantee's rights to use its selected wavelengths or frequencies.
- Quality of transmission and reception should be maintained.
- Services should be maximized for availability and rendition.
Permits and Authorization from National Telecommunications Commission (NTC)
- The grantee must secure necessary permits and licenses from the NTC before using any radio/television frequency.
- No frequency usage is allowed without NTC authorization.
- The NTC should not unreasonably delay or withhold permit grants.
Public Service Responsibilities
- Provide reasonable airtime for government to communicate important public issues.
- Ensure sound and balanced programming at all times.
- Promote public participation, including community programming.
- Assist in public information, education, and uphold ethical broadcasting standards.
- Avoid broadcasting obscene, indecent content or deliberately false or misleading information.
- Prohibit the dissemination of content that incites or assists in subversive or treasonable activities.
Government’s Special Rights
- The President may temporarily take over or suspend operation of stations during rebellion, public peril, calamity, emergency, disaster, or disturbances.
- Temporary use by government agencies is allowed with due compensation to the grantee.
Franchise Term
- The franchise is valid for 25 years from the law’s effectivity date.
- It may be revoked or cancelled earlier under certain conditions.
Acceptance and Operation Timelines
- The franchise must be accepted in writing within 60 days from the approval date.
- The grantee must complete construction and start operation of a station within 3 years after acceptance.
- Refusal or failure to accept or operate within the period voids the franchise.
Tax Obligations
- The grantee pays taxes on real estate, buildings, and personal property like other entities.
- Must pay a 10% value-added tax on all gross receipts from the broadcasting business, in lieu of all taxes on the franchise or earnings.
- Income taxes are still applicable under the National Internal Revenue Code.
- Tax returns and payments are filed with the Commissioner of Internal Revenue and subject to audit.
Self-Regulation and Censorship
- No prior censorship of content is required.
- The grantee must cut off broadcasts inciting treason, rebellion, sedition or containing indecent or immoral language.
- Failure to do so can lead to franchise cancellation.
Indemnity to Government
- The grantee holds the national and local governments harmless from claims or damages due to accidents or injuries caused by station construction or operation.
Restrictions on Franchise Transfer
- The grantee cannot lease, sell, assign, or grant usufruct of the franchise or rights without Congress's prior approval.
Separability Clause
- If any provision is declared invalid, the rest of the Act remains effective.
Non-Exclusivity and Amendments
- The franchise is subject to amendment, repeal, or alteration by Congress for public interest.
- It is not an exclusive grant of privileges.
Compliance with Future Broadcast Policies
- The grantee must comply with any general broadcast policy law that may be enacted in the future.
Annual Reporting
- The grantee is required to submit an annual report to Congress within 60 days after each calendar year’s end.
- The report covers compliance with franchise terms and operational status.
Effectivity
- The Act takes effect 15 days after publication in two newspapers of general circulation.
- It lapsed into law without the President's signature.