Operation Requirements and Interference Limitations
- Operation must minimize interference with existing or future lawful broadcast stations on assigned frequencies.
Regulatory Approvals
- Mandatory securing of permits and licenses from the National Telecommunications Commission (NTC).
- No use of frequency without NTC authorization.
- NTC must not unreasonably withhold or delay approvals.
Public Service Obligations
- Provide reasonable public service airtime for government communication on important issues.
- Maintain sound and balanced programming.
- Promote public participation and community programming.
- Support public information and education functions.
- Comply with ethical standards and refrain from broadcasting obscene, indecent, false, or subversive content.
Government's Temporary Rights
- The President may temporarily take over, suspend, or authorize use of stations during rebellion, emergency, calamity, or disturbance.
- Compensation to the grantee for such use is required.
Franchise Term and Continuity
- Franchise valid for 25 years from effectivity.
- Automatically revoked if operations cease for 2 continuous years.
Acceptance and Construction Deadline
- Written acceptance within 60 days after Act approval.
- Construction and operation of station must be completed within 4 years of acceptance.
- Failure to accept or comply renders franchise void.
Tax Exemptions
- Exempt from prepayment of taxes, customs duties, and similar charges for equipment importation for broadcasting.
- NTC certification required for exemption.
- Violations result in double the assessed taxes and duties.
Self-Regulation and Censorship
- No prior censorship of broadcasts required.
- Grantee not liable for broadcasts violating law or private rights.
- Grantee must cut off broadcasts inciting treason, rebellion, sedition, or containing indecent or immoral content.
- Failure to act may lead to franchise cancellation.
Indemnification Clause
- Grantee indemnifies national, provincial, and municipal governments against claims from accidents or injuries related to station construction or operation.
Restrictions on Transfer and Ownership
- No lease, sale, transfer, usufruct grant, or merger of franchise or company without congressional approval.
- Transfer of controlling interest subject to the same restriction.
- New owners subject to all franchise conditions.
Separability Clause
- Invalidity of any Act provision does not affect the validity of remaining provisions.
Amendments and Non-exclusivity
- Franchise subject to amendment or repeal by Congress for public interest.
- Not an exclusive grant.
Compliance with Future Broadcast Policy
- Obliged to comply with any general broadcast policy laws enacted in the future.
Reporting Obligations
- Annual report to Congress on franchise compliance and operations within 60 days after year-end.
Effectivity
- Takes effect 15 days after publication in two newspapers of general circulation in the Philippines.