Operational Standards and Frequency Use
- Stations must be constructed and operated to minimize interference with existing and future stations.
- Grantee retains rights to its selected frequencies and to maintain transmission quality.
Regulatory Compliance with NTC
- Grantee must obtain permits and licenses from the National Telecommunications Commission (NTC).
- Use of any frequency without NTC authorization is prohibited.
- NTC must not unreasonably withhold or delay approvals.
Public Service Responsibilities
- Grantee must allocate adequate airtime for government announcements on important public issues.
- Must provide sound, balanced programming and assist public information and education.
- Ethical standards include prohibition of broadcasting obscene content or false information detrimental to public interest.
- Must not incite or encourage subversive or treasonable acts.
Government’s Special Rights
- President of the Philippines may take over, suspend operation, or authorize government use of the stations during rebellion, emergency, or calamities.
- Such temporary use warrants due compensation to the grantee.
Franchise Term and Continuity
- Term is 25 years from approval date, renewable unless revoked.
- Non-operation of the stations for two consecutive years results in automatic revocation.
Acceptance Conditions
- Written acceptance of the franchise must be given within 60 days after approval.
- Nonacceptance voids the franchise.
Taxation Obligations
- Grantee pays standard taxes on property and franchise tax equal to 3% of gross receipts from broadcasting business.
- Subject to income tax under existing laws and filing requirements with the Bureau of Internal Revenue.
Content Self-Regulation
- No prior censorship required before broadcast.
- Mandatory broadcast cut-off for content inciting treason, rebellion, indecency, or immorality.
- Failure to comply can lead to franchise cancellation.
Liability and Indemnification
- Grantee holds national and local governments harmless against claims from accidents or injuries related to station operations.
Restrictions on Transfer and Ownership
- Prohibits leasing, transfer, sale, or assignment of the franchise or controlling interest without Congress approval.
- Any transferee is bound by the same franchise conditions.
Compliance with Future Broadcast Laws
- Grantee must comply with any general broadcast policy law enacted by Congress subsequently.
Separability Clause
- Invalidity of any part of the Act does not affect the validity of remaining provisions.
Amendability and Nonexclusivity
- Congress may amend, alter, or repeal the franchise when public interest requires.
- The franchise is nonexclusive, allowing other broadcast operators.
Effectivity
- The Act becomes effective upon approval.
- The franchise lapsed into law without the President's signature, as provided under the Constitution.