Operation and Interference Minimization
- The grantee's stations must operate to minimize interference with other existing or future stations.
- The grantee maintains the right to use its chosen frequencies without compromising transmission quality or service availability.
Regulatory Approvals
- The grantee is required to secure necessary permits and licenses from the National Telecommunications Commission (NTC).
- No use of radio/television frequencies is allowed without NTC authorization.
- The NTC must not unreasonably withhold or delay granting permits.
Public Service Responsibilities
- The grantee must allocate reasonable airtime for government communication on important public issues.
- Programming must be sound, balanced, and promote community participation.
- The grantee shall assist in public information and education functions.
- Stations must adhere to ethical standards: no broadcasting of obscene or indecent content, false information, or content inciting subversion or treason.
Government's Emergency Rights
- The President may temporarily take over or suspend operations of the stations during rebellion, public peril, calamity, emergency, disaster, or peace disturbances.
- Temporary use can be granted to government agencies with due compensation to the grantee.
Franchise Term and Revocation
- The franchise term is twenty-five (25) years from effectivity unless revoked or canceled earlier.
- Continuous non-operation of the franchise for two (2) years shall result in automatic revocation.
Acceptance and Exercise of Franchise
- The grantee must accept the franchise in writing within sixty (60) days after the Act's approval.
- Failure to accept renders the franchise void.
Taxation Obligations
- The grantee and successors pay regular taxes on property, buildings, and personal property as applicable.
- A franchise tax of three percent (3%) on gross receipts from radio/television operations is required, in lieu of other taxes on the franchise or its earnings.
- Income tax liabilities under the National Internal Revenue Code remain applicable.
- Tax returns and payments are made to the Commissioner of Internal Revenue and subject to audit.
Self-Regulation and Censorship
- No prior censorship on broadcasts, though the grantee must cut off any content inciting treason, rebellion, sedition, or containing indecent or immoral language.
- Failure to enforce this may result in franchise cancellation.
Indemnification of Government
- The grantee shall hold the national, provincial, and municipal governments harmless from claims arising from accidents or injuries related to construction or operation of stations.
Restrictions on Transfer and Assignment
- The franchise and rights may not be leased, sold, transferred, or assigned without Congressional approval.
- Any controlling interest transfer also requires prior Congressional approval.
- Any transferee assumes all conditions and limitations of the original franchise.
Separability Clause
- If any provision is declared invalid, the rest of the Act remains effective.
Amendment and Non-Exclusivity
- Congress may amend, alter, or repeal the franchise when public interest demands.
- The franchise is not exclusive.
Reporting Requirements
- The grantee must submit an annual compliance and operations report to Congress within sixty (60) days after each calendar year ends.
Effectivity of the Act
- The Act becomes effective fifteen (15) days after publication in two (2) newspapers of general circulation.
- It lapsed into law without the President's signature on July 16, 1995.