Operation and Interference Guidelines
- Stations must operate to minimize interference with other existing or future stations.
- The grantee retains the right to use selected frequencies without diminishing transmission or reception quality.
National Telecommunications Commission (NTC) Regulation
- The grantee must secure appropriate permits and licenses from the NTC before operating any station or using frequencies.
- The NTC must not unreasonably withhold or delay granting authorizations.
Public Service and Programming Responsibilities
- Reasonable public service time must be allocated for government communication on important issues.
- Programming must be sound, balanced, promote public participation, and assist public information and education.
- The grantee must adhere to ethical standards, avoid broadcasting obscene or indecent content, and not disseminate false information or incitements against public interest.
Government’s Special Rights
- The President has the right to temporarily suspend station operations during rebellion, public peril, calamity, emergency, or disturbances.
- The government may take temporary control and operation of stations with due compensation to the grantee.
Franchise Term and Revocation
- The franchise term is 25 years from approval unless revoked or canceled earlier.
- Failure to operate continuously for two years results in automatic revocation.
Acceptance and Commencement of Privileges
- The grantee must accept the franchise in writing within 60 days of approval.
- Failure to accept renders the franchise void.
Taxation Obligations
- The grantee must pay taxes on property like other entities.
- A franchise tax of three percent (3%) on gross receipts from radio/TV business under the franchise is imposed.
- Franchise tax is in lieu of all taxes on the franchise or earnings, but income tax obligations continue.
- Tax returns must be filed and are subject to Bureau of Internal Revenue audit.
Public Ownership Requirements
- To democratize ownership, the grantee must offer at least thirty percent (30%) of its common stock to the public through stock exchanges within three years.
- No individual or entity may own more than five percent (5%) of these offerings.
Broadcast Content Self-Regulation
- No prior censorship of broadcasted material is required by the grantee.
- The grantee must cut off broadcasts inciting treason, rebellion, sedition, or those with indecent or immoral content.
- Failure to do so may result in franchise cancellation.
Liability and Hold Harmless Clause
- The grantee shall hold national and local governments harmless from all claims, damages, or injuries related to station construction or operation.
Restrictions on Transfer or Assignment
- The franchise cannot be leased, transferred, sold, or assigned without prior Congressional approval.
- Transferees are subject to all original franchise conditions and restrictions.
Separability Provision
- If any provision is invalidated, the remainder of the Act remains effective.
Compliance with Future Broadcast Policies
- The grantee must comply with any future general broadcast policy laws enacted by Congress.
Amendment and Non-Exclusivity
- The franchise is subject to amendment, alteration, or repeal by Congress when public interest requires.
- It does not grant exclusive privileges to the grantee.
Repeal and Effectivity
- Previous related laws (Republic Acts 4198 and 4545) are repealed or amended.
- The Act takes effect 15 days after publication in at least two newspapers.
- The law lapsed into effect without the President's signature, pursuant to constitutional provision.