Law Summary
Manner of Operation of Stations
- Operations must minimize interference with wavelengths or frequencies of other existing or future stations.
- The grantee retains rights to use its selected frequencies without compromising transmission quality.
- Aim to maximize service rendition and availability.
Regulatory Approval and Permits
- Must obtain appropriate permits and licenses from the National Telecommunications Commission (NTC), especially for frequency assignments and technical operations.
- NTC must not unreasonably withhold or delay approvals or impose unnecessary requirements that impede timely service commencement.
Public Service Obligations
- Provide reasonable public service broadcast time for government to communicate important issues.
- Maintain sound, balanced programming promoting public participation and community programming.
- Assist in public information and education.
- Adhere to ethical standards, avoiding obscene or indecent content, false information, misrepresentation, and content detrimental to public interest or inciting subversive acts.
Government Rights in Emergencies
- The President may temporarily take over or suspend operations of stations during rebellion, public peril, calamity, emergency, disaster, or peace disturbances.
- Temporary use by government agencies allowed with compensation to the grantee.
Term of Franchise
- Valid for 25 years from effectivity date unless revoked or cancelled earlier.
- Franchise revoked if no operation within 2 years from effectivity or 1 year after NTC's certificate of public convenience (whichever is later).
- Suspension or failure to operate continuously for 2 years results in expiration, except validly excused by force majeure or government acts.
Acceptance and Compliance
- Grantee must accept the franchise in writing within 60 days from approval.
- Failure or refusal to accept or operate within prescribed time renders franchise void.
Tax Obligations
- Grantee liable for taxes on properties like other entities.
- Franchise tax of 3% of gross receipts from the radio/television business, in lieu of other franchise-related taxes.
- Income tax obligations continue unless amended or repealed by law.
Indemnification to Government
- Grantee holds national, provincial, and municipal governments harmless from claims arising from accidents or injuries due solely to grantee's acts or omissions in operations.
Restrictions on Transfer and Assignment
- Franchise or related rights cannot be leased, transferred, sold, or assigned without Congress approval.
- Controlling interest transfers also require Congressional approval.
- Transferees are subject to all existing terms and conditions of the franchise.
Compliance with Public Ownership Mandate
- Grantee shall comply with laws enforcing democratization of public interest ownership.
Separability Clause
- Invalidity of any provision does not affect other valid provisions.
Repealing Clause
- Congress may amend, alter, or repeal the franchise when public interest demands.
- The franchise is not an exclusive grant of privileges.
Effectivity Clause
- Law takes effect 15 days after publication in at least two newspapers of general circulation.