Duration and Conditions of Franchise
- The franchise is valid for twenty-five years from the date the station begins operations.
- Construction of at least one radio or television station must begin within one year of approval of the Act and be completed within two years.
- Failure to meet these timelines will render the franchise void.
Public Service Obligations and Ethical Standards
- The grantee must allocate adequate public service time for government communication on important issues.
- The stations must assist in public information and education.
- Operations must conform to ethical standards, avoiding dissemination of false information or content harmful to public health, morals, or promoting subversive activities.
Licensing and Frequency Allocation
- Operations cannot commence until the Secretary of Public Works and Communications has assigned specific frequencies and wavelengths.
- A license for the use of these frequencies must be issued before operation.
Technical Requirements and Interference Avoidance
- Station construction and operations must be designed to prevent interference with existing stations.
- Frequency selection must allow for future service expansion.
Special Rights of the President
- In times of war, rebellion, public danger, calamity, disaster, or disturbance of peace, the President may order the closure of stations or authorize government use without compensation during such periods.
Taxation
- The grantee is liable for all taxes on real estate, buildings, and personal property, excluding the franchise, as prescribed by law.
- The grantee must also pay other taxes applicable under the National Internal Revenue Code.
Acceptance of Franchise
- The franchise must be accepted in writing within six months after approval.
- Acceptance empowers the grantee to exercise the franchise rights.
Bond Requirement
- A bond of ten thousand pesos must be filed to guarantee compliance with franchise conditions.
- The bond may be cancelled by the Secretary of Public Works and Communications after two years or upon fulfillment of all conditions.
Censorship and Liability
- No prior censorship of broadcast or telecast content is required.
- The grantee is not liable for unlawful or infringing content unless it elects to cut off broadcasts that incite treason, rebellion, sedition, or contain indecent or immoral material.
Restrictions on Transfer and Assignment
- The franchise cannot be leased, transferred, sold, or assigned without prior Congressional approval.
- Any assignee or transferee is subject to existing franchise terms and Philippine corporate laws.
Congressional Authority to Amend or Repeal
- Congress reserves the right to amend, alter, or repeal the franchise when public interest requires.
- The grant is not exclusive of similar privileges to other entities.
Effectivity
- The Act takes effect immediately upon approval.