Regulation of Operation and Frequency Use
- Facilities must be operated to minimize interference with the frequencies used by existing or lawfully established stations.
- The grantee’s right to use its selected frequencies and maintain transmission quality shall not be diminished.
Permits and Licensing Requirements
- The grantee must secure appropriate permits and licenses from the National Telecommunications Commission (NTC).
- No frequency shall be used without NTC authorization.
- The NTC shall not unreasonably withhold or delay permit or license approval.
Ethical and Public Responsibility
- The grantee must adhere to honest business practices.
- Stations shall not be used for obscene or indecent transmissions, deliberate falsehoods, misrepresentations, or activities supporting subversion or treason.
Rates and Charges
- Service charges and rates (excluding equipment sales/lease) offered to the public require NTC approval.
Government’s Rights in Emergencies
- The President may temporarily take over or suspend station operations in times of war, rebellion, emergency, or disaster.
- Use by government agencies during such periods shall be compensated.
Franchise Term and Revocation
- The franchise term is 25 years from enactment unless revoked or cancelled sooner.
- Failure to continuously operate for two years results in automatic revocation.
Tax Obligations
- The grantee shall pay taxes on real and personal property like any other entity.
- A franchise tax equal to 3% of gross receipts from business operations under the franchise is required.
- Income tax obligations remain under current laws.
- Tax returns are filed with and audited by the Bureau of Internal Revenue.
Restrictions on Transfer and Assignment
- The franchise or rights cannot be sold, leased, transferred, assigned, or merged without prior congressional approval.
- Transfer of controlling interest requires congressional approval.
- Successors or assignees are bound by the Act’s provisions.
Indemnity to Government
- The grantee indemnifies the national, provincial, and municipal governments against claims arising from accidents or injuries related to station operations or construction.
Legal Provisions
- Separability Clause ensures remaining provisions stay valid if any part is invalidated.
- The franchise is subject to amendment or repeal by Congress in the public interest.
- The franchise is nonexclusive.
Reporting Requirement
- An annual compliance and operational report must be submitted by the grantee to Congress within 60 days after each year’s end.
Effectivity
- The Act takes effect 15 days after publication in two newspapers of general circulation.