Law Summary
Manner of Operation of Stations or Facilities
- Must operate with minimum interference to existing or future stations.
- Right to use assigned frequencies or wavelengths without diminishing transmission quality.
- Service availability and quality should be maximized.
Prior Approval of the National Telecommunications Commission (NTC)
- Must obtain permits and licenses from NTC before construction and operation.
- Frequencies cannot be used without NTC authorization.
- NTC should not unreasonably withhold or delay permits.
- NTC can revoke or suspend permits after due process for violations.
- NTC may recommend franchise revocation to Congress upon violation.
Responsibility to the Public
- Provide free, adequate public service time for government announcements, emergencies, and calamities.
- Ensure sound, balanced programming and promote public participation.
- Assist in public information and education functions.
- Adhere to ethics of honest enterprise and promote audience empowerment.
- Prohibit broadcasting obscene/indecent language, false information, or content inciting subversion or treason.
- Public service time limited to 10% of paid commercials, allocable among government branches and recognized humanitarian organizations.
- NTC may increase public service time during emergencies.
Special Rights of the Government
- Radio spectrum is national patrimony; use is a state-granted privilege.
- President can temporarily take over or suspend operations in times of war, rebellion, public peril, or calamities.
- Government may use franchise facilities temporarily with due compensation.
Term of Franchise
- Effective for 25 years from enactment.
- Franchise can be revoked or cancelled earlier.
- Automatically revoked if Grantee fails to operate continuously for 2 years.
Self-Regulation by the Grantee
- No prior censorship required; Grantee not liable for violations unless failed to cut off unlawful content.
- Must cut off broadcasts inciting treason, rebellion, or containing indecent/immoral themes.
- Willful failure to regulate broadcasts is cause for franchise cancellation.
Warranty in Favor of Government
- Grantee holds national and local governments free from liability for accidents during station construction or operation.
Employment Commitments
- Must create employment opportunities and accept trainees.
- Priority to residents near principal office.
- Comply with labor standards and entitlements.
- Job creation to be reported annually in Securities and Exchange Commission (SEC) filings.
Restrictions on Transfer and Assignment
- Franchise cannot be sold, leased, transferred, assigned, or merged without prior Congressional approval.
- Must notify Congress within 60 days of any transaction.
- Failure to notify results in automatic franchise revocation.
- Successors/subsequent owners subject to original conditions.
Dispersal of Ownership
- Must offer at least 30% of outstanding capital stock to Filipino citizens within 5 years.
- If public offering in securities exchange not applicable, other public participation methods must be used.
- Noncompliance leads to automatic franchise revocation.
Reportorial Requirements
- Annual reports to Congress on franchise compliance and operations by April 30 each year.
- Reports to include financials, operations, SEC filings, NTC certifications, and ownership status.
- Congressional compliance certificate required before NTC permits are granted.
Penalty for Non-Compliance with Reports
- Fine of Five Hundred Pesos (P500) per working day for failure to submit annual reports to Congress.
- Fine distinct from NTC penalties and remitted to the Bureau of Treasury.
Equality Clause
- Any advantages, privileges, or exemptions granted to other franchises become applicable to this franchise.
- Does not affect territorial coverage, term, or service type specificities.
Repealability and Nonexclusivity
- Congress may amend, alter, or repeal the franchise as public interest requires.
- Franchise is not exclusive.
Separability Clause
- If any provision is declared invalid, other provisions remain effective.
Repealing Clause
- Prior inconsistent laws or rules are repealed, amended, or modified to conform with this Act.
Effectivity
- The Act takes effect 15 days after publication in Official Gazette or newspaper of general circulation.