Operation of Stations or Facilities
- Stations/facilities must minimize interference with existing or future stations.
- The grantee retains full right to use its assigned wavelengths/frequencies without compromising transmission/reception quality.
Regulatory Authority of the National Telecommunications Commission (NTC)
- Requires Certificate of Public Convenience and Necessity or proper permits from NTC for construction and operations.
- NTC can regulate and impose conditions on construction, maintenance, and service levels.
- NTC issues certificates specifying service areas and commencement dates.
- Frequency use requires NTC authorization; arbitrary withholding is prohibited.
- Violations may lead to suspension/revocation of permits/licenses after due process.
- NTC can recommend franchise revocation to Congress for violations.
Excavation and Restoration
- Grantee authorized to conduct excavations for infrastructure with prior DPWH or LGU approval.
- Obliged to repair and restore public spaces affected by any construction work according to government standards.
- Failure to restore after 10-day notice empowers DPWH/LGU to repair and recover costs doubled from the grantee.
Responsibility to the Public
- Must adhere to ethical standards; prohibitions on obscene transmissions, false information, or subversive activities.
- Stations, lines, cables, and equipment must be maintained satisfactorily and updated to technological advances.
- Required to expand services to unserved and disaster-prone areas as determined by relevant authorities.
- Must comply with "The Free Mobile Disaster Alerts Act" in upgrading systems for disaster alerting.
Regulation of Service Rates
- All charges must be approved by NTC, except for future nonregulated services.
- Rates must be unbundled, ensuring regulated services do not subsidize unregulated ones.
Government Rights over Radio Spectrum
- Radio spectrum considered national patrimony; its use is a privilege subject to withdrawal.
- The President can temporarily operate, suspend, or commandeer the grantee’s facilities during emergencies with due compensation.
Franchise Term and Automatic Revocation
- Valid for 25 years from effectivity unless canceled sooner.
- Automatically revoked if operations are not commenced within 3 years from permit approval or effectivity, or if operations cease for 2 years.
Renewal Requirements
- Renewal or extension applications must be filed 3 years before franchise expiration.
- Period reckoned from 15 days after publication.
Bond Requirement
- Grantee must file a bond with NTC as compliance security.
- Bond cancelled if conditions met after 3 years; otherwise, forfeited and franchise revoked.
Interconnection Rights
- Authorized to interconnect with other licensed telecommunications systems.
- Terms are subject to mutual agreement and NTC review.
Mobile Number Portability
- Grantee must provide MNP with proper infrastructure and implement mechanisms.
- Interconnection with other grantees required.
- Prohibited from installing features that impede MNP implementation.
Warranty to Government
- Grantee shall hold national and local governments free from liability arising from accidents during construction or operation.
Transfer and Ownership Restrictions
- Prohibition on sale, lease, transfer, usufruct, assignment, mergers, or controlling interest changes without Congress approval.
- Congress must be informed within 60 days post-transaction.
- Failure to report results in automatic franchise revocation.
- Successors are subject to same franchise terms.
Mandatory Public Ownership Requirement
- Filipino citizens must be offered at least 30% of outstanding capital stock within 5 years of operations.
- If public offer is not feasible, cooperative establishment required.
- Noncompliance triggers automatic franchise revocation.
Employment Obligations
- Grantee to create employment and allow on-the-job training prioritizing local residents.
- At least 60% regular employees; contractual/contractors combined capped at 40%.
- Must comply with labor laws and standards.
- Employment figures must be reflected in SEC filings and annual reports to Congress.
Annual Reporting Requirements
- Annual report to Congress detailing compliance, operations, business development, financials, GIS, NTC certification, and ownership status.
- Submission deadline: April 30 each year.
- Reportorial compliance certificate required by NTC before permits are issued.
Penalties for Non-Compliance with Reporting
- Failure to submit incurs fines of P1,000,000 per working day after enforcement.
- Interim fines of P500 per day before enforcement.
- Fines collected by NTC and remitted to the Bureau of Treasury.
Equality Clause
- Franchise grantee entitled to same advantages, privileges as other grantees, except for taxes, territory, franchise duration, or authorized services.
Non-Exclusivity and Congressional Authority
- Franchise is subject to amendments or repeal by Congress in public interest.
- Does not confer exclusive rights.
Separability Clause
- Invalidity of any provision does not affect validity of the rest.
Repealing Clause
- Inconsistent laws, decrees, rules or regulations are repealed or modified accordingly.
Effectivity
- Act effective 15 days after publication in Official Gazette or newspaper of general circulation.