Manner of Operation of Stations or Facilities
- Stations must be constructed/operated to minimize interference with existing or new stations
- Must maximize quality of transmission and reception to ensure high-quality service
Prior Approval of the National Telecommunications Commission
- NTC approval/permits/licenses required for construction and operation
- Unauthorized frequency use prohibited
- NTC must not unreasonably withhold or delay permits
- NTC can revoke/suspend permits after due process for violations
- NTC may recommend franchise revocation to Congress for violations
Responsibility to the Public
- Must provide free adequate public service time for government announcements and emergency info
- Programming must be balanced, fair, promote participation and public education
- Must respect ethics, promote audience sensibility and empowerment (including closed captioning)
- No broadcasting of obscene/indecent content, false info, or incitement to subversion
- Public service time capped at 10% of paid commercials, allocated among government branches and recognized humanitarian orgs
- NTC can increase public service time during emergencies
- Must allocate 15% of daily air time to child-friendly programming as per Children's Television Act
Government's Special Rights
- Radio spectrum is national patrimony and a State-granted privilege
- President may temporarily take over or suspend operations during war, calamity or public emergency
- Temporary use by government agencies allowed, with just compensation
Term of Franchise
- Effective for 25 years unless revoked or cancelled
- Franchise revoked if operations cease for 2 continuous years
Self-Regulation and Broadcast Content
- No prior censorship required for broadcast content
- Grantee free from liability for content unless it violates law or rights
- Must cut off broadcast of seditious, treasonous or indecent content during airing
- Failure to do so can lead to franchise cancellation
Indemnification of Government
- Grantee holds national and local governments free from claims for accidents or damages during station construction or operation
Employment Obligations
- Must create employment and accept on-the-job trainees prioritizing residents near principal office
- Must comply with labor laws and labor standards
- Employment data to be included in annual Securities and Exchange Commission General Information Sheet
Restrictions on Franchise Transfer
- Sale, lease, transfer, usufruct, assignment, merger or transfer of controlling interest requires prior congressional approval
- Must inform Congress within 60 days post-transaction
- Failure to notify Congress results in automatic franchise revocation
- Assignees bound by same franchise terms
Ownership Dispersal
- At least 30% of outstanding capital stock must be offered to Filipinos publicly within 5 years
- Alternate methods for public participation if public offering not feasible
- Failure to comply results in franchise revocation
Reporting Requirements
- Annual report to Congress on compliance and operations due by April 30
- Report includes business updates, audited financials, SEC filings, NTC certifications, and ownership dispersal progress
- NTC requires certificate of reportorial compliance before issuing permits
Penalties for Non-Compliance
- Failure to submit annual report fined P500 per working day payable to Bureau of Treasury
- Fines are separate from NTC penalties
Equality Clause
- Any privileges granted to other broadcasters shall be applied to this franchise equally
- Excludes territorial coverage, term, or authorized service type from equality clause
Franchise Amendments and Exclusivity
- Franchise subject to amendment or repeal by Congress for public interest
- Franchise is non-exclusive
Separability Clause
- If any part is invalidated, other provisions remain valid
Repealing Clause
- Laws and rules inconsistent with this Act are repealed or amended accordingly
Effectivity
- Takes effect 15 days after publication in Official Gazette or newspaper of general circulation