Operation of Stations and Facilities
- Operations must minimize interference with existing and future stations while maintaining quality transmission.
- Must fully utilize assigned wavelengths or frequencies.
Permits and Licenses from the National Telecommunications Commission (NTC)
- NTC approval required for construction and operation permits.
- Unauthorized use of frequencies is prohibited.
- NTC shall not unreasonably withhold or delay approvals.
- Disposal or lease of facilities permitted only to entities with broadcasting franchises with prior NTC written authorization and notification within 60 days post-transaction.
- Sanctions for violations determined by NTC.
Public Service Responsibilities
- Grantee must provide free public service airtime equivalent to up to 10% of paid commercials.
- Public service time allocated to government branches and recognized humanitarian organizations.
- Programming must be sound, balanced, ethical, and promote public participation.
- Must broadcast important alerts, public information, education, and promote audience empowerment (e.g., closed captioning).
- Prohibited from broadcasting obscene or indecent content, false information, or content that incites subversion or treason.
- NTC may increase public service time during emergencies.
Government Rights Over Franchise
- Radio spectrum recognized as a national patrimony, use being a privilege.
- President empowered to temporarily take over, suspend, or authorize government use of broadcasting facilities in times of war, calamity, or public danger.
- Compensation to the grantee for government use during such periods.
Term and Revocation of Franchise
- Franchise valid for 25 years from effectivity unless revoked.
- Franchise automatically revoked if grantee ceases continuous operation for two years.
Self-Regulation and Broadcast Content Control
- No prior censorship required but grantee must terminate broadcasts promoting treason, rebellion, sedition, indecency, or immorality.
- Failure to terminate such broadcasts is grounds for franchise cancellation.
- Grantee not liable for unlawful content broadcast before being cut off unless willful.
Indemnification of Government
- Grantee shall hold all government levels harmless from claims due to accidents during construction/operation of stations.
Employment and Training Commitments
- Create employment and provide on-the-job training.
- Priority employment given to residents near the principal office.
- Compliance with labor laws and standards mandatory.
- Employment data to be included in annual Securities and Exchange Commission submissions.
Restrictions on Transfer and Assignment
- Sale, lease, transfer, assignment, merger, or control transfer prohibited without prior Congress approval.
- Congress must be notified within 60 days after such transactions.
- Non-reporting leads to automatic franchise revocation.
- New owners subject to identical franchise conditions.
Ownership Dispersal Requirements
- At least 30% of outstanding capital stock must be offered to Filipino citizens within five years of operation start.
- Alternative participation methods allowed if public share offering is inapplicable.
- Failure results in franchise revocation.
Annual Reportorial Requirements
- Grantee must submit yearly compliance and operational reports to Congress committees by April 30.
- Reports include business updates, audited financials, SEC submissions, NTC status certifications, and ownership dispersal updates.
- Congressional report compliance certificate required for NTC permit applications.
Penalties for Report Noncompliance
- Fine of P500 per working day for failure to submit annual report.
- Fine collected by NTC and remitted to National Treasury.
Equality Clause
- Advantages or privileges granted under existing or future broadcasting franchises apply equally to this franchise except for territorial coverage, term, or service type.
Non-exclusivity and Amendment
- Franchise subject to amendment or repeal by Congress as public interest requires.
- Not an exclusive grant of rights or privileges.
Separability
- Invalidity of any section does not affect remaining provisions.
Repealing Provisions
- Conflicting laws, rules, orders, or regulations are repealed, amended, or modified accordingly.
Effectivity
- Law becomes effective 15 days after publication in the Official Gazette or a general circulation newspaper.