Manner of Operation of Stations or Facilities
- Stations must be constructed and operated to minimize interference with existing or legally established stations.
- PBC's use of assigned frequencies and transmission quality must not be diminished.
- Operation aimed at maximizing availability and rendition of PBC’s services.
National Telecommunications Commission (NTC) Approval
- PBC must secure permits and licenses from NTC prior to construction and operation.
- Use of frequencies without NTC authorization is prohibited.
- NTC should not unreasonably delay or withhold approvals.
- Facilities cannot be disposed or leased except to entities with broadcasting franchises, with prior NTC authorization and reporting.
- NTC to sanction violations under this provision.
Public Service Responsibility
- PBC to provide free public service airtime (max 10% of paid commercials) to government and recognized organizations for public service announcements, emergencies, and education.
- Promote sound, balanced programming, public participation, ethics, audience empowerment, and accessibility (e.g., closed captioning).
- Prohibited from broadcasting obscene, indecent, false, or subversive content.
- NTC may increase public service time during extreme emergencies and will regulate public service airtime.
Government’s Special Rights
- Radio spectrum is a national patrimony and usage is a state-conferred privilege.
- President may temporarily take over, suspend, or authorize government use of PBC’s stations in times of war, rebellion, calamity, or public emergencies with due compensation to PBC.
Term and Revocation of Franchise
- Franchise valid for 25 years unless revoked or cancelled earlier.
- Failure to operate continuously for two years results in automatic revocation.
Self-Regulation and Broadcast Content Control
- No prior censorship required by PBC on content.
- PBC is not liable for illegal content broadcast but must cut off speech inciting treason, rebellion, sedition, or indecency.
- Failure to cut off such content may cause franchise cancellation.
Liability and Indemnification
- PBC indemnifies national, provincial, city, and municipal governments against claims from accidents causing injury or damage during station construction or operation.
Employment Creation and Training
- PBC must create jobs and provide on-the-job training, prioritizing residents near its principal office.
- Compliance with labor laws essential.
- Employment figures to be reported annually to Securities and Exchange Commission.
Transfer, Sale, Lease, or Assignment Restrictions
- Prohibited without prior Congressional approval.
- Any transaction must be reported to Congress within 60 days.
- Failure to report results in automatic franchise revocation.
- New owners subject to same franchise conditions.
Ownership Dispersal Requirements
- At least 30% of capital stock to be offered to Filipino citizens within 5 years.
- If shares not applicable, other methods of public participation to be applied.
- Non-compliance results in automatic franchise revocation.
Annual Reportorial Requirements
- PBC must submit annual compliance and operational reports to Congressional committees by April 30 each year.
- Reportorial compliance certificate required before applying for permits from NTC.
Penalties for Non-Compliance
- Failure to submit annual report fined ₱500 per working day, collected by NTC and remitted to National Treasury.
Equality Clause
- PBC granted any advantages or privileges given to other franchises, except those affecting territorial coverage, term, or type of service.
Repealability and Non-Exclusivity
- Congress may amend or repeal franchise when public interest requires.
- Franchise is non-exclusive.
Separability Clause
- Invalidity of any provision does not affect the remainder of the Act.
Repealing Clause
- Conflicting laws, orders, or issuances are repealed or amended accordingly.
Effectivity
- Act takes effect 15 days after publication in Official Gazette or newspaper of general circulation.