Manner of Operation of Stations or Facilities
- Stations must be operated to cause minimal interference with existing or future stations.
- Grantee retains the right to use selected frequencies without diminishing transmission/reception quality.
Prior Approval of the National Telecommunications Commission (NTC)
- Grantee must obtain permits and licenses from NTC before constructing or operating.
- Frequency use requires NTC authorization.
- NTC must not unreasonably withhold or delay approvals.
Responsibility to the Public
- Provide adequate public service time for government communication on public issues.
- Deliver sound, balanced programming; assist in public information and education.
- Adhere to ethics of honest enterprise.
- Prohibit broadcasts of obscene/indecent language, deliberately false information, or content inciting subversion or treason.
Right of Government
- President may temporarily take over, suspend operations, or authorize use of stations during war, rebellion, emergency, calamity, or public peril.
- Due compensation must be made for temporary use.
- Spectrum use is a State privilege and may be withdrawn after due process.
Term of Franchise
- Valid for 25 years from effectivity unless revoked/cancelled sooner.
- Ipso facto revocation if grantee fails to:
- Commence operations within 1 year of NTC permit approval.
- Operate continuously for 2 years.
- Commence operations within 3 years from Act's effectivity.
Acceptance and Compliance
- Grantee must accept franchise in writing within 60 days of effectivity.
- Non-acceptance voids the franchise.
Bond Requirement
- Grantee must file a bond to guarantee compliance with franchise conditions.
- Amount determined by NTC.
- Bond cancelled after 3 years if conditions fulfilled; otherwise forfeited and franchise revoked.
Tax Provisions
- Subject to all taxes, duties, fees under the National Internal Revenue Code and other laws.
- Existing tax exemptions or incentives under other laws remain unaffected.
- Must file returns locally and pay due taxes to BIR.
Self-regulation and Broadcast Censorship
- No prior censorship required.
- Grantee must cut off broadcasts inciting treason, rebellion, sedition, or containing indecent/immoral content.
- Failure to cut off such content may lead to franchise cancellation.
Right to Reply
- Persons aggrieved by broadcasts have the right to reply in the same or chosen program.
Warranty in Favor of Governments
- Grantee indemnifies national and local governments against claims for damages/injuries due to station construction/operation.
Restrictions on Sale, Transfer, and Assignment
- Franchise and rights cannot be leased, transferred, sold, assigned, merged, or have controlling interest transferred without Congress approval.
- Transferees are bound by same franchise terms.
Dispersal of Ownership
- Grantee must offer at least 30% of outstanding capital stock to the public within 5 years after becoming a national broadcasting network (owns 3 or more stations).
- Failure to comply results in automatic revocation of franchise.
Compliance with General Broadcast Policy
- Grantee must comply with future general broadcast policy laws enacted by Congress.
Equality Clause
- Advantages or privileges granted under other franchises extend to this franchise immediately.
- Does not affect franchise territory, term, or services authorized.
Separability Clause
- If any provision is invalid, other provisions remain valid.
Repealability and Nonexclusivity
- Congress may amend, repeal, or alter franchise as public interest requires.
- Franchise is non-exclusive.
Reportorial Requirement
- Grantee must submit annual reports to Congress on compliance and operations within 60 days after each year ends.
Effectivity
- Act takes effect 15 days after publication in two newspapers of general circulation upon grantee's initiative.