Manner of Operation of Stations or Facilities
- Stations must be operated to minimize interference with other stations' frequencies.
- The grantee's transmission quality and service availability should be maximized.
Prior Approval of the National Telecommunications Commission (NTC)
- The grantee must secure permits and licenses from the NTC for any construction or operation.
- Use of radio/TV frequencies without NTC authorization is prohibited.
- The NTC should not unreasonably delay or withhold permits.
Responsibility to the Public
- Provide adequate public service time to inform government communications.
- Maintain sound, balanced programming and fulfill public information and education roles.
- Avoid airing obscene/indecent content or deliberately false/misleading information.
- Must not incite or support subversive or treasonable acts.
Right of Government
- The President has the special right during emergencies to:
- Take over operation of stations temporarily.
- Suspend operations in the interest of public safety.
- Authorize other government agencies to use the facilities.
- Due compensation must be paid to the grantee during such takeovers.
- Radio spectrum is a State resource, and franchise use is a privilege subject to withdrawal after due process.
Term of Franchise
- Valid for 25 years from effectivity.
- Automatically revoked if the grantee fails to operate continuously for two years.
Acceptance and Compliance
- Written acceptance must be submitted to Congress within 60 days of effectivity.
- Nonacceptance renders the franchise void.
Self-Regulation by the Grantee
- No prior censorship required for any broadcast content.
- However, the grantee must cut off on-air content that incites treason, sedition, or contains indecent/immoral material.
- Failure to do so may cause franchise cancellation.
Warranty in Favor of National and Local Governments
- The grantee holds government entities free from claims arising from accidents related to station operation.
Sale, Lease, Transfer, Usufruct, or Assignment of Franchise
- Franchise or controlling interest cannot be transferred, sold, leased, or assigned without prior Congress approval.
- Congress must be informed within 60 days after any transaction.
- Failure to inform results in automatic revocation.
- New owners are subject to the same conditions of the franchise.
Dispersal of Ownership
- At least 30% of outstanding capital stock must be offered to Filipino citizens within 5 years.
- If public offering is inapplicable, cooperatives or other participatory methods must be implemented.
- Noncompliance leads to automatic revocation of the franchise.
General Broadcast Policy Law
- The grantee must comply with any future general broadcast policy laws enacted by Congress.
Reportorial Requirement
- Annual report to Congress on compliance and operations due by April 30 each year.
- Certificate of reportorial compliance from Congress is required before NTC accepts permit applications.
Penalty Clause
- Failure to submit the annual report results in a fine of P500 per working day.
- NTC responsible for collecting fines, which are separate from other NTC penalties.
Equality Clause
- Any privileges or exemptions granted to other broadcasters will be accorded to the grantee immediately and unconditionally.
- Exceptions include franchise territory, duration, or type of service.
Separability Clause
- Invalidity of any provision does not affect the validity of other provisions.
Repeatability and Nonexclusivity Clause
- Congress may amend, alter, or repeal the franchise as public interest requires.
- The franchise is non-exclusive.
Effectivity
- Takes effect 15 days after publication in two newspapers of general circulation.