Manner of Operation of Stations or Facilities
- Operation must minimize interference with existing or future station frequencies.
- Grantee retains full rights to assigned frequencies and quality of transmission.
Prior Approval of the National Telecommunications Commission (NTC)
- Grantee must secure permits and licenses from NTC before construction or operation.
- Use of any radio/TV frequency requires NTC authorization.
- NTC should not unreasonably delay or withhold permit issuance.
Responsibility to the Public
- Provide public service time for government dissemination of important issues.
- Maintain sound, balanced programming at all times.
- Assist public information and education functions.
- Abide by ethics of honest enterprise.
- Prohibit broadcasting of obscene, indecent language or scenes.
- No dissemination of false info or willful misrepresentation harmful to public interest.
- No incitement of subversive or treasonable acts.
Right of Government
- President may temporarily take over or suspend operations in times of war, rebellion, public peril, calamity, emergency, or disturbance.
- Temporary government use authorized with due compensation to the grantee.
- Radio spectrum declared national patrimony; privilege to use can be withdrawn after due process.
Term of Franchise
- Effective for 25 years from effectivity of this Act unless revoked or cancelled earlier.
- Franchise deemed revoked if operations fail to continue for 2 consecutive years.
Acceptance and Compliance
- Written acceptance of franchise must be submitted to Congress within 60 days.
- Failure to accept renders franchise void.
Self-regulation by and Undertaking of the Grantee
- No prior censorship of broadcast content required.
- Obligated to cut off broadcast if content incites treason, rebellion, sedition, or is indecent or immoral.
- Failure to enforce cuts can result in franchise cancellation.
Warranty in Favor of National and Local Governments
- Grantee holds government free from claims arising from accidents caused by station construction or operation.
Sale, Lease, Transfer, Usufruct, or Assignment of Franchise
- Franchise or controlling interest may not be sold, transferred, leased, or assigned without prior Congressional approval.
- Congress must be informed within 60 days after any such transaction.
- Failure to report results in automatic franchise revocation.
- Transferees subject to all terms and conditions of the franchise.
Dispersal of Ownership
- At least 30% of outstanding capital stock must be offered to Filipino citizens within 5 years of operation.
- If public offering not applicable, other public participation methods such as cooperatives must be implemented.
- Failure to comply results in franchise revocation.
General Broadcast Policy Law
- Grantee subject to any future general broadcast policy law enacted by Congress.
Reportorial Requirement
- Annual report on compliance and operations to Congress required by April 30 each year.
- Reportorial compliance certificate needed before NTC accepts permit applications.
Penalty Clause
- Failure to submit annual report penalized by P500 fine per working day.
- Fine collected separate from NTC penalties.
Equality Clause
- Any advantages or privileges granted under other franchises are extended to grantee.
- Does not change territory, lifespan, or type of authorized service.
Separability Clause
- Invalidity of any section does not affect validity of other provisions.
Repeatability and Nonexclusivity Clause
- Franchise subject to amendment, alteration, or repeal by Congress.
- Not an exclusive grant; similar privileges may be granted to others.
Effectivity
- Act takes effect 15 days after publication in two newspapers of general circulation.