Manner of Operation of Stations or Facilities
- Operations should ensure minimal interference to existing or future stations.
- Grantee retains full use and quality of assigned frequencies.
Prior Approval of the National Telecommunications Commission (NTC)
- Requires securing permits and licenses from NTC for station construction and operations.
- Use of frequencies without NTC authorization is prohibited.
- NTC shall not unreasonably withhold or delay authorization.
Responsibility to the Public
- Grantee must provide free public service time up to 10% of paid commercials for government announcements and emergencies.
- Programming must be sound, balanced, and promote public participation and education.
- Prohibition against airing obscene, indecent, false information or incitements to subversion.
- NTC may increase public service time during emergencies.
Right of the Government
- Radio spectrum is a state-owned finite resource, usage is a privilege.
- President may temporarily take over or suspend operations during war, rebellion, public emergency, or calamity.
- Compensation to grantee required for government use during such periods.
Term of Franchise
- Effective for 25 years unless revoked or canceled.
- Franchise automatically revoked if grantee ceases operation for 2 consecutive years.
Self-regulation by and Undertaking of the Grantee
- No prior censorship required but grantee must cut off broadcast that incites treason, rebellion, or contains indecent material.
- Failure to self-regulate can lead to franchise cancellation.
Warranty in Favor of National and Local Governments
- Grantee holds government free from claims related to accidents causing injury or property damage during operations.
Commitment to Employment Creation
- Grantee must create jobs and allow on-the-job training.
- Priority for employment to residents near its offices.
- Compliance with labor laws required.
- Employment data to be reflected annually in Securities and Exchange Commission submissions.
Sale, Transfer, or Assignment of Franchise
- Sale, lease, transfer, usufruct, or assignment requires prior Congressional approval.
- Must report changes to Congress within 60 days of transaction.
- Failure to notify leads to automatic revocation of franchise.
- Transferees bound by original franchise terms.
Dispersal of Ownership
- Must offer at least 30% of outstanding capital stock to Filipino citizens within 5 years of operation.
- If public offering not applicable, other methods to encourage Filipino participation required.
- Noncompliance results in franchise revocation.
Reportorial Requirement
- Annual report to Congress detailing compliance, operations, financials, permits, and ownership status.
- Report due by April 30 each year.
- Compliance certificate required for permit issuance by NTC.
Fine for Non-compliance
- P500 fine per working day for failure to submit annual report to Congress.
- Fine collected by NTC and remitted to National Treasury.
Equality Clause
- Any advantages or privileges granted to other broadcast franchises apply to this franchise.
- Does not affect territorial coverage, term, or authorized service type.
Repeatability and Nonexclusivity Clause
- Franchise subject to amendment or repeal by Congress based on public interest.
- Franchise not exclusive.
Separability Clause
- Invalidity of any provision does not affect the rest of the Act.
Repealing Clause
- Inconsistent laws, decrees, or regulations are repealed, amended, or modified accordingly.
Effectivity
- Act takes effect 15 days after publication in Official Gazette or a newspaper of general circulation.