Operation of Stations to Minimize Interference
- The grantee must operate stations to cause minimal interference to other stations.
- The privilege to use assigned wavelengths or frequencies and quality of transmission must not be diminished.
Permits and Licenses from NTC
- Prior approval from the National Telecommunications Commission (NTC) is required.
- The grantee must secure appropriate permits before construction and operation.
- Use of any radio frequency without NTC authorization is prohibited.
Public Service Obligations
- The grantee must provide free public service time reasonable and sufficient for government communication.
- Public service time capped at 10% of paid commercials, allocated to government branches and humanitarian organizations.
- The NTC may increase public service time during emergencies.
- Programming must be sound, balanced, promote public participation, and conform to ethical standards.
- Prohibited from broadcasting obscene or indecent content, deliberate false information, or content inciting subversion.
Compliance with Labor Standards
- The grantee must conform to existing labor laws and Department of Labor and Employment issuances.
- Must consider the particular nature of the broadcast industry.
Government’s Special Rights
- The radio spectrum is a national patrimony and use is a privilege.
- The President may temporarily take over or suspend station operations during emergencies.
- Government agencies may operate stations temporarily with compensation to the grantee.
Term and Revocation of Franchise
- Franchise valid for 25 years unless revoked or cancelled earlier.
- Automatically revoked if the grantee fails to operate continuously for two (2) years.
Acceptance of Franchise
- Grantee must accept the franchise in writing within 60 days of effectivity.
- Failure to accept renders the franchise void.
Tax Responsibilities
- The grantee remains subject to all applicable national and local taxes and charges under existing tax laws.
Self-Regulation and Broadcast Content Responsibility
- No prior censorship requirement but the grantee must cut off broadcasts that incite treason, rebellion, sedition, or contain indecent or immoral content.
- Failure to do so may lead to franchise revocation.
Indemnification of the Government
- The grantee holds the national and local governments free from liability for injuries or damages arising from station construction or operation.
Restrictions on Transfer or Assignment
- Sale, lease, transfer, assignment, or merger of the franchise or controlling interest requires prior Congressional approval.
- Any transferee subject to the same franchise conditions.
Ownership Requirements
- At least 30% of outstanding capital stock must be offered to Filipino citizens within five (5) years.
- Other methods to encourage public participation in non-public offerings must be applied.
- Failure to comply results in automatic franchise revocation.
Compliance with Future Broadcast Policy Laws
- The franchise is subject to and must comply with any future general broadcast policy legislation.
Annual Reporting Obligation
- The grantee must submit an annual compliance and operations report to Congress by April 30.
- Proof of report submission is required before NTC accepts permit applications.
Penalties for Non-Compliance
- Failure to submit timely reports incurs a fine of P500.00 per working day.
- The NTC shall collect the fine separately from other penalties.
Equality Clause
- Any advantages or privileges granted to other broadcasters must also be granted to the grantee.
- Does not affect territorial coverage, term, or service type provisions.
Separability
- Invalidity of any provision will not affect the remaining valid provisions of the Act.
Amendments and Non-Exclusivity
- Congress may amend, alter, repeal the franchise when public interest requires.
- The franchise is non-exclusive.
Effectivity
- The Act takes effect 15 days after publication in the Official Gazette or a newspaper of general circulation.