Manner of Operation of Stations or Facilities
- Stations and facilities must be constructed and operated to cause minimum interference on assigned wavelengths or frequencies.
- The Grantee retains full rights to use its assigned frequencies without diminishing quality of service.
Authority of the National Telecommunications Commission
- The Grantee must secure from the NTC a Certificate of Public Convenience and Necessity or appropriate permits and licenses.
- The NTC regulates construction, operation, maintenance, and service conditions.
- Usage of frequencies requires NTC authorization.
- The NTC may suspend or revoke permits/licenses for violations after due process and can recommend franchise revocation to Congress.
Excavation and Restoration Works
- The Grantee may make excavations in public places for poles, supports, underground wires, or cables with prior approval from the DPWH or relevant LGU.
- Any disturbed public property must be restored in a workmanlike manner following prescribed standards.
- Failure to timely repair allows the DPWH or LGU to repair and charge the Grantee double the cost.
Responsibility to the Public
- The Grantee shall operate with honesty and not broadcast obscene content or false information.
- Facilities must be maintained satisfactorily and upgraded to keep pace with scientific and technological advances.
- The Grantee must extend services to unserved and hazard-prone areas as determined by the National Disaster Risk Reduction and Management Council in coordination with the NTC.
- Equipments must also comply with "The Free Mobile Disaster Alerts Act."
Rates for Services
- Charges for regulated telecommunication services are subject to NTC approval.
- Rates must be unbundled, distinct, and designed so regulated services do not subsidize unregulated ones.
Right of the Government
- The radio spectrum is a national patrimony, and use is a privilege subject to withdrawal after due process.
- The President may temporarily take over, suspend, or authorize government use of the Grantee’s facilities during emergencies with due compensation.
Term of Franchise
- The franchise is valid for 25 years from effectivity unless revoked or cancelled earlier.
- Franchise automatically revokes if the Grantee fails to operate for two consecutive years.
Right of Interconnection
- The Grantee is authorized to connect its systems to other authorized telecommunications systems.
- Terms of connection must be mutually agreed and subject to NTC review.
Warranty in Favor of the National and Local Governments
- The Grantee holds government entities free from liabilities arising from injury or property damage during construction or operation.
Sales, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise
- No sale, lease, transfer, usufruct, assignment, merger, or transfer of controlling interest without prior Congressional approval.
- Congress must be informed within 60 days of any such transaction.
- Failure to report results in automatic franchise revocation.
- Any assignees are bound by the same franchise conditions.
Dispersal of Ownership
- At least 30% of outstanding capital stocks must be offered to Filipino citizens via a securities exchange within five years.
- Alternative methods for public participation apply if public offering is not viable.
- Noncompliance leads to automatic revocation of franchise.
Commitment to Provide and Promote Employment
- The Grantee shall create employment and accept trainees, giving priority to residents where the principal office is located.
- Must comply with labor laws and reflect jobs created in SEC annual reports.
Reportorial Requirement
- Annual report to Congress is mandatory detailing compliance, operations, financials, ownership dispersal, and certification from NTC.
- Reports are due by April 30 each year.
- A compliance certificate is required prior to permit applications with the NTC.
Fine for Non-Compliance
- Failure to submit annual reports incurs a fine of ₱1,000,000 per working day once fully implemented.
- Interim fine payable to NTC is ₱500 per working day.
- Fines are distinct from NTC-imposed penalties and remitted to Bureau of Treasury.
Equality of Treatment
- Telecommunications advantages or privileges granted to others upon Congress review shall apply to the Grantee, except territorial coverage, franchise duration, or service type.
Repealability and Nonexclusivity Clause
- Congress may amend or repeal the franchise when public interest so requires.
- The franchise is non-exclusive.
Separability Clause
- Invalidity of any section will not affect the rest of the Act’s provisions.
Repealing Clause
- All laws or regulations inconsistent with this Act are repealed or amended accordingly.
Effectivity
- The Act takes effect 15 days after publication in the Official Gazette or a newspaper of general circulation.