Operational Standards and Minimization of Interference
- Facilities must be operated to minimize interference with existing or future stations.
- The grantee maintains full rights to its assigned frequencies and quality standards.
Regulatory Oversight by the National Telecommunications Commission (NTC)
- Securing permits and licenses from NTC is mandatory for construction and operation.
- Use of any frequency requires NTC authorization.
- NTC shall not unreasonably withhold permits.
- Disposal or leasing of facilities only to entities with broadcasting franchises, subject to NTC’s written approval and notification within 60 days.
- NTC has authority to sanction violations.
Public Service Obligations
- Grantee must provide free public service airtime (up to 10% of paid ads) to government and humanitarian organizations for important information dissemination.
- Programming must be sound, balanced, promote public participation, and adhere to ethical standards.
- Prohibited from broadcasting obscene or indecent content, false information, or content inciting subversion.
- NTC can increase public service time during emergencies or calamities.
Government’s Reserved Rights
- Radiowaves considered national patrimony, use is a privilege subject to withdrawal for public interest.
- President may temporarily take over, suspend, or authorize government use of stations/facilities during war, rebellion, calamity, or emergency, with compensation.
Franchise Term, Revocation, and Continuous Operation
- Franchise valid for 25 years from August 9, 2021.
- Franchise automatically revoked if operations cease for two consecutive years.
Self-Regulation and Content Control
- No prior censorship imposed by the grantee on broadcasts.
- Grantee freed from liability for unlawful content aired but must cut off broadcasts inciting treason, rebellion, sedition, or containing indecent or immoral content.
- Failure to cut off such content is ground for franchise cancellation.
Indemnity to Government
- Grantee assumes liability for accidents or damages during construction or operation, holding government entities free from related claims.
Employment and Training Commitment
- Obligation to create jobs and accept on-the-job trainees, prioritizing residents near principal office.
- Compliance with labor laws and proper reporting on employment in the annual SEC General Information Sheet.
Restrictions on Transfer and Ownership Changes
- Sale, lease, transfer, assignment, or merger of the franchise or controlling interest requires prior Congressional approval.
- Congress must be notified within 60 days post-transaction.
- Failure to notify results in automatic revocation.
- New owners subject to same franchise conditions.
Ownership Dispersal and Public Participation
- Filipino citizens must be offered at least 30% ownership in common stocks within 5 years of renewal.
- Alternative methods for public participation must be implemented if public offering is not applicable.
- Non-compliance leads to automatic revocation.
Annual Reporting Requirements
- Submission of annual reports to Congress by April 30 each year on franchise compliance.
- Reports include business operations updates, audited financials, SEC filings, NTC certifications, and ownership dispersal status.
- Congress’ reportorial compliance certificate is required for permit applications with NTC.
Penalties for Non-Compliance with Reporting
- Failure to submit reports results in fines of PHP 500 per working day.
- Fines collected by NTC are remitted to the Bureau of the Treasury separately from other penalties.
Equality Clause
- Benefits or privileges granted to other broadcasters under existing or future franchises apply equally to the grantee.
- Does not affect specific telecommunications franchise terms such as territorial coverage or service type.
Amendments and Exclusivity
- Franchise subject to amendment, alteration, or repeal by Congress in the public interest.
- Franchise is non-exclusive.
Separability and Repealing Clauses
- Invalid provisions do not affect the validity of remaining provisions.
- Prior inconsistent laws and regulations are repealed or amended accordingly.
Effectivity
- Act takes effect 15 days after publication in the Official Gazette or a newspaper of general circulation.
This comprehensive renewal law reinforces regulatory oversight, public service responsibilities, government rights, and ensures transparency, accountability, and public participation in broadcasting operations of Century Broadcasting Network.