Operation of Stations
- Operations must minimize interference with other existing or future stations.
- Grantee retains full use of its assigned frequencies without compromising transmission quality or service availability.
Regulatory Approvals
- All construction and operation require permits and licenses from the National Telecommunications Commission (NTC).
- Use of frequencies is prohibited without prior NTC authorization.
- NTC required to grant approvals without unreasonable delays.
Public Service Responsibilities
- Provide free public service airtime to government and recognized humanitarian organizations (up to 10% of paid ads).
- Increase public service time during emergencies or calamities as directed by NTC.
- Deliver sound, balanced programming promoting public participation, education, and empowerment.
- Prohibit broadcasting obscene, indecent, false information, and materials inciting subversion or treason.
Government's Special Rights
- Radio spectrum is a national patrimony and the franchise is a revocable privilege.
- President may temporarily take over, suspend, or authorize use of stations during war, rebellion, emergencies, or public need.
- Compensation is required for government use during such periods.
Franchise Term and Revocation
- Effective for 25 years unless revoked or cancelled.
- Automatically revoked if the franchisee ceases operations continuously for 2 years.
Broadcast Content Regulation
- No prior censorship required.
- The grantee must cut off broadcasts that incite treason, sedition, or involve indecent or immoral content.
- Failure to cut off such content may result in franchise cancellation.
Liability Warranty
- The grantee indemnifies national and local governments from claims arising from accidents related to construction or operations.
Employment Commitment
- Must create jobs and provide on-the-job training.
- Prioritize hiring residents near its offices.
- Comply with applicable labor laws and regulations.
- Employment data must be reported annually to the Securities and Exchange Commission.
Transfer and Assignment Restrictions
- Franchise cannot be sold, leased, transferred, assigned, or merged without prior Congressional approval.
- Congress must be informed within 60 days of any ownership changes.
- Failure to notify results in automatic franchise revocation.
- Transferees subject to same franchise terms.
Public Ownership Requirement
- Must offer at least 30% of outstanding capital stock to Filipino citizens within 5 years.
- Alternative public participation methods acceptable where stock offering is not applicable.
- Noncompliance causes automatic franchise revocation.
Annual Reporting Requirements
- Submit annual compliance and operational reports to Congress by April 30 each year.
- Certificate of compliance from Congress required before applying for NTC permits.
Penalties for Non-Compliance
- Failure to submit annual reports incurs a fine of PHP 500 per working day.
- Fines collected by NTC and remitted to the National Treasury.
Equality Clause
- Any advantages or privileges granted in other franchises (except territorial coverage, term, service type, taxes, customs duties) automatically apply to this franchise upon Congressional approval.
Amendments and Non-Exclusivity
- Franchise subject to Congress' amendment, repeal, or alteration in public interest.
- Not exclusive; does not prevent granting similar privileges to others.
Separability Clause
- Invalid provisions do not affect the validity of the remaining provisions.
Repealing Clause
- All inconsistent laws, rules, regulations, or issuances are repealed, amended, or modified accordingly.
Effectivity
- This Act takes effect 15 days after publication in the Official Gazette or a newspaper of general circulation.