Operation and Interference
- Operations must minimize interference to assigned wavelengths/frequencies.
- Grantee's transmission quality and service availability must be maximized.
Regulatory Compliance
- Prior permits and licenses required from the National Telecommunications Commission (NTC).
- Use of frequencies unauthorized by NTC is prohibited.
Public Service Obligations
- Provide free public service time up to 10% of paid commercials for government and recognized humanitarian organizations.
- Programming must be sound, balanced, and promote public participation and education.
- Prohibited from broadcasting obscene, false, or subversive content.
- NTC may increase public service time during emergencies.
Labor Standards
- Compliance with existing labor laws and DOLE issuances specific to broadcast industry is mandatory.
Government Rights and Emergency Powers
- Radio spectrum is a state resource; franchise usage is a privilege.
- President may temporarily take over or suspend operations in times of war, rebellion, calamity, or emergency, with due process and compensation.
Franchise Term and Revocation
- Effective for 25 years from effectivity date unless revoked.
- Franchise revoked ipso facto if operations cease for two years.
Acceptance and Effectivity
- Written acceptance by grantee to Congress committees required within 60 days from effectivity.
- Lack of acceptance voids franchise.
Taxation
- Subject to all applicable national and local taxes, fees, and charges.
Self-Regulation and Content Responsibility
- No prior censorship required, but grantee must cut off broadcast inciting treason, sedition, or containing indecent/immoral content.
- Failure to act may lead to franchise revocation.
Indemnification of Government
- Grantee holds government free from claims for injuries or damages during station construction or operations.
Transfer and Assignment Restrictions
- No sale, lease, transfer, usufruct, merger or assignment of franchise or controlling interest without Congressional approval.
- New holders subject to same franchise conditions.
Ownership and Public Participation
- Must offer at least 30% of outstanding capital stock to Filipino citizens via securities exchange within 5 years, or use alternate public participation means.
- Noncompliance leads to automatic franchise revocation.
General Compliance
- Subject to future general broadcast policy laws enacted by Congress.
Reporting Requirements
- Annual report to Congress on operations and franchise compliance due before April 30 each year.
- NTC requires reportorial compliance certificate before accepting permits.
Penalties for Non-Compliance
- Fine of P500 per working day for failure to submit annual reports.
- Fine collected by NTC separately from other penalties.
Equality of Privileges
- Any advantages granted to other broadcasters become part of this franchise immediately upon Congressional approval.
- Excludes territorial coverage, term, or service type provisions.
Severability
- Invalidity of any provision does not affect the rest of the Act.
Amendment and Non-Exclusivity
- Congress may amend or repeal franchise as public interest requires.
- Franchise is not exclusive.
Effectivity
- Effective 15 days after publication in Official Gazette or newspaper of general circulation.