Operation of Stations and Facilities
- Operations must cause minimal interference with other stations' frequencies/wavelengths.
- Grantee retains privilege to use assigned frequencies with maximum service reliability.
Authority of the National Telecommunications Commission (NTC)
- Requirement to secure NTC-issued Certificate of Public Convenience and Necessity (CPCN) and permits for system construction and operation.
- NTC empowered to impose conditions on construction, maintenance, and service standards.
- Use of radio frequencies allowed only with NTC authorization.
Excavation and Restoration
- Grantee may excavate public spaces with prior approval from DPWH or LGU for installation and maintenance.
- Obligation to restore public properties to original standards; failure leads to DPWH/LGU repair at double cost charged to grantee.
Public Responsibility
- Prohibition against use of facilities for obscene content, false information, subversive acts.
- Duty to maintain and upgrade facilities in a technologically current manner.
- Obligation to improve services, focusing on unserved, disaster, and hazard-prone areas.
- Compliance with Free Mobile Disaster Alerts Act to enhance public safety messaging.
Regulation of Service Rates
- Charges for services subject to NTC approval except for nonregulated services declared in the future.
Government Rights over Franchise
- Radio spectrum as finite national patrimony; franchise use is a government-granted privilege.
- President may temporarily take over or suspend operations during emergencies with fair compensation.
Franchise Term and Revocation
- Franchise valid for 25 years, revocable upon violation or discontinuity of service for two consecutive years.
Employment and Labor Standards
- Grantee must create job opportunities and allow on-the-job training prioritizing local residents.
- Compliance with applicable labor standards required.
Interconnection Rights
- Authorization to connect to other telecom systems for service extension under mutually agreed terms subject to NTC review.
Mobile Number Portability (MNP)
- Grantee mandated to provide MNP and avoid features that impede nationwide MNP implementation.
- NTC to issue rules for compliance and implementation.
Government Indemnity
- Grantee indemnifies national and local government from liabilities related to accidents during construction or operation.
Transfer and Assignment Restrictions
- Sale, lease, transfer, or assignment of franchise or controlling interest requires prior Congressional approval.
- Assignees/subsequent owners bound by original franchise terms.
Public Ownership and Dispersal
- Minimum 30% public ownership of common stocks to be offered within 5 years of franchise renewal.
- Cooperatives to be established if public stock offering is not feasible.
- Noncompliance leads to automatic franchise revocation.
Labor Compliance
- Continued adherence to labor laws specifically suited to telecommunications sector.
Annual Reporting Requirement
- Annual report to Congress on franchise compliance and operations by April 30 each year.
- Reportorial compliance prerequisite for permit and CPCN applications.
Penalties for Noncompliance
- Fine of P1,000,000 per working day for failure to submit reports post-applicability to other grantees.
- Interim fine of P500 per working day before full effectivity.
- Fines collected by NTC remitted to Bureau of the Treasury.
Equal Treatment Clause
- Grantee entitled to any advantages/favors granted to other similar franchise holders, excluding term, services, or territorial coverage differences.
Separability Clause
- Invalidity of any provision does not affect the rest of the Act.
Nonexclusive and Amendable Franchise
- Congress may amend, repeal, or alter franchise as public interest demands.
- Franchise is not exclusive.
Repeal of Inconsistent Laws
- Prior inconsistent laws, orders, rules, and regulations are repealed or amended.
Effectivity
- Act takes effect 15 days after publication in Official Gazette or newspaper of general circulation.