Operation and Interference
- Stations shall operate to minimize interference with existing or legally established stations.
- The grantee retains the right to use assigned wavelengths/frequencies without diminishing transmission quality.
National Telecommunications Commission (NTC) Oversight
- The grantee must secure NTC permits and licenses before constructing or operating stations.
- Use of frequencies without NTC authorization is prohibited.
- NTC shall not unreasonably withhold or delay permit grants.
- Disposal or leasing of facilities requires NTC authorization and reporting within 60 days.
Public Service Responsibilities
- Grantee must provide free public service broadcast time up to 10% of paid advertisements.
- Public service time is allocated to government branches and international humanitarian organizations.
- Programming must be balanced, ethical, promote public participation, sensibility, empowerment, and avoid obscene, false, or subversive content.
- NTC may increase public service time during emergencies.
Government Rights and Emergency Powers
- Radio spectrum is a national patrimony and usage is a privilege.
- President may temporarily take over or suspend operations of stations during war, rebellion, public peril, calamity, emergency, or disturbance.
- Government use of stations during such periods shall be compensated.
Franchise Term and Conditions for Revocation
- Franchise term: 25 years from effectivity.
- Grounds for ipso facto revocation include failure to commence operations within 1 year from permit approval, failure to commence within 3 years from effectivity, or discontinuous operation for 2 years.
Compliance Bond
- The grantee must file a bond with the NTC to guarantee compliance.
- Bond amount is determined by NTC.
- Bond is cancellable after 3 years if conditions are met; otherwise forfeited and franchise revoked.
Self-Regulation and Content Censorship
- No prior censorship required.
- Grantee must cut off broadcasts inciting treason, rebellion, sedition, or containing indecent or immoral content.
- Failure to do so is cause for franchise cancellation.
Liability and Indemnity
- The grantee holds national and local governments free from all claims arising from accidents during construction or operation.
Employment and Training Commitments
- Grantee shall create employment opportunities and permit on-the-job training.
- Priority for employment is given to residents where the principal office is located.
- Must comply with labor laws and report job creation in annual General Information Sheet.
Restrictions on Transfer and Assignment
- Sale, lease, transfer, grant of usufruct, assignment, merger, or controlling interest transfer require prior Congressional approval.
- Congress must be informed within 60 days after transaction completion.
- Failure to report results in ipso facto revocation.
- Transferees are subject to the same franchise terms.
Annual Report Requirements
- Grantee must submit an annual report on franchise compliance and operations to specified Congressional committees by April 30.
- Reportorial compliance certificate from Congress is prerequisite for NTC permit applications.
Penalties for Non-Compliance
- Failure to submit annual report results in daily fines of P500.
- Fines are collected by NTC and remitted to the National Treasury.
Equality Clause
- Any advantages or privileges granted under other franchises (except tax or customs) apply equally to this franchise upon Congressional review.
- Does not affect territory, franchise duration, or type of service.
Repealability and Nonexclusivity
- Congress may amend, alter, or repeal the franchise for public interest.
- Franchise is non-exclusive.
Separability
- Invalidity of any provision does not affect other provisions.
Repealing Clause
- Inconsistent laws, regulations, and issuances are repealed, amended, or modified.
Effectivity
- The Act takes effect 15 days after publication in the Official Gazette or a newspaper of general circulation.