Question & AnswerQ&A (Republic Act No. 4630)
The franchise is granted to Globe Wireless, Limited, a Philippine corporation to be renamed Globe-Mackay Cable and Radio Corporation.
The grantee may construct, maintain, and operate communication systems by radio, wire, satellites, and other means now known to science or which may be developed in the future for telecommunications between the Philippines and points exterior thereto, including airplanes, airships, or vessels within Philippine territorial limits.
The grantee is authorized to exercise the right of eminent domain as reasonably necessary for the establishment, maintenance, and operation of its communication systems, subject to prior approval of the Secretary of Public Works and Communications.
The Secretary of Public Works and Communications has the authority to allot frequencies and wavelengths and can issue licenses for their use to the grantee.
The Secretary can change or cancel allotments if they are used to impair electrical communications, stifle competition, secure unreasonable rates, violate laws or public policy, if public interest requires the frequencies for other purposes, or for any other public interest reasons.
The Public Service Commission has jurisdiction only over the rates the grantee may charge the public, subject to international commitments of the Philippines.
The government reserves the right to take over and operate the stations during war, insurrection, or domestic trouble, with compensation to the grantee for the use during such periods.
The grantee must pay the same taxes on real estate, buildings, and personal property as others and additionally pay five percent of all gross receipts from business transacted under the franchise annually after audit approval.
The grantee shall keep separate accounts of its gross receipts in the Philippines and provide a copy to the Auditor General and Treasurer of the Philippines annually by January 31, subject to audit and official inspection.
No, the grantee cannot lease, transfer, sell, assign, or merge the franchise without prior approval from the Congress of the Philippines.
The franchise does not authorize the grantee to engage in domestic communication service.
The Secretary of Public Works and Communications may modify, cancel, or change frequency allotments to prevent impairment of communications, monopolies, unreasonable rates, or violations of laws and public policy.
The franchise shall terminate fifty years after the date of acceptance by the grantee unless repealed, forfeited, or extended earlier.
The grantee must execute a bond of fifty thousand pesos in favor of the government as a condition of the franchise, ensuring faithful performance during the first three years, after which the bond can be canceled if obligations are fulfilled.
It is unlawful for the grantee to use, employ, or contract labor from any person held in involuntary servitude.