Question & AnswerQ&A (Republic Act No. 4387)
The main purpose of Republic Act No. 4387 is to amend Republic Act No. 2037, particularly to authorize the transfer of the radio communication franchise granted to Ricardo P. Ocampo to Capitol Wireless, Inc., and to update provisions relating to the scope, rights, and obligations under the franchise.
Mr. Ricardo P. Ocampo was originally granted the franchise to construct, install, establish, and operate stations for international telecommunications, public coastal radio stations, public fixed and mobile stations, and radio paging systems in the Philippines.
The transfer of the franchise originally granted to Ricardo P. Ocampo is authorized in favor of Capitol Wireless, Inc.
The franchise covers stations for international telecommunications, public coastal radio stations with relay stations, public fixed, public base, and land mobile stations, as well as radio paging systems for wireless message reception and transmission on radiotelephony and/or radiotelegraphy.
The grantee must secure the approval of the Department Secretary under whose jurisdiction the Radio Control Division functions or any competent authority authorized to give such approval.
No, the franchise is not exclusive. Section 13 states that the franchise shall not be interpreted as an exclusive grant and may be amended or repealed by Congress as public interest requires.
No, the grantee may not lease, transfer, grant usufruct, sell, or assign the franchise or rights without prior approval from Congress.
The grantee is liable to pay taxes on real estate, buildings, and personal property excluding the franchise, and must pay one and one-half percent of all gross receipts from the business conducted under the franchise to the Philippine Treasurer annually.
The grantee has the right to erect poles, string wires, build or install pipes and conduits, lay cables and construct necessary electrical or telegraphic means for private use and may negotiate with local power or telephone companies for use of their poles or installations.
Yes, Congress can amend, alter, or repeal the franchise at any time when public interest requires it.