QuestionsQuestions (Republic Act No. 4387)
Section 1 authorizes and approves the transfer of the franchise granted to Ricardo P. Ocampo under Republic Act No. 2037 (as amended by R.A. No. 2373) in favor of Capitol Wireless, Inc., including all appurtenant rights and privileges such as existing operating radio stations, and any channel/frequency assignments and permits granted to the former grantee—subject to the Constitution and other applicable laws not inconsistent with the Act.
R.A. No. 4387 amends Republic Act No. 2037 (as amended by R.A. No. 2373). Section 2 amends Section 1 of the original franchise by modifying/expanding the description of the services, stations, and authorization granted to the grantee (including international telecommunications and various radio services).
The franchise covers international telecommunications stations, public coastal radio stations with relay stations, and public fixed, public based, land mobile stations, and radio paging systems, for reception/transmission of wireless messages on radiotelephony (voice) and/or radiotelegraphy, including communications with vessels at sea and aircraft.
Operation and establishment are subject to approval of the Department Secretary under whose jurisdiction the Radio Control Division is functioning, or any competent authority authorized to grant said approval.
For its own private use, the grantee may erect poles, string wires, build/install pipes and conduits, lay cables, and construct/maintain/use generally accepted means of electrical or telegraphic conduction necessary for its private purposes.
It states that the provision does not prejudice the grantee’s right to negotiate with any operator of local/national electric light and/or telephone systems in a province/city/municipality to obtain rights to use their poles or installations where such systems operate.
Section 3 amends Section 12 of the original franchise. The key rule is that the grantee cannot lease, transfer, grant usufruct of, sell, or assign the franchise (or related rights/privileges), nor merge for the same purpose, without prior approval of Congress.
Any corporation to which the franchise may be sold/transferred/assigned must comply with Philippine corporation laws, and the transferee is bound by all conditions, terms, restrictions, and limitations of the franchise as if originally granted to it.
Congress can amend, alter, or repeal the franchise when the public interest so requires.
It means the franchise is not an exclusive privilege; Congress may grant similar services to others when authorized by law, and the grantee’s rights are not shielded from future regulatory or legislative changes.
It provides that any authorized terms/services more favorable than those granted to the grantee, if previously granted or granted in a similar fashion (or via temporary permits by Congress) to competing persons, will ipso facto become part of the grantee’s terms and operate equally in favor of the grantee.
The grantee is liable to pay the same taxes on its real estate, buildings, and personal property (exclusive of the franchise) as other persons/corporations are required by law to pay.
The grantee must pay the Treasurer of the Philippines each year (within ten days after audit and approval of accounts) an amount equal to 1.5% of all gross receipts for business transacted in the Philippines under the franchise.
Payment must be made each year within ten days after the audit and approval of the accounts as prescribed in the franchise law.
It signals that the franchise transfer and the grant/operations remain subject to constitutional limits and other statutory/regulatory requirements (e.g., licensing, public interest regulation, and compliance with telecommunications laws).
It takes effect upon its approval.