Question & AnswerQ&A (Republic Act No. 7082)
Republic Act No. 7082 primarily amends and consolidates previous laws granting the Philippine Long Distance Telephone Company (PLDT) the franchise to install, operate, and maintain a telephone and telecommunications system throughout the Philippine Islands, extending the franchise for 25 years from its expiration.
The grantee refers to the Philippine Long Distance Telephone Company (PLDT), including its successors and assigns, who have the right, privilege, and authority to operate telecommunications services under the franchise.
PLDT is authorized to provide both basic and enhanced telecommunications services across provinces, cities, municipalities in the Philippines, and internationally. This includes mobile, cellular, wired or wireless systems, fiber optics, satellite systems, and other telecommunications technologies and value-added services.
PLDT must obtain a certificate of public necessity and convenience from the National Telecommunications Commission (NTC) or its legal successor after a due hearing, showing that the construction or exercise is necessary and proper for the public convenience.
The National Telecommunications Commission (NTC) or its legal successor regulates and must approve the rates for telecommunications services provided by the grantee.
The President can take over and operate the transmitting, receiving, and switching stations, or authorize government use during times of war, rebellion, public peril, calamity, emergency, disaster, or disturbances of peace and order with due compensation to the grantee.
No, Section 18 explicitly states that the franchise is not an exclusive grant of privileges, meaning other entities may also be granted similar rights.
The grantee must pay taxes on real estate, buildings, and personal property like other persons or corporations. Additionally, it must pay a franchise tax of 3% of gross receipts derived from the telecommunications business under this franchise, which is in lieu of all taxes on the franchise or its earnings, but the grantee remains liable for income taxes.
No, the grantee cannot lease, transfer, grant usufruct, sell or assign the franchise or the rights acquired without prior approval from the Congress of the Republic of the Philippines.
The grantee is required, with prior approval from the Department of Public Works and Highways, to make excavations for installation but must repair and replace any public places, roads, streets, or bridges disturbed, altered, or changed in a workmanlike manner according to the department's standards.
The grantee is authorized to exercise the right of eminent domain reasonably necessary for efficient maintenance and operation of services, including acquiring private property with proper condemnation and just compensation.
The grantee must keep accounts of gross receipts, submit copies to the Commissioner on Audit and National Telecommunications Commission annually, maintain separate accounts for different services, and provide detailed reports on programs, operations, payment of taxes, and compliance with the franchise terms to Congress.
The NTC is authorized to order PLDT to allow interconnection of its facilities with other duly authorized telecommunication operators, both local and international, under terms that the Commission finds proper and reasonable for public good.
If PLDT fails to file a written acceptance of the Act and its terms within 60 days after approval, the franchise granted under this Act shall become null and void.