Question & AnswerQ&A (Republic Act No. 9321)
The franchise grants eTELCO, Inc. the right to construct, install, establish, operate, and maintain telecommunications systems throughout the Philippines and between the Philippines and other countries for commercial purposes and in the public interest, excluding mobile and cellular systems but including paging, fiber optics, MMDS, LMDS, satellite systems, switches, and value-added services.
Stations or facilities must be constructed and operated to cause only minimum interference to wavelengths or frequencies of existing stations, without diminishing eTELCO's right to use its selected frequencies or the quality of transmission or reception.”
The NTC must issue a certificate of public convenience and necessity or appropriate permits and licenses for construction, installation, and operation. The NTC can impose conditions and regulate construction, operation, and use of radio frequencies.
eTELCO can, with prior approval of the Department of Public Works and Highways, excavate public places for laying wires or cables but must repair any disturbance workmanlike and according to DPWH standards. If eTELCO fails to repair after 10 days' notice, DPWH can repair at double the expense charged to eTELCO.
eTELCO must conform to ethics of honest enterprise, avoid obscene or false transmissions, provide basic or enhanced telephone service without discrimination in certified municipalities, maintain equipment satisfactorily, and update technology to meet demand and advances.
Charges and rates, except those declared nonregulated, are subject to NTC approval, must be unbundled and separable among services, ensuring regulated services don't subsidize unregulated services.
In times of war, rebellion, public peril, calamity, emergency, or peace disturbance, the President can temporarily take over or suspend eTELCO's facilities for public safety and welfare with due compensation to eTELCO.
The franchise term is 25 years from effectivity unless revoked sooner. It is ipso facto revoked if eTELCO fails to commence operations within 3 years of permit approval or effectivity of the act, or if it fails to operate continuously for 2 years.
No, the franchise or rights cannot be leased, transferred, granted, sold, assigned, merged, or have their controlling interest transferred to any other entity or person.
eTELCO must offer at least 30% of its outstanding capital stock to the public through a securities exchange within 5 years from commencement of operations to encourage public participation, and comply with SEC rules; failure to comply results in ipso facto revocation of the franchise.
eTELCO is subject to all taxes under the NIRC and other applicable laws, must file tax returns with the city or province of its principal office, and pay taxes due; existing tax exemptions or incentives remain effective.
eTELCO must keep separate accounts of gross receipts, submit these to COA and National Treasury annually by January 31, allow audit of books by COA, submit quarterly gross receipts and profit reports, and submit annual operation and compliance reports to Congress within 60 days after year-end.
Failure to comply with bond conditions after 5 years results in bond forfeiture in favor of the government and ipso facto revocation of the franchise.
Yes, eTELCO is authorized to connect or demand connections to other authorized telecommunications systems under mutually agreed terms subject to review and modification by the NTC.
Any advantage, favor, privilege, exemption, or immunity granted under existing or future franchises (except taxes) automatically becomes part of this franchise and is immediately accorded to eTELCO, except regarding territory covered, life span, or type of service authorized.