Question & AnswerQ&A (Republic Act No. 10894)
Republic Act No. 10894 extends for another twenty-five (25) years the franchise granted to the Philippine Telegraph and Telephone Corporation (PT&T) to establish, install, maintain, and operate wire and/or wireless telecommunications systems, lines, circuits, and stations throughout the Philippines for public domestic and international communications.
The franchise is granted by the Congress of the Philippines, as embodied in Republic Act No. 10894.
PT&T is authorized to construct, install, establish, operate, and maintain telecommunications systems (wire and/or wireless), including acquiring, leasing, or managing transmitting and receiving stations, lines, cables, or systems for domestic and international communications.
The franchise is effective for twenty-five (25) years from the date of effectivity of the Act unless sooner canceled.
The franchise shall be deemed ipso facto revoked if PT&T fails to operate continuously for two years.
The National Telecommunications Commission (NTC) regulates the construction, operation, maintenance, and service levels of the telecommunications systems and issues Certificates of Public Convenience and Necessity and other permits and licenses.
PT&T may excavate or lay conduits in public places with prior approval from the DPWH or LGU, and they must restore the disturbed places in a workmanlike manner. Failure to do so after notice may result in repair at PT&T’s expense, charged double.
PT&T must conform to honest enterprise ethics, avoid obscene or indecent transmissions, false information, willful misrepresentation, or aiding subversive or treasonable acts, and provide nondiscriminatory telephone service.
Yes. The rates, except those for nonregulated services, must be approved by the NTC and must be unbundled, separable, and distinct to prevent regulated services from subsidizing unregulated ones.
In times of war, rebellion, calamity, emergency, or public peril, the President may temporarily take over and operate the stations and facilities or authorize government use, with just compensation to the grantee.
No. PT&T cannot sell, lease, transfer, assign, or grant usufruct of the franchise or controlling interest without prior approval from Congress. Failure to report changes within 60 days after a transaction results in ipso facto revocation.
The grantee must offer at least 30% of its outstanding capital stock to Filipino citizens within five years from the start of operations, either via securities exchange or cooperatives, to encourage public participation.
PT&T must submit an annual report to Congress on compliance and operations by April 30 each year, and failure to do so results in penalties.
A fine of five hundred pesos (P500.00) per working day of noncompliance, collected by the NTC to fund its monitoring activities.
The other provisions not affected shall remain valid and enforceable (Separability Clause).
No. The franchise is non-exclusive and subject to amendment, alteration, or repeal by Congress when the public interest requires.