QuestionsQuestions (Republic Act No. 9714)
RA 9714 amends the franchise of Express Telecommunications Co. Inc. (formerly Felix Alberto and Company, Incorporated) originally granted under RA 2090, and renews/extends the franchise term for another twenty-five (25) years from the date of effectivity of RA 9714.
It authorizes the grantee to construct, install, establish, operate and maintain for commercial purposes telecommunications systems (wireless/wire and including mobile, cellular, paging, fiber optics, MMDS, LMDS, satellite transmit/receive, switches, and value-added services), and/or to construct/acquire/lease/operate/manage transmitting and receiving stations, lines, cables, systems and related facilities nationwide and between the Philippines and other countries/territories.
Stations/facilities must be constructed and operated to result in only the minimum interference on relevant wavelengths/frequencies, without diminishing the grantee’s right to use selected frequencies and without impairing the quality of transmission/reception; operations should maximize service rendition and/or availability.
The grantee must secure the appropriate NTC certificate of public convenience and necessity and/or permits/licenses before construction/operation. NTC may impose conditions on construction, operation, maintenance, or service level, regulate construction/operation, authorize frequency use, and must not unreasonably withhold or delay issuance.
With prior approval of the DPWH, the grantee may make excavations or lay conduits in public places, highways, streets, lanes, alleys, avenues, sidewalks, or bridges.
If after ten (10) days written notice the grantee fails/refuses/neglects to repair or replace, DPWH may repair and restore the disturbed part at double the expense of the grantee.
It must provide basic or enhanced telephone service in municipalities within the coverage of its approved certificate, without discrimination among applicants in order of application date, up to the capacity of its local exchange; if demand increases beyond capacity, it must increase capacity to meet demand.
If the total demand to be satisfied by expansion is less than the smallest viable local exchange determined by NTC/Commission, the grantee is not obliged unless the applicant defrays the actual expenses for installing the telecommunications apparatus needed; in that case, the Commission may extend the time for furnishing service.
Charges and rates for telecommunications services (except those later declared nonregulated) require NTC approval. Rates must be unbundled/separable/distinct so regulated services do not subsidize unregulated ones.
The President may temporarily take over and operate stations/facilities/equipment, temporarily suspend station operations, or authorize temporary use/operation by government agencies, upon due compensation to the grantee.
The grantee must file a bond in favor of NTC, whose amount ensures compliance with franchise conditions. If after five (5) years from approval of permits by the Commission the grantee fulfilled the conditions, the bond is cancelled; otherwise, forfeited in favor of the government.
The grantee is authorized to connect or demand connection of its systems to other duly authorized telecommunications systems in the Philippines for improved extended services, under mutually agreed terms subject to NTC review/modification.
It must keep separate accounts of gross receipts and furnish a copy to Commission on Audit and National Treasury not later than January 31 each year for the preceding 12 months; its books/accounts must be open to COA inspection, and it must submit two (2) copies of quarterly reports on gross receipts, net profits, and general condition of business.
The franchise and rights/privileges cannot be leased, transferred, assigned, usufructed, sold, merged, or have controlling interest transferred without prior approval of Congress; any entity that validly acquires the franchise becomes subject to the same conditions and limitations.
Within five (5) years from commencement of operations, the grantee must offer at least 30% of its outstanding capital stock (or higher if later required by law) in a Philippine securities exchange.
Any advantage/favor/privilege/exemption/immunity in existing or future telecommunications franchises becomes part of this franchise and must be granted immediately and unconditionally, except it does not apply to provisions concerning territory, franchise life span, or type of service authorized.
The franchise term is 25 years from the date of effectivity. It is deemed ipso facto revoked if the grantee fails to operate continuously for two (2) years.
Acceptance must be given in writing within sixty (60) days from the date of effectivity of the Act.
Separability: if any section/provision is held invalid, the remaining provisions remain valid. Repealability/nonexclusivity: Congress may amend/alter/repeal when public interest requires; the franchise is not an exclusive grant of the privileges.
It lapsed into law on September 3, 2009 without the President’s signature, citing Article VI, Section 27(1) of the Constitution (i.e., if the President does not sign within the constitutionally prescribed period, the bill becomes law as if signed).