QuestionsQuestions (Republic Act No. 7633)
RA 7633 amends RA 3259 (as amended by RA 4905) to extend the franchise term for the International Communications Corporation, extending it by twenty-five (25) years from the expiration on August 9, 1996.
The grantee is authorized to establish telecommunications systems for international and domestic public communications, including radio, telegraph, telephone, facsimile, data, voice, audio and video services, and to use lines, circuits, satellites, wire and/or wireless, to transmit and receive various forms of signals and information throughout the Philippines and foreign countries (including ships, airplanes, and other conveyances), using electricity, electromagnetic waves, optics, or any other energy/medium.
It makes a CPCN a condition precedent. The grantee cannot begin construction nor exercise franchise rights without a CPCN from the National Telecommunications Commission (NTC) or its legal successor.
The NTC (or its legal successor) approves the rates. This is in Section 4 of RA 7633.
The grantee must make at least 30% of its common stock publicly available through stock exchanges within three (3) years from effectivity, and no single person or entity may own more than 5% of the stock.
The grantee must secure appropriate permits and licenses from the NTC and must not use any frequency without authorization by the NTC.
The grantee must construct and operate in a manner that results in minimum interference on the wavelengths/frequencies of existing stations or other stations established under law, without diminishing its own right to use selected frequencies and without reducing the quality of transmission or reception.
The grantee must operate and maintain telecommunications lines and systems satisfactorily at all times and, when required by the NTC, modify/improve/change the system reasonably to keep abreast with progress in the telecommunications services.
The grantee must hold national, provincial, city, and municipal governments harmless from claims, accounts, demands, or actions arising from accidents or injuries (to property or persons) caused by the construction or operation of the grantee’s stations.
In times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, the President may take over and operate transmitting/receiving/switching stations or authorize temporary government use, upon due compensation to the grantee, during the period of such operation.
The grantee must keep an account of gross receipts and furnish the Commissioner on Audit and the Treasurer of the Philippines with copies not later than January 31 of each year for the preceding year. Books and accounts are subject to official inspection by the Commission on Audit.
It imposes a franchise tax equivalent to 3% of all gross receipts from telephone or other telecommunications businesses under the franchise, in lieu of all taxes on the franchise. However, the grantee continues to be liable for income taxes under Title II of the NIRC pursuant to Executive Order No. 72 unless amended or repealed.
If the grantee’s CPCN is revoked or suspended by the Commission, or if an authorized temporary operator willfully discontinues or abandons operations causing irreparable damage and serious inconvenience to the public.
Section 13 authorizes the NTC, after due notice and hearing, to order the grantee to allow interconnection of its facilities with other duly authorized telecommunications operators, with terms and conditions the Commission deems proper and reasonable in the interest of public good.
The grantee may not lease, transfer, grant usufruct of, sell, or assign the franchise/rights acquired, nor merge for the same purpose, except where the grantee is the surviving corporation, and in any case requires prior approval of Congress of the Philippines.
No. Section 17 expressly states the franchise shall not be interpreted as an exclusive grant of the privileges provided.
If the grantee fails to file the written acceptance within 60 days (or within the limited time allowed), the Act becomes null and void.
It repeals all other provisions, terms, and conditions in RA 3259 that are inconsistent with RA 7633.