Question & AnswerQ&A (Republic Act No. 8643)
Republic Act No. 8643 grants Globe Email Philippines, Inc., its successors or assigns, a franchise to construct, install, establish, maintain and operate radio communications stations in the Philippines for international and domestic public, fixed point-to-point and public aeronautical and land mobile communications, including coastal marine services, with vessels at sea and aircraft in the air within and outside the Philippines.
The operation of stations must result only in minimum interference on wavelengths or frequencies of existing or authorized stations without diminishing the grantee's right to use its selected frequencies or the quality of transmission or reception. Operation must maximize rendition of services and/or their availability.
The grantee must secure from the NTC the necessary certificate of public convenience or permits and licenses for location, construction, installation, and operation of its telecommunications systems. The NTC can impose conditions related to construction, operation, maintenance, or service level and regulates the use of radio frequencies.
No. The grantee shall not use any frequency without prior authorization from the National Telecommunications Commission.
The grantee must conform to honest enterprise ethics, must not use stations for obscene or indecent transmissions, dissemination of deliberately false information or willful misrepresentation, and must not assist in subversive or treasonable acts.
The President of the Philippines has the right to temporarily take over and operate, or suspend operations of, the grantee's stations or facilities in times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, with due compensation to the grantee.
The charges and rates for telecommunications services, except those declared non-regulated, are subject to the approval of the National Telecommunications Commission. Rates should be unbundled and set so that regulated services do not subsidize unregulated ones.
The franchise is granted for 25 years from the date of effectivity of the Act unless revoked or cancelled sooner. The franchise is revoked if the grantee fails to commence operations within one year from permit approval, operate continuously for two years, or commence operations within three years from the effectivity of the Act.
No. The franchise or the rights and privileges under it shall not be leased, transferred, sold, assigned, or merged without prior approval of the Congress of the Philippines. Any transferee shall be subject to the same conditions of the Act.
The grantee must offer at least 30% of its outstanding capital stock or a higher percentage as may be provided by law in a Philippine securities exchange within five years from the commencement of operations. Failure to comply results in automatic revocation of the franchise.
The grantee must pay real estate, building, and personal property taxes like other entities, plus a franchise tax of 3% per annum on gross receipts from business under the franchise. The grantee remains liable for income taxes under the National Internal Revenue Code.
The grantee must submit an annual report to Congress on compliance with franchise terms and its operations within 60 days from the end of each year.
If any section or provision is held invalid, the other provisions not affected remain valid and enforceable (Separability Clause).
No. It is subject to amendment, alteration, or repeal by Congress and is not exclusive. Other franchises of the same nature can be granted, and if more favorable terms are given later, the same privileges apply to this grantee (Equality Clause).
Non-acceptance of the franchise within 60 days after its effectivity renders the franchise void.