QuestionsQuestions (Republic Act No. 10895)
It authorizes the grantee to construct, install, establish, operate and maintain (for commercial purposes and in the public interest) wire and/or wireless telecommunications systems throughout the Philippines and between the Philippines and other countries/territories, including international/domestic exchange and gateway facilities, submarine cable landing stations, mobile cellular, and various transmission systems and related value-added services.
The stations/facilities must be constructed and operated in a manner that results in only minimum interference on the wavelengths/frequencies of existing stations or those established by law, without diminishing the grantee’s assigned wavelength/frequency privileges and the quality of transmission/reception.
It must secure from the NTC a Certificate of Public Convenience and Necessity (or the appropriate permits/licenses) for the construction, installation, and operation of its telecommunications systems/facilities, including authorization for any use of frequencies in the radio spectrum.
Yes. The NTC may impose conditions related to construction, operation, maintenance, or service level and regulate the construction and operation. However, it shall not unreasonably withhold or delay the grant of the authority/permit/license.
The grantee may make excavations or lay conduits in public places/roads/etc. with prior approval of DPWH or the concerned LGU, and it must repair/replace disturbed areas in a workmanlike manner per DPWH/LGU standards. If it fails after a 10-day notice, DPWH/LGU may repair at double expense chargeable to the grantee.
The grantee must conform to honest enterprise ethics and not use facilities for obscene/indecent transmissions or deliberately false information/willful misrepresentation, nor for subversive or treasonable acts. It must also provide basic/enhanced telephone service in cities/municipalities where it has an approved CCN for local exchange service, without discrimination, and manage service capacity by increasing when demand exceeds capacity (with certain limits and NTC-determined conditions).
Charges/rates (except those later declared as nonregulated) require NTC approval. Rates must be unbundled, separable, and distinct among services, ensuring regulated services do not subsidize unregulated ones.
In times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace/order, the President may temporarily take over and operate, temporarily suspend operation, or authorize temporary use/operation by a government agency, upon due compensation to the grantee.
It is effective for 25 years from the effectivity of the Act unless sooner cancelled. It is deemed ipso facto revoked if it fails to (a) commence operations within 1 year from NTC approval of its operating permit, (b) commence operations within 3 years from Act effectivity, or (c) operate continuously for 2 years.
Acceptance must be given in writing to Congress through the proper committees within 60 days from effectivity. Upon acceptance, the grantee may exercise the franchise privileges. Nonacceptance renders the franchise void.
The grantee must file a bond with the NTC to guarantee compliance with franchise conditions. If after 3 years from NTC permit approval it has fulfilled the conditions, the bond is cancelled; otherwise, it is forfeited in favor of the government and the franchise is ipso facto revoked.
The grantee may connect or demand connection to other duly authorized telecommunications systems to provide extended and improved services. Terms/conditions are mutually agreed by the parties but are subject to review/modification by the NTC.
The grantee must keep a separate account of gross receipts and furnish COA and the National Treasury a copy of such account not later than January 31 of each year for the preceding 12 months.
Books/accounts must always be open to COA inspection. The grantee must submit to COA two copies of quarterly reports on gross receipts, net profits, and the general condition of the business.
The grantee must hold national, provincial, city, and municipal governments free from claims/accounts/actions arising out of accidents or injuries (to persons or property) caused by the grantee’s construction or operation.
The grantee cannot sell/lease/transfer/grant usufruct/assign/merge or transfer controlling interest without prior approval of Congress. Congress must be informed within 60 days after completion. Failure to report such change of ownership renders the franchise ipso facto revoked, and any transferee must be subject to the same conditions.
The grantee must offer at least 30% (or higher if later required by law) of outstanding capital stock to Filipino citizens in a securities exchange within 5 years from commencement of operations; if public offer is not applicable, it must implement cooperatives operating public utilities. Noncompliance results in ipso facto revocation.
The grantee must submit an annual report to Congress on compliance and operations on or before April 30 each year during the franchise term; Congress issues a report compliance certificate required before NTC accepts any permit/certificate application. Failure to submit the annual report is penalized with a fine of PHP 500 per working day of noncompliance, collected by NTC separate from NTC’s reportorial penalties.