QuestionsQuestions (Republic Act No. 9002)
RA 9002 grants Click Communications, Inc. the franchise to construct, establish, install, maintain, lease, and operate (for commercial purposes and public interest) wire and/or wireless telecommunications systems throughout the Philippines and between the Philippines and other countries/territories, including specified types of services and related facilities.
The grantee must construct and operate facilities in a manner that results at most in minimum interference on relevant wavelengths/frequencies, without diminishing its own right to use selected frequencies and without reducing the quality of transmission/reception needed to maximize service.
The grantee must secure a certificate of public convenience and necessity or the appropriate permits/licenses from the NTC for location, construction, installation, and operation. The NTC may impose conditions, regulate construction/operation, and authorize use of frequencies; it must not unreasonably withhold or delay grants of such authorities.
For erecting poles/supports and laying underground wires/cables/conduits, the grantee may excavate or lay conduits only with prior approval of the Department of Public Works and Highways (DPWH).
It must repair and replace disturbed parts in a workmanlike manner according to DPWH standards. If it fails to repair after ten (10) days’ notice, DPWH may repair at double expense chargeable to the grantee.
The grantee must conform to honest enterprise ethics; must not use stations for obscene/indecent transmissions, disseminate deliberately false information or willful misrepresentation, or assist subversive/treasonable acts. It must also provide basic/enhanced telephone service in municipalities where it has an approved local exchange certificate, without discrimination, and must maintain/operate equipment satisfactorily and modify/improve as economically and practicably possible.
Charges/rates for telecommunications services (except those declared nonregulated in the future) must be approved by the NTC or its legal successor; regulated services must not subsidize unregulated ones; rates must be unbundled, separable, and distinct among services offered.
In times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, the President may temporarily take over and operate the grantee’s stations/equipment, temporarily suspend their operation for public safety/security/welfare, or authorize government agencies to temporarily use/operate them, with due compensation to the grantee.
It states that radio spectrum is finite national patrimony and that use is a privilege conferred by the State that may be withdrawn anytime after due process.
The franchise term is twenty-five (25) years from the date of effectivity, unless sooner revoked/cancelled. It is deemed ipso facto revoked if the grantee: (1) fails to commence operations within three (3) years from NTC approval of operating permit/provisional authority; (2) fails to operate continuously for two (2) years; or (3) fails to commence operations within five (5) years from effectivity of the Act.
Acceptance must be given in writing within sixty (60) days from effectivity. Upon acceptance, the grantee may exercise franchise privileges. Nonacceptance renders the franchise void.
The grantee must file a bond in favor of the NTC to guarantee compliance. After five (5) years from permit approval, if it fulfilled conditions, the bond is cancelled; otherwise, the bond is forfeited in favor of the government and the franchise ipso facto revoked.
The grantee may connect or demand connection of its systems to other duly authorized telecommunications systems in the Philippines for extended/improved services. Terms are mutually agreed upon but subject to NTC review/modification.
The grantee is subject to the National Internal Revenue Code (NIRC) of 1997 as amended and other applicable laws, without repealing existing specific tax exemptions/incentives; it also extends existing/future telecommunications rights/benefits/exemptions to the grantee.
Section 13 requires a separate account of gross receipts and furnishing COA and the National Treasury copies not later than January 31 each year for the preceding twelve (12) months. Section 14 requires books/accounts always open to COA inspection and submission of two (2) copies of quarterly reports on gross receipts, net profits, and general condition of business.
The grantee cannot lease, transfer, grant usufruct, sell, or assign the franchise/rights, nor merge, nor transfer controlling interest to another entity without prior approval of Congress. Any transferee must be subject to the same conditions and limitations.
To encourage public participation, the grantee must offer at least 30% of its outstanding capital stock (or higher if required by later law) in a securities exchange within five (5) years from commencement of operations. Noncompliance renders the franchise ipso facto revoked.
Any advantage, favor, privilege, exemption, or immunity granted under existing or future franchises (unless limited by territory, franchise life, or type of service) automatically becomes part of previously granted franchises and must be accorded immediately and unconditionally to their grantees.
Separability (Sec. 19) preserves validity of unaffected provisions if one part is held invalid. Repealability/nonexclusivity (Sec. 20) allows Congress to amend/alter/repeal when public interest requires and clarifies the franchise is not an exclusive grant of privileges.