Question & AnswerQ&A (Republic Act No. 9707)
The franchise allows Converge to construct, install, establish, operate, and maintain wire and/or wireless telecommunications systems throughout the Philippines and between the Philippines and other countries, including mobile, cellular, fiber optics, satellite systems, and other telecommunications technologies, for commercial purposes and in the public interest.
They must be constructed and operated in a manner that results in minimal interference with existing or future stations and must maximize service rendition and availability.
The NTC has the power to issue certificates of public convenience and permits, regulate construction and operation, impose service conditions, and authorize frequency use. The grantee must obtain NTC approval before using any radio spectrum frequency.
The grantee may make excavations or erect poles and supports in public places, highways, streets, or sidewalks with prior approval from the Department of Public Works and Highways (DPWH), and must repair any alterations in a workmanlike manner to DPWH standards.
The grantee must adhere to ethical standards, avoid obscene or false transmissions, not aid subversive acts, provide telephone service without discrimination, operate efficiently, and upgrade its technology as economically and practicably possible.
Rates for regulated telecommunications services are subject to NTC approval and must be unbundled and separated according to the types of services. Regulated services must not subsidize unregulated ones.
In times of war, rebellion, public peril, or emergency, the President may temporarily take over or suspend the operation of facilities for public safety, with due compensation to the grantee.
The franchise is granted for 25 years from effectivity. It is revoked if the grantee fails to commence operations within three years from NTC permit approval, fails to operate continuously for two years, or fails to commence operations within five years from the law's effectivity.
The franchise cannot be leased, transferred, sold, assigned, merged, or have its controlling interest transferred without prior approval from Congress.
At least 30% of the grantee's outstanding capital stock must be offered to public participation through securities exchange, in line with constitutional provisions. Noncompliance voids the franchise ipso facto.