Question & AnswerQ&A (Republic Act No. 7961)
The franchise is granted for a period of twenty-five (25) years from the approval of the Act.
CRUZTELCO is authorized to provide telecommunications services including mobile, cellular, wired or wireless telecommunications systems, fiber optics, satellite systems, and value-added services such as transmission of voice, data, facsimile, control signals, audio and video.
The grantee must secure a certificate of public convenience or appropriate permits and licenses from the National Telecommunications Commission (NTC).
CRUZTELCO shall provide telephone service in any area where it has an approved certificate of public convenience without discrimination and operate and maintain its telecommunications equipment satisfactorily at all times.
Yes, CRUZTELCO may acquire private property necessary for its operations through proper proceedings and upon payment of just compensation if the owner refuses to sell or allow use.
Yes, it is lawful for CRUZTELCO to make excavations or lay conduits in public places like streets and sidewalks, provided it repairs any damage in a workmanlike manner to the satisfaction of relevant authorities.
If a subsequent telecommunications franchise granted by Congress has more favorable terms, CRUZTELCO is entitled to the same privileges and advantages ipso facto.
No, any lease, transfer, sale, assignment, or merger involving the franchise requires prior approval from the Congress of the Philippines.
CRUZTELCO must pay regular taxes on property and a franchise tax of three percent (3%) of gross receipts from the franchise operations, in lieu of all taxes on the franchise or earnings, except for income taxes.
Telecommunication service rates must be approved by the NTC, be unbundled, and set so that regulated services do not subsidize unregulated services.
The franchise shall become null and void if CRUZTELCO does not file written acceptance within 90 days after the Act's effectivity.
The security deposit of ₱100,000 made by CRUZTELCO shall be forfeited in favor of the government as liquidated damages, except for force majeure causes.
CRUZTELCO must submit an annual report to Congress within 60 days from the end of every year on its operations and compliance with franchise terms.
Yes, in cases such as war or rebellion, the government may operate the telecommunications facilities temporarily with just compensation to CRUZTELCO.
No, the franchise is nonexclusive and subject to amendment or repeal by Congress when public interest requires.