Question & AnswerQ&A (Republic Act No. 8280)
The New Century Telecoms, Inc., its successors or assigns, is granted the franchise under Republic Act No. 8280.
The primary purpose is to construct, establish, install, maintain and operate commercial mobile and fixed wireless telecommunications systems in the Philippines for public domestic and international telecommunications.
The franchise covers mobile and fixed wireless telecommunications systems such as paging systems, cellular telephone systems, personal communications networks, trunked radio services, and other means related to these technologies.
The stations or facilities must be constructed and operated to result only in minimum interference with existing or legally established stations, without diminishing the grantee's right to use selected wavelengths or frequencies or the quality of transmission or reception.
The NTC must grant a certificate of public convenience or appropriate permits and licenses for telecommunications operations and may impose conditions on construction, operation, and maintenance. It regulates the systems, authorizes frequency use, and reviews interconnection agreements.
The grantee shall not use any frequency in the radio spectrum without authorization from the National Telecommunications Commission.
The grantee must adhere to honest enterprise ethics, avoid obscene or false transmissions, provide basic or enhanced telephone services without discrimination, maintain and improve facilities, and meet demand within capacity or as approved.
Rates for telecommunications services (except non-regulated services) must be approved by the NTC, unbundled and distinct for services offered, ensuring regulated services do not subsidize unregulated ones.
In times of war, public peril, calamity, emergency, or disturbance of peace, the President may temporarily take over, suspend, or authorize government use of the grantee's facilities with due compensation.
The franchise is granted for twenty-five (25) years from the date of the Act's effectivity unless revoked or cancelled earlier.
The franchise is automatically revoked if the grantee fails to commence operations within 3 years from NTC permit approval or within 5 years from the Act's effectivity or fails to operate continuously for 2 years.
The grantee must accept the franchise in writing within sixty (60) days from the Act's effectivity, or else the franchise becomes void.
The grantee must file a bond guaranteeing compliance with the franchise conditions. If conditions are met after 5 years, the bond is canceled; otherwise, it is forfeited and the franchise revoked.
The grantee is authorized to connect or demand connection to other authorized telecommunications systems in the Philippines under mutually agreed terms, subject to NTC review or modification.
The grantee must pay taxes on real estate, buildings, and personal property, a franchise tax or equivalent VAT on gross receipts of telecommunications business, and continue paying income tax as required by law.
The grantee must keep a separate account of gross receipts and submit copies to the Commission on Audit and National Treasury annually. Quarterly reports on gross receipts, net profits, and business conditions must also be submitted to the Commission on Audit.
The grantee shall hold the government harmless from all claims arising from accidents or injuries related to the construction or operation of its stations, transmitters, facilities, and equipment.
No, the grantee cannot transfer, assign, lease, grant usufruct of, sell, merge, or transfer controlling interest of the franchise without prior approval of Congress.
The grantee must offer at least 30% of its outstanding capital stock in any securities exchange within 5 years from commencement of operations, to encourage public participation in public utilities; failure results in automatic franchise revocation.
No, the franchise is non-exclusive and subject to amendment, alteration, or repeal by the Congress when public interest requires.