Question & AnswerQ&A (DOH ADMINISTRATIVE ORDER NO. 90)
Republic Act No. 9216 grants the Panay Telephone (Pantelco II) Corporation II a franchise to construct, establish, install, maintain, and operate local exchange networks and provide basic telephone services across specified cities and municipalities in the provinces of Iloilo, Antique, and Capiz.
The franchise covers the City of Passi, and municipalities of Calinog, Lambunao, DueAas, San Rafael, San Enrique, and Pototan in Iloilo; municipalities of San Jose de Buenavista, Hamtic, and Sibalom in Antique; and the municipality of Tapaz in Capiz.
The grantee shall operate its stations and facilities to minimize interference on other wavelengths or frequencies while maximizing the quality of its own service, and the radiated power shall not exceed what is necessary to cover its authorized area.
Yes. The grantee must secure a certificate of public convenience and necessity or appropriate permits from the NTC for the construction, installation, and operation of its telecommunications systems.
Pantelco II must adhere to honest enterprise ethics, avoid obscene or false transmissions, provide services without discrimination according to application date and capacity, maintain equipment satisfactorily, and update systems with technological advances when practicable.
The National Telecommunications Commission or its legal successor regulates the rates and charges for regulated telecommunications services provided by the grantee, ensuring rates are unbundled and services do not cross-subsidize unregulated ones.
In times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, the President may temporarily take over, suspend operation, or authorize government use of the grantee's stations or equipment, with due compensation to the grantee.
The franchise is granted for twenty-five (25) years from the date of effectivity of the Act, unless sooner revoked or cancelled due to non-compliance with specific conditions such as commencement and continuity of operations.
The franchise shall be ipso facto revoked if the grantee fails to commence operations within three years from NTC approval, operate continuously for at least two years, or commence operations within five years from the Act’s effectivity.
No. Any lease, transfer, sale, usufruct, assignment, merger, or transfer of controlling interest requires prior approval of the Congress of the Philippines, and any such person or entity acquiring the franchise is subject to the same conditions.
The grantee must offer at least 30% of its outstanding capital stock or a higher percentage as provided by law in any securities exchange in the Philippines within ten years from commencement of operations, or else the franchise will be revoked.
The grantee is subject to payment of all taxes, duties, fees, or charges under the National Internal Revenue Code and other laws, and must file tax returns where its facilities are located. It must also keep separate accounts of gross receipts and provide copies to the Commission on Audit and National Treasury annually.
If the grantee does not comply with the conditions for five years and fulfill the bond requirements determined by the NTC, the bond may be forfeited in favor of the government and the franchise is ipso facto revoked.
The grantee is authorized to connect or demand connection to any other telecommunications system operated by authorized entities in the Philippines to provide extended and improved services under mutually agreed terms subject to Commission review.
The grantee must submit an annual report to the Congress of the Philippines on its compliance with the franchise terms and on its operations within sixty days after the end of every year.