QuestionsQuestions (DAR ADMINISTRATIVE ORDER NO. 03, S. 2010)
CA 386 grants Philippine Press Wireless, Inc. (and its successors/assigns) a franchise to construct, maintain, and operate wireless stations for the reception and transmission of wireless long-distance messages, pictures, or other press-related matter intended for publication, including by public press and broadcast radio-news.
Each station may consist of two plants: a sending station and a receiving station.
Yes. The franchisee may establish in any province a station for the master receiving and transmitting plant. If landline facilities are unavailable, it may establish smaller plants in Manila or nearby points where landline service is available to handle wireless traffic relayed to/from the master station.
Section 3 provides that the franchise is void unless construction of the master station is started within one year from the date of issuance of the required license and completed within two years.
Under Section 5, the franchise shall not take effect until the President allots the frequencies and wavelengths and determines the stations they may be used with, and issues a license for such use. The grantee must begin operation within three years from issuance of that license.
On reasonable notice, the President may change, cancel, or modify in whole or in part frequency/wavelength allotments and any related license, based on the grounds stated in Section 6.
The President may act (a) to prevent impairment of electrical communication, stifling competition, monopoly/without unreasonable rates, or other violations of public policy; (b) if the public interest requires use for other purposes by the Commonwealth or other licensed individuals/corporations; or (c) for any reason where the public interest of the Philippines so requires.
They may summon witnesses, administer oaths, and take evidence through compulsory process of subpoena.
The grantee must construct and operate its wireless station(s) so as not to interfere with the operation of other radio stations maintained and operated in the Philippines.
Section 8 reserves to the President of the United States (in time of war/insurrection/domestic trouble) the right to take over and operate the station upon order/direction of the U.S. State Department, with the U.S. Government paying and compensating the grantee for the use during such operation. It also reserves a similar right to the Commonwealth of the Philippines under similar circumstances and upon order/direction of the President of the Commonwealth.
Section 9 reserves to the Government of the Commonwealth of the Philippines through the Public Service Commissioner (or other authorized officer) the power to fix maximum rates to be charged by the franchisee for services under the franchise.
The franchisee must keep an account of gross receipts and furnish a copy to the Auditor General and the Treasurer of the Philippines not later than January 31 of each year for the preceding year. Its books and accounts are subject to official inspection by the Auditor General.
In the absence of fraud or mistake, the audit and approval by the Auditor General of the accounts rendered is final and conclusive evidence of the amount of gross receipts.
The franchisee pays taxes on real estate, buildings, and personal property (exclusive of the franchise) like other persons/corporations. It also pays the Treasurer of the Philippines 1.5% of all gross receipts for business transacted under the franchise in the Philippines, within ten days after audit/approval—stated to be in lieu of all taxes on the franchise or earnings thereof.
Section 12 requires the grantee to hold harmless the Commonwealth, provincial, and municipal governments from claims/actions arising from accidents or injuries to property or persons caused by the construction or operation of the stations.
The grantee cannot take private property without proper condemnation proceedings and just compensation. Upon termination, revocation, or repeal of the franchise, lands or rights of use/occupation granted revert to the government unit (Commonwealth or the concerned province/municipality) that owned the rights at the time concession was granted.
The grantee cannot issue stock or bonds except in exchange for actual cash or property at fair valuation equal to the par value. It also cannot use/employ/contract for labor of persons alleged to be held in involuntary servitude.
Section 15 requires a bond in favor of the Government of the Philippines in the sum of P25,000, conditioned on faithful performance of obligations during the first three years. Section 16 provides the bond (with written acceptance) must be given within six months after approval and filed with the Secretary of Public Works and Communications. The bond is cancelled by the Secretary if obligations are fulfilled after three years (or so soon thereafter as fulfilled).
Section 17 states the franchise is subject to the Constitution and should not be interpreted to mean an exclusive grant of the privileges provided.