Question & AnswerQ&A (Republic Act No. 8117)
Sealand Telecommunication Co., Inc. is granted the right and privilege to construct, install, establish, and operate radio stations in the Philippines for international and domestic ship-to-shore communications, including related relay stations within the country and with vessels at sea.
The President has the special right to take over and operate the stations, or authorize government use of them, without compensation to the grantee, during times of war, rebellion, or public peril.
The franchise is valid for twenty-five (25) years from the date of approval of the Act.
The franchise shall be void if at least one radio station is not operated within two (2) years from the date of approval of the Act.
The NTC must authorize the franchisee and allocate frequencies before operation. The NTC can also change, cancel, or modify the authority or frequency allotments if it finds interference issues, monopoly dangers, legal violations, or public interest reasons.
The franchisee must construct and operate its stations and select frequencies to avoid interference with existing stations and allow for future expansion of its services.
No, the grantee shall hold the national, provincial, and municipal governments free and harmless from all claims arising from accidents or injuries due to the construction or operation of the stations.
The franchisee must keep an account of its gross receipts and submit it annually to the Commission on Audit (COA) by January 31 of the succeeding year. The COA is authorized to inspect, audit, and approve the accounts.
No, any lease, transfer, sale, assignment, or merger requires prior approval from the Congress of the Philippines.
The franchisee must post a performance bond of Three hundred thousand pesos (P300,000) to guarantee fulfillment of the franchise conditions. The bond is cancellable and refundable after two years if conditions are met.
The franchisee is subject to all applicable taxes similar to other persons or corporations, and must pay an additional three percent (3%) of gross receipts from the franchise business annually, within ten days after accounts are audited and approved.
No, the franchise is not exclusive and the law does not preclude the grant of similar privileges to others.
Yes, Congress may amend, alter, modify, or repeal the franchise when public interest so requires.
The invalidity or illegality of any provision does not affect the remaining provisions, which shall continue to be in full force and effect.
The Act took effect fifteen (15) days after its publication in at least two newspapers of national circulation and lapsed into law on July 9, 1995, without the President's signature.