Question & AnswerQ&A (Republic Act No. 5514)
The Philippine Communications Satellite Corporation is granted the franchise under Republic Act No. 5514.
The franchise allows the corporation to establish, construct, maintain, and operate station or stations and associated equipment for international satellite communications, including ground satellite terminal stations for telecommunication with satellite facilities.
The corporation is authorized to exercise the right of eminent domain to acquire private property necessary for its operations, subject to proper condemnation proceedings and just compensation.
The franchise is valid for twenty-five years from the approval date of the Act, unless earlier terminated.
The President exercises supervision and control over the corporation's relationships with foreign governments or international bodies to ensure consistency with national interests and policies, and may require use of the facilities for general governmental purposes when necessary.
No, the Public Service Commission does not have jurisdiction; however, the corporation must not charge rates higher than those authorized by the Public Service Commission for voice or data services to overseas telecommunications carriers.
The government, directed by the President, can take over and operate the stations without compensating the corporation during war, insurrection, or national emergency periods.
The corporation must pay the same taxes on real estate, buildings, and personal property as others, plus an additional 5% of its gross receipts from its satellite transmission business in lieu of other taxes. It is exempt from customs duties on imports for its earth stations.
The franchise cannot be leased, transferred, sold, or assigned to any person or entity except a government branch or instrumentality, without prior approval from Congress. Management contracts require Presidential approval and must involve citizens owning at least 60% of capital.
The corporation must keep a separate account of gross receipts from satellite transmission business and submit a copy to the Auditor General and the Treasurer of the Philippines annually by April 30 for the preceding 12 months.
The corporation must execute a bond of fifty thousand pesos in favor of the government to guarantee faithful performance of obligations during the first three years of the franchise, which is cancellable after obligations are fulfilled.
Yes, the franchise is subject to amendment, alteration, or repeal by Congress when public interest so requires.
The grantee shall hold the national, provincial, and municipal governments harmless from all claims, demands, or actions arising from accidents or injuries caused by the construction or operation of its stations.