Question & AnswerQ&A (Republic Act No. 8165)
AZ Communications Network, Inc. is granted the franchise under Republic Act No. 8165.
The franchise authorizes the grantee to construct, install, operate, and maintain radiotelephone and radiotelegraph communication stations for commercial public service within the Philippines.
The grantee may provide radiotelegraph and/or radiotelephone communication services including inter-island, maritime, aeronautical, and international public services, national and/or international.
The grantee must secure appropriate permits and licenses from the National Telecommunications Commission (NTC) and must not use any radio frequency without the Commission's authorization.
The grantee must conform to ethics of honest enterprise and shall not use its stations for obscene or indecent transmissions, dissemination of false information, willful misrepresentation, or subversive or treasonable acts.
Service rates, excluding sale or lease of equipment, must be approved by the National Telecommunications Commission or its legal successor.
The President may temporarily take over the stations during times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, 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.
The franchise shall be deemed ipso facto revoked if the grantee fails to operate continuously for two (2) years.
The grantee must pay taxes on real estate, buildings, and personal property as other persons or corporations, and pay a franchise tax of three percent (3%) on gross receipts from the business under this franchise, plus income taxes under relevant laws.
No, the grantee cannot lease, transfer, grant usufruct, sell, or assign the franchise or controlling interest without prior approval from the Congress of the Philippines.
The grantee holds the national, provincial, and municipal governments harmless from claims arising from accidents or injuries caused by the construction or operation of its stations and facilities.
No, the franchise is non-exclusive and may be amended, altered, or repealed by Congress as public interest requires.
The grantee must submit an annual report to Congress within sixty (60) days after the end of each year detailing compliance and operations under the franchise.
The Act took effect fifteen (15) days after its publication in at least two newspapers of general circulation.