Question & AnswerQ&A (Republic Act No. 872)
The franchise is granted for a period of fifty years from the approval of the Act.
The right and privilege to construct, maintain, and operate a telephone system in the City of Cavite, including using public streets for installation of necessary apparatus for electrical transmission of conversations and signals.
All poles and conduits must be located with the approval of the municipal board, must not disfigure streets, wires must be placed according to professional standards approved by the Public Service Commission, and poles should maintain wires at least fifteen feet above the ground for public safety.
Whenever twenty-five or more pairs of wires are carried on poles in the poblacion, the wires must be placed in one cable; if more than eight hundred pairs are carried, the wires must be placed underground upon order of the Public Service Commission.
Upon at least 48 hours' notice from the municipal board, the grantee must raise or remove any wires or conduits obstructing such works, with half the replacement cost paid by the requesting party; failure to comply allows the city mayor to order the work done at the grantee's expense.
All apparatus must be modern and first class, and the telephone system must be kept in satisfactory condition to provide efficient and adequate service, with required modifications as the progress of science may dictate and as ordered by the Public Service Commission.
The grantee must pay the same taxes as others on real estate, buildings, and personal property, and in addition, one percent of all gross receipts from the telephone business annually as a tax in lieu of other franchise taxes.
The grantee must file an application with the Public Service Commission for a certificate of convenience and public necessity; failure to do so voids the franchise.
No; the grantee must obtain a certificate of convenience and public necessity before commencing construction or exercising rights under the franchise.
The Public Service Commission may declare the certificate null and void and the deposit forfeited to the National Government, unless prevented by fortuitous causes like acts of God, martial law, or other exceptional circumstances.
The grantee must deposit one thousand pesos or equivalent government bonds or securities as earnest of good faith and guaranty for readiness to operate within six months.
The deposit shall become the property of the National Government as liquidated damages, and no interest will be paid on such deposit thereafter.
No, the rights are not exclusive; the government or other entities may grant similar franchises, provided that subsequent installations do not impair the existing service, with provisions for resolving conflicts by the Public Service Commission.
The grantee must hold the national, provincial, city, and municipal governments harmless from all claims, demands, or actions arising out of accidents or injuries caused by the telephone system.
The Public Service Commission approves all rates, both flat and measured rates, including monthly rates for telephones having metallic circuits within the city.
No, not without the previous and explicit approval of the Congress of the Philippines.
The government may use one ten-pin crossarm without compensation and install telegraph wires; for additional crossarms and wires, rental rates must be agreed upon or fixed by the Public Service Commission if parties disagree.
The city may use one standard crossarm without compensation for a police and fire alarm system, with wires placed to avoid interference or damage to the grantee’s telephone wires.
The grantee shall purchase the city's property and rights at an agreed price; if no agreement is reached, the Public Service Commission will determine a reasonable price, and its decision shall be final.
If the Philippine government desires to operate the system itself, the grantee must surrender the franchise and turn over the system and serviceable equipment at cost less reasonable depreciation.