QuestionsQuestions (Republic Act No. 4760)
The main purpose of Republic Act No. 4760 is to grant the Sorsogon Telephone System a franchise to install, operate, and maintain a telephone system in the Province of Sorsogon for 25 years.
The grantee is authorized to use all streets and public thoroughfares of the province to construct, maintain, and operate all necessary apparatus, conductors, and appliances for electrical transmission of conversations and signals. This includes erecting poles, stringing wires, building conduits, and laying cables either overhead or underground.
All poles must be approved by the provincial board and meet the aesthetic standards to avoid disfiguring streets. Wires and cables must meet professional standards approved by the Public Service Commission, be at least fifteen feet above ground, not endanger public safety, and be placed underground when carrying large numbers of wire pairs as ordered by the Public Service Commission.
The grantee must repair and restore any public places, highways, streets, alleys, lanes, sidewalks, or bridges disturbed by their work to the satisfaction of the provincial engineer, removing all rubbish and leaving the areas in as good condition as before the work.
The grantee must raise or remove wires or conduits upon notice from the provincial board to allow unobstructed work or building removal. The party requesting the removal must pay half the actual cost of replacing or raising the infrastructure. Failure of the grantee to comply allows the provincial governor to order the removal at the grantee's expense.
The grantee must use modern, first-class apparatus and maintain telephone lines and installations in a satisfactory manner to provide efficient and adequate service. They must also improve and update the system as required by advancements in technology when mandated by the Public Service Commission.
The grantee must pay the same property taxes as others on real estate and personal property, excluding the franchise. Additionally, it must pay 1% of its gross receipts from the telephone business annually to the Treasurer of the Philippines in lieu of all franchise taxes.
The grantee must apply for this certificate within 60 days of the Act's approval and cannot commence construction or operations without it. Failure to apply or comply leads to the franchise becoming null and void, and deposits made can be forfeited as liquidated damages unless prevented by force majeure.
No. The franchise is not exclusive. The government can grant other franchises, but subsequent franchises must not impair the efficiency of the existing telephone service, and removal or relocation of infrastructure can be compelled by the Public Service Commission with cost compensation provisions.
No. The grantee may not transfer, sell, or assign the franchise directly or indirectly to any person or entity without prior explicit approval from the Congress of the Philippines.
The Philippine government can use one ten-pin crossarm without compensation to install telegraph wires and can place additional wires with compensation agreed upon or fixed by the Public Service Commission. The Province of Sorsogon may use one standard crossarm without compensation for police and fire alarm wires that cause no interference with the telephone service.
The grantee must surrender its franchise and turn over the system and all serviceable equipment to the government at cost less reasonable depreciation.
If the grantee fails to start the telephone service within twelve months after the issuance of the certificate without valid excuse (force majeure or similar causes), the deposit made with the government shall be forfeited as liquidated damages and the franchise may be declared void by the Public Service Commission.
The grantee must keep separate accounts of gross receipts, submit annual copies to the Auditor General and Treasurer by July 31, and also submit quarterly reports to the Auditor General showing gross and net receipts and business condition. Their books must be open to inspection by the provincial auditor or authorized representatives.
All telephone service rates, including flat and measured rates, must be approved by the Public Service Commission. Monthly rates for telephone service with metallic circuits within the province are also subject to the Commission’s approval.