Question & AnswerQ&A (Republic Act No. 11759)
The franchise grants Derecho Telecommunications, Inc. the right to construct, install, establish, operate, and maintain wired and wireless telecommunications systems, including internet access and value-added services, throughout the Philippines for commercial purposes and public interest.
The Grantee must secure from the NTC a Certificate of Public Convenience and Necessity or the appropriate permits and licenses for the construction, installation, and operation of its telecommunications systems or facilities.
Stations or facilities shall be constructed and operated to cause only minimum interference on wavelengths or frequencies of existing or future stations, without diminishing the Grantee's own privilege to use assigned frequencies and ensuring quality transmission.
The Department of Public Works and Highways (DPWH) or the local government unit (LGU) concerned must approve such works prior to excavation or laying conduits.
The Grantee must not use its facilities for indecent transmission or false information, maintain and improve transmission quality, extend services to unserved and disaster-prone areas, and comply with relevant laws such as the Free Mobile Disaster Alerts Act.
Rates and charges are subject to approval by the NTC, must be unbundled and distinct among services, and regulated services should not subsidize unregulated services.
The President may temporarily take over, suspend operation, or authorize government use of the Grantee's stations and equipment during times of war, rebellion, calamity, or other public emergencies, with due compensation to the Grantee.
The franchise is valid for 25 years from effectivity unless revoked sooner. It can be revoked ipso facto if the Grantee fails to commence operations within prescribed periods or fails continuous operations for two years.
Failure to submit results in a fine of One million pesos (P1,000,000.00) per working day after implementation; in the interim, a fine of Five hundred pesos (P500.00) per working day payable to the NTC applies.
No, such actions require prior approval of Congress. Failure to report any change of ownership or control within 60 days after the transaction renders the franchise ipso facto revoked.
The Grantee must offer at least 30% of its outstanding capital stocks to Filipino citizens or encourage public participation by other means within five years from effectivity. Noncompliance results in ipso facto revocation of the franchise.
The Grantee must file a bond with the NTC to guarantee compliance with the franchise conditions. The bond is forfeited and franchise revoked if conditions are not met within three years of permit approval.
The Grantee is authorized to connect or demand connection of its telecommunications systems to those of other duly authorized entities under mutually agreed terms subject to NTC review and modification.
The Grantee holds the governments free from claims or liabilities arising from accidents causing injury or property damage during the construction or operation of its telecommunications stations and facilities.
The franchise is subject to amendment, alteration, or repeal by Congress when the public interest requires it and is not an exclusive grant of privileges.