Question & AnswerQ&A (ADMINISTRATIVE ORDER NO. 2018-05)
Streamtech Systems Technologies Inc. is granted the franchise under Republic Act No. 11089.
The franchise authorizes the grantee to construct, install, establish, operate, and maintain telecommunications systems including international gateway facilities, wire and/or wireless telecommunications systems, broadband, mobile and cellular networks, fiber optics, value-added services, and related infrastructure throughout the Philippines for commercial purposes and in the public interest.
The National Telecommunications Commission (NTC) regulates the construction, installation, and operation of the telecommunications systems and issues the Certificate of Public Convenience and Necessity and appropriate permits and licenses.
The grantee can make excavations or lay conduits in public places, roads, highways, streets, and other public areas with prior approval from the DPWH and relevant LGU, and must repair and restore the disturbed areas in a workmanlike manner per DPWH or LGU standards. Failure to do so after a ten-day notice allows the DPWH or LGU to undertake repairs and charge the grantee double the cost.
The grantee must conform to ethical enterprise standards, avoid obscene or indecent transmissions, not disseminate false information, operate its systems satisfactorily at all times, improve and extend services, and comply with the Free Mobile Disaster Alerts Act.
Rates and charges, except for those declared as nonregulated services, require approval from the National Telecommunications Commission (NTC).
The President has the right to temporarily suspend operations or authorize government use of the franchisee's facilities and equipment during war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order with due compensation to the grantee.
The franchise is valid for 25 years from effectivity unless sooner cancelled. It shall be revoked if the grantee fails to commence operations within one year of NTC permit approval, within three years from act effectivity, or fail to operate continuously for two years.
The grantee must create employment opportunities and allow on-the-job training, prioritizing residents in areas with their offices, comply with applicable labor laws and ensure job creation is reflected annually in the General Information Sheet to the Securities and Exchange Commission.
The grantee must pay taxes on real estate, buildings, and personal property like other corporations except that radio telecommunications and electronic communications equipment, machinery, and spare parts are exempt from customs duties and taxes. The grantee must pay value-added tax on all gross receipts related to the franchise instead of other local or national taxes, but remains liable for income taxes.
The grantee must file a bond with the NTC guaranteeing compliance with franchise conditions. If the grantee fulfills conditions after three years from permit approval, the bond is released; otherwise, the bond is forfeited and the franchise revoked.
No, the grantee may not sell, lease, transfer, grant usufruct, assign, merge, or transfer controlling interest over its franchise without prior approval from Congress, and any transferee shall be subject to the same franchise conditions.
The grantee must offer at least 30% of its outstanding capital stock to Filipino citizens within five years from operation commencement, or use other methods encouraging public participation if public offering is not applicable; failure to comply will lead to franchise revocation.
The grantee must submit an annual compliance and operations report to Congress through appropriate committees by April 30 every year, with a compliance certificate required for NTC permit applications.
A fine of One million pesos (₱1,000,000.00) per working day of noncompliance applies after laws take effect; pending that, a fine of Five hundred pesos (₱500.00) per working day applies. Fines are collected by NTC and remitted to the National Treasury.
The grantee holds the national and local governments free from claims, liabilities, demands, or actions arising from injury or property damage caused during construction or operation of facilities.
Yes, any advantage, favor, privilege, exemption, or immunity granted under existing or future franchises upon Congressional review shall apply immediately and unconditionally to this franchise, excluding territorial coverage, franchise lifespan, or service type.
No, the franchise is subject to amendment, alteration, or repeal by Congress as the public interest requires and shall not be interpreted as an exclusive grant.