QuestionsQuestions (Republic Act No. 11089)
It may operate an international gateway facility, wire and/or wireless telecommunications systems, international and national broadband system, mobile and cellular services (including fiber optics and multipoint distribution systems), and provide value-added services like voice, data, facsimile, control signals, audio/video, information services; it may also construct/acquire/lease and operate or manage transmitting and receiving stations, lines, cables, or systems essential to its franchise purpose.
Facilities must be constructed and operated to result in only minimum interference on the wavelengths/frequencies of existing or legally established stations, without diminishing its own privileges to use assigned frequencies and without degrading transmission/reception quality.
The National Telecommunications Commission (NTC). The grantee must secure a Certificate of Public Convenience and Necessity and appropriate permits/licenses, and it cannot use any frequency in the radio spectrum without NTC authorization.
The NTC shall have power to impose conditions and regulate construction/operation, but it shall not unreasonably withhold or delay the grant of required authority, permit, or license.
Prior approval of the DPWH and the concerned LGU.
After a 10-day notice, if it fails/refuses/neglects to repair or replace, the DPWH or LGU may repair and place it in good order and charge the grantee double the costs and expenses.
It must conform to honest enterprise ethics, not use facilities for obscene/indecent transmissions or dissemination of deliberately false information or willful misrepresentation, and must not assist subversive/treasonable acts. It must maintain equipment in satisfactory manner, improve/extend services (including in hazard- and typhoon-prone areas), and upgrade equipment to comply with RA 10639 (Free Mobile Disaster Alerts Act).
Charges and rates (except those later declared nonregulated) must be subject to NTC approval.
In times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, the President may temporarily suspend operations of any station/transmitter/facility/equipment for public safety/security/welfare, or authorize temporary government use of the stations/equipment upon due compensation to the grantee.
Term is 25 years from effectivity unless sooner cancelled. It is deemed ipso facto revoked if the grantee fails to (a) commence operations within 1 year from NTC approval of its operating permit, (b) commence operations within 3 years from effectivity of the Act, or (c) operate continuously for 2 years.
The grantee must create employment opportunities and allow on-the-job training, give priority to residents in areas where any of its offices is located, follow applicable labor standards under existing labor laws, and reflect employment/jobs created in the annual GIS submitted to the SEC.
The grantee pays taxes on real estate/buildings/personal property exclusive of the franchise similar to other persons/corporations, except certain radio/electronic equipment/machinery/spare parts needed for the business are exempt from customs duties/tariffs and other taxes as stated. It pays VAT on all gross receipts in lieu of all other taxes of any kind levied by any authority, but it remains liable for income taxes under Title II of the NIRC pursuant to EO No. 72 unless later amended or repealed.
The grantee must file a bond with the NTC in an amount determined by the NTC to guarantee compliance. If after 3 years from NTC permit approval it has fulfilled conditions, the bond is released; otherwise it is forfeited to the government and the franchise ipso facto revoked.
The grantee may connect or demand connection of its telecommunications systems to those of other duly authorized entities to provide extended/improved services, under mutually agreed terms subject to NTC review/modification.
No. The grantee cannot sell/lease/transfer/grant usufruct/assign the franchise or related rights, merge, or transfer controlling interest without prior approval of Congress and compliance with legal requirements. Transferees must be subject to the same conditions, terms, restrictions, and limitations.