Question & AnswerQ&A (Republic Act No. 11829)
ISMO Incorporated is granted the franchise to construct, install, establish, operate, and maintain telecommunications systems in the Philippines under Republic Act No. 11829.
The franchise shall be in effect for a period of twenty-five (25) years from the effectivity of the Act unless sooner revoked or cancelled.
The franchise covers wired or wireless telecommunications systems including international and local exchange carriers, submarine cable landing stations, mobile, cellular, fixed line, trunked radio, fiber optics, satellite systems, electronic telecommunications or electronic communications services, value-added services transmitting voice, data, images, facsimile, control signs, audio and video, information services, and all other telecommunications technologies now available or that will be developed.
Failure to submit the annual report shall be penalized with a fine of One million pesos (P1,000,000.00) per working day of noncompliance once applicable, with an interim fine of Five hundred pesos (P500.00) per working day payable to the NTC until then.
The government reserves the right to temporarily take over and operate or suspend the operation of the stations, transmitters, facilities, or equipment of ISMO Incorporated, or authorize temporary use by government agencies upon due compensation.
The franchise will be revoked if ISMO Incorporated fails to commence operations within three (3) years from approval of its operating permit by the NTC, fail to commence operations within five (5) years from effectivity of the Act, or fail to operate continuously for two (2) years.
ISMO Incorporated may make excavations in public places for installation of poles or cables with prior approval from DPWH or concerned LGU. Any disturbed or altered public places must be repaired in a workmanlike manner according to standards. Failure to do so after ten (10) days notice allows the DPWH or LGU to repair and charge double the costs to ISMO.
ISMO Incorporated cannot sell, lease, transfer, or assign the franchise or its rights without prior approval of Congress. Failure to inform Congress within sixty (60) days after such transaction renders the franchise ipso facto revoked.
ISMO Incorporated must create employment opportunities and accept on-the-job trainees in its franchise operations, giving priority to residents where its principal office is located, and comply with applicable labor standards and allowances.
The franchise requires ISMO Incorporated to offer at least thirty percent (30%) of its outstanding capital stock to Filipino citizens in any Philippine securities exchange within five (5) years from effectivity, or use other methods encouraging public participation where public offering is not applicable. Noncompliance results in ipso facto revocation.
ISMO Incorporated shall provide MNP and implement mechanisms including infrastructure and processes, interconnecting with other telecommunications franchise grantees, and must not install network features that impede nationwide MNP system implementation.