Question & AnswerQ&A (Republic Act No. 7970)
The main purpose of Republic Act No. 7970 is to grant the Maranao Telephone Company a franchise to install, operate, and maintain a telephone system in the Province of Lanao del Norte and the City of Iligan.
The Maranao Telephone Company is authorized to conduct and carry on the business of local exchange telephone service or public switched telephone network and/or public calling stations in Lanao del Norte and Iligan City.
No, the franchise specifically prohibits the grantee from engaging in international gateway facility operation, international or national transmission services, domestic record services, radio paging, private mobile radio, maritime communications, satellite communications, cable television, or broadcasting.
All apparatus and installations used must be modern and first class, maintained in satisfactory condition, and subject to modification or improvement as required by the National Telecommunications Commission using reasonable and proper technology advances.
The grantee must keep separate accounts of gross receipts related to the telecommunications business and provide these accounts annually to the Commission on Audit and the Treasurer of the Philippines by July 31 each year. These books are subject to official inspection, and their audit findings are final except for judicial appeal.
Apart from usual real estate and property taxes, the grantee must pay a three percent (3%) tax annually on gross receipts of regulated telecommunications services to the Bureau of Internal Revenue, with returns filed as per the National Internal Revenue Code.
The grantee must file an application for a Certificate of Public Necessity and Convenience (CPC) with the Commission within six months after the Act's effectivity; failure to do so renders the franchise null and void.
If the grantee does not accept the franchise in writing within 60 days, the franchise shall be deemed cancelled.
The grantee must deposit One Hundred Thousand pesos (₱100,000) in cash or negotiable government instruments and file a One Million peso (₱1,000,000) bond within 30 days of granting the first CPC.
The deposit shall be forfeited in favor of the national government as liquidated damages unless the failure is due to force majeure such as an act of God, public enemy, martial law, riot, or unavoidable cause.
The franchise is granted for 25 years unless revoked or cancelled sooner. It is ipso facto revoked if the grantee fails to operate continuously for two years or fails to start operations within two years from the first CPC approval.
No, the grantee cannot transfer, sell, or assign the franchise or controlling interest within five years of the Act's effectivity without explicit prior approval from the Congress of the Philippines.
No, the franchise grants non-exclusive rights and privileges, and Congress may grant similar franchises to other entities without impairing the rights of the grantee.
The grantee shall hold all levels of government harmless from any claims, demands, or actions arising from accidents or injuries caused by the construction or operation of the telephone or related facilities it owns or operates.
The rates and charges are subject to the approval of the National Telecommunications Commission.
Yes, Congress may amend, alter, or repeal the franchise whenever the public interest so requires.