Question & AnswerQ&A (Republic Act No. 8280)
New Century Telecoms, Inc. is granted the franchise under Republic Act No. 8280.
The franchise allows New Century Telecoms, Inc. to construct, establish, install, maintain, and operate commercial mobile and fixed wireless telecommunications systems in the Philippines.
The franchise covers paging systems, cellular telephone systems, personal communications networks, trunked radio services, and other related systems, whether currently known to science or developed in the future.
The franchise is granted for a term of twenty-five (25) years from the date of effectivity of the Act, unless revoked or cancelled sooner.
The grantee must obtain from the NTC a certificate of public convenience or the appropriate permits and licenses to operate. The NTC regulates construction, operation, maintenance, service levels, and authorizes the use of radio frequencies.
The franchise is ipso facto revoked if the grantee fails to commence operations within three (3) years from NTC permit approval or within five (5) years from the effectivity of the Act.
No, the franchise is nonexclusive and may be amended, altered, or repealed by Congress when public interest requires.
Rates for telecommunications services, except non-regulated services, are subject to the approval of the Commission. Rates must be unbundled, separable, and distinct to ensure regulated services do not subsidize unregulated ones.
The President has the special right to temporarily take over, suspend, or authorize government use of the grantee's telecommunications facilities during war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, with due compensation to the grantee.
The grantee must conform to honest enterprise ethics, avoid obscene or indecent transmissions, refrain from false information dissemination or assisting subversive acts, and provide telephone services without discrimination, ensuring operation and maintenance of facilities in a satisfactory manner.
No, the franchise or controlling interest cannot be leased, transferred, sold, or assigned without prior approval of the Congress of the Philippines.
The grantee must offer at least thirty percent (30%) of its outstanding capital stock in any Philippine securities exchange within five (5) years from commencement of operations; failure renders the franchise ipso facto revoked.
The grantee is liable for real estate, building, and personal property taxes, value-added tax or franchise tax on gross receipts (whichever is higher), and income taxes payable under existing laws, filing returns with the Commissioner of Internal Revenue for audit.
The grantee must keep separate accounts of gross receipts, submit copies to the Commission on Audit and National Treasury annually, and provide quarterly reports on financial status to the Commission on Audit.
Failure to commence operations within three years from NTC permit approval, failure to operate continuously for two years, failure to commence operations within five years from the Act's effectivity, non-compliance with ownership dispersal, and failure to fulfill bond conditions.