Question & AnswerQ&A (Republic Act No. 9479)
Ormoc City Telephone Company, Inc. is granted the franchise under Republic Act No. 9479.
The franchise is extended and renewed for a term of twenty-five (25) years from the date of effectivity of the Act.
The company is authorized to construct, install, establish, operate, and maintain local exchange networks, including public calling stations or pay telephones, wireless local loop, and their value-added services in Leyte, Southern Leyte, and Biliran provinces and their component and chartered cities. It shall provide basic telephone services capable of accessing local, national, international, and other networks.
Stations/facilities must be constructed and operated to cause minimum interference on the wavelengths or frequencies of existing or other stations. The grantee cannot exceed radiated power beyond what is required to cover its authorized operation area.
The National Telecommunications Commission (NTC) regulates and issues the certificate of public convenience and necessity and appropriate permits and licenses.
The grantee must conform to honest enterprise ethics, avoid obscene or indecent transmissions, dissemination of false information or misrepresentation, and assist in no subversive or treasonable acts.
Charges and rates, except for nonregulated services, are subject to NTC approval. Rates must be unbundled and distinct among services so that regulated services do not subsidize unregulated ones.
The President of the Philippines may temporarily take over or suspend operations of the grantee’s stations, transmitters, or equipment during times of war, rebellion, calamity, disaster, or public peril, with due compensation.
Failure to accept the franchise in writing within sixty (60) days from the Act's effectivity renders the franchise void.
No. The grantee cannot lease, transfer, sell, assign, merge, or transfer controlling interest in the franchise without prior approval from Congress. Doing so results in automatic revocation of the franchise.
The grantee must file a bond in favor of the NTC guaranteeing compliance with franchise conditions. If conditions are fulfilled after five years, the bond is cancelled; otherwise, the bond is forfeited and the franchise revoked.
The grantee must submit an annual report to Congress within sixty (60) days after each year-end and furnish copies of accounts to the Commission on Audit and National Treasury annually.
The franchise is nonexclusive and subject to amendment, alteration, or repeal by Congress when public interest requires.