Question & AnswerQ&A (Republic Act No. 11774)
Republic Act No. 11774 renews for another twenty-five (25) years the franchise granted to Calapan Telephone System, Inc. to construct, establish, install, maintain, and operate local exchange network and telecommunications systems in the Province of Oriental Mindoro.
The franchise authorizes Calapan Telephone System, Inc. to operate local access networks, wired or wireless telecommunications systems, copper, fiber optics, satellite transmit and receive systems, switches, and value-added services including transmission of voice, data, facsimile, signals, audio, video, and other telecommunication technologies.
The NTC is responsible for issuing the Certificate of Public Convenience and Necessity (CPCN), permits, and licenses necessary for construction, installation, and operation of the telecommunications facilities. It also regulates, imposes conditions, and may revoke or suspend permits/licenses for violations.
The company must secure prior approval from DPWH or the concerned LGU before making excavations in public places. It must restore any disturbed public place, road, or infrastructure in a workmanlike manner. Failure to do so after 10 days' notice allows the authority to conduct repairs and charge double the costs to the company.
The franchisee shall not use any frequency in the radio spectrum without prior authorization from the NTC, which regulates the assigned wavelengths or frequencies to minimize interference with other stations.
The franchise shall be deemed ipso facto revoked if the grantee fails to operate continuously for two (2) years.
No. The franchise cannot be sold, leased, transferred, assigned, or merged without prior approval from Congress. Failure to notify Congress within 60 days after such transaction results in ipso facto revocation.
Failure to submit the annual report shall be penalized with a fine of One million pesos (P1,000,000.00) per working day, subject to implementation with other telecommunications franchisees. In the interim, the fine is Five hundred pesos (P500.00) per working day payable to the NTC.
The President may temporarily take over, operate, suspend operations, or authorize government use of the grantee's stations, transmitters, or equipment during times of war, rebellion, public peril, calamity, emergency, or disturbance of peace and order, with due compensation to the grantee.
The franchisee must operate ethically, avoid obscene or false transmissions, maintain equipment satisfactorily, improve and extend services to unserved and hazard-prone areas, and comply with Republic Act No. 10639 regarding free mobile disaster alerts.
The franchisee is required to offer at least thirty percent (30%) of its outstanding capital stocks to Filipino citizens in any Philippine securities exchange within five (5) years from the effectivity of the Act, promoting public participation in public utilities, or implement other methods if a public offering is not applicable.
The franchise is granted for a period of twenty-five (25) years from the effectivity of Republic Act No. 11774, unless revoked or cancelled sooner.
Rates must be approved by the NTC, unbundled, separable, and determined so that regulated services do not subsidize unregulated services. Rates apply to both flat and measured rates unless declared nonregulated services in the future.
The franchisee must submit an annual report to Congress, including updates on business operations, financial statements, GIS submitted to SEC, NTC certifications, and ownership dispersal, by April 30 each year during the franchise term.