Question & AnswerQ&A (Republic Act No. 11537)
Mindanao Islamic Telephone Company, Inc., now known as Dito Telecommunity Corporation, is granted the renewal of its telecommunications franchise under Republic Act No. 11537.
The franchise is renewed for another twenty-five (25) years from its expiration on April 24, 2023.
The company is authorized to provide telecommunications services in and between provinces, cities, municipalities in the Philippines, and between the Philippines and other countries, including establishment and operation of wire and/or wireless telecommunications systems and value-added services such as voice, data, facsimile, audio and video transmissions.
The NTC has the authority to issue Certificates of Public Convenience and Necessity, impose conditions on operations, regulate construction and operation of the franchisee's systems, grant licenses, assign and review frequencies, and revoke or suspend permits for violations after due process.
The grantee must obtain prior approval from the Department of Public Works and Highways or the local government unit before excavations; any affected public place must be restored to its original condition in a workmanlike manner, and failure to repair after notice results in charges at double the repair costs.
The grantee must adhere to ethical standards by avoiding obscene, indecent transmissions or false information dissemination; maintain and upgrade facilities; extend services to unserved areas and disaster-prone regions; and comply with disaster alert systems law.
Yes, all charges and rates, except for those declared nonregulated, require approval by the NTC or its legal successor.
The President has reserved rights during war, rebellion, public peril, calamity, or emergency to temporarily take over or suspend operation of the franchisee’s facilities or authorize government use thereof with compensation.
Failure to submit annual reports can result in a fine of One million pesos (P1,000,000.00) per working day of noncompliance, with an interim fine of Five hundred pesos (P500.00) per working day until full implementation.
The franchise cannot be sold, leased, transferred, granted usufruct, assigned, merged, or have controlling interest transferred without prior approval of Congress. Failure to report such transactions to Congress within 60 days upon completion causes ipso facto revocation of the franchise.
At least thirty percent (30%) of the grantee’s outstanding capital stock must be offered to Filipino citizens within five (5) years from commencement of operations, promoting public participation in the utility.
The franchise shall be deemed ipso facto revoked if the grantee fails to operate continuously for two years.
The grantee must create employment opportunities, prioritize local residents, ensure at least sixty percent (60%) of employees are regular employees, not exceed forty percent (40%) for contractual and other non-regular employees, and comply with existing labor laws and standards.
The grantee is required to provide mobile number portability (MNP), including necessary infrastructure, allowing customers to retain numbers when switching providers, and must not install features that impede nationwide MNP implementation.
The grantee pays regular taxes on real estate and personal property except for telecommunications equipment which is exempt from customs duties and certain taxes; it must also pay value-added tax on gross receipts but is exempt from local taxes related to its franchise business transactions.