Question & AnswerQ&A (Republic Act No. 11226)
Republic Act No. 11226 renews the franchise granted to Philippine Communications Satellite Corporation (PHILCOMSAT) to construct, install, maintain, and operate ground satellite terminal stations for telecommunications with satellite facilities and delivery to common carriers in the Philippines.
The franchise is extended for twenty-five (25) years from the effectivity of the Act.
PHILCOMSAT is authorized to provide international and domestic communications including satellite transmissions, telephone, mobile, cellular, wired or wireless communications systems, fiber optics, multi-channel transmission, value-added services, and more, but it is not allowed to engage in broadcasting, telecasting, or cable television services.
The grantee must secure from the National Telecommunications Commission (NTC) a Certificate of Public Convenience and Necessity (CPCN) along with the appropriate permits and licenses for construction, installation, and operation.
The grantee must repair and replace any disturbed, altered, or changed public places, roads, highways, streets, sidewalks, alleys, or bridges in a workmanlike manner according to the standards set by the Department of Public Works and Highways (DPWH) or the concerned local government unit (LGU). Failure to do so within ten days after notice can result in the government making the repairs at double the cost to be charged to the grantee.
The grantee must not use its stations or facilities for obscene or indecent transmissions, dissemination of false information, willful misrepresentation, or assisting in subversive or treasonable acts, and must maintain its equipment and services to keep pace with technological advances.
Yes, all charges and rates are subject to approval by the National Telecommunications Commission (NTC) except rates on services that may later be declared as nonregulated.
The President may temporarily take over and operate the grantee's facilities or equipment, suspend operations in the interest of public safety and welfare, or authorize any government agency to use such facilities with due compensation to the grantee.
The franchise shall be ipso facto revoked if the grantee fails to operate continuously for two years.
The grantee shall create employment opportunities, allow on-the-job training prioritizing residents near the principal office, comply with labor standards, and reflect employment statistics in its General Information Sheet submitted annually to the Securities and Exchange Commission.
No, the grantee cannot sell, lease, transfer, grant usufruct, or assign the franchise or controlling interest without prior approval from Congress and compliance with legal requirements.
The grantee must offer at least thirty percent (30%) of its common stocks to Filipino citizens or establish cooperatives in cases where a public offer is not applicable, within five years from the renewal of the franchise.
The fine is One million pesos (₱1,000,000.00) per working day of noncompliance after applicability with other franchisees; in the interim, a fine of Five hundred pesos (₱500.00) per working day applies, collected by NTC and remitted to the Bureau of the Treasury.
The grantee must improve and upgrade its equipment, facilities, and services to ensure effective compliance with the objectives of RA 10639.
The grantee is authorized to connect or demand connection of its telecommunications systems with other duly authorized systems in the Philippines under mutually agreed terms subject to NTC review and modification.
The grantee must provide mobile number portability and interconnect with other telecommunications franchisees’ infrastructure, and must not install features that impede nationwide MNP system implementation, with NTC issuing related rules and regulations.