Question & AnswerQ&A (Republic Act No. 9116)
The Solid Broadband Corporation is granted the franchise under Republic Act No. 9116.
The grantee is authorized to construct, install, establish, operate, and maintain broadband telecommunications networks, wire and/or wireless systems for public domestic and international communications. This includes local exchange services, public switched telephone networks, public calling offices, inter-exchange carrier services, value-added services, mobile cellular and personal communications services, international gateway facilities, paging, messaging, internet gateway, IP services, satellite communications facilities, and related telecommunications systems throughout the Philippines.
The franchise is granted for a term of twenty-five (25) years from the date of effectivity of the Act, unless sooner revoked or cancelled.
The franchise will be revoked ipso facto if the grantee fails to commence operations within three (3) years from the approval of its operating permit by the NTC, fails to operate continuously for two (2) years, or fails to commence operations within five (5) years from the effectivity of the Act.
No, the franchise is not exclusive. It is subject to amendment, alteration, or repeal by Congress and shall not be interpreted as an exclusive grant.
The grantee must conform to honest enterprise ethics, not use its facilities for obscene or indecent transmissions, deliberately false information, or subversive acts. It must provide basic or enhanced telephone service without discrimination and maintain all equipment in a satisfactory manner, upgrading as technology advances.
The NTC is authorized to issue certificates of public convenience and necessary permits for operation, regulate construction and operation of telecommunications systems, and impose conditions on construction, operation, maintenance, service level, and frequency use. The NTC shall not unreasonably delay granting authorizations.
The grantee may make excavations or lay conduits in public places with prior approval from the Department of Public Works and Highways (DPWH) and must repair any disturbed public places in accordance with DPWH standards. Failure to do so after ten days' notice allows DPWH to repair and charge double expense to the grantee.
Yes, the grantee must offer at least thirty percent (30%) of its outstanding capital stock to public participation via any securities exchange in the Philippines within five (5) years from commencing operations. Noncompliance results in ipso facto revocation of the franchise.
The grantee must keep separate accounts of gross receipts and furnish copies to the Commission on Audit (COA) and the National Treasury annually by January 31. It must also submit quarterly reports on gross receipts, net profits, and business condition to the COA. Additionally, an annual report on franchise compliance and operations must be submitted to Congress within 60 days after year-end.