QuestionsQuestions (Republic Act No. 9116)
RA 9116 grants Solid Broadband Corporation (and its successors/assigns) a franchise, subject to the Constitution and applicable laws, to construct, install, establish, lease, operate, and maintain broadband telecommunications networks and wire/wireless telecom systems throughout the Philippines for commercial purposes and in the public interest, covering both domestic and international communications and enumerated telecom services (e.g., local exchange/PSTN, mobile cellular/personal communications, internet services, satellite communications, fixed wireless broadband, and related facilities).
The grantee must construct and operate its stations/facilities to cause, at most, minimum interference with the wavelengths/frequencies of existing stations or stations that may be established by law, without diminishing its own right to use its selected frequencies and the quality of transmission/reception needed to maximize service quality and availability.
The grantee must secure from the NTC (or its legal successor) a certificate of public convenience and necessity or appropriate permits/licenses for construction/installation/operation. The NTC may impose conditions regarding construction, operation, maintenance, or service level; regulate construction/operation; and authorize frequency use. The NTC must not unreasonably withhold or delay the authority/permits/licenses, and the certificate states coverage areas and commencement date.
It must have been authorized by the NTC/Commission before using any frequency in the radio spectrum.
With prior approval of DPWH, the grantee may excavate or lay conduits in public places/highways/streets/alleys/sidewalks/bridges of provinces/cities/municipalities for erecting poles or supports or for underground wiring. Any disturbed/altered infrastructure must be repaired/replaced in a workmanlike manner according to DPWH standards; if the grantee fails to do so after ten days notice, DPWH may repair and charge the cost at double expense to the grantee.
The grantee must conform to honest enterprise ethics and must not use stations/facilities for obscene/indecent transmissions or dissemination of deliberately false information or willful misrepresentation, nor assist in subversive or treasonable acts. It must provide basic/enhanced telephone service in municipalities where it has an approved certificate for local exchange service without discrimination and in order of application, up to exchange capacity, with duties to expand when demand exceeds capacity, subject to conditions on viability and possible reimbursement of actual installation expenses if demand is below smallest viable exchange.
Telecommunications charges/rates (except those later declared non-regulated) must be approved by the NTC/Commission or its legal successor. Rates must be unbundled, separable, and distinct among services such that regulated services do not subsidize unregulated ones.
In times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace/order, the President may temporarily take over and operate the grantee’s stations/transmitters/facilities/equipment, temporarily suspend their operation for public safety/security/welfare, or authorize temporary use/operation by any government agency—upon due compensation during the period of government use.
The franchise term is 25 years from effectivity unless sooner revoked/cancelled. It is deemed ipso facto revoked if the grantee fails to: (1) commence operations within 3 years from NTC approval of its operating permit/provincial authority; (2) operate continuously for 2 years; and (3) commence operations within 5 years from effectivity of the Act.
Acceptance must be given in writing within 60 days from effectivity of the Act. Upon written acceptance, the grantee may exercise the franchise privileges; nonacceptance renders the franchise void.
The grantee must file a bond issued in favor of the NTC, whose amount guarantees compliance with franchise conditions. If after 5 years from approval of its permit the grantee has fulfilled the conditions, the bond is cancelled; otherwise, the bond is forfeited to the government and the franchise is ipso facto revoked.
The grantee is authorized to connect or demand connection of its telecommunications systems to other duly authorized telecom systems in the Philippines for extended/improved services, under mutually agreed terms and conditions, subject to Commission review/modification.
The grantee is subject to all taxes/duties/fees under the NIRC and other applicable laws, but the Act does not repeal specific tax exemptions/incentives/privileges granted under other relevant laws. It also provides that rights/privileges/benefits/exemptions accorded to existing and future telecommunications franchises are extended to the grantee.
The grantee must keep separate accounts of gross receipts and furnish copies to COA and the National Treasury not later than January 31 each year for the preceding 12 months. It must keep books/accounts open to COA inspection and submit two copies of quarterly reports on gross receipts, net profits, and general business condition.
The grantee may not lease/transfer/grant usufruct/sell/assign the franchise or rights/privileges, nor merge, nor transfer controlling interest (as a whole or in parts, whether simultaneously or contemporaneously) to another entity without prior approval of Congress. Any transferee is subject to the same conditions, terms, restrictions, and limitations.
To encourage public participation, the grantee must offer at least 30% (or higher if later required by law) of its outstanding capital stock in a Philippine securities exchange within 5 years from commencement of operations. Failure to comply results in ipso facto revocation of the franchise.
Any advantage, favor, privilege, exemption, or immunity granted under existing telecommunications franchises or may be granted in the future becomes ipso facto part of previously granted telecommunications franchises and must be accorded immediately and unconditionally to their grantees. Limitations: it does not apply to/affect provisions concerning territory covered, franchise life span, or type of service authorized.