QuestionsQuestions (Republic Act No. 11089)
RA 11089 grants the franchise to Streamtech Systems Technologies Inc., its successors or assignees, to construct, install, establish, operate and maintain (for commercial purposes and in the public interest) an international gateway facility, wire and/or wireless telecommunications systems, international and national broadband systems, mobile and cellular systems, including fiber optics and related value-added services; and/or to construct, acquire, lease, manage, and operate transmitting and receiving stations, lines, cables, or systems essential to carry out these purposes.
It must be constructed and operated in a manner that results only in minimum interference on the wavelengths/frequencies of existing stations (and those established by law), without diminishing its own privilege to use assigned frequencies and without impairing the quality of its transmission or reception.
The grantee must secure from the NTC a Certificate of Public Convenience and Necessity (CPCN) and the appropriate permits and licenses for the construction, installation, and operation of its telecommunications systems/facilities.
No. The grantee must not use any frequency in the radio spectrum without authorization from the NTC.
With prior approval of the Department of Public Works and Highways (DPWH) and the concerned local government unit (LGU).
After a 10-day notice, if it fails/refuses/neglects to repair or replace, DPWH or the LGU may repair the same and charge the grantee, successors or assignees double the cost and expenses of the repair/replacement.
The grantee must (1) conform to the ethics of honest enterprise and not use facilities for obscene/indecent transmission or dissemination of deliberately false information or willful misrepresentation, or assist subversive/treasonable acts; (2) operate and maintain equipment so transmission/reception is satisfactory at all times and, as economical and practicable, improve/modify to keep abreast with technology; (3) improve and extend services to unserved and hazard/typhoon-prone areas determined by NDRRMC with NTC; and (4) upgrade equipment/facilities/services for effective compliance with RA 10639 (Free Mobile Disaster Alerts Act).
Charges and rates for telecommunications services are subject to NTC approval (except rates/charges later declared as nonregulated services).
The President may, in times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order: (a) temporarily suspend operations of any station/transmitter/facility/equipment for public safety, security, and welfare; or (b) authorize temporary use/operation by a government agency upon due compensation to the grantee.
The franchise is effective for 25 years from effectivity of the Act unless sooner cancelled. It is deemed ipso facto revoked if the grantee fails to: (a) commence operations within one year from NTC approval of its operating permit; (b) commence operations within three years from effectivity of the Act; and (c) operate continuously for two years.
It must create employment opportunities and allow on-the-job trainings, with priority given to residents of areas where any of its offices is located, while complying with applicable labor standards under existing labor laws. Jobs created must be reflected in the annual General Information Sheet (GIS) submitted to the SEC.
The grantee pays a value-added tax (VAT) on all gross receipts in lieu of any and all other taxes of any kind levied/established/collected by any authority whatsoever, including local and national taxes, with specific exemptions mentioned (e.g., certain equipment, machinery, spare parts related to radio/telecom and electronic communications equipment, plus those declared exempt). It continues to be liable for income taxes under Title II of the NIRC pursuant to EO No. 72 (unless amended/repealed).
The grantee must file a bond with the NTC in an amount determined by the NTC to guarantee compliance with franchise conditions. If after three years from NTC permit approval it has fully fulfilled the conditions, the bond is released; otherwise it is forfeited in favor of the government and the franchise is ipso facto revoked.
The grantee may connect or demand connection of its telecommunications systems to other duly authorized telecommunications systems for extended/improved services, under mutually agreed terms and conditions, subject to review and modification by the NTC.
The grantee shall not sell, lease, transfer, grant the usufruct of, or assign the franchise or the rights/privileges acquired, nor merge or transfer controlling interest (whole or in part), without prior approval of Congress and compliance with legal requirements in other statutes. Any transferee is subject to the same conditions, terms, restrictions, and limitations in the Act.
The grantee must offer Filipino citizens at least 30% (or a higher percentage if later required by law) of its outstanding capital stock in any securities exchange in the Philippines within five years from commencement of operations. Noncompliance renders the franchise ipso facto revoked.