Question & AnswerQ&A (Republic Act No. 11089)
The main purpose is to grant Streamtech Systems Technologies Inc. a franchise to construct, install, establish, operate, and maintain telecommunications systems throughout the Philippines for commercial purposes and public interest.
The franchise includes international gateway facilities, wire and wireless telecommunications systems, international and national broadband systems, mobile and cellular systems, fiber optics, multichannel multipoint distribution systems, switches, and value-added services such as transmission of voice, data, facsimile, control signs, audio and video, information services, and other future technological advances.
The grantee must secure from the National Telecommunications Commission (NTC) a Certificate of Public Convenience and Necessity and appropriate permits and licenses for construction, installation, and operation.
If the grantee neglects to repair within ten days after notice from the DPWH or local government unit, the authorities may repair the public places and charge the grantee double the amount of the cost and expenses.
The franchise will be revoked if the grantee fails to commence operations within one year from NTC permit approval, or within three years from effectivity of the Act, or if the grantee fails to operate continuously for two years.
The franchise shall be effective for twenty-five (25) years from the date of effectivity of the Act unless sooner cancelled.
The grantee must create employment opportunities, allow on-the-job trainings, give priority to residents in areas where offices are located, comply with labor standards, and report employment figures annually to the Securities and Exchange Commission.
Yes, radio telecommunications and electronic communications equipment, machinery, and spare parts related to the business are exempt from customs duties and other taxes. However, the grantee must pay other applicable taxes and a value-added tax on gross receipts from the business.
The grantee must provide mobile number portability, interconnect with other telecommunications franchise grantees' infrastructure, and comply with NTC rules ensuring no network features impede nationwide MNP implementation.
No, the grantee cannot sell, lease, transfer, grant usufruct, assign, merge, or transfer controlling interest without prior approval of the Congress of the Philippines and compliance with legal requirements.
The President may temporarily suspend operations or authorize government use of the grantee's stations or equipment during wartime, rebellion, public peril, calamity, emergency, disaster, or peace disturbance for public safety and welfare, with due compensation.
The grantee must offer at least 30% of its outstanding capital stock to Filipino citizens within five years from the commencement of operations, promoting public participation in line with constitutional provisions.
The grantee must submit an annual report on franchise compliance and operations to Congress through relevant committees by April 30 each year during the franchise term.
Failure to submit the report results in a fine of One Million Pesos (₱1,000,000) per working day collected by the NTC, starting upon applicability with other franchise grantees. Interim fine is ₱500 per working day before applicability.
The bond guarantees compliance with the franchise conditions. After three years from NTC permit approval, if fully complied, the bond is released; if not, the bond is forfeited, and the franchise is revoked.