QuestionsQuestions (PRESIDENTIAL DECREE NO. 489)
To authorize the franchise-holder, Eastern Extension Australasia and China Telegraph Company, Ltd., to sell/transfer/assign its telecommunications franchise (under Republic Act No. 808, as amended by Republic Act No. 5002) to Eastern Telecommunications Philippines, Inc., a corporation with at least 60% Filipino ownership, subject to Section 15 of R.A. 808.
The franchise granted to Eastern Extension Australasia and China Telegraph Company, Ltd. under Republic Act No. 808 (as amended by Republic Act No. 5002) for landing, constructing, maintaining, and operating a telecommunications system for reception and transmission of messages between points in the Philippines and points exterior thereto.
A term of fifty (50) years, expiring only on June 21, 2002.
It expressly prohibits Eastern Extension Australasia and China Telegraph Company, Ltd. from leasing, transferring, selling, or assigning the franchise without first obtaining the approval of the then Philippine Congress.
To justify allowing the franchise transfer to a Philippine corporation that complies with the State policy limiting public utility franchises to citizens or to corporations at least 60% owned by Filipinos.
It must be a corporation existing under Philippine laws with at least 60% of its capital owned at all times by Filipino citizens.
To sell, transfer, or assign the franchise granted under R.A. 808 (as amended by R.A. 5002) to the designated transferee corporation.
It is subject to Section 15 of Republic Act No. 808, as amended—meaning the transfer/assignment must still conform to the statutory requirement stated there.
For reception and transmission of messages between any points in the Philippines and points exterior thereto, including communications involving airplanes, airships, or vessels even if those are located within territorial limits of the Philippines.
The then Philippine Congress (as stated by Section 15), which P.D. No. 489 references as a controlling condition.
It provides that authorization is “upon such terms and condition as the said grantee and its prospective transferee may agree upon,” subject to the Section 15 limitation.
Immediately, as explicitly stated in the decree.
The Constitution as Commander-in-Chief of all Armed Forces of the Philippines, and Proclamation No. 1081 dated September 21, 1972 and General Order No. 1 dated September 22, 1972 (as amended).
R.A. 808 granted the original telecommunications franchise and set its term and restrictions (including Section 12 and Section 15). R.A. 5002 amended R.A. 808. P.D. No. 489 authorizes a transfer/assignment of that existing franchise as amended.