Franchise Transfer and Amendment for Radio Ops

Section 1 authorizes and approves the transfer of the franchise granted to Ricardo P. Ocampo by Republic Act No. 2037, as amended by Republic Act No. 2373, in favor of Capitol Wireless, Inc.
The transfer is approved together with all rights and privileges appurtenant thereto, including those connected to radio stations already established and operating under the original acts.
The transfer covers any channel and/or frequency assignments and permits that may have been granted to the former grantee.
The transfer approval is subject to the Constitution and to all other relevant and applicable laws not inconsistent with Republic Act No. 4387.

Section 2 amends Section 1 of Republic Act No. 2037.
The franchise authorizes Ricardo P. Ocampo, his successors or assigns, to construct, install, establish, and operate in the Philippines and in places the grantee may select, subject to approval of the Department Secretary under whose jurisdiction the Radio Control Division is functioning, or another competent authority authorized now or in the future to give that approval.
The franchise covers stations for international telecommunications, public coastal radio stations with corresponding relay stations, and public fixed, public based, and land mobile stations, and radio paging systems for the reception and transmission of wireless messages on radiotelephony (voice) and/or radiotelegraphy, or both.
The franchise covers operations with vessels at sea and aircraft over the air, irrespective of whether such vessels and aircraft are within or without the Philippines.

Section 2 further grants, for the grantee’s own private use, the right to erect poles, string wires, build or install pipes and conduits, and lay cables.
The private-use authority includes the right to construct, maintain, and use generally accepted means of electrical or telegraphic conduction necessary for operations.
The grant is expressly without prejudice to the grantee’s right to negotiate with any individual, co-partnership, association, or corporation operating any local or national electric light and/or power and/or telephone system in a province, city, municipality, or municipal district.
Through negotiations, the grantee may secure the right to use poles or installations of such operator in the province or provinces, city or cities, municipality or municipalities, or municipal district or districts where the operator operates.

Section 3 amends Section 12 of Republic Act No. 2037 by imposing a restriction on disposition of the franchise.
The grantee is prohibited from leasing, transferring, granting the usufruct of, selling, or assigning the franchise.
The grantee is likewise prohibited from transferring or assigning the rights or privileges acquired thereunder to any person, firm, company, corporation, or other commercial or legal entity.
The grantee is prohibited from merging with another person, company, or corporation organized for the same purpose.
No prohibited transfer, sale, assignment, or merger is allowed without the approval of the Congress of the Philippines first had.

Section 3 provides that any corporation to which the franchise is sold, transferred, or assigned must be subject to the corporation laws of the Philippines now existing or hereafter enacted.
Section 3 requires that any person, firm, company, corporation, or other commercial or legal entity to which the franchise is sold, transferred, or assigned is subject to all conditions, terms, restrictions, and limitations of the franchise.
The assignee’s obligations are treated as if the franchise had been originally granted to the assignee.

Section 4 amends Section 13 of Republic Act No. 2037 by making the franchise subject to congressional control.
The franchise is subject to amendment, alteration, or repeal by the Congress of the Philippines when the public interest so requires.
The franchise is not to be interpreted as an exclusive grant of the privilege provided by the franchise.
Any authorized terms or services more favorable than those granted in the franchise that were granted in the past, or may be granted in the future by Congress to a competing person (natural or juridical) by similar fashion or temporary permit become part of the franchise terms.
Section 4 states that such more favorable terms operate equally in favor of the grantee.

Section 5 adds Section 13-A to Republic Act No. 2037.
The grantee must pay the same taxes on real estate, buildings, and personal property, exclusive of this franchise, as other persons or corporations are required by law to pay.
The annual payment to the Treasurer of the Philippines is due each year.
Payment is due within ten days after the audit and approval of the accounts as prescribed in this Act.
The annual payment equals one and one-half per centum (1.5%) of all gross receipts for the business transacted in the Philippines under the franchise by the grantee.

Section 1 makes the transferred franchise operative in favor of Capitol Wireless, Inc. with the same appurtenant rights and privileges, including existing stations and related channel/frequency assignments and permits.
Sections 2, 3, 4, 5 operate to adjust the terms of the franchise by amending the original provisions on grant scope, disposition restrictions, congressional responsiveness, and fiscal obligations.
Section 6 fixes the effective date rule: Republic Act No. 4387 takes effect upon its approval June 19, 1965.