Title
Franchise Transfer and Amendment for Radio Ops
Law
Republic Act No. 4387
Decision Date
Jun 19, 1965
Republic Act No. 4387 amends the franchise granted to Ricardo P. Ocampo, allowing the transfer to Capitol Wireless, Inc., while also granting Ocampo the right to operate various telecommunications stations and negotiate with other operators, subject to approval and regulations by the Congress of the Philippines.
A

Franchise Grant and Operational Authority

  • The franchise allows Ricardo P. Ocampo or his successors/assigns to construct, install, establish, and operate telecommunications stations nationwide subject to departmental or competent authority approval.
  • The stations include international telecommunications, public coastal radio stations, public fixed and land mobile stations, and radio paging systems.
  • Wireless message transmission and reception permitted include radiotelephony (voice) and radiotelegraphy (telegraph) within the Philippines and with vessels and aircraft regardless of geographical location.

Private Use Rights and Infrastructure Development

  • The grantee is granted rights for private use to erect poles, string wires, build/install pipes and conduits, lay cables, and use accepted electrical or telegraphic conduction means.
  • This privilege includes negotiating with electric light, power, or telephone system operators for use of their poles or installations without prejudice.

Restrictions on Transfer and Assignment of Franchise

  • The grantee cannot lease, transfer, sell, assign, grant usufruct of, or merge the franchise without prior authorization from the Congress.
  • Any entity acquiring the franchise is subject to Philippine corporation laws and all franchise conditions as if originally granted to them.

Congressional Authority and Non-Exclusivity

  • The franchise may be amended, altered, or repealed by Congress for public interest reasons.
  • The grant is not exclusive and competitive terms more favorable to others automatically apply to this franchise to avoid disadvantage to the grantee.

Taxation Obligations

  • The grantee must pay real estate, building, and personal property taxes as applicable to others.
  • Additionally, an annual payment of 1.5% of gross receipts from business transacted in the Philippines under the franchise is required, payable within ten days after account audit and approval.

Effectivity

  • The amendments and provisions take effect upon approval by the appropriate authority.

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