Franchise Extension of PLDT for 25 Years

PLDT cannot commence construction or exercise franchise rights without first obtaining a certificate from the NTC.
NTC issues this certificate after due hearing, upon determining public necessity and convenience.
NTC may impose conditions on construction, equipment, maintenance, service, or operation.

Rates for telecommunications services under the franchise are subject to NTC approval.

The President or authorized government agency may permit stations to be constructed on public lands under prescribed terms.
PLDT must secure permits and licenses from NTC and is not authorized to use radio frequencies without NTC approval.
Stations must minimize interference with other telecommunications services while maintaining service quality.

With prior approval from the Department of Public Works and Highways (DPWH), PLDT can erect poles or lay underground wires in public areas.
Any disturbed public property must be restored in workmanlike manner following DPWH standards.
Failure or neglect to repair after notice allows DPWH to repair at double PLDT's expense.

PLDT must maintain telecommunications lines and systems satisfactorily at all times.
NTC may require PLDT to modify or update systems consistent with scientific and technological progress.

PLDT must hold national, provincial, city, and municipal governments harmless from claims arising from station operation.
PLDT may exercise eminent domain reasonably necessary for efficient service operation.
Authority granted to install facilities on public and government property.

PLDT may acquire private property necessary for franchise purposes through proper condemnation and payment of just compensation.

The President may take over or authorize the temporary operation of PLDT's facilities during war, rebellion, calamity, or emergency upon due compensation.

PLDT must keep gross receipts accounts and submit copies annually to the Commissioner on Audit and NTC.
Books are subject to inspection and accounts audit; audit results are conclusive except for court appeal rights.
Separate accounts must be maintained for different telecommunications services.

PLDT pays regular real estate, building, and personal property taxes like other entities.
Additionally, PLDT must pay a 3% franchise tax on gross receipts from telecommunications business under the franchise.
This franchise tax substitutes all other franchise or earnings taxes but does not exempt income tax obligations.
Taxes are filed and paid to the Commissioner of Internal Revenue and subject to audit.
PLDT must submit a detailed annual report to Congress on operations, payments, and franchise compliance.

NTC may order PLDT to interconnect its facilities with other authorized telecommunications operators on reasonable terms to serve the public interest.

PLDT is required to operate all equipment and systems satisfactorily.
On NTC's request, PLDT must upgrade or improve facilities to keep pace with scientific and technological advancement.

PLDT and successors are subject to existing and future Philippine corporation laws.

PLDT cannot lease, sell, transfer or assign the franchise or rights without prior Congressional approval.
Any entity acquiring the franchise is bound by the same terms and conditions as the original grantee.

PLDT must comply with laws that implement the constitutional mandate on democratization of ownership of all public utilities.

The franchise does not confer exclusive rights to PLDT over the telecommunications services granted.

PLDT must file written acceptance of this Act with the NTC within 60 days after approval.
Failure to accept will render the Act null and void.
The franchise term is extended by 25 years from its expiration on November 28, 2003.
The Act takes effect 15 days after publication in newspapers of general circulation.