Title
Supreme Court
Amendment to PLDT Franchise Act
Law
Commonwealth Act No. 407
Decision Date
Sep 14, 1938
Commonwealth Act No. 407 grants the Philippine Long Distance Telephone Company (PLDT) the right to construct and operate telephone systems throughout the Philippine Islands, subject to certain conditions and the surrender of specific territories if desired by the government.

Law Summary

Powers to Transmit and Construct Communication Infrastructure

  • PLDT can transmit messages, pictures, and signals electrically between provinces and municipalities.
  • Authorized to construct and maintain telephone lines, cables (including submarine cables), poles, conduits, and other necessary apparatus.
  • Facilities may be implemented on public properties such as roads, government rights-of-way, bridges, streets, sidewalks, and waters.
  • Permission to operate apparatus overhead, underground, on the surface, or underwater to connect with international systems.

Location and Construction Standards

  • All cables, poles, and conduits must be placed as designated by the Secretary of Public Works and Communications.
  • Poles must be erected in a workmanlike manner, meeting satisfaction of the Secretary.
  • Upon reasonable notice, PLDT must relocate or adjust poles or wires to accommodate building relocations; costs shared between the mover and PLDT.
  • Secretary can order relocation of poles, conduits, or wires when public interest demands, at PLDT's expense.
  • PLDT has right to appeal relocation orders to the President of the Philippines; presidential decision is final.

Compliance and Enforcement

  • If PLDT fails to comply within 10 days after notice, Secretary may perform necessary relocations or adjustments at PLDT’s expense.
  • All internal and external wiring and construction must comply with rules prescribed by the Secretary.

Wire and Cable Management Requirements

  • Lines carrying 25 or more pairs of wires must consolidate them into a single cable.
  • Lines carrying more than 800 pairs of wires must have cables placed underground, if ordered by the Secretary.
  • Infrastructure must not impair other companies' existing facilities for electrical transmission.

Safety and Height Regulations for Poles and Wires

  • Poles must support wires at a minimum of 10 feet above ground level.
  • In roads or street crossings, wire height must be at least 15 feet.
  • Infrastructure placement shall avoid danger to public safety.
  • Plans must be approved by the Secretary of Public Works and Communications.

Government's Right to Reacquire Franchise Over Certain Routes

  • For additional routes granted (Manila-Albay, Manila-Camarines Sur, Luzon-Mindanao, Manila-Tayabas), government may choose to operate directly.
  • Should the government exercise this option, PLDT must surrender its franchise and turn over all serviceable equipment at cost.

Acceptance of Franchise Terms

  • PLDT must file a written acceptance of the Act and its terms within 40 days of approval.
  • Failure to accept within this period renders the Act null and void.

Effectivity of the Act

  • The Act takes effect only after the President approves a certification from the Secretary of Public Works and Communications confirming PLDT's acceptance and readiness to comply with all terms and conditions.

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