Law Summary

SECTION 1: Authorization of Franchise Transfer

• Explanation: This section authorizes the transfer of a franchise previously granted to Joseph de Castro to Oceanic Wireless Network, Incorporated, along with all associated rights and privileges.
• Key Definitions:
  • Franchise: The rights granted to operate telecommunications services.
  • Grantee: Oceanic Wireless Network, Incorporated.
• Requirements/Procedures: The transfer is subject to limitations and conditions outlined in Republic Act Numbered 2044 and other applicable laws.
• Timeframes: Not specified.
• Liabilities/Consequences: None explicitly mentioned.

• Transfer of rights to Oceanic Wireless Network, Inc. is approved. • Subject to existing laws and conditions in the original franchise (RA 2044).

SECTION 2: Amendment of Franchise Provisions

• Explanation: This section amends Section 1 of Republic Act Numbered 2044, granting Oceanic Wireless Network the authority to construct and operate telecommunications stations in various locations in the Philippines.
• Key Definitions:
  • Commercial Radiotelegraph and/or Radiotelephone Communication Stations: Facilities for transmitting communication through radio.
• Requirements/Procedures: Operations require approval from the Secretary of Public Works and Communications.
• Timeframes: Not specified.
• Liabilities/Consequences: None explicitly mentioned.

• Grants Oceanic Wireless the franchise for radiotelegraph and radiotelephone services. • Includes construction and maintenance of facilities in underserved areas.

SECTION 3: New Sections Added to Existing Act

SEC. 9-A: Tax Obligations

• Explanation: This section outlines the tax responsibilities of the grantee.
• Key Definitions:
  • Gross Receipts: Total income from business operations under the franchise.
• Requirements/Procedures:
  • The grantee must pay real estate and personal property taxes.
  • An additional payment of 1.5% of gross receipts to the Treasurer of the Philippines is required annually.
• Timeframes: Payments must be made within ten days after audit and approval of accounts.
• Liabilities/Consequences: Non-compliance could lead to penalties as per tax laws.

• Grantee liable for real estate and personal property taxes. • Must pay 1.5% of gross receipts annually.

SEC. 9-B: License and Frequency Allotment

• Explanation: This section stipulates that the franchise is contingent upon the issuance of frequencies and licenses by the Secretary of Public Works and Communications.
• Key Definitions:
  • Frequencies/Wave Lengths: The specific radio frequencies assigned for communication use.
• Requirements/Procedures:
  • The Secretary has the authority to change or cancel frequency allotments if deemed necessary for public interest or competition.
• Timeframes: The franchise cannot take effect until frequencies are allotted.
• Liabilities/Consequences:
  • The Secretary can impose changes to frequencies to prevent monopolistic practices or protect public interest.

• Franchise activation contingent on frequency allotment and licensing. • Secretary can modify frequency assignments as necessary.

SECTION 4: Continuation of Other Provisions

• Explanation: All other provisions of Republic Act Numbered 2044 that are not amended remain valid and in effect.
• Key Definitions: None additional.
• Requirements/Procedures:
  • Existing provisions continue to govern aspects not addressed in this Act.
• Timeframes: Not specified.
• Liabilities/Consequences: None explicitly mentioned.

• Existing provisions of RA 2044 remain in force.

SECTION 5: Effectivity

• Explanation: This section states that the Act will take effect upon its approval.
• Key Definitions: None additional.
• Requirements/Procedures: Immediate effectivity upon approval.
• Timeframes: Effective immediately as of June 20, 1959.
• Liabilities/Consequences: None explicitly mentioned.

• Act takes effect immediately upon approval.

Key Takeaways

• The franchise previously granted to Joseph de Castro is successfully transferred to Oceanic Wireless Network, Inc., allowing for expanded telecommunications services.
• Oceanic Wireless is subject to tax obligations and must secure necessary licenses for operation.
• Existing regulations from the original franchise remain applicable unless amended.
• The Act is effective immediately upon approval, facilitating prompt initiation of services by the grantee.