Objectives of Telephone Service Expansion and Financing
- Ensure efficient telephone service coverage at the lowest reasonable cost to subscribers.
- Finance expansion through an optimal mix of domestic and foreign financing, balancing debt and equity to reduce capital costs.
- Raise capital funds from a broad investor base to spread ownership.
- Adopt the concept of subscriber self-financing by allowing subscribers to invest in telephone company stocks to fund part of capital investments.
- Preferred stocks issued under subscriber self-financing must guarantee fixed annual income and be convertible to common stocks under reasonable conditions.
- Subscriber self-financing shall not exceed 50% of the cost of the installed telephone line, as regulated.
Implementation and Regulatory Oversight
- The Department of Public Works, Transportation and Communications, through its Board of Communications or appropriate agencies, is mandated to implement these policies.
- The Department has authority to promulgate rules and regulations necessary to enforce the policies.
Repeal and Modification of Conflicting Laws
- Pertinent provisions of the Public Service Act and the franchise of the Philippine Long Distance Telephone Company, among other legislative and municipal franchises, are repealed or modified to conform with this Decree.
- Conflicting laws, executive orders, proclamations, rules, and regulations are similarly amended or repealed.
Effectivity
- The Decree is effective immediately upon promulgation.