Operation of Stations and Facilities
- eTELCO must ensure that its stations and facilities cause minimal interference to the frequencies or wavelengths of existing or authorized stations.
- The grantee retains the right to use its selected frequencies without diminishing transmission quality.
Regulatory Authority of the National Telecommunications Commission (NTC)
- eTELCO must secure a certificate of public convenience and necessity or appropriate permits from the NTC for construction, installation, and operation.
- The NTC may impose conditions on construction, operation, maintenance, and service levels.
- Use of radio spectrum frequencies requires prior authorization from the NTC.
- The NTC shall not unreasonably withhold or delay approvals.
Ingress and Egress for Infrastructure Installation
- With DPWH approval, eTELCO may excavate or lay conduits in public places, streets, and highways for installing poles and cables.
- Any altered public property must be restored according to DPWH standards.
- Failure to repair after 10-days notice permits DPWH to undertake repairs at eTELCO's expense.
Public Responsibility and Service Obligations
- eTELCO must adhere to ethical business practices and avoid obscene, indecent, false, or subversive transmissions.
- It must provide local telephone services fairly and without discrimination, expanding capacity as demand grows.
- If service demand is below viable market size, the applicant must cover installation costs.
- Equipment and systems must be maintained satisfactorily and updated with technological advances.
Regulation of Rates and Charges
- Telecommunications service charges are subject to NTC approval, except those declared nonregulated.
- Rates must be unbundled and distinct to prevent regulated services from subsidizing unregulated ones.
Government Rights in Emergencies
- The President may temporarily take control or suspend operation of eTELCO’s facilities during war, rebellion, calamity, or emergency.
- Compensation is required for such use.
- Radio spectrum usage is a privilege granted by the State and may be withdrawn after due process.
Franchise Term and Revocation Conditions
- The franchise is valid for 25 years unless revoked sooner.
- It will be automatically revoked if eTELCO fails to commence operations within 3 years, operate continuously for 2 years, or start within 3 years of the Act’s effectivity.
Acceptance and Compliance with Franchise
- Written acceptance of the franchise must be submitted within 60 days from effectivity.
- Nonacceptance renders the franchise void.
Bond Requirement
- A bond is required to guarantee compliance with franchise conditions, amount determined by NTC.
- The bond is cancelled after 5 years if conditions are met; otherwise, forfeiture and franchise revocation occur.
Right of Interconnection
- eTELCO may connect to other authorized telecommunications systems under mutually agreed terms.
- Such agreements are subject to NTC review and modification.
Taxation
- eTELCO is subject to all applicable taxes under existing laws except for specific exempted privileges.
- Tax returns must be filed with local revenue offices and are subject to BIR audit.
Accounting and Reporting
- Separate accounts of gross receipts must be maintained and submitted annually to the Commission on Audit and National Treasury.
- Books and accounts are open to inspection, with quarterly reports required on gross receipts, profits, and business condition.
Liability Disclaimer
- eTELCO holds all government levels free from claims arising from accidents or injuries related to its stations or equipment.
Nontransferability and Ownership Restrictions
- The franchise cannot be leased, transferred, sold, assigned, merged, or otherwise transferred in controlling interest without approval.
Public Ownership Requirement
- At least 30% of capital stock must be offered to the public on Philippine securities exchanges within 5 years of operations.
- Failure to comply results in automatic franchise revocation.
Equality Clause
- eTELCO is entitled to any privileges or advantages granted under other telecommunications franchises, except those related to territory, term, or service type.
Separability Clause
- If any provision is invalidated, remaining provisions stay effective.
Amendability and Nonexclusivity
- The franchise is subject to amendment or repeal by Congress as public interest requires.
- The franchise is not exclusive.
Annual Report Requirement
- eTELCO must submit an annual compliance and operations report to Congress within 60 days after each year-end.
Effectivity
- The Act takes effect 15 days after publication in two national newspapers, initiated by the grantee.