Operation of Stations and Facilities
- Stations and facilities must be constructed and operated to cause minimum interference with wavelengths or frequencies of existing or lawfully established stations.
- The grantee retains the right to use selected wavelengths or frequencies without diminishing service quality and transmission/reception.
Regulation and Permits by National Telecommunications Commission (NTC)
- The grantee must secure a certificate of public convenience and necessity or appropriate permits from the NTC.
- NTC may impose conditions on construction, operation, maintenance, or service levels.
- Use of radio frequencies requires prior authorization by the NTC.
- Certificates specify service area and commencement date.
- NTC shall not unreasonably withhold permits or licenses.
Access to Public Infrastructure (Ingres and Egress)
- Grantee may, with prior approval of the Department of Public Works and Highways (DPWH), excavate and lay wires or conduits in public places such as highways, streets, alleys, sidewalks, and bridges.
- Any alterations or damages caused must be repaired and restored to DPWH standards.
- DPWH can execute repairs and charge double costs if the grantee neglects repairs after notice.
Public Responsibility and Ethical Standards
- The grantee must uphold honest enterprise ethics and not use facilities for obscene, indecent, false, misleading, subversive, or treasonable transmissions.
- Obligated to provide basic or enhanced telephone services without discrimination to qualified applicants, respecting capacity and demand.
- Must upgrade facilities in line with technological advancements where practical and economical.
Rates and Charges
- Telecommunications service rates are subject to approval by the NTC or its legal successor.
- Rates must be unbundled and fairly apportioned; regulated services cannot subsidize unregulated ones.
Government Rights During Emergencies
- The President can temporarily take over, suspend, or authorize government use of the grantee’s facilities in times of war, calamity, emergency, or public peril.
- Such use requires just compensation.
- Radio spectrum use is a privilege granted by the State and may be withdrawn after due process.
Franchise Term and Revocation Conditions
- Franchise valid for 25 years from the effectivity date unless revoked or cancelled earlier.
- Automatic revocation if the grantee fails to:
- commence operations within 3 years of NTC permit approval,
- continuously operate for 2 years,
- or commence operations within 5 years from the law’s effectivity.
Acceptance and Obligations
- Grantee must accept the franchise in writing within 60 days from effectivity.
- Exercise of privileges granted is contingent on acceptance; failure to accept voids the franchise.
Bond Requirement
- Grantee must file a bond naming NTC as beneficiary to guarantee compliance with franchise conditions.
- The bond may be cancelled after 5 years if conditions are met; otherwise, forfeiture results in franchise revocation.
Interconnection Rights
- Authorized to connect with other authorized telecommunications systems under mutually agreed terms.
- NTC has authority to review and modify interconnection conditions.
Reporting and Financial Accountability
- Grantee must maintain separate accounts of gross receipts.
- Annual submission of these accounts to the Commission on Audit (COA) and the National Treasury by January 31.
- Books and accounts subject to inspection by COA.
- Quarterly report submissions required detailing gross receipts, net profits, and business conditions.
Liability and Government Indemnity
- Grantee holds government (national and local) harmless from claims due to accidents or injuries related to franchise operations.
Non-transferability and Ownership Restrictions
- Franchise rights and privileges cannot be leased, sold, assigned, or transferred without prior Congressional approval.
- Changes in controlling interest require Congressional approval.
- Acquirers assume existing franchise conditions.
Ownership Public Participation Clause
- At least 30% of outstanding capital stock must be offered in a public securities exchange per constitutional mandate.
- Noncompliance leads to automatic franchise revocation.
Equality Guarantees
- Any privileges, advantages, or immunities granted to other telecommunications franchises also apply to this grantee, except for differences in territorial coverage, franchise lifespan, or authorized service types.
Annual Reporting to Congress
- The grantee must submit annual compliance and operational reports to Congress within 60 days after each year’s end.
Separability Clause
- Invalidity of any provision does not affect the validity of the remaining provisions of the Act.
Amendment and Non-exclusivity
- Congress may amend, alter, or repeal the franchise if public interest requires.
- Franchise is not exclusive and does not confer exclusivity privileges.
Effectivity
- The Act takes effect 15 days after publication in two newspapers of general circulation, initiated by the grantee.
This comprehensive overview covers the franchise grant, operational mandates, regulatory compliance, accountability, rights, and responsibilities stipulated in the law.