Location and Standards for Infrastructure
- Placement of poles and conduits requires approval from the Provincial Board and must comply with aesthetic and safety standards.
- Wires to be maintained at least 15 feet above ground.
- Wires and cables must follow professional standards approved by the Public Service Commission.
- Cable management requirements specify underground placement when wire pairs exceed certain thresholds.
Excavation and Restoration Responsibilities
- The grantee may excavate public places for installing or maintaining infrastructure.
- Any altered public property must be restored satisfactorily by the grantee, including rubbish removal.
Coordination for Public Works
- The grantee must raise or remove wires or conduits obstructing authorized building removal or public works upon at least 48 hours notice.
- Costs are shared equally between the grantee and requesting party.
- Failure to comply empowers the provincial governor, with proper approvals, to order removal at the grantee’s expense.
Quality and Maintenance of Service
- The telephone system and apparatus must be modern, first-class, and maintained to ensure efficient and adequate service.
- The Public Service Commission may require upgrades in equipment and technology to keep pace with scientific progress.
Financial Accountability and Reporting
- The grantee must keep separate accounts of gross receipts and submit annual reports to the Auditor General and Treasurer of the Philippines.
Taxation and Franchise Fee
- The grantee pays taxes on real estate and personal property like other entities.
- Additionally, a 1% franchise tax on gross receipts must be paid annually to the Treasurer.
Certificate of Convenience and Public Necessity
- The grantee must apply within 60 days for a certificate from the Public Service Commission before commencing operations.
- Construction and operation require this certificate which sets conditions for public convenience.
- Failure to obtain or comply with the certificate voids the franchise.
Deposit and Performance Bond
- Grantee must deposit security bonds or money as a good faith guarantee to ensure timely commencement of service.
- Failure to start service within 12 months results in forfeiture of the deposit as liquidated damages.
- Time lost due to force majeure extends allowable commencement period.
Inspection and Reporting to Auditors
- The provincial auditor may inspect the grantee’s books anytime.
- Quarterly reports showing gross and net receipts and business condition must be submitted to the Auditor General.
Non-Exclusivity and Infrastructure Coordination
- The franchise is non-exclusive; others may be granted telephone franchises.
- New franchises must not impair existing infrastructure efficiency.
- The Public Service Commission can order relocation of infrastructure with cost payment arrangements.
Liability and Hold Harmless Provision
- The grantee must hold government entities harmless from claims arising from accidents or injuries related to telephone system construction or operation.
Rate Regulation
- Telephone service rates, including flat and measured rates, require approval from the Public Service Commission.
Franchise Transfer Restrictions
- Transfer, sale, or assignment of the franchise requires explicit prior approval from Congress.
Additional Infrastructure Installations
- The grantee may install or lease additional telephone system components with prior approval from the Public Service Commission.
Government Use of Infrastructure
- The Philippine government may use one crossarm on the grantee’s poles without compensation for telegraph wires.
- Additional crossarms require agreed compensation or rate fixed by the Public Service Commission.
- The provincial government may also use one crossarm for police and fire alarm wires without compensation, ensuring no interference.
Purchase of Provincial Government Property
- The grantee must purchase existing telephone service property from the provincial government at an agreed price or as referee determined by the Public Service Commission.
Government’s Right to Take Over
- If the Philippine Government opts to operate the telephone system, the grantee must surrender the franchise and transfer equipment at cost less depreciation.
Effectivity
- The law takes effect upon approval.