Franchise for ISMO Inc. Telecom Operations

Stations and facilities of the Grantee must be operated to cause minimum interference with existing or legally established stations.
The Grantee retains the right to use assigned frequencies or wavelengths without quality reduction.

The Grantee must obtain a Certificate of Public Convenience and Necessity (CPCN) or relevant permits/licenses from the NTC before constructing or operating telecommunications facilities.
The NTC can regulate, condition, suspend, or revoke permits/licenses upon due process.
Use of radio frequencies requires NTC authorization; unreasonable withholding or delay by the NTC is prohibited.
NTC may recommend Congress revoke the franchise for violations.

The Grantee is permitted to excavate and lay wires or cables in public spaces with prior approval from the Department of Public Works and Highways (DPWH) or local government units (LGUs).
Any public property disturbed must be restored in a workmanlike manner following DPWH or LGU standards.
Failure to restore within ten days after notice permits DPWH or LGU to effect repairs at double cost charged to the Grantee.

The Grantee must adhere to honest enterprise ethics, avoiding obscene or indecent transmission, false information, and subversive acts.
Facilities must be maintained to ensure satisfactory transmission and reception; upgrades must keep pace with technological advances.
Services must be expanded to unserved and disaster-prone areas as identified by the National Disaster Risk Reduction and Management Council in coordination with the NTC.
Equipment and services must comply with the Free Mobile Disaster Alerts Act.

Charges for telecommunications services are subject to NTC approval, except for nonregulated services.
Rates must be distinct, unbundled among services, ensuring regulated services do not subsidize unregulated ones.

Radio spectrum is a national patrimony and a revocable privilege.
The President can temporarily take over or suspend operation of the Grantee’s stations or facilities during war, emergency, or public peril.
Compensation shall be given to the Grantee for temporary use of facilities by the government.

The franchise is effective for 25 years from effectivity unless revoked or cancelled sooner.
It will be revoked if the Grantee fails to start operations within three years of the permit, five years from effectivity, or does not continuously operate for two years.

The Grantee must file a compliance bond with the NTC in an amount set by the NTC.
The bond is released after three years upon fulfilling franchise conditions.

The Grantee may connect or demand connection with other authorized telecommunications systems to improve service.
Such interconnection terms are subject to NTC review and modification.

The Grantee must provide MNP service, including necessary infrastructure, and interconnect with other franchisees’ systems.
Network features that impede nationwide MNP implementation are prohibited.

The Grantee shall hold government entities free from claims arising out of accidents or damages connected with its construction or operation of facilities.

The franchise or controlling interest in the Grantee cannot be sold, leased, transferred, or assigned without prior approval of Congress.
Congress must be informed within 60 days after any such transaction.
Failure to report results in automatic franchise revocation.
Transferees are bound by the same franchise terms.

The Grantee must offer at least 30% of its outstanding capital stocks to Filipino citizens on Philippine securities exchanges within five years of effectivity.
Alternative participatory methods may apply if public stock offer is not feasible.
Noncompliance results in franchise revocation.

The Grantee is required to create employment and accept on-the-job trainees with priority for residents near its principal office.
Labor standards and allowances under Philippine laws must be observed.
Employment data must be reported to the Securities and Exchange Commission annually.

Annual reports to Congress are mandatory, detailing compliance, operations, finances, ownership, and permits.
Reports are due by April 30 each year.
Compliance certificate from Congress is required before NTC permit applications are accepted.

Failure to submit annual reports results in fines of Php 1,000,000.00 per working day payable to Congress after application to other franchisees.
Interim fines of Php 500 per working day are payable to the NTC.
Fines are collected separately and remitted to the Bureau of Treasury.

Advantages, privileges, or exemptions granted under existing or future franchises must be accorded to the Grantee.
Territorial coverage, franchise duration, and service type provisions are not affected.

Invalid provisions in the act do not affect the validity of remaining provisions.
Conflicting laws and regulations are amended or repealed accordingly.

The act takes effect 15 days after publication in the Official Gazette or a newspaper of general circulation.