Operation of Facilities
- Facilities must minimize interference with other stations, preserving quality and maximizing service availability.
Government Rights
- Radio spectrum is a national patrimony; use is a state privilege and can be revoked with due process.
- In emergencies (war, calamity, etc.), the President may take over or authorize operation of facilities, with due compensation.
Powers and Regulation by the NTC
- Operations require a Certificate of Public Convenience and Necessity and licenses issued by the NTC.
- Frequency assignments and station operations are regulated to prevent interference.
- Installation and operation of telecommunications and radio systems require prior NTC approval.
Excavation and Restoration
- Authorized to perform necessary excavations for telecommunications infrastructure with approval from DPWH and local government units.
- Obligated to restore disturbed public places to original condition; failure results in double cost charges borne by the grantee.
Term of Franchise
- Valid for 25 years from effectivity, subject to earlier revocation if operations cease for two continuous years.
Responsibility to the Public
- Must comply with ethical standards, avoid obscene content or false information.
- Required to maintain and upgrade facilities to keep pace with technological advances.
- Must expand services especially in unserved and disaster-prone areas, complying with disaster alert laws.
Reporting and Financial Obligations
- Maintain separate gross receipts accounts; submit annual financial reports to the Commission on Audit and National Treasurer.
- Responsible for payment of applicable taxes, except exemptions on telecommunications equipment and materials.
Employment
- Shall create employment opportunities, prioritize residents near principal offices, and adhere to labor laws.
- Employment statistics must be reflected in annual Securities and Exchange Commission reports.
Mobile Number Portability
- Required to provide mobile number portability and interconnect with other networks.
- Prohibited from installing network features that obstruct nationwide portability.
- NTC will issue implementing rules.
Eminent Domain
- May exercise eminent domain for necessary telecommunications infrastructure with legal procedures and just compensation.
Rates for Services
- Service charges are subject to NTC approval unless classified as nonregulated services.
Right of Interconnection
- Authorized to connect its telecommunications systems with other authorized systems under mutually agreed terms, subject to NTC review.
Transparency and Inspection
- Books and accounts shall be open to COA inspection; must submit quarterly business reports.
Non-Exclusivity
- Franchise does not confer exclusive rights; other franchises may be granted.
- Subsequent franchises must place new lines without impairing existing operations; NTC can order relocation at the cost of the newer franchisee.
Hold Harmless Clause
- Grantee holds government agencies free from liabilities for accidents or damages related to operations.
Transfer or Assignment of Franchise
- Sale, transfer, lease, assignment, or merger requires prior Congressional approval, except limited cases (stock exchange transactions, intra-corporate transfers, grants to entities with telecommunications franchise).
- Any assignee assumes all obligations and restrictions.
Public Ownership Requirement
- At least 30% of outstanding capital stock must be offered to Filipino citizens within 6 years of operations.
- Noncompliance results in ipso facto revocation of franchise.
Contracting with Private Entities
- Authorized to subcontract installation and operation to qualified telecommunications firms with NTC approval.
Annual Reportorial Requirements
- Annual compliance and operations reports due to Congress by April 30; NTC will require compliance certificate before issuing permits.
- Failure to comply results in progressive fines collected by NTC and remitted to National Treasury.
Equality Clause
- Any future advantages or privileges granted to other telecommunications franchises shall automatically apply to this grantee, except territorial, term, and service type provisions.
Renewal, Separability, and Repeal
- Extends original franchise for 25 years.
- Invalid provisions do not affect the remainder of the law.
- Congress may amend or repeal the franchise in the public interest.
- All inconsistent laws or regulations are repealed or modified.
Effectivity
- The law takes effect 15 days after publication in the Official Gazette or newspaper of general circulation.