Manner of Operation of Stations or Facilities
- Facilities must minimize interference with other frequencies/stations.
- Does not diminish grantee’s rights to assigned frequencies or quality of service.
Authority of the National Telecommunications Commission (NTC)
- Grantee must secure NTC certificate or permits for construction and operation.
- NTC may impose conditions on construction, operation, maintenance, and service levels.
- NTC regulates frequency use; unauthorized use prohibited.
- Certificates specify service area and commencement date.
- NTC can revoke or suspend permits after due process for violations.
- NTC reviews frequency assignments regularly and can reallocate redundant frequencies.
- NTC may recommend franchise revocation to Congress for violations.
Excavation and Restoration Works
- Grantee may excavate public places for installation of poles, wires, cables with DPWH or LGU approval.
- Must restore disturbed areas to original condition per DPWH or LGU standards.
- Failure to repair after 10-day notice allows DPWH or LGU to repair and charge double cost to grantee.
Responsibility to the Public
- Must operate with integrity; no obscene, false, subversive transmissions.
- Must maintain and improve stations and equipment to keep pace with technology.
- Required to improve services in unserved and disaster-prone areas as identified by the relevant authorities.
- Must comply with Free Mobile Disaster Alerts Act requirements.
Rates for Services
- All rates and charges are subject to NTC approval except for nonregulated services designated in the future.
Right of the Government
- Radio spectrum is national patrimony; usage is a privilege.
- The President can temporarily take over or suspend operations in cases of war, emergency, or public peril with compensation.
Term of Franchise
- Franchise extended for 25 years from April 24, 2023, unless revoked.
- Franchise lapses if grantee fails to operate continuously for 2 years.
Renewal or Extension of Franchise
- Grantee must apply for renewal 3 years before expiration, counted 15 days after publication.
Right of Interconnection
- Authorized to connect with other telecommunications systems.
- Interconnection terms agreed mutually, subject to NTC review.
Mobile Number Portability (MNP)
- Grantee must provide MNP and related infrastructure.
- Must not install features impeding nationwide MNP implementation.
Warranty in Favor of Governments
- Grantee holds government free from liabilities or claims from accidents during construction or operation.
Sale, Lease, Transfer or Assignment of Franchise
- Prohibited without Congress approval.
- Congress must be informed within 60 days post transaction.
- Failure to report results in ipso facto revocation.
- Transferee bound by same terms and conditions.
Dispersal of Ownership
- Must offer at least 30% of outstanding capital stock to Filipino citizens within 5 years from operations start.
- Cooperatives must be established if public stock offering is not applicable.
- Noncompliance results in ipso facto revocation.
Business Development and Expansion Plan
- Obligation to carry out a business expansion plan including development phases, capitalization, and milestones.
Employment and Labor Provisions
- Must create jobs and allow on-the-job training with priority to local residents.
- At least 60% of workforce must be regular employees; maximum 40% contractual or casual.
- Compliance with labor laws required.
- Employment statistics and compliance certifications must be submitted annually.
Contract with Private Entities
- Authorized to contract telecommunications system installation and operation with experienced entities under approved terms.
Tax Provisions
- Subject to real estate, building, and personal property taxes except for telecommunications equipment which is exempt.
- Must pay value-added tax (VAT) on gross receipts; exempt from other local and national taxes.
- Income taxes remain payable.
- Tax returns filed with BIR and subject to audit.
Reportorial Requirements
- Must submit annual compliance report to Congress including business updates, financials, NTC certification, ownership dispersal.
- Failure to report includes penalty and report needed for permit application.
- Must disclose any foreign government data cooperation to Congress.
- Must submit network security audits to Congress.
Penalty for Noncompliance with Reporting
- Fine of ₱1,000,000 per working day for non-reporting after application to other telecom grantees.
- Interim fine of ₱500 per working day until then.
- Fine collected by NTC and remitted to Treasury.
Equality Clause
- Any future advantages granted to other franchises shall be granted to the grantee.
- Excludes territory, franchise life span, and authorized service type.
Applicability
- Provisions of the original Act (RA 8627) remain in effect if not inconsistent.
- Pending lawsuits under RA 8627 continue.
- Existing fines, penalties and unpaid assessments remain enforceable.
Amendability and Non-Exclusivity
- Franchise subject to amendment or repeal by Congress.
- Not an exclusive privilege.
Separability Clause
- Invalid provisions do not affect the rest of the Act.
Repealing Clause
- Conflicting laws and issuances are amended or repealed accordingly.
Effectivity
- Takes effect 15 days after publication in Official Gazette or newspaper of general circulation.