Manner of Operation of Stations or Facilities
- Operations must minimize interference with other stations’ frequencies.
- The Grantee retains rights to use its designated frequencies without quality diminution.
- Must maximize service availability and quality.
Authority of the National Telecommunications Commission (NTC)
- Requires securing a Certificate of Public Convenience and Necessity, and other permits from the NTC.
- NTC regulates conditions relative to construction, operation, and service levels.
- NTC approval covers area of service and commencement date.
- Frequency use without NTC authorization is prohibited.
- NTC holds power to revoke/suspend permits for violations after due process.
- May recommend franchise revocation to Congress.
Excavation and Restoration Works
- Grantee may conduct excavations for infrastructure with prior DPWH or local government approval.
- Disturbed public areas must be restored to DPWH/LGU standards.
- Failure to repair within 10 days allows DPWH/LGU to repair and charge double cost to Grantee.
Responsibility to the Public
- Prohibited from using facilities for obscene, false, or subversive transmissions.
- Required to operate and maintain facilities satisfactorily and update technology as feasible.
- Must expand services to underserved and disaster-prone areas per NDRRMC and NTC guidelines.
- Equipment and facilities must comply with Free Mobile Disaster Alerts Act (RA 10639).
Rates for Services
- Charges for telecommunications services are subject to NTC approval, except for future nonregulated services.
- Rates must be unbundled and distinct.
- Regulated services may not subsidize unregulated ones.
Right of the Government
- Radio spectrum is a national patrimony; its use is a privilege.
- President may temporarily take over or suspend operation of facilities during emergencies, with due compensation.
Term of Franchise
- Valid for 25 years from effectivity.
- Automatically revoked if operations cease for two years.
Right of Interconnection
- Grantee may connect to other authorized telecommunications systems.
- Connections subject to mutually agreed terms and NTC review.
Mobile Number Portability (MNP)
- Grantee must provide MNP and infrastructure.
- Must interconnect with other franchisees’ networks.
- Prohibited from installing features that impede nationwide MNP.
Warranty in Favor of Government
- Grantee holds national and local governments harmless from claims arising from accidents during construction or operation.
Sales, Lease, Transfer, or Assignment of Franchise
- Prohibited without prior Congressional approval.
- Obligation to notify Congress within 60 days after transaction.
- Failure to notify results in automatic franchise revocation.
- Successor subject to same franchise conditions.
Dispersal of Ownership
- At least 30% of outstanding capital stock must be offered to Filipino citizens within five years.
- Alternative public participation methods required if public offering is inapplicable.
- Noncompliance results in revocation of franchise.
Employment Commitments
- Grantee must create jobs and accept on-the-job trainees.
- Priority for local residents where principal office is located.
- Must comply with labor standards and report to SEC annually.
Reportorial Requirements
- Annual compliance report due to Congress by April 30 each year.
- Includes operation updates, financial statements, GIS, NTC certifications, and ownership dispersal.
- Reportorial compliance certificate needed before NTC permits are processed.
Penalties for Non-Compliance
- Failure to submit annual report imposes a fine of ₱1,000,000 per working day to Congress.
- Interim penalty payable to NTC is ₱500 per working day.
- Fines are separate from NTC penalties and remitted to Bureau of Treasury.
Equality Clause
- Any privileges granted to other telecom franchises automatically apply to this Grantee.
- Does not affect territorial coverage, franchise lifespan, or authorized services.
Repealability and Nonexclusivity
- Franchise can be amended, altered, or repealed by Congress in public interest.
- Franchise is non-exclusive.
Separability Clause
- If any provision is found invalid, remaining provisions stay effective.
Repealing Clause
- Conflicting laws, orders, and regulations are repealed or amended accordingly.
Effectivity
- Act takes effect 15 days after publication in Official Gazette or newspaper of general circulation.