Transfer of Telecom Franchise to Local Corp

The franchise was granted for a period of fifty (50) years.
The franchise term commenced prior to the decree and is set to expire on June 21, 2002 as per the original law.

Section 15 of Republic Act No. 808 explicitly prohibits leasing, transferring, selling, or assigning the franchise without prior approval by the Philippine Congress.

The general policy of the State mandates that franchises or similar authorizations for public utilities be granted only to Filipino citizens or corporations with at least 60% Filipino ownership.

Eastern Telecommunications Philippines, Inc. is a duly organized Philippine corporation.
It complies with the ownership requirement, having at least 60% Filipino ownership at all times.

This decree authorizes the Eastern Extension Australasia and China Telegraph Company Ltd. to sell, transfer, or assign its franchise rights under the original law to Eastern Telecommunications Philippines, Inc.
The authorization is subject to compliance with Section 15 of Republic Act No. 808, ensuring proper approval procedures are followed.
Terms and conditions of the transfer are to be agreed upon by the franchisor and the prospective transferee.

The decree took effect immediately upon issuance.
It was signed by the President of the Philippines, exercising powers under the Constitution and martial law proclamations of that period.

Franchise: A government grant permitting operation of a public utility.
Transfer of Franchise: Subject to prior approval to protect public interest and regulatory compliance.
Ownership Requirement: Protection of national interest through Filipino ownership.
Authority of the President under Martial Law: Use of executive powers to issue such decrees.

The decree does not specify penalties within its text but compliance with prior approval and ownership rules implies legal accountability for unauthorized transfer.
Enforcement aligns with related provisions in Republic Act No. 808 and applicable governmental regulations.