AN ACT AMENDING THE FRANCHISE OF ORMOC CITY TELEPHONE COMPANY
Download as PDF
Download as Word
Collections
Create new Collection
Overview
Full Text
Details
Case
Agency Issuance Number
Published Date
AN ACT AMENDING THE FRANCHISE OF ORMOC CITY TELEPHONE COMPANY
Republic Act No. 9479
May 25, 2007
Case Overview and Summary
Nature and Scope of Franchise (Section 1):- Grants Ormoc City Telephone Company, Inc. a franchise to construct, install, establish, operate and maintain local exchange network, public calling stations, wireless local loop and value-added services in Leyte, Southern Leyte and Biliran provinces, including all component and chartered cities.
- Provides basic telephone service capable of accessing local, national, international and other networks.
Manner of Operation (Section 2):
- Stations or facilities shall be constructed and operated to result in minimum interference on existing stations' wavelengths or frequencies.
- Operations shall not exceed the required power to cover the allowed area.
Authority of NTC (Section 3):
- Grantee must secure certificate of public convenience and necessity or appropriate permits and licenses from NTC.
- NTC can impose conditions on construction, operation, maintenance or service level.
- NTC regulates construction and operation, and authorizes use of radio spectrum frequencies.
- NTC shall not unreasonably withhold or delay granting authority, permits or licenses.
Responsibility to the Public (Section 4):
- Grantee shall conform to ethics of honest enterprise and not use stations for obscene, indecent, false, misrepresented or subversive transmissions.
- Grantee shall provide service without discrimination, in order of application, up to capacity.
- Grantee shall increase capacity to meet demand, unless expansion cost is less than smallest viable exchange.
- Grantee shall operate and maintain stations satisfactorily and improve to keep up with advances.
Rates for Services (Section 5):
- Charges and rates for regulated services are subject to NTC approval.
- Rates shall be unbundled and separable among services offered.
- Regulated services shall not subsidize unregulated ones.
Right of Government (Section 6):
- President can temporarily take over, suspend operations, or authorize government use of stations during war, rebellion, peril, calamity, emergency, disaster or disturbance, with due compensation.
- Radio spectrum is national patrimony and its use is a revocable privilege.
Acceptance and Compliance (Section 7):
- Acceptance must be given in writing within 60 days from effectivity of the Act.
- Non-acceptance renders the franchise void.
Bond (Section 8):
- Grantee shall file a bond determined by NTC to guarantee compliance.
- Bond shall be cancelled after 5 years if grantee has fulfilled conditions, otherwise forfeited.
Right of Interconnection (Section 9):
- Grantee can interconnect with other telecommunications systems for improved services, under mutually agreed terms subject to NTC review.
Tax Provisions (Section 10):
- Grantee is subject to all applicable taxes, duties, fees and charges under tax laws.
- Specific tax exemptions, incentives or privileges granted remain applicable.
- Grantee enjoys rights, privileges, benefits and exemptions accorded to other telecommunications franchises.
Gross Receipts (Section 11):
- Grantee shall keep separate account of gross receipts and submit copy to COA and National Treasury annually by January 31st.
Books and Accounts (Section 12):
- Books and accounts shall be open for COA inspection.
- Grantee shall submit quarterly reports on gross receipts, net profits and general condition to COA.
Warranty (Section 13):
- Grantee shall hold national and local governments free from claims arising out of accidents or injuries caused by its operations.
Non-transferability of Franchise (Section 14):
- Grantee cannot lease, transfer, sell, assign or merge the franchise without Congress approval.
- Any transfer in violation renders the franchise revoked.
Reportorial Requirement (Section 15):
- Grantee shall submit annual report to Congress on compliance with franchise terms within 60 days from year-end.
Equality Clause (Section 16):
- Any advantage, favor, privilege, exemption or immunity granted to other franchises shall immediately apply, except territory covered, lifespan and type of service.
Separability Clause (Section 17):
- If any provision is held invalid, other provisions remain valid.
Repealability and Non-exclusivity Clause (Section 18):
- Franchise is subject to amendment, alteration or repeal by Congress when public interest requires.
- Franchise shall not be interpreted as an exclusive grant.
Renewal/Extension (Section 2):
- Franchise term is 25 years from effectivity, unless sooner revoked or cancelled.
- Franchise deemed revoked if grantee fails to operate continuously for 2 years.
Effectivity (Section 3):
- Act takes effect 15 days after publication in at least 2 newspapers of general circulation, upon grantee's initiative.
Amends
n/a
Amended by
n/a
Tags
Statutes
Republic Acts
telecommunications franchise
Ormoc City Telephone Company
local exchange network
public calling stations
wireless local loop
value-added services
Leyte
Southern Leyte
Biliran
basic telephone service
national
international networks
radio spectrum
National Telecommunications Commission
certificate of public convenience and necessity
permits
licenses
ethics
obscene transmission
false information
subversive acts
treasonable acts
non-discrimination
service expansion
rates
charges
unbundling
regulated services
unregulated services
government takeover
war
rebellion
public peril
calamity
emergency
disaster
disturbance of peace
national patrimony
acceptance
compliance
bond
interconnection
taxes
duties
fees
charges
impositions
tax exemptions
incentives
privileges
gross receipts
books
accounts
warranty
accidents
injuries
property damage
non-transferability
lease
usufruct
sale
assignment
merger
controlling interest
reportorial requirement
annual report
equality clause
separability clause
repealability clause
non-exclusivity clause
renewal
extension
effectivity
Law
AN ACT AMENDING THE FRANCHISE OF ORMOC CITY TELEPHONE COMPANY
Republic Act No. 9479
•May 25, 2007
Republic of the Philippines
Congress of the Philippines
Metro Manila
Thirteenth CongressThird Regular Session
Begun and held in Metro Manila, on Monday, the twenty-fourth day of July, two thousand six.
Republic Act No. 9479            
AN ACT AMENDING THE FRANCHISE OF ORMOC CITY TELEPHONE COMPANY, INC. GRANTED UNDER REPUBLIC ACT NO. 3482, AND EXTENDING/RENEWING THE TERM THEREOF TO ANOTHER TWENTY-FIVE (25) YEARS FROM THE DATE OF EFFECTIVITY OF THIS ACT
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:
SECTION 1. The franchise of Ormoc City Telephone Company, Inc. granted under Republic Act No. 3482, is hereby amended to read as follows:
"SECTION 1. Nature and Scope of Franchise. - Subject to the provisions of the Constitution and applicable laws, rules and regulations, there is hereby granted to the Ormoc City Telephone Company, Inc., hereunder referred to as the grantee, a franchise to construct, install, establish, operate and maintain for commercial purposes and in the public interest, local exchange network, including public...
Login to see full content
Amends
n/a
Amended by
n/a