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Republic Acts

AN ACT GRANTING MR. ROSENDO MAGLASANG A FRANCHISE TO ESTABLISH RADIO STATIONS FOR DOMESTIC TELECOMMUNICATIONS.

Republic Act No. 3417

REPUBLIC ACT No. 3417

AN ACT GRANTING MR. ROSENDO MAGLASANG A FRANCHISE TO ESTABLISH RADIO STATIONS FOR DOMESTIC TELECOMMUNICATIONS.

Section 1. Subject to the provisions of the Constitution, as well as of Act Numbered Three thousand eight hundred and forty-six, entitled, "An Act providing for the regulations of radio stations and radio communications onsthe Philippine Islands, and for other purposes"; Act Numbered Three thousand nine hundred and ninety-seven, known as the Radio Broadcasting Law; Commonwealth Act Numbered One hundred forty-six, known as the Public Service Act, and their amendments, and other applicable laws, there is hereby granted to Mr. Rosendo Maglasang, residing at No. 18 Mirasol Street, Cebu City, hereinafter referred to as the "grantee," his successors or assigns, a franchise to construct, install, establish, maintain and operate in the Philippines, at such places as the grantee may select and the Secretary of Public Works and Communications may approve, or any licensing authority, commercial radiotelegraph and/or radiotelephone communication stations, radio broadcast paging, reception of foreign and domestic press stations, with the corresponding relay...

Summary of Republic Act No. 3417

Granting of Franchise
- Grants Mr. Rosendo Maglasang, residing at No. 18 Mirasol Street, Cebu City, a franchise to construct, install, establish, maintain and operate radio stations for domestic telecommunications in the Philippines. (Section 1)
- The franchise covers commercial radiotelegraph and/or radiotelephone communication stations, radio broadcast paging, reception of foreign and domestic press stations, relay stations, inter-island, maritime, aeronautical and international public services, broadcasting, television, radiophoto and facsimile services, and communication services and equipment to private firms. (Section 1)

Government Control and Regulation
- The President can permit the construction of stations on public domain land under prescribed terms and conditions. (Section 2)
- The Secretary of Public Works and Communications will allot the frequencies and wave lengths to be used and issue a license. (Section 4a)
- The Secretary can change, cancel, or modify the allotted frequencies and wave lengths if the grantee impairs communication, stifles competition, obtains a monopoly, charges unreasonable rates, violates laws or public policy, or if the public interest requires the frequencies to be used for other purposes. (Section 4b)
- The stations must be constructed and operated to avoid interference with existing stations and permit expansion of services. (Section 5)
- The President can order the closing of stations or authorize temporary government use during war, rebellion, public peril, calamity, disaster or disturbance of peace or order, with just compensation to the grantee. (Section 6)

Franchise Terms and Conditions
- The franchise is valid for 25 years from the date the first station is placed in operation. (Section 3)
- Construction must begin within 2 years and be completed within 4 years from the approval of the Act, or the franchise becomes void. (Section 3)
- The grantee must hold the government harmless from claims arising out of accidents or injuries caused by the station operations. (Section 7)
- Private property cannot be taken without proper condemnation proceedings and just compensation. (Section 8)
- The grantee must keep accounts of gross receipts and submit them annually to the Auditor General and Treasurer of the Philippines for audit and approval. (Section 9)
- The grantee is subject to Philippine corporation laws. (Section 10)
- The grantee must file a bond of 50,000 pesos to guarantee compliance with the franchise conditions, which will be cancelled after 4 years if the conditions are fulfilled. (Section 11)
- The franchise cannot be leased, transferred, sold, assigned or merged without approval from the Congress of the Philippines. (Section 12)
- If a competing franchise has more favorable terms, those terms will automatically apply to this franchise as well. (Section 13)
- The grantee must pay taxes on real estate, buildings and personal property, and 1.5% of gross receipts from the franchise business annually to the Treasurer of the Philippines. (Section 14)
- The franchise is not an exclusive grant of privileges. (Section 15)

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