Republic of the Philippines
CONGRESS OF THE PHILIPPINES
Metro ManilaEleventh Congress
Third Regular SessionBegun and held in Metro Manila, on Monday, the twenty-fourth day of July, two thousand.
REPUBLIC ACT NO. 9002 January 21, 2001
AN ACT GRANTING THE CLICK COMMUNICATIONS, INC. A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN WIRE AND/OR WIRELESS TELECOMMUNICATIONS SYSTEMS THROUGHOUT THE PHILIPPINES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
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 Click Communications, Inc., hereunder referred to as the grantee, its successors or assigns, a franchise to construct, establish, install, maintain, lease and operate for commercial purposes and in the public interest, throughout the Philippines and between the Philippines and other countries and territories, wire and/or wireless telecommunications systems including but not limited to mobile, cellular, paging, multi-channel distribution systems (MMDS), local multi-point distribution systems (LMDS), satellite transmit and receive systems, switches,...
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Republic Acts
AN ACT GRANTING THE CLICK COMMUNICATIONS
Republic Act No. 9002
Summary of Republic Act No. 9002
Nature and Scope of Franchise (Section 1):
- Grants Click Communications, Inc. (the grantee) a franchise to construct, install, establish, operate and maintain wire and/or wireless telecommunications systems throughout the Philippines and between the Philippines and other countries.
- Covers mobile, cellular, paging, multi-channel distribution systems (MMDS), local multi-point distribution systems (LMDS), satellite transmit and receive systems, switches, and value-added services like transmission of voice, data, facsimile, control signs, audio and video, information and service bureau, and other future technologies.
Manner of Operation (Section 2):
- Stations or facilities shall be operated in a manner that results in minimum interference on existing stations' wavelengths or frequencies.
Authority of the National Telecommunications Commission (NTC) (Section 3):
- The grantee must secure a certificate of public convenience and necessity or appropriate permits and licenses from the NTC.
- The NTC has the power to impose conditions on the construction, operation, maintenance, or service level of the telecommunications system.
- The NTC has the authority to regulate the construction and operation of the telecommunications systems.
- The grantee cannot use any frequency without NTC authorization.
Ingress and Egress (Section 4):
- The grantee can make excavations or lay conduits in public places, highways, streets, etc., with prior approval from the Department of Public Works and Highways (DPWH).
- The grantee must repair and replace any public place, highway, street, etc., disturbed by its activities, in accordance with DPWH standards.
Responsibility to the Public (Section 5):
- The grantee must conform to ethics of honest enterprise and not use its stations for obscene, indecent, false, or subversive transmissions.
- The grantee must provide basic or enhanced telephone service without discrimination, up to the capacity of its local exchange.
- The grantee must operate and maintain its stations, lines, cables, systems, and equipment in a satisfactory manner and keep up with technological advances.
Rates for Services (Section 6):
- Charges and rates for regulated telecommunications services are subject to NTC approval.
- Rates must be unbundled, separable, and distinct among services offered, and regulated services cannot subsidize unregulated ones.
Right of Government (Section 7):
- The President can temporarily take over, suspend operations, or authorize temporary use of the grantee's stations, transmitters, facilities, or equipment during times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, with due compensation to the grantee.
- The radio spectrum is part of the national patrimony, and its use is a privilege that may be withdrawn anytime after due process.
Term of Franchise (Section 8):
- The franchise is valid for 25 years from the date of effectivity of this Act, unless sooner revoked or cancelled.
- The franchise shall be deemed ipso facto revoked if the grantee fails to:
- Commence operations within 3 years from NTC approval
- Operate continuously for 2 years
- Commence operations within 5 years from the effectivity of this Act
Acceptance and Compliance (Section 9):
- The grantee must accept the franchise in writing within 60 days from the effectivity of this Act.
- Non-acceptance shall render the franchise void.
Bond (Section 10):
- The grantee must file a bond, determined by the NTC, to guarantee compliance with the franchise conditions.
- If the grantee fulfills the conditions after 5 years from NTC approval, the bond shall be cancelled. Otherwise, the bond shall be forfeited, and the franchise ipso facto revoked.
Right of Interconnection (Section 11):
- The grantee is authorized to connect or demand connection of its telecommunications systems to any other duly authorized system in the Philippines, under mutually agreed terms and conditions, subject to NTC review or modification.
Tax Provisions (Section 12):
- The grantee is subject to taxes under the National Internal Revenue Code (NIRC) of 1997 and other applicable laws, unless exempted by relevant laws.
- The grantee shall enjoy tax exemptions, incentives, or privileges granted to existing and future telecommunications companies.
Gross Receipts (Section 13):
- The grantee must keep a separate account of gross receipts and furnish a copy to the Commission on Audit (COA) and National Treasury annually.
Books and Accounts (Section 14):
- The grantee's books and accounts shall be open to inspection by the COA, and the grantee must submit quarterly reports on gross receipts, net profits, and general condition of the business to the COA.
Warranty in Favor of National and Local Governments (Section 15):
- The grantee shall hold the national, provincial, city, and municipal governments harmless from claims, accounts, demands, or actions arising out of accidents or injuries caused by the construction or operation of its stations, transmitters, facilities, and equipment.
Sale, Lease, Transfer, Usufruct, etc. (Section 16):
- The grantee cannot lease, transfer, grant usufruct, sell, assign this franchise or its rights and privileges, merge with another entity, or transfer controlling interest, without prior approval from the Congress of the Philippines.
- Any entity to which the franchise is sold, transferred, or assigned shall be subject to the same conditions, terms, restrictions, and limitations of this Act.
Dispersal of Ownership (Section 17):
- The grantee must offer at least 30% of its outstanding capital stock, or a higher percentage as may be provided by law, in any securities exchange in the Philippines within 5 years from the commencement of operations.
- Non-compliance shall render the franchise ipso facto revoked.
Equality Clause (Section 18):
- Any advantage, favor, privilege, exemption, or immunity granted under existing or future franchises shall automatically become part of previously granted telecommunications franchises, except for provisions concerning territory covered, life span of the franchise, or type of service authorized.
Separability Clause (Section 19):
- If any section or provision of this Act is held invalid, all other valid provisions shall remain in effect.
Repealability and Non-exclusivity Clause (Section 20):
- This franchise is subject to amendment, alteration, or repeal by the Congress of the Philippines when the public interest so requires.
- This franchise shall not be interpreted as an exclusive grant of the privileges provided.
Reportorial Requirement (Section 21):
- The grantee must submit an annual report to the Congress of the Philippines on its compliance with the franchise terms and conditions and its operations within 60 days from the end of every year.
Effectivity Clause (Section 22):
- This Act shall take effect 15 days from the date of its publication in at least two newspapers of general circulation in the Philippines, upon the initiative of the grantee.
Nature and Scope of Franchise (Section 1):
- Grants Click Communications, Inc. (the grantee) a franchise to construct, install, establish, operate and maintain wire and/or wireless telecommunications systems throughout the Philippines and between the Philippines and other countries.
- Covers mobile, cellular, paging, multi-channel distribution systems (MMDS), local multi-point distribution systems (LMDS), satellite transmit and receive systems, switches, and value-added services like transmission of voice, data, facsimile, control signs, audio and video, information and service bureau, and other future technologies.
Manner of Operation (Section 2):
- Stations or facilities shall be operated in a manner that results in minimum interference on existing stations' wavelengths or frequencies.
Authority of the National Telecommunications Commission (NTC) (Section 3):
- The grantee must secure a certificate of public convenience and necessity or appropriate permits and licenses from the NTC.
- The NTC has the power to impose conditions on the construction, operation, maintenance, or service level of the telecommunications system.
- The NTC has the authority to regulate the construction and operation of the telecommunications systems.
- The grantee cannot use any frequency without NTC authorization.
Ingress and Egress (Section 4):
- The grantee can make excavations or lay conduits in public places, highways, streets, etc., with prior approval from the Department of Public Works and Highways (DPWH).
- The grantee must repair and replace any public place, highway, street, etc., disturbed by its activities, in accordance with DPWH standards.
Responsibility to the Public (Section 5):
- The grantee must conform to ethics of honest enterprise and not use its stations for obscene, indecent, false, or subversive transmissions.
- The grantee must provide basic or enhanced telephone service without discrimination, up to the capacity of its local exchange.
- The grantee must operate and maintain its stations, lines, cables, systems, and equipment in a satisfactory manner and keep up with technological advances.
Rates for Services (Section 6):
- Charges and rates for regulated telecommunications services are subject to NTC approval.
- Rates must be unbundled, separable, and distinct among services offered, and regulated services cannot subsidize unregulated ones.
Right of Government (Section 7):
- The President can temporarily take over, suspend operations, or authorize temporary use of the grantee's stations, transmitters, facilities, or equipment during times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, with due compensation to the grantee.
- The radio spectrum is part of the national patrimony, and its use is a privilege that may be withdrawn anytime after due process.
Term of Franchise (Section 8):
- The franchise is valid for 25 years from the date of effectivity of this Act, unless sooner revoked or cancelled.
- The franchise shall be deemed ipso facto revoked if the grantee fails to:
- Commence operations within 3 years from NTC approval
- Operate continuously for 2 years
- Commence operations within 5 years from the effectivity of this Act
Acceptance and Compliance (Section 9):
- The grantee must accept the franchise in writing within 60 days from the effectivity of this Act.
- Non-acceptance shall render the franchise void.
Bond (Section 10):
- The grantee must file a bond, determined by the NTC, to guarantee compliance with the franchise conditions.
- If the grantee fulfills the conditions after 5 years from NTC approval, the bond shall be cancelled. Otherwise, the bond shall be forfeited, and the franchise ipso facto revoked.
Right of Interconnection (Section 11):
- The grantee is authorized to connect or demand connection of its telecommunications systems to any other duly authorized system in the Philippines, under mutually agreed terms and conditions, subject to NTC review or modification.
Tax Provisions (Section 12):
- The grantee is subject to taxes under the National Internal Revenue Code (NIRC) of 1997 and other applicable laws, unless exempted by relevant laws.
- The grantee shall enjoy tax exemptions, incentives, or privileges granted to existing and future telecommunications companies.
Gross Receipts (Section 13):
- The grantee must keep a separate account of gross receipts and furnish a copy to the Commission on Audit (COA) and National Treasury annually.
Books and Accounts (Section 14):
- The grantee's books and accounts shall be open to inspection by the COA, and the grantee must submit quarterly reports on gross receipts, net profits, and general condition of the business to the COA.
Warranty in Favor of National and Local Governments (Section 15):
- The grantee shall hold the national, provincial, city, and municipal governments harmless from claims, accounts, demands, or actions arising out of accidents or injuries caused by the construction or operation of its stations, transmitters, facilities, and equipment.
Sale, Lease, Transfer, Usufruct, etc. (Section 16):
- The grantee cannot lease, transfer, grant usufruct, sell, assign this franchise or its rights and privileges, merge with another entity, or transfer controlling interest, without prior approval from the Congress of the Philippines.
- Any entity to which the franchise is sold, transferred, or assigned shall be subject to the same conditions, terms, restrictions, and limitations of this Act.
Dispersal of Ownership (Section 17):
- The grantee must offer at least 30% of its outstanding capital stock, or a higher percentage as may be provided by law, in any securities exchange in the Philippines within 5 years from the commencement of operations.
- Non-compliance shall render the franchise ipso facto revoked.
Equality Clause (Section 18):
- Any advantage, favor, privilege, exemption, or immunity granted under existing or future franchises shall automatically become part of previously granted telecommunications franchises, except for provisions concerning territory covered, life span of the franchise, or type of service authorized.
Separability Clause (Section 19):
- If any section or provision of this Act is held invalid, all other valid provisions shall remain in effect.
Repealability and Non-exclusivity Clause (Section 20):
- This franchise is subject to amendment, alteration, or repeal by the Congress of the Philippines when the public interest so requires.
- This franchise shall not be interpreted as an exclusive grant of the privileges provided.
Reportorial Requirement (Section 21):
- The grantee must submit an annual report to the Congress of the Philippines on its compliance with the franchise terms and conditions and its operations within 60 days from the end of every year.
Effectivity Clause (Section 22):
- This Act shall take effect 15 days from the date of its publication in at least two newspapers of general circulation in the Philippines, upon the initiative of the grantee.