Republic of the Philippines
Congress of the Philippines
Metro ManilaFourteenth Congress
Second Regular SessionBegun and held in Metro Manila, on Monday, the twenty-eighth day of July, two thousand eight.
Republic Act No. 9518 December 27, 2008
AN ACT GRANTING THE METRO KIDAPAWAN TELEPHONE CORPORATION (MKTC) A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN LOCAL EXCHANGE NETWORK IN THE PROVINCE OF NORTH COTABATO
Be it enacted by the Senate and House of Representative 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 the Metro Kidapawan Telephone Corporation (MKTC), hereunder referred to as the grantee, its successors or assigns, a franchise to construct, install, establish, operate and maintain for commercial purposes and in the public interest, local exchange network, including public calling stations or pay telephone stations or wireless local loop and their value-added services in the Province of North Cotabato, and for such purpose provide basic telephone...
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Republic Acts
AN ACT GRANTING THE METRO KIDAPAWAN TELEPHONE CORPORATION (MKTC) A FRANCHISE TO CONSTRUCT
Republic Act No. 9518
Summary of Republic Act No. 9518
Nature and Scope of Franchise (Section 1):
- Grants Metro Kidapawan Telephone Corporation (MKTC) a franchise to construct, install, establish, operate and maintain local exchange network in the Province of North Cotabato.
- Allows MKTC to provide basic telephone service capable of accessing local, national, international and other networks.
Manner of Operation of Stations or Facilities (Section 2):
- MKTC's stations or facilities shall be constructed and operated in a manner that will result in minimum interference on existing stations' wavelengths or frequencies.
- MKTC's operations and radiated power shall not exceed what is required to cover its allowed area of operation.
Authority of the National Telecommunications Commission (Section 3):
- MKTC shall secure a certificate of public convenience and necessity or appropriate permits and licenses from the National Telecommunications Commission (NTC).
- NTC has the power to impose conditions on MKTC's construction, operation, maintenance or service level.
- NTC has the authority to regulate MKTC's construction and operation.
- MKTC shall not use any radio frequency without NTC's authorization.
Responsibility to the Public (Section 4):
- MKTC shall conform to the ethics of honest enterprise and not use its stations for obscene or indecent transmission, false information, misrepresentation, or assist in subversive or treasonable acts.
- MKTC shall provide basic or enhanced telephone service without discrimination, up to the limit of its local exchange capacity.
- MKTC shall increase its capacity to meet demand, unless the expansion cost is less than the smallest viable local exchange available.
- MKTC shall operate and maintain its systems and equipment in a satisfactory manner and keep up with advances in science and technology.
Rates for Services (Section 5):
- MKTC's charges and rates for regulated services shall be subject to NTC's approval.
- Rates shall be unbundled, separable and distinct among services offered.
- Regulated services shall not subsidize unregulated ones.
Right of Government (Section 6):
- The President can temporarily take over, suspend or authorize government use of MKTC's stations, facilities or equipment during war, rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order, with due compensation to MKTC.
- The radio spectrum is part of the national patrimony and its use by MKTC is a privilege that may be withdrawn after due process.
Term of Franchise (Section 7):
- The franchise is valid for twenty-five (25) years from the date of effectivity of this Act, unless sooner revoked or cancelled.
- The franchise shall be deemed revoked if MKTC fails to:
(a) Commence operations within three (3) years from NTC's approval of its operating permit;
(b) Operate continuously for two (2) years; and
(c) Commence operations within five (5) years from the effectivity of this Act.
Acceptance and Compliance (Section 8):
- MKTC shall accept the franchise in writing within sixty (60) days from the effectivity of this Act.
- Non-acceptance shall render the franchise void.
Bond (Section 9):
- MKTC shall file a bond in favor of NTC to guarantee compliance with the franchise conditions.
- NTC shall determine the bond amount.
- The bond shall be cancelled after five (5) years if MKTC has fulfilled the conditions, otherwise it shall be forfeited.
Right of Interconnection (Section 10):
- MKTC is authorized to interconnect its telecommunications systems with other duly authorized entities in the Philippines for providing extended and improved services, subject to NTC's review and modification.
Gross Receipts (Section 11):
- MKTC shall keep a separate account of its gross receipts and furnish a copy to the Commission on Audit (COA) and National Treasury annually by January 31st.
Books and Accounts (Section 12):
- MKTC's books and accounts shall be open to inspection by COA.
- MKTC shall submit quarterly reports on gross receipts, net profits and general condition of the business to COA.
Warranty in Favor of the National and Local Governments (Section 13):
- MKTC shall hold the national, provincial, city and municipal governments free from claims, accounts, demands or actions arising out of accidents or injuries caused by its construction or operation.
Nontransferability of Franchise (Section 14):
- MKTC shall not lease, transfer, grant usufruct, sell, assign or merge the franchise or controlling interest without prior approval of the Congress.
- Any entity to which the franchise is transferred shall be subject to the same conditions, terms, restrictions and limitations.
Dispersal of Ownership (Section 15):
- MKTC shall offer at least thirty percent (30%) of its outstanding capital stock in a securities exchange in the Philippines within ten (10) years from commencement of operations or from the date of effectivity of this Act, whichever is later.
- Non-compliance shall render the franchise ipso facto revoked.
Reportorial Requirement (Section 16):
- MKTC shall submit an annual report to the Congress on its compliance with the franchise terms and conditions and its operations within sixty (60) days from the end of every year.
Equality Clause (Section 17):
- Any advantage, favor, privilege, exemption or immunity granted to existing or future local telephone system franchises shall ipso facto become part of this franchise, except for provisions concerning territory covered, life span or type of service.
Separability Clause (Section 18):
- If any section or provision of this Act is held invalid, all other provisions not affected shall remain valid.
Repealability and Nonexclusivity Clause (Section 19):
- This franchise shall be subject to amendment, alteration or repeal by the Congress when the public interest so requires.
- This franchise shall not be interpreted as an exclusive grant of the privileges provided.
Effectivity Clause (Section 20):
- This Act shall take effect fifteen (15) days from the date of its publication in at least two (2) newspapers of general circulation in the Philippines, upon MKTC's initiative.
Nature and Scope of Franchise (Section 1):
- Grants Metro Kidapawan Telephone Corporation (MKTC) a franchise to construct, install, establish, operate and maintain local exchange network in the Province of North Cotabato.
- Allows MKTC to provide basic telephone service capable of accessing local, national, international and other networks.
Manner of Operation of Stations or Facilities (Section 2):
- MKTC's stations or facilities shall be constructed and operated in a manner that will result in minimum interference on existing stations' wavelengths or frequencies.
- MKTC's operations and radiated power shall not exceed what is required to cover its allowed area of operation.
Authority of the National Telecommunications Commission (Section 3):
- MKTC shall secure a certificate of public convenience and necessity or appropriate permits and licenses from the National Telecommunications Commission (NTC).
- NTC has the power to impose conditions on MKTC's construction, operation, maintenance or service level.
- NTC has the authority to regulate MKTC's construction and operation.
- MKTC shall not use any radio frequency without NTC's authorization.
Responsibility to the Public (Section 4):
- MKTC shall conform to the ethics of honest enterprise and not use its stations for obscene or indecent transmission, false information, misrepresentation, or assist in subversive or treasonable acts.
- MKTC shall provide basic or enhanced telephone service without discrimination, up to the limit of its local exchange capacity.
- MKTC shall increase its capacity to meet demand, unless the expansion cost is less than the smallest viable local exchange available.
- MKTC shall operate and maintain its systems and equipment in a satisfactory manner and keep up with advances in science and technology.
Rates for Services (Section 5):
- MKTC's charges and rates for regulated services shall be subject to NTC's approval.
- Rates shall be unbundled, separable and distinct among services offered.
- Regulated services shall not subsidize unregulated ones.
Right of Government (Section 6):
- The President can temporarily take over, suspend or authorize government use of MKTC's stations, facilities or equipment during war, rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order, with due compensation to MKTC.
- The radio spectrum is part of the national patrimony and its use by MKTC is a privilege that may be withdrawn after due process.
Term of Franchise (Section 7):
- The franchise is valid for twenty-five (25) years from the date of effectivity of this Act, unless sooner revoked or cancelled.
- The franchise shall be deemed revoked if MKTC fails to:
(a) Commence operations within three (3) years from NTC's approval of its operating permit;
(b) Operate continuously for two (2) years; and
(c) Commence operations within five (5) years from the effectivity of this Act.
Acceptance and Compliance (Section 8):
- MKTC shall accept the franchise in writing within sixty (60) days from the effectivity of this Act.
- Non-acceptance shall render the franchise void.
Bond (Section 9):
- MKTC shall file a bond in favor of NTC to guarantee compliance with the franchise conditions.
- NTC shall determine the bond amount.
- The bond shall be cancelled after five (5) years if MKTC has fulfilled the conditions, otherwise it shall be forfeited.
Right of Interconnection (Section 10):
- MKTC is authorized to interconnect its telecommunications systems with other duly authorized entities in the Philippines for providing extended and improved services, subject to NTC's review and modification.
Gross Receipts (Section 11):
- MKTC shall keep a separate account of its gross receipts and furnish a copy to the Commission on Audit (COA) and National Treasury annually by January 31st.
Books and Accounts (Section 12):
- MKTC's books and accounts shall be open to inspection by COA.
- MKTC shall submit quarterly reports on gross receipts, net profits and general condition of the business to COA.
Warranty in Favor of the National and Local Governments (Section 13):
- MKTC shall hold the national, provincial, city and municipal governments free from claims, accounts, demands or actions arising out of accidents or injuries caused by its construction or operation.
Nontransferability of Franchise (Section 14):
- MKTC shall not lease, transfer, grant usufruct, sell, assign or merge the franchise or controlling interest without prior approval of the Congress.
- Any entity to which the franchise is transferred shall be subject to the same conditions, terms, restrictions and limitations.
Dispersal of Ownership (Section 15):
- MKTC shall offer at least thirty percent (30%) of its outstanding capital stock in a securities exchange in the Philippines within ten (10) years from commencement of operations or from the date of effectivity of this Act, whichever is later.
- Non-compliance shall render the franchise ipso facto revoked.
Reportorial Requirement (Section 16):
- MKTC shall submit an annual report to the Congress on its compliance with the franchise terms and conditions and its operations within sixty (60) days from the end of every year.
Equality Clause (Section 17):
- Any advantage, favor, privilege, exemption or immunity granted to existing or future local telephone system franchises shall ipso facto become part of this franchise, except for provisions concerning territory covered, life span or type of service.
Separability Clause (Section 18):
- If any section or provision of this Act is held invalid, all other provisions not affected shall remain valid.
Repealability and Nonexclusivity Clause (Section 19):
- This franchise shall be subject to amendment, alteration or repeal by the Congress when the public interest so requires.
- This franchise shall not be interpreted as an exclusive grant of the privileges provided.
Effectivity Clause (Section 20):
- This Act shall take effect fifteen (15) days from the date of its publication in at least two (2) newspapers of general circulation in the Philippines, upon MKTC's initiative.