Republic Act No. 8959 September 7, 2000*
AN ACT GRANTING THE PALAWAN TELEPHONE COMPANY, INC., A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN LOCAL EXCHANGE NETWORK IN THE MUNICIPALITIES OF NARRA, ABORLAN, SOFRONIO ESPAÑOLA, BROOKE'S POINT, BATARAZA, BALABAC, QUEZON, RIZAL, ROXAS, TAYTAY, CORON, EL NIDO, PROVINCE OF PALAWAN
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 Palawan Telephone Company, Inc., 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 municipalities of Narra, Aborlan, Sofronio Española, Brooke's Point, Bataraza, Balabac, Quezon, Rizal, Roxas, Taytay, Coron, El Nido, Province of Palawan, and for such purpose provide basic telephone service capable of accessing local, national, international and other networks.
Section 2. Manner of Operation of Stations or...
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Republic Acts
AN ACT GRANTING THE PALAWAN TELEPHONE COMPANY
Republic Act No. 8959
Summary of Republic Act No. 8959
Nature and Scope of Franchise (Section 1):
- Grants Palawan Telephone Company, Inc. (the grantee) a franchise to construct, install, establish, operate and maintain local exchange network and public calling stations in the municipalities of Narra, Aborlan, Sofronio Española, Brooke's Point, Bataraza, Balabac, Quezon, Rizal, Roxas, Taytay, Coron, El Nido, Province of Palawan.
- Allows the grantee to provide basic telephone service capable of accessing local, national, international and other networks.
Manner of Operation (Section 2):
- The grantee's stations or facilities shall be constructed and operated in a manner that results in minimum interference with existing or future stations.
- The grantee's operations shall not exceed the required power to cover its allowed area of operation.
Authority of the National Telecommunications Commission (Section 3):
- The grantee must secure a Certificate of Public Convenience and Necessity or appropriate permits and licenses from the National Telecommunications Commission (the Commission).
- The Commission has the power to impose conditions on the construction, operation, maintenance, or service level of the telecommunications system.
- The Commission has the authority to regulate the construction and operation of the grantee's telecommunications systems.
- The grantee cannot use any frequency without authorization from the Commission.
Responsibility to the Public (Section 4):
- The grantee shall conform to ethics of honest enterprise and shall not use its stations for obscene, indecent, false, or subversive transmissions.
- The grantee shall provide basic or enhanced telephone service without discrimination, up to the capacity of its local exchange.
- The grantee shall operate and maintain its stations, lines, cables, systems and equipment in a satisfactory manner and keep up with advances in science and technology.
Rates for Services (Section 5):
- The charges and rates for regulated telecommunications services shall be subject to the approval of the Commission.
- The rates shall be unbundled and separable among the services offered, and regulated services shall not subsidize unregulated ones.
Right of Government (Section 6):
- The President has the right to temporarily take over, suspend operations, or authorize temporary use of the grantee's stations, transmitters, facilities or equipment during times of war, rebellion, peril, calamity, emergency, disaster or disturbance, with due compensation to the grantee.
- The radio spectrum is part of the national patrimony, and its use by the grantee is a privilege that may be withdrawn anytime 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 the grantee fails to:
- Commence operations within three (3) years from approval of its operating permit by the Commission.
- Operate continuously for two (2) years.
- Commence operations within five (5) years from the effectivity of this Act.
Acceptance and Compliance (Section 8):
- The grantee must 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):
- The grantee shall file a bond, with an amount determined by the Commission, to guarantee compliance with the conditions of the franchise.
- If the grantee fulfills the conditions within five (5) years from the approval of its permit, the bond shall be cancelled. Otherwise, the bond shall be forfeited and the franchise revoked.
Right of Interconnection (Section 10):
- The grantee is authorized to connect or demand connection of its telecommunications systems to any other duly authorized telecommunications systems in the Philippines for the purpose of providing extended and improved services, under mutually agreed terms and conditions.
Tax Provisions (Section 11):
- The grantee shall be subject to the payment of all taxes, duties, fees or charges under the National Internal Revenue Code of 1997 and other applicable laws, unless exempted by relevant laws.
- The grantee shall enjoy all rights, privileges, benefits and exemptions accorded to existing and future local exchange operators.
Gross Receipts (Section 12):
- The grantee shall keep a separate account of its gross receipts and furnish the Commission on Audit and the National Treasury a copy of such account not later than January 31st of each year for the preceding twelve (12) months.
Books and Accounts (Section 13):
- The grantee's books and accounts shall always be open to inspection by the Commission on Audit or its authorized representatives.
- The grantee shall submit to the Commission on Audit two (2) copies of the quarterly reports on gross receipts, net profits and general condition of the business.
Warranty in Favor of National and Local Governments (Section 14):
- The grantee shall hold the national, provincial, city and municipal governments harmless from all 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 15):
- The grantee shall not lease, transfer, grant the usufruct of, sell nor assign this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation or other entity without the prior approval of the Congress of the Philippines, except when such entity has a valid and existing legislative franchise for telecommunications or it is in pursuance of Section 16 of this Act.
Dispersal of Ownership (Section 16):
- The grantee shall offer at least thirty percent (30%) of its outstanding capital stock in any securities exchange in the Philippines within ten (10) years from the commencement of its operations or from the effectivity of this Act.
- Non-compliance shall render the franchise ipso facto revoked.
Equality Clause (Section 17):
- 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 18):
- If any section or provision of this Act is held invalid, all other provisions not affected shall remain valid.
Repealability and Non-exclusivity Clause (Section 19):
- This franchise shall be 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 20):
- The grantee shall submit an annual report to the Congress of the Philippines on its compliance with the terms and conditions of its franchise and on its operations within sixty (60) days from the end of every year.
Effectivity Clause (Section 21):
- 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 the initiative of the grantee.
Nature and Scope of Franchise (Section 1):
- Grants Palawan Telephone Company, Inc. (the grantee) a franchise to construct, install, establish, operate and maintain local exchange network and public calling stations in the municipalities of Narra, Aborlan, Sofronio Española, Brooke's Point, Bataraza, Balabac, Quezon, Rizal, Roxas, Taytay, Coron, El Nido, Province of Palawan.
- Allows the grantee to provide basic telephone service capable of accessing local, national, international and other networks.
Manner of Operation (Section 2):
- The grantee's stations or facilities shall be constructed and operated in a manner that results in minimum interference with existing or future stations.
- The grantee's operations shall not exceed the required power to cover its allowed area of operation.
Authority of the National Telecommunications Commission (Section 3):
- The grantee must secure a Certificate of Public Convenience and Necessity or appropriate permits and licenses from the National Telecommunications Commission (the Commission).
- The Commission has the power to impose conditions on the construction, operation, maintenance, or service level of the telecommunications system.
- The Commission has the authority to regulate the construction and operation of the grantee's telecommunications systems.
- The grantee cannot use any frequency without authorization from the Commission.
Responsibility to the Public (Section 4):
- The grantee shall conform to ethics of honest enterprise and shall not use its stations for obscene, indecent, false, or subversive transmissions.
- The grantee shall provide basic or enhanced telephone service without discrimination, up to the capacity of its local exchange.
- The grantee shall operate and maintain its stations, lines, cables, systems and equipment in a satisfactory manner and keep up with advances in science and technology.
Rates for Services (Section 5):
- The charges and rates for regulated telecommunications services shall be subject to the approval of the Commission.
- The rates shall be unbundled and separable among the services offered, and regulated services shall not subsidize unregulated ones.
Right of Government (Section 6):
- The President has the right to temporarily take over, suspend operations, or authorize temporary use of the grantee's stations, transmitters, facilities or equipment during times of war, rebellion, peril, calamity, emergency, disaster or disturbance, with due compensation to the grantee.
- The radio spectrum is part of the national patrimony, and its use by the grantee is a privilege that may be withdrawn anytime 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 the grantee fails to:
- Commence operations within three (3) years from approval of its operating permit by the Commission.
- Operate continuously for two (2) years.
- Commence operations within five (5) years from the effectivity of this Act.
Acceptance and Compliance (Section 8):
- The grantee must 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):
- The grantee shall file a bond, with an amount determined by the Commission, to guarantee compliance with the conditions of the franchise.
- If the grantee fulfills the conditions within five (5) years from the approval of its permit, the bond shall be cancelled. Otherwise, the bond shall be forfeited and the franchise revoked.
Right of Interconnection (Section 10):
- The grantee is authorized to connect or demand connection of its telecommunications systems to any other duly authorized telecommunications systems in the Philippines for the purpose of providing extended and improved services, under mutually agreed terms and conditions.
Tax Provisions (Section 11):
- The grantee shall be subject to the payment of all taxes, duties, fees or charges under the National Internal Revenue Code of 1997 and other applicable laws, unless exempted by relevant laws.
- The grantee shall enjoy all rights, privileges, benefits and exemptions accorded to existing and future local exchange operators.
Gross Receipts (Section 12):
- The grantee shall keep a separate account of its gross receipts and furnish the Commission on Audit and the National Treasury a copy of such account not later than January 31st of each year for the preceding twelve (12) months.
Books and Accounts (Section 13):
- The grantee's books and accounts shall always be open to inspection by the Commission on Audit or its authorized representatives.
- The grantee shall submit to the Commission on Audit two (2) copies of the quarterly reports on gross receipts, net profits and general condition of the business.
Warranty in Favor of National and Local Governments (Section 14):
- The grantee shall hold the national, provincial, city and municipal governments harmless from all 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 15):
- The grantee shall not lease, transfer, grant the usufruct of, sell nor assign this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation or other entity without the prior approval of the Congress of the Philippines, except when such entity has a valid and existing legislative franchise for telecommunications or it is in pursuance of Section 16 of this Act.
Dispersal of Ownership (Section 16):
- The grantee shall offer at least thirty percent (30%) of its outstanding capital stock in any securities exchange in the Philippines within ten (10) years from the commencement of its operations or from the effectivity of this Act.
- Non-compliance shall render the franchise ipso facto revoked.
Equality Clause (Section 17):
- 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 18):
- If any section or provision of this Act is held invalid, all other provisions not affected shall remain valid.
Repealability and Non-exclusivity Clause (Section 19):
- This franchise shall be 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 20):
- The grantee shall submit an annual report to the Congress of the Philippines on its compliance with the terms and conditions of its franchise and on its operations within sixty (60) days from the end of every year.
Effectivity Clause (Section 21):
- 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 the initiative of the grantee.