REPUBLIC ACT No. 5514
AN ACT GRANTING THE PHILIPPINE COMMUNICATIONS SATELLITE CORPORATION A FRANCHISE TO ESTABLISH AND OPERATE GROUND SATELLITE TERMINAL STATION OR STATIONS FOR TELECOMMUNICATION WITH SATELLITE FACILITIES AND DELIVERY TO COMMON CARRIERS.
Section 1. Subject to the provisions of the Constitution and to the provisions of Act Numbered Thirty-eight hundred and forty-six, entitled "An Act providing for the regulation of radio stations and radio communications in the Philippine Islands and for other purposes", as amended, there is hereby granted to the Philippine Communications Satellite Corporation, hereinafter referred to as the "grantee", a franchise to establish, construct, maintain and operate in the Philippines, at such places as the grantee may select, station or stations and associated equipment and facilities for international satellite communications. The grantee may, as required, construct and operate such ground facilities as needed to deliver telecommunications services from the communications satellite system and ground terminal or terminals. Such ground facilities shall not duplicate existing facilities of domestic common carriers and said grantee shall operate as a carrier's carrier.
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Republic Acts
An Act Granting The Philippine Communications Satellite Corporation A Franchise To Establish And Operate Ground Satellite Terminal Station Or Stations For Telecommunication With Satellite Facilities And Delivery To Common Carriers.
Republic Act No. 5514
Summary of Republic Act No. 5514
Granting of Franchise
- Grants the Philippine Communications Satellite Corporation (the "grantee") a franchise to establish, construct, maintain, and operate ground satellite terminal stations and associated equipment for international satellite communications in the Philippines. (Section 1)
- Authorizes the grantee to construct and operate ground facilities to deliver telecommunications services from the satellite system, without duplicating existing facilities of domestic common carriers, and to operate as a carrier's carrier. (Section 1)
- Allows the grantee to lease or acquire facilities, channels, or circuits for its business. (Section 1)
Right of Eminent Domain
- Authorizes the grantee to exercise the right of eminent domain, subject to proper condemnation proceedings and just compensation, as reasonably necessary for establishing, maintaining, and operating its stations. (Section 2)
- Allows the President to reserve public lands for the grantee's use. (Section 2)
Franchise Duration and Termination
- The franchise and rights granted shall cease after twenty-five years from the approval of this Act, unless earlier terminated. (Section 3)
Government Supervision and Control
- The President shall exercise supervision and control over the grantee's relationships with foreign governments, entities, or international bodies to ensure consistency with national interests and policies. (Section 4)
- The President shall take necessary steps to ensure appropriate utilization of the grantee's facilities for general governmental purposes whenever necessary. (Section 4)
Rates Regulation
- The Public Service Commission shall have no jurisdiction over the grantee. (Section 5)
- For voice or data services, the grantee shall not charge rates higher than those authorized by the Public Service Commission to overseas telecommunications carriers. (Section 5)
Government Takeover
- The government reserves a special right, in times of war, insurrection, or national emergency, upon the President's direction and order, to take over and operate the grantee's stations without compensation during the period of government operation. (Section 6)
Financial Reporting and Taxation
- The grantee shall keep a separate account of gross receipts from its satellite transmission business and furnish a copy to the Auditor General and the Treasurer of the Philippines by April 30th of each year. (Section 7)
- The grantee shall pay taxes on its real estate, buildings, and personal property, exclusive of the franchise, like other persons or corporations. (Section 8)
- The grantee shall pay 5% of all gross receipts from its satellite transmission business to the Treasurer of the Philippines within 30 days after the audit and approval of accounts, in lieu of all other taxes. (Section 8)
- The grantee shall be exempt from customs duties, tariffs, and charges on imported machinery, equipment, supplies, and spare parts for constructing and maintaining the earth station(s) for the duration of the franchise. (Section 8)
Franchise Transfer Restrictions
- The grantee shall not lease, transfer, grant usufruct, sell, or assign the franchise to any person or entity, except any branch or instrumentality of the government, without prior approval from the Congress of the Philippines. (Section 9)
- The grantee may enter into management contracts with any person or entity, with the President's approval, provided that the person or entity is a Philippine citizen or, in case of a corporation, at least 60% of the capital stock is owned by Philippine citizens. (Section 9)
Liability for Accidents
- The grantee shall hold the national, provincial, and municipal governments harmless from all claims, accounts, demands, or actions arising out of accidents or injuries caused by the construction or operation of the grantee's stations. (Section 10)
Compliance with Corporation Law
- The grantee shall be subject to the corporation law of the Philippines, existing or hereafter enacted. (Section 11)
Franchise Amendment or Repeal
- The franchise granted shall be subject to amendment, alteration, or repeal by the Congress of the Philippines when public interest so requires. (Section 12)
Performance Bond
- As a condition of granting the franchise, the grantee shall execute a bond in favor of the Philippine government in the sum of 50,000 pesos, with sureties satisfactory to the Secretary of Public Works and Communications, conditioned upon faithful performance of obligations during the first three years of the franchise. (Section 13)
- After three years, or upon fulfillment of obligations, the bond shall be canceled by the Secretary of Public Works and Communications. (Section 13)
Franchise Acceptance
- The grantee shall accept the franchise in writing within six months after approval of this Act. (Section 14)
- Upon acceptance and approval of the bond by the Secretary of Public Works and Communications, the grantee shall be empowered to exercise the privileges granted. (Section 14)
Effectivity
- This Act shall take effect upon its approval. (Section 15)
Granting of Franchise
- Grants the Philippine Communications Satellite Corporation (the "grantee") a franchise to establish, construct, maintain, and operate ground satellite terminal stations and associated equipment for international satellite communications in the Philippines. (Section 1)
- Authorizes the grantee to construct and operate ground facilities to deliver telecommunications services from the satellite system, without duplicating existing facilities of domestic common carriers, and to operate as a carrier's carrier. (Section 1)
- Allows the grantee to lease or acquire facilities, channels, or circuits for its business. (Section 1)
Right of Eminent Domain
- Authorizes the grantee to exercise the right of eminent domain, subject to proper condemnation proceedings and just compensation, as reasonably necessary for establishing, maintaining, and operating its stations. (Section 2)
- Allows the President to reserve public lands for the grantee's use. (Section 2)
Franchise Duration and Termination
- The franchise and rights granted shall cease after twenty-five years from the approval of this Act, unless earlier terminated. (Section 3)
Government Supervision and Control
- The President shall exercise supervision and control over the grantee's relationships with foreign governments, entities, or international bodies to ensure consistency with national interests and policies. (Section 4)
- The President shall take necessary steps to ensure appropriate utilization of the grantee's facilities for general governmental purposes whenever necessary. (Section 4)
Rates Regulation
- The Public Service Commission shall have no jurisdiction over the grantee. (Section 5)
- For voice or data services, the grantee shall not charge rates higher than those authorized by the Public Service Commission to overseas telecommunications carriers. (Section 5)
Government Takeover
- The government reserves a special right, in times of war, insurrection, or national emergency, upon the President's direction and order, to take over and operate the grantee's stations without compensation during the period of government operation. (Section 6)
Financial Reporting and Taxation
- The grantee shall keep a separate account of gross receipts from its satellite transmission business and furnish a copy to the Auditor General and the Treasurer of the Philippines by April 30th of each year. (Section 7)
- The grantee shall pay taxes on its real estate, buildings, and personal property, exclusive of the franchise, like other persons or corporations. (Section 8)
- The grantee shall pay 5% of all gross receipts from its satellite transmission business to the Treasurer of the Philippines within 30 days after the audit and approval of accounts, in lieu of all other taxes. (Section 8)
- The grantee shall be exempt from customs duties, tariffs, and charges on imported machinery, equipment, supplies, and spare parts for constructing and maintaining the earth station(s) for the duration of the franchise. (Section 8)
Franchise Transfer Restrictions
- The grantee shall not lease, transfer, grant usufruct, sell, or assign the franchise to any person or entity, except any branch or instrumentality of the government, without prior approval from the Congress of the Philippines. (Section 9)
- The grantee may enter into management contracts with any person or entity, with the President's approval, provided that the person or entity is a Philippine citizen or, in case of a corporation, at least 60% of the capital stock is owned by Philippine citizens. (Section 9)
Liability for Accidents
- The grantee shall hold the national, provincial, and municipal governments harmless from all claims, accounts, demands, or actions arising out of accidents or injuries caused by the construction or operation of the grantee's stations. (Section 10)
Compliance with Corporation Law
- The grantee shall be subject to the corporation law of the Philippines, existing or hereafter enacted. (Section 11)
Franchise Amendment or Repeal
- The franchise granted shall be subject to amendment, alteration, or repeal by the Congress of the Philippines when public interest so requires. (Section 12)
Performance Bond
- As a condition of granting the franchise, the grantee shall execute a bond in favor of the Philippine government in the sum of 50,000 pesos, with sureties satisfactory to the Secretary of Public Works and Communications, conditioned upon faithful performance of obligations during the first three years of the franchise. (Section 13)
- After three years, or upon fulfillment of obligations, the bond shall be canceled by the Secretary of Public Works and Communications. (Section 13)
Franchise Acceptance
- The grantee shall accept the franchise in writing within six months after approval of this Act. (Section 14)
- Upon acceptance and approval of the bond by the Secretary of Public Works and Communications, the grantee shall be empowered to exercise the privileges granted. (Section 14)
Effectivity
- This Act shall take effect upon its approval. (Section 15)