Republic Act No. 8955 September 2, 2000*
AN ACT GRANTING THE POLARIS TELECOMMUNICATIONS, INC. A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN TELECOMMUNICATIONS SYSTEMS THROUGHOUT THE PHILIPPINES
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 Polaris Telecommunications, 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, the business of providing basic and enhanced telecommunications services in and between provinces, cities and municipalities in the Philippines and between the Philippines and other countries and territories, including mobile, cellular and wired or wireless, fiber optics, multi-channel distribution systems, local multipoint distribution system, satellite transmit and receive systems, and other telecommunications systems and their value-added services such as, but not limited to, transmission of voice, data facsimile, control signals, audio and video, information service bureau and all other telecommunications systems technologies as are presently available or will be...
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Republic Acts
AN ACT GRANTING THE POLARIS TELECOMMUNICATIONS
Republic Act No. 8955
Summary of Republic Act No. 8955
Nature and Scope of Franchise (Section 1):
- Grants Polaris Telecommunications, Inc. (the grantee) a franchise to construct, install, establish, operate and maintain telecommunications systems throughout the Philippines for commercial purposes.
- Covers basic and enhanced telecommunications services including mobile, cellular, wired/wireless, fiber optics, multi-channel distribution systems, local multipoint distribution systems, satellite transmit/receive systems, and other technologies.
- Allows the grantee to construct, acquire, lease, manage or operate transmitting/receiving stations, switching stations, lines, cables or systems necessary for the franchise.
Manner of Operation (Section 2):
- The grantee's stations or facilities shall be constructed and operated in a manner that results in minimum interference on existing or future stations' wavelengths or frequencies.
Authority of the National Telecommunications Commission (Section 3):
- The grantee must secure a Certificate of Public Convenience and Necessity or appropriate permits/licenses from the National Telecommunications Commission (the Commission) for the location, construction, installation and operation of its telecommunications systems.
- 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 radio 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 in areas where it has an approved Certificate of Public Convenience and Necessity, up to the capacity of its local telephone 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 the grantee's telecommunications services, except those declared as non-regulated, shall be subject to the Commission's approval.
- The rates shall be unbundled, separable and distinct 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 and operate the grantee's stations, transmitters, facilities or equipment in times of war, rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order.
- The President can temporarily suspend the operation of any station, transmitter, facility or equipment in the interest of public safety, security and welfare.
- The government can temporarily use and operate the grantee's stations, transmitters, facilities or equipment, with due compensation to the grantee.
- The radio spectrum is part of the national patrimony and the use thereof is a privilege that may be withdrawn anytime after due process.
Term of Franchise (Section 7):
- 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 revoked if the grantee fails to:
- Commence operations within 3 years from the approval of its operating permit by the Commission.
- Operate continuously for 2 years.
- Commence operations within 5 years from the effectivity of this Act.
Acceptance and Compliance (Section 8):
- The grantee must give written acceptance of the franchise within 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 after 5 years from the approval of its permit, the bond shall be cancelled by the Commission, otherwise it shall be forfeited in favor of the government 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 providing extended and improved services to the public, under mutually agreed terms and conditions in accordance with law.
Tax Provisions (Section 11):
- The grantee shall be subject to payment of all taxes, duties, fees, charges and other impositions under the National Internal Revenue Code of 1997 and other applicable laws.
- Specific tax exemptions, incentives or privileges granted under relevant laws shall not be construed as repealed.
- All rights, privileges, benefits and exemptions accorded to existing and future telecommunications entities shall likewise be extended to the grantee.
Gross Receipts (Section 12):
- The grantee shall keep a separate account of the gross receipts of its business 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 12 months.
Books and Accounts (Section 13):
- The grantee's books and accounts shall always be open to inspection by the Commissioner on Audit or authorized representatives.
- The grantee shall submit to the Commission on Audit two 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.
- Any entity to which this franchise is sold, transferred or assigned shall be subject to the same conditions, terms, restrictions and limitations of this Act.
Dispersal of Ownership (Section 16):
- In accordance with the constitutional provision to encourage public participation in public utilities, the grantee shall offer at least 30% of its outstanding capital stock or a higher percentage provided by law in any securities exchange in the Philippines within 5 years from the commencement of its operations.
- 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 the franchise and on its operations within 60 days from the end of every year.
Effectivity Clause (Section 21):
- This Act shall take effect 15 days from the date of its publication, upon the initiative of the grantee, in at least two newspapers of general circulation in the Philippines.
Nature and Scope of Franchise (Section 1):
- Grants Polaris Telecommunications, Inc. (the grantee) a franchise to construct, install, establish, operate and maintain telecommunications systems throughout the Philippines for commercial purposes.
- Covers basic and enhanced telecommunications services including mobile, cellular, wired/wireless, fiber optics, multi-channel distribution systems, local multipoint distribution systems, satellite transmit/receive systems, and other technologies.
- Allows the grantee to construct, acquire, lease, manage or operate transmitting/receiving stations, switching stations, lines, cables or systems necessary for the franchise.
Manner of Operation (Section 2):
- The grantee's stations or facilities shall be constructed and operated in a manner that results in minimum interference on existing or future stations' wavelengths or frequencies.
Authority of the National Telecommunications Commission (Section 3):
- The grantee must secure a Certificate of Public Convenience and Necessity or appropriate permits/licenses from the National Telecommunications Commission (the Commission) for the location, construction, installation and operation of its telecommunications systems.
- 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 radio 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 in areas where it has an approved Certificate of Public Convenience and Necessity, up to the capacity of its local telephone 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 the grantee's telecommunications services, except those declared as non-regulated, shall be subject to the Commission's approval.
- The rates shall be unbundled, separable and distinct 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 and operate the grantee's stations, transmitters, facilities or equipment in times of war, rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order.
- The President can temporarily suspend the operation of any station, transmitter, facility or equipment in the interest of public safety, security and welfare.
- The government can temporarily use and operate the grantee's stations, transmitters, facilities or equipment, with due compensation to the grantee.
- The radio spectrum is part of the national patrimony and the use thereof is a privilege that may be withdrawn anytime after due process.
Term of Franchise (Section 7):
- 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 revoked if the grantee fails to:
- Commence operations within 3 years from the approval of its operating permit by the Commission.
- Operate continuously for 2 years.
- Commence operations within 5 years from the effectivity of this Act.
Acceptance and Compliance (Section 8):
- The grantee must give written acceptance of the franchise within 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 after 5 years from the approval of its permit, the bond shall be cancelled by the Commission, otherwise it shall be forfeited in favor of the government 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 providing extended and improved services to the public, under mutually agreed terms and conditions in accordance with law.
Tax Provisions (Section 11):
- The grantee shall be subject to payment of all taxes, duties, fees, charges and other impositions under the National Internal Revenue Code of 1997 and other applicable laws.
- Specific tax exemptions, incentives or privileges granted under relevant laws shall not be construed as repealed.
- All rights, privileges, benefits and exemptions accorded to existing and future telecommunications entities shall likewise be extended to the grantee.
Gross Receipts (Section 12):
- The grantee shall keep a separate account of the gross receipts of its business 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 12 months.
Books and Accounts (Section 13):
- The grantee's books and accounts shall always be open to inspection by the Commissioner on Audit or authorized representatives.
- The grantee shall submit to the Commission on Audit two 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.
- Any entity to which this franchise is sold, transferred or assigned shall be subject to the same conditions, terms, restrictions and limitations of this Act.
Dispersal of Ownership (Section 16):
- In accordance with the constitutional provision to encourage public participation in public utilities, the grantee shall offer at least 30% of its outstanding capital stock or a higher percentage provided by law in any securities exchange in the Philippines within 5 years from the commencement of its operations.
- 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 the franchise and on its operations within 60 days from the end of every year.
Effectivity Clause (Section 21):
- This Act shall take effect 15 days from the date of its publication, upon the initiative of the grantee, in at least two newspapers of general circulation in the Philippines.