AN ACT GRANTING THE RCA COMMUNICATIONS
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AN ACT GRANTING THE RCA COMMUNICATIONS
Republic Act No. 4617
June 19, 1965
Case Overview and Summary
Summary of Republic Act No. 4617Granting of Franchise
- RCA Communications, Inc. is granted the right and privilege to construct, maintain and operate communications systems for the reception and transmission of messages between the Philippines and points exterior thereto, including airplanes, airships or vessels. (Section 1)
- The grantee may establish stations in the Philippines with the approval of the Secretary of Public Works and Communications. (Section 3)
- The grantee may utilize any kind or means of communications systems now known or developed in the future. (Section 3)
Eminent Domain and Use of Public Property
- The grantee is authorized to exercise the right of eminent domain as reasonably necessary for its communications systems. (Section 2)
- With prior approval, the grantee can construct and maintain its works over public property, including streets, highways, squares, and reservations. (Section 2)
Regulation of Frequencies and Wave Lengths
- The Secretary of Public Works and Communications has the power to allot frequencies and wave lengths to the grantee and determine the stations to and from which they may be used. (Section 4(a))
- The Secretary can change, cancel, or modify the allotments of frequencies or wave lengths under certain conditions, such as impairment of communication, stifling competition, obtaining a monopoly, securing unreasonable rates, or violating laws or public policy. (Section 4(b))
Rates and Public Service Commission
- The Public Service Commission has jurisdiction over the rates charged by the grantee to the public, subject to international commitments. (Section 5)
Government Takeover in Times of Emergency
- The government reserves the right to take over and operate the stations during times of war, insurrection, or domestic trouble, with compensation to the grantee. (Section 6)
Accounting and Taxes
- The grantee shall keep a separate account of gross receipts in the Philippines and furnish it to the Auditor General and Treasurer annually. (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(a))
- The grantee shall pay 5% of all gross receipts from business transacted under this franchise to the Treasurer of the Philippines annually. (Section 8(b))
Liability and Compliance
- The grantee shall hold the national, provincial, and municipal governments harmless from claims arising out of accidents or injuries caused by its operations. (Section 9)
- The grantee shall be subject to corporation laws of the Philippines. (Section 10)
Duration and Termination
- The franchise is subject to amendment, alteration, or repeal by the Congress of the Philippines. (Section 11)
- The franchise and rights granted shall terminate 50 years after the date of acceptance, unless earlier terminated or extended. (Section 11)
Bond Requirement
- As a condition, the grantee shall execute a bond of 50,000 pesos in favor of the government, conditioned upon faithful performance during the first three years. (Section 12)
Acceptance and Approval
- Acceptance of the franchise shall be given in writing within six months after approval of the Act. (Section 13)
- Upon acceptance and approval of the bond, the grantee shall be empowered to exercise the privileges granted. (Section 13)
Transfer and Assignment
- The grantee shall not lease, transfer, grant the usufruct of, sell or assign this franchise without the approval of the Congress of the Philippines. (Section 14)
- Reorganization of the Philippine branch office into a domestic corporation shall not be deemed a transfer requiring approval. (Section 14)
- Any entity to which the franchise is transferred shall be subject to the same conditions, terms, restrictions and limitations. (Section 14)
Definitions
- The term "Public Service Commission" means the Commission as constituted or any governmental body created in its place or succession. (Section 15)
Non-Exclusivity and Domestic Communication
- This franchise shall not be interpreted as an exclusive grant of the privileges provided. (Section 16)
- Nothing in this franchise authorizes the grantee to engage in domestic communication service. (Section 17)
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AN ACT GRANTING THE RCA COMMUNICATIONS
Republic Act No. 4617
•June 19, 1965
REPUBLIC ACT No. 4617
AN ACT GRANTING THE RCA COMMUNICATIONS, INC. A FRANCHISE TO ESTABLISH, OPERATE, AND MAINTAIN COMMUNICATIONS SYSTEMS FOR THE RECEPTION AND TRANSMISSION OF MESSAGES BETWEEN THE PHILIPPINES AND POINTS EXTERIOR THERETO.
Section 1. There is hereby granted to the RCA Communications, Inc., hereinafter referred to as the grantees, the right and privilege of constructing, maintaining and operating communications systems by radio, wire, satellites, and other means now known to science or which in the future may be developed for the reception and transmission of messages between any point in the Philippines to points exterior thereto, including airplanes, airships or vessels, even though such airplanes, airships or vessels may be located within the territorial limits of the Philippines.
Section 2. Subject to the limitations and procedure prescribed by law, the grantee is authorized to exercise the right of eminent domain insofar as may be reasonably necessary to further the establishment and efficient maintenance and operation of its communications systems, and, with the prior approval of the Secretary of Public Works and Communications, the...
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