Republic of the Philippines
CONGRESS OF THE PHILIPPINES
Metro ManilaFourteenth Congress
Third Regular SessionBegun and held in Metro Manila, on Monday, the twenty-seventh day of July, two thousand nine.
Republic Act No. 9857
AN ACT GRANTING THE SCHUTZENGEL TELECOM, INC. A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN TELECOMMUNICATIONS SYSTEMS THROUGHOUT THE PHILIPPINES
Be it enacted by the Senate and House of Representatives 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 Schutzengel Telecom, 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, throughout the Philippines and between the Philippines and other countries and territories, wire and/or wireless telecommunications systems, multi - media systems, networks, stations, services including, but not limited to, fixed, mobile, cellular, paging systems, digital trunk radio systems, fiber optics, multi - channel multi - point distribution...
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Republic Acts
AN ACT GRANTING THE SCHUTZENGEL TELECOM
Republic Act No. 9857
Nature and Scope of Franchise (Section 1)
- Grants Schutzengel Telecom, Inc. a franchise to construct, install, establish, operate and maintain telecommunications systems throughout the Philippines and between the Philippines and other countries.
- Covers wire and/or wireless telecommunications systems, multimedia systems, networks, stations, services, transmitting and receiving stations, lines, cables, and related technologies.
Manner of Operation of Stations or Facilities (Section 2)
- Stations or facilities shall be constructed and operated in a manner that results in minimum interference on existing stations' wavelengths or frequencies.
Authority of the National Telecommunications Commission (Section 3)
- Grantee 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 the construction, operation, maintenance or service level of the telecommunications system.
- NTC has the authority to regulate the construction and operation of the telecommunications systems.
- Grantee shall not use any frequency without NTC authorization.
Eminent Domain (Section 4)
- Grantee may acquire private property necessary for the franchise, provided just compensation is paid.
Ingress and Egress (Section 5)
- Grantee may make excavations or lay conduits in public places, highways, streets, lanes, alleys, avenues, sidewalks or bridges with prior approval from the Department of Public Works and Highways (DPWH).
- Grantee shall repair and replace any public place, road, highway, street, lane, alley, avenue, sidewalk or bridge disturbed, altered or changed due to its activities.
Responsibility to the Public (Section 6)
- Grantee shall conform to ethics of honest enterprise and not use its stations/facilities for obscene or indecent transmission, dissemination of false information, or assist in subversive or treasonable acts.
- Grantee shall provide basic or enhanced telephone service without discrimination in municipalities where it has an approved certificate of public convenience and necessity.
- Grantee shall operate and maintain its stations, lines, cables, systems and equipment in a satisfactory manner and keep abreast with advances in science and technology.
Rates for Services (Section 7)
- Charges and rates for telecommunications services, except those declared as non-regulated, shall be subject to NTC approval.
- Rates shall be unbundled, separable and distinct among services offered, and regulated services shall not subsidize unregulated ones.
Right of Government (Section 8)
- 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 radio spectrum is part of the national patrimony and its use is a privilege that may be withdrawn anytime after due process.
Term of Franchise (Section 9)
- The franchise is for a term of twenty-five (25) years from the date of effectivity of this Act.
- The franchise shall be deemed ipso facto revoked if the grantee fails to:
- Commence operation within three (3) years from the approval of its operating permit by the NTC;
- Operate continuously for two (2) years; and
- Commence operations within five (5) years from the effectivity of this Act.
Acceptance and Compliance (Section 10)
- Acceptance of the franchise shall be given in writing within sixty (60) days from the effectivity of this Act.
- Non-acceptance shall render the franchise void.
Bond (Section 11)
- Grantee shall file a bond issued in favor of the NTC to guarantee compliance with the conditions of the franchise.
- If the grantee fulfills the conditions after five (5) years from the date of approval of its permit, the bond shall be cancelled by the NTC. Otherwise, the bond shall be forfeited in favor of the government and the franchise ipso facto revoked.
Right of Interconnection (Section 12)
- 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 to the public.
Gross Receipts (Section 13)
- Grantee shall keep a separate account of the gross receipts of the business and furnish the Commission on Audit (COA) and the National Treasury a copy of such account not later than the thirty-first (31st) day of January of each year for the preceding twelve (12) months.
Books and Accounts (Section 14)
- Grantee's books and accounts shall always be open to inspection by the COA or its authorized representatives.
- Grantee shall submit to the COA two (2) copies of the quarterly reports on the gross receipts, net profits and general condition of the business.
Warranty in Favor of the National and Local Governments (Section 15)
- 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 16)
- 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 commercial or legal entity without the prior approval of the Congress of the Philippines, except for certain cases specified in the law.
Dispersal of Ownership (Section 17)
- Grantee shall offer at least thirty per centum (30%) of its outstanding capital stock or a higher percentage provided by law in any securities exchange in the Philippines within five (5) years from the commencement of its operations.
- Non-compliance shall render the franchise ipso facto revoked.
Equality Clause (Section 18)
- Any advantage, favor, privilege, exemption or immunity granted under existing or future telecommunications franchises shall ipso facto become part of this franchise, except for provisions concerning territory covered, life span of the franchise or type of service authorized.
Reportorial Requirement (Section 19)
- 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 sixty (60) days from the end of every year.
Separability Clause (Section 20)
- If any section or provision of this Act is held invalid, all other provisions not affected shall remain valid.
Repealability and Nonexclusivity Clause (Section 21)
- This franchise shall be subject to amendment, alteration or repeal by the Congress of the Philippines when the public interest so requires and shall not be interpreted as an exclusive grant of the privileges provided.
Effectivity Clause (Section 22)
- This Act shall take effect fifteen (15) days after its publication, upon the initiative of the grantee, in at least two (2) newspapers of general circulation in the Philippines.
- Grants Schutzengel Telecom, Inc. a franchise to construct, install, establish, operate and maintain telecommunications systems throughout the Philippines and between the Philippines and other countries.
- Covers wire and/or wireless telecommunications systems, multimedia systems, networks, stations, services, transmitting and receiving stations, lines, cables, and related technologies.
Manner of Operation of Stations or Facilities (Section 2)
- Stations or facilities shall be constructed and operated in a manner that results in minimum interference on existing stations' wavelengths or frequencies.
Authority of the National Telecommunications Commission (Section 3)
- Grantee 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 the construction, operation, maintenance or service level of the telecommunications system.
- NTC has the authority to regulate the construction and operation of the telecommunications systems.
- Grantee shall not use any frequency without NTC authorization.
Eminent Domain (Section 4)
- Grantee may acquire private property necessary for the franchise, provided just compensation is paid.
Ingress and Egress (Section 5)
- Grantee may make excavations or lay conduits in public places, highways, streets, lanes, alleys, avenues, sidewalks or bridges with prior approval from the Department of Public Works and Highways (DPWH).
- Grantee shall repair and replace any public place, road, highway, street, lane, alley, avenue, sidewalk or bridge disturbed, altered or changed due to its activities.
Responsibility to the Public (Section 6)
- Grantee shall conform to ethics of honest enterprise and not use its stations/facilities for obscene or indecent transmission, dissemination of false information, or assist in subversive or treasonable acts.
- Grantee shall provide basic or enhanced telephone service without discrimination in municipalities where it has an approved certificate of public convenience and necessity.
- Grantee shall operate and maintain its stations, lines, cables, systems and equipment in a satisfactory manner and keep abreast with advances in science and technology.
Rates for Services (Section 7)
- Charges and rates for telecommunications services, except those declared as non-regulated, shall be subject to NTC approval.
- Rates shall be unbundled, separable and distinct among services offered, and regulated services shall not subsidize unregulated ones.
Right of Government (Section 8)
- 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 radio spectrum is part of the national patrimony and its use is a privilege that may be withdrawn anytime after due process.
Term of Franchise (Section 9)
- The franchise is for a term of twenty-five (25) years from the date of effectivity of this Act.
- The franchise shall be deemed ipso facto revoked if the grantee fails to:
- Commence operation within three (3) years from the approval of its operating permit by the NTC;
- Operate continuously for two (2) years; and
- Commence operations within five (5) years from the effectivity of this Act.
Acceptance and Compliance (Section 10)
- Acceptance of the franchise shall be given in writing within sixty (60) days from the effectivity of this Act.
- Non-acceptance shall render the franchise void.
Bond (Section 11)
- Grantee shall file a bond issued in favor of the NTC to guarantee compliance with the conditions of the franchise.
- If the grantee fulfills the conditions after five (5) years from the date of approval of its permit, the bond shall be cancelled by the NTC. Otherwise, the bond shall be forfeited in favor of the government and the franchise ipso facto revoked.
Right of Interconnection (Section 12)
- 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 to the public.
Gross Receipts (Section 13)
- Grantee shall keep a separate account of the gross receipts of the business and furnish the Commission on Audit (COA) and the National Treasury a copy of such account not later than the thirty-first (31st) day of January of each year for the preceding twelve (12) months.
Books and Accounts (Section 14)
- Grantee's books and accounts shall always be open to inspection by the COA or its authorized representatives.
- Grantee shall submit to the COA two (2) copies of the quarterly reports on the gross receipts, net profits and general condition of the business.
Warranty in Favor of the National and Local Governments (Section 15)
- 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 16)
- 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 commercial or legal entity without the prior approval of the Congress of the Philippines, except for certain cases specified in the law.
Dispersal of Ownership (Section 17)
- Grantee shall offer at least thirty per centum (30%) of its outstanding capital stock or a higher percentage provided by law in any securities exchange in the Philippines within five (5) years from the commencement of its operations.
- Non-compliance shall render the franchise ipso facto revoked.
Equality Clause (Section 18)
- Any advantage, favor, privilege, exemption or immunity granted under existing or future telecommunications franchises shall ipso facto become part of this franchise, except for provisions concerning territory covered, life span of the franchise or type of service authorized.
Reportorial Requirement (Section 19)
- 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 sixty (60) days from the end of every year.
Separability Clause (Section 20)
- If any section or provision of this Act is held invalid, all other provisions not affected shall remain valid.
Repealability and Nonexclusivity Clause (Section 21)
- This franchise shall be subject to amendment, alteration or repeal by the Congress of the Philippines when the public interest so requires and shall not be interpreted as an exclusive grant of the privileges provided.
Effectivity Clause (Section 22)
- This Act shall take effect fifteen (15) days after its publication, upon the initiative of the grantee, in at least two (2) newspapers of general circulation in the Philippines.