Republic of the Philippines
Congress of the Philippines
Metro ManilaTwelfth Congress
First Regular SessionBegun and held in Metro Manila, on Monday, the twenty-third day of July, two thousand one.
Republic Act No. 9169 August 1, 2002
AN ACT GRANTING THE SEAGULL MARINE COMMUNICATION NETWORK CORP. A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN PUBLIC RADIOTELEPHONE COASTAL STATIONS FOR THE TRANSMISSION AND RECEPTION OF RADIOTELEPHONE COMMUNICATIONS WITHIN AND OUTSIDE THE PHILIPPINES
Be it enacted by the Senate and the 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 Seagull Marine Communication Network Corp., 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, public radiotelephone coastal stations for the transmission and reception of radiotelephone communications with vessels at sea within and outside the Philippines.
Section 2. Manner of Operation...
Details
Amends
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Amended by
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Republic Acts
AN ACT GRANTING THE SEAGULL MARINE COMMUNICATION NETWORK CORP. A FRANCHISE TO CONSTRUCT
Republic Act No. 9169
Summary of Republic Act No. 9169
Nature and Scope of Franchise (Section 1)
- Grants Seagull Marine Communication Network Corp. (the grantee) a franchise to construct, install, establish, operate and maintain public radiotelephone coastal stations for transmission and reception of radiotelephone communications within and outside the Philippines.
Manner of Operation (Section 2)
- The stations shall be operated in a manner that results in minimum interference with existing or future stations.
- The grantee has the right to use its selected wavelengths or frequencies without diminishing the quality of transmission or reception.
Authority of NTC (Section 3)
- The grantee must secure a certificate of public convenience and necessity or appropriate permits and licenses from the National Telecommunications Commission (NTC).
- The NTC has the power to impose conditions on the construction, operation, maintenance or service level of the telecommunications systems.
- The NTC has the authority to regulate the construction and operation of the telecommunications systems.
- The grantee cannot use any frequency without authorization from the NTC.
- The NTC shall not unreasonably withhold or delay the grant of authority, permits or licenses.
Responsibility to the Public (Section 4)
- The grantee shall conform to the ethics of honest enterprise and shall not use its stations for obscene, indecent, false or subversive transmissions.
- The 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 5)
- The charges and rates for regulated telecommunications services shall be subject to the approval of the NTC.
- The rates shall be unbundled, separable and distinct among the services offered.
- Regulated services shall not subsidize unregulated ones.
Right of Government (Section 6)
- The President has the right to temporarily take over and operate the stations, transmitters, facilities or equipment of the grantee 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 public welfare.
- The President can authorize the temporary use and operation of the stations, transmitters, facilities or equipment by any agency of the government, upon due compensation to the grantee.
- The radio spectrum is a finite resource that is part of the national patrimony and the use thereof is a privilege conferred by the State and may be withdrawn anytime, after due process.
Term of Franchise (Section 7)
- The franchise shall be for a term of twenty-five (25) years from the date of effectivity of this Act, unless sooner revoked or cancelled.
- The franchise shall be deemed ipso facto revoked if the grantee fails to:
- Commence operations within one (1) year from the approval of its operating permit or provisional authority by the NTC.
- Operate continuously for two (2) years.
- Commence operations within three (3) years from the effectivity of this Act.
Acceptance and Compliance (Section 8)
- Acceptance of this franchise shall be given in writing within sixty (60) days from the effectivity of this Act.
- Upon giving such acceptance, the grantee shall exercise the privileges granted under this Act.
- Nonacceptance shall render the franchise void.
Bond (Section 9)
- The grantee shall file a bond issued in favor of the NTC, which shall determine the amount, to guarantee the compliance with and fulfillment of the conditions under which this franchise is granted.
- If after five (5) years from the date of the approval of its permit by the Commission, the grantee shall have fulfilled the conditions, the bond shall be cancelled by the Commission.
- Otherwise, the bond shall be forfeited in favor of the government and the franchise ipso facto revoked.
Tax Provisions (Section 10)
- The grantee, its successors or assigns, shall be subject to the payment of all taxes, duties, fees or charges and other impositions under the National Internal Revenue Code of 1997, as amended, and other applicable laws.
- Specific tax exemptions, incentives or privileges granted under any relevant law shall not be construed as repealed.
- All rights, privileges, benefits and exemptions accorded to existing and future telecommunications franchises shall likewise be extended to the grantee.
- The grantee shall file the return with the city or province where its facility is located and pay the income tax due thereon to the Commissioner of Internal Revenue or his duly authorized representatives in accordance with the National Internal Revenue Code.
Gross Receipts (Section 11)
- The grantee, its successors or assigns, shall keep a separate account of the gross receipts of the business transacted by it.
- The grantee shall 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 12)
- The books and accounts of the grantee, its successors or assigns, shall always be open to the inspection of the Commissioner on Audit or his authorized representatives.
- The grantee shall submit to the COA, two (2) copies of the quarterly reports on the gross receipts, the net profits and the general condition of the business.
Warranty in Favor of National and Local Governments (Section 13)
- The grantee shall hold the national, provincial, city and municipal governments of the Philippines harmless from all claims, accounts, demands or actions arising out of accidents or injuries, whether to property or to persons, caused by the construction or operation of the stations, transmitters, facilities and equipment of the grantee.
Sale, Lease, Transfer, Usufruct, Etc. (Section 14)
- 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 commercial or legal entity, nor merge with any other corporation or entity, nor shall the controlling interest of the grantee be transferred, whether as a whole or in parts and whether simultaneously or contemporaneously, to any such person, firm, company, corporation or entity without the prior approval of the Congress of the Philippines.
- Any person or 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 15)
- In accordance with the constitutional provision to encourage public participation in public utilities, the grantee shall offer at least thirty percentum (30%) of its outstanding capital stock or a higher percentage that may hereafter be provided by law in any securities exchange in the Philippines within five (5) years from the commencement of its operations.
- Noncompliance therewith shall render the franchise ipso facto revoked.
Equality Clause (Section 16)
- Any advantage, favor, privilege, exemption or immunity granted under existing franchises, or may hereafter be granted, shall ipso facto become part of previously granted telecommunications franchises and shall be accorded immediately and unconditionally to the grantees of such franchises.
- However, the foregoing shall neither apply to nor affect provisions of telecommunications franchises concerning territory covered by the franchise, the life span of the franchise, or the type of service authorized by the franchise.
Separability Clause (Section 17)
- If any of the sections or provisions of this Act is held invalid, all the other provisions not affected thereby shall remain valid.
Repealability and Nonexclusivity Clause (Section 18)
- 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 herein provided for.
Reportorial Requirement (Section 19)
- 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 20)
- This Act shall take effect fifteen (15) days from the date of its publication, upon the initiative of the grantee, in at least two (2) newspapers of general circulation in the Philippines.
Nature and Scope of Franchise (Section 1)
- Grants Seagull Marine Communication Network Corp. (the grantee) a franchise to construct, install, establish, operate and maintain public radiotelephone coastal stations for transmission and reception of radiotelephone communications within and outside the Philippines.
Manner of Operation (Section 2)
- The stations shall be operated in a manner that results in minimum interference with existing or future stations.
- The grantee has the right to use its selected wavelengths or frequencies without diminishing the quality of transmission or reception.
Authority of NTC (Section 3)
- The grantee must secure a certificate of public convenience and necessity or appropriate permits and licenses from the National Telecommunications Commission (NTC).
- The NTC has the power to impose conditions on the construction, operation, maintenance or service level of the telecommunications systems.
- The NTC has the authority to regulate the construction and operation of the telecommunications systems.
- The grantee cannot use any frequency without authorization from the NTC.
- The NTC shall not unreasonably withhold or delay the grant of authority, permits or licenses.
Responsibility to the Public (Section 4)
- The grantee shall conform to the ethics of honest enterprise and shall not use its stations for obscene, indecent, false or subversive transmissions.
- The 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 5)
- The charges and rates for regulated telecommunications services shall be subject to the approval of the NTC.
- The rates shall be unbundled, separable and distinct among the services offered.
- Regulated services shall not subsidize unregulated ones.
Right of Government (Section 6)
- The President has the right to temporarily take over and operate the stations, transmitters, facilities or equipment of the grantee 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 public welfare.
- The President can authorize the temporary use and operation of the stations, transmitters, facilities or equipment by any agency of the government, upon due compensation to the grantee.
- The radio spectrum is a finite resource that is part of the national patrimony and the use thereof is a privilege conferred by the State and may be withdrawn anytime, after due process.
Term of Franchise (Section 7)
- The franchise shall be for a term of twenty-five (25) years from the date of effectivity of this Act, unless sooner revoked or cancelled.
- The franchise shall be deemed ipso facto revoked if the grantee fails to:
- Commence operations within one (1) year from the approval of its operating permit or provisional authority by the NTC.
- Operate continuously for two (2) years.
- Commence operations within three (3) years from the effectivity of this Act.
Acceptance and Compliance (Section 8)
- Acceptance of this franchise shall be given in writing within sixty (60) days from the effectivity of this Act.
- Upon giving such acceptance, the grantee shall exercise the privileges granted under this Act.
- Nonacceptance shall render the franchise void.
Bond (Section 9)
- The grantee shall file a bond issued in favor of the NTC, which shall determine the amount, to guarantee the compliance with and fulfillment of the conditions under which this franchise is granted.
- If after five (5) years from the date of the approval of its permit by the Commission, the grantee shall have fulfilled the conditions, the bond shall be cancelled by the Commission.
- Otherwise, the bond shall be forfeited in favor of the government and the franchise ipso facto revoked.
Tax Provisions (Section 10)
- The grantee, its successors or assigns, shall be subject to the payment of all taxes, duties, fees or charges and other impositions under the National Internal Revenue Code of 1997, as amended, and other applicable laws.
- Specific tax exemptions, incentives or privileges granted under any relevant law shall not be construed as repealed.
- All rights, privileges, benefits and exemptions accorded to existing and future telecommunications franchises shall likewise be extended to the grantee.
- The grantee shall file the return with the city or province where its facility is located and pay the income tax due thereon to the Commissioner of Internal Revenue or his duly authorized representatives in accordance with the National Internal Revenue Code.
Gross Receipts (Section 11)
- The grantee, its successors or assigns, shall keep a separate account of the gross receipts of the business transacted by it.
- The grantee shall 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 12)
- The books and accounts of the grantee, its successors or assigns, shall always be open to the inspection of the Commissioner on Audit or his authorized representatives.
- The grantee shall submit to the COA, two (2) copies of the quarterly reports on the gross receipts, the net profits and the general condition of the business.
Warranty in Favor of National and Local Governments (Section 13)
- The grantee shall hold the national, provincial, city and municipal governments of the Philippines harmless from all claims, accounts, demands or actions arising out of accidents or injuries, whether to property or to persons, caused by the construction or operation of the stations, transmitters, facilities and equipment of the grantee.
Sale, Lease, Transfer, Usufruct, Etc. (Section 14)
- 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 commercial or legal entity, nor merge with any other corporation or entity, nor shall the controlling interest of the grantee be transferred, whether as a whole or in parts and whether simultaneously or contemporaneously, to any such person, firm, company, corporation or entity without the prior approval of the Congress of the Philippines.
- Any person or 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 15)
- In accordance with the constitutional provision to encourage public participation in public utilities, the grantee shall offer at least thirty percentum (30%) of its outstanding capital stock or a higher percentage that may hereafter be provided by law in any securities exchange in the Philippines within five (5) years from the commencement of its operations.
- Noncompliance therewith shall render the franchise ipso facto revoked.
Equality Clause (Section 16)
- Any advantage, favor, privilege, exemption or immunity granted under existing franchises, or may hereafter be granted, shall ipso facto become part of previously granted telecommunications franchises and shall be accorded immediately and unconditionally to the grantees of such franchises.
- However, the foregoing shall neither apply to nor affect provisions of telecommunications franchises concerning territory covered by the franchise, the life span of the franchise, or the type of service authorized by the franchise.
Separability Clause (Section 17)
- If any of the sections or provisions of this Act is held invalid, all the other provisions not affected thereby shall remain valid.
Repealability and Nonexclusivity Clause (Section 18)
- 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 herein provided for.
Reportorial Requirement (Section 19)
- 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 20)
- This Act shall take effect fifteen (15) days from the date of its publication, upon the initiative of the grantee, in at least two (2) newspapers of general circulation in the Philippines.