AN ACT GRANTING THE SLL INTERNATIONAL CABLE SPECIALIST CORPORATION
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AN ACT GRANTING THE SLL INTERNATIONAL CABLE SPECIALIST CORPORATION
Republic Act No. 9316
August 8, 2004
Case Overview and Summary
Nature and Scope of Franchise (Section 1):- Grants SLL International Cable Specialist Corporation, Inc. (the grantee) a franchise to construct, install, establish, operate and maintain a local exchange network for commercial purposes and public interest in Region VI.
- Allows the grantee to provide basic telephone service capable of accessing local, national, international and other networks.
Manner of Operations of Stations or Facilities (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.
- The grantee's radiated power shall not exceed the required level to cover its allowed area of operation.
Authority of the National Telecommunications Commission (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 can impose conditions on the construction, operation, maintenance or service level of the grantee's telecommunications systems/facilities.
- The grantee cannot use any radio frequency without NTC's authorization.
Responsibility to the Public (Section 4):
- The grantee shall conform to ethics of honest enterprise and not use its stations/facilities for obscene, indecent, false information, misrepresentation, or assist in subversive or treasonable acts.
- The grantee shall provide basic or enhanced telephone service in Region VI without discrimination, up to the capacity of its local telephone exchange.
- The grantee shall operate and maintain its stations, lines, cables, systems and equipment, modifying them as needed to keep up with advances in science and technology.
Rates for Services (Section 5):
- The grantee's charges and rates for regulated telecommunications services shall be subject to NTC's approval.
- Rates shall be unbundled, separable and distinct among services offered.
- Regulated services shall not subsidize unregulated ones.
Right of Government (Section 6):
- The President can temporarily take over, suspend operations, or authorize temporary use of the grantee's stations/facilities in times of war, rebellion, public peril, calamity, emergency, disaster or disturbance, with due compensation.
- The radio spectrum is part of national patrimony and its use by the grantee is a privilege that may be withdrawn after due process.
Term of Franchise (Section 7):
- The franchise is for 25 years from the Act's effectivity, unless sooner revoked or cancelled.
- The franchise shall be deemed revoked if the grantee fails to: (a) commence operation within 3 years from NTC permit, (b) operate continuously for 2 years, or (c) commence operations within 5 years from the Act's effectivity.
Acceptance and Compliance (Section 8):
- The grantee must accept the franchise in writing within 60 days from the Act's effectivity to exercise the privileges granted.
- Non-acceptance shall render the franchise void.
Bond (Section 9):
- The grantee shall file a bond, with an amount determined by NTC, to guarantee compliance with the franchise terms.
- The bond shall be cancelled by NTC if the grantee fulfills the terms, otherwise forfeited in favor of the government.
Right of Interconnection (Section 10):
- The grantee is authorized to interconnect its telecommunications systems with other authorized entities for providing extended and improved services, under terms subject to NTC review.
Gross Receipts (Section 12):
- The grantee shall keep a separate account of gross receipts and furnish it to the Commission on Audit and National Treasury annually by January 31st.
Books and Accounts (Section 13):
- The grantee's books and accounts shall be open for inspection by the Commission on Audit.
- The grantee shall submit quarterly reports on gross receipts, net profits and general business condition to the Commission on Audit.
Warranty in Favor of National and Local Governments (Section 14):
- The grantee shall hold the national, provincial, city and municipal governments harmless from claims, accounts, demands or actions arising out of accidents or injuries caused by its operations.
Sale, Lease, Transfer, Usufruct, etc. (Section 15):
- The grantee cannot lease, transfer, grant usufruct, sell, assign the franchise or merge with another entity without prior approval of the Congress of the Philippines.
- Any entity the franchise is transferred to shall be subject to the same conditions of this Act.
Dispersal of Ownership (Section 16):
- The grantee shall offer at least 30% of its outstanding capital stock in a securities exchange in the Philippines within 10 years from commencement of operations, to encourage public participation.
- 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 become part of this franchise, except for those concerning territory, life span or type of service.
Repealability and Non-exclusivity Clause (Section 19):
- The franchise is subject to amendment, alteration or repeal by Congress when public interest requires.
- The 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 Congress on its compliance with the franchise terms and operations within 60 days from the end of every year.
Effectivity Clause (Section 21):
- The Act shall take effect 15 days from its publication in at least two newspapers of general circulation in the Philippines, upon the grantee's initiative.
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Law
AN ACT GRANTING THE SLL INTERNATIONAL CABLE SPECIALIST CORPORATION
Republic Act No. 9316
•August 8, 2004
Republic of the Philippines
Congress of the Philippines
Metro Manila
Twelfth CongressThird Regular Session
Begun and held in Metro Manila, on Monday, the twenty-eight day of July, two thousand and three.
Republic Act No. 9316            
AN ACT GRANTING THE SLL INTERNATIONAL CABLE SPECIALIST CORPORATION, INC. A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN LOCAL EXCHANGE NETWORK IN REGION VI
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 the Datelcom Corporation, 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, local exchange network, including public calling stations or pay telephone stations or wireless local loop and their value-added services in Region lll, and for such purpose, provide basic telephone service capable of accessing local, national, international and...
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