Republic of the Philippines
CONGRESS OF THE PHILIPPINES
Metro ManilaFifteenth Congress
Second Regular SessionBegun and held in Metro Manila, on Monday, the twenty-fifth day of July, two thousand eleven.
REPUBLIC ACT NO. 10182
AN ACT GRANTING THE TELECOMMUNICATIONS TECHNOLOGY SOLUTIONS, 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 Telecommunications Technology Solutions, 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 including, but not limited to, mobile, cellular, paging, fiber optics, multi-channel multi-point distribution system (MMDS), local multi-point distribution system (LMDS), satellite transmit and receive systems, switches and their value-added...
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Republic Acts
AN ACT GRANTING THE TELECOMMUNICATIONS TECHNOLOGY SOLUTIONS
Republic Act No. 10182
Summary of Republic Act No. 10182
Nature and Scope of Franchise (Section 1):
- Grants Telecommunications Technology Solutions, Inc. (the grantee) 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 including mobile, cellular, paging, fiber optics, satellite systems, switches, and value-added services like voice, data, facsimile, audio, video, and information services.
Manner of Operation (Section 2):
- The grantee's stations or facilities shall be constructed and operated in a manner that results in minimum interference with existing or future stations.
Authority of the National Telecommunications Commission (NTC) (Section 3):
- The grantee must secure a Certificate of Public Convenience and Necessity or appropriate permits and licenses from the NTC.
- The NTC has the power to impose conditions on the construction, operation, maintenance, or service level of the telecommunications system.
- The NTC has the authority to regulate the construction and operation of the telecommunications systems.
- The grantee cannot use any radio frequency without authorization from the NTC.
Ingress and Egress (Section 4):
- The grantee has the right, with prior approval from the Department of Public Works and Highways (DPWH) or local government units, to make excavations or lay conduits in public places, roads, highways, streets, lanes, alleys, avenues, sidewalks, or bridges.
- The grantee must repair and replace any public place, road, highway, street, lane, alley, avenue, sidewalk, or bridge disturbed by its activities.
Responsibility to the Public (Section 5):
- The grantee must conform to the 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.
- The grantee must provide basic or enhanced telephone service without discrimination in areas where it has an approved Certificate of Public Convenience and Necessity.
- The grantee must 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 6):
- The charges and rates for telecommunications services, except those declared as non-regulated services, shall be subject to the approval of the NTC.
- The rates shall be unbundled, separable, and distinct among the services offered, and regulated services shall not subsidize unregulated ones.
Right of Government (Section 7):
- The President of the Philippines 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 conferred by the State that may be withdrawn anytime after due process.
Term of Franchise (Section 8):
- The franchise is valid for 25 years unless sooner revoked or cancelled.
- The franchise shall be deemed ipso facto revoked if the grantee fails to:
- Commence operation within 3 years from the approval of its operating permit or provisional authority by the NTC.
- Operate continuously for 2 years.
- Commence operations within 5 years from the effectivity of this Act.
Acceptance and Compliance (Section 9):
- The grantee must accept the franchise in writing within 60 days from the effectivity of this Act.
- Non-acceptance shall render the franchise void.
Bond (Section 10):
- The grantee shall file a bond with the NTC in an amount determined by the NTC to guarantee compliance with the conditions of the franchise.
- If the grantee fulfills the conditions after 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 11):
- The 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 telecommunications services.
- The terms and conditions of interconnection shall be mutually agreed upon by the parties and subject to review and modification by the NTC.
Gross Receipts (Section 12):
- The 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 31st day of January of each year for the preceding 12 months.
Books and Accounts (Section 13):
- The books and accounts of the grantee shall always be open to inspection by the COA or its authorized representatives.
- The grantee shall submit to the COA two copies of the quarterly reports on the 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 of the Philippines free from all claims, accounts, demands, or actions arising out of accidents or injuries caused by the construction or operation of the grantee's stations, transmitters, facilities, and equipment.
Nontransferability of Franchise (Section 15):
- The grantee shall not lease, transfer, grant the usufruct of, sell, or 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.
- The conditions, terms, restrictions, and limitations set by this Act shall be imposed on any person or entity to which this franchise is sold, transferred, or assigned.
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% or a higher percentage that may hereafter be provided by law of its outstanding capital stock 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.
Reportorial Requirement (Section 17):
- 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.
Equality Clause (Section 18):
- Any advantage, favor, privilege, exemption, or immunity granted under existing franchise 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, except for provisions concerning territory covered by the franchise, the life span of the franchise, or the type of service authorized by the franchise.
Separability Clause (Section 19):
- If any of the sections or provisions of this Act is held invalid, all the other provisions not affected thereby shall remain valid.
Repeatability and Nonexclusivity Clause (Section 20):
- 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 herein provided for.
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 Telecommunications Technology Solutions, Inc. (the grantee) 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 including mobile, cellular, paging, fiber optics, satellite systems, switches, and value-added services like voice, data, facsimile, audio, video, and information services.
Manner of Operation (Section 2):
- The grantee's stations or facilities shall be constructed and operated in a manner that results in minimum interference with existing or future stations.
Authority of the National Telecommunications Commission (NTC) (Section 3):
- The grantee must secure a Certificate of Public Convenience and Necessity or appropriate permits and licenses from the NTC.
- The NTC has the power to impose conditions on the construction, operation, maintenance, or service level of the telecommunications system.
- The NTC has the authority to regulate the construction and operation of the telecommunications systems.
- The grantee cannot use any radio frequency without authorization from the NTC.
Ingress and Egress (Section 4):
- The grantee has the right, with prior approval from the Department of Public Works and Highways (DPWH) or local government units, to make excavations or lay conduits in public places, roads, highways, streets, lanes, alleys, avenues, sidewalks, or bridges.
- The grantee must repair and replace any public place, road, highway, street, lane, alley, avenue, sidewalk, or bridge disturbed by its activities.
Responsibility to the Public (Section 5):
- The grantee must conform to the 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.
- The grantee must provide basic or enhanced telephone service without discrimination in areas where it has an approved Certificate of Public Convenience and Necessity.
- The grantee must 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 6):
- The charges and rates for telecommunications services, except those declared as non-regulated services, shall be subject to the approval of the NTC.
- The rates shall be unbundled, separable, and distinct among the services offered, and regulated services shall not subsidize unregulated ones.
Right of Government (Section 7):
- The President of the Philippines 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 conferred by the State that may be withdrawn anytime after due process.
Term of Franchise (Section 8):
- The franchise is valid for 25 years unless sooner revoked or cancelled.
- The franchise shall be deemed ipso facto revoked if the grantee fails to:
- Commence operation within 3 years from the approval of its operating permit or provisional authority by the NTC.
- Operate continuously for 2 years.
- Commence operations within 5 years from the effectivity of this Act.
Acceptance and Compliance (Section 9):
- The grantee must accept the franchise in writing within 60 days from the effectivity of this Act.
- Non-acceptance shall render the franchise void.
Bond (Section 10):
- The grantee shall file a bond with the NTC in an amount determined by the NTC to guarantee compliance with the conditions of the franchise.
- If the grantee fulfills the conditions after 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 11):
- The 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 telecommunications services.
- The terms and conditions of interconnection shall be mutually agreed upon by the parties and subject to review and modification by the NTC.
Gross Receipts (Section 12):
- The 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 31st day of January of each year for the preceding 12 months.
Books and Accounts (Section 13):
- The books and accounts of the grantee shall always be open to inspection by the COA or its authorized representatives.
- The grantee shall submit to the COA two copies of the quarterly reports on the 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 of the Philippines free from all claims, accounts, demands, or actions arising out of accidents or injuries caused by the construction or operation of the grantee's stations, transmitters, facilities, and equipment.
Nontransferability of Franchise (Section 15):
- The grantee shall not lease, transfer, grant the usufruct of, sell, or 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.
- The conditions, terms, restrictions, and limitations set by this Act shall be imposed on any person or entity to which this franchise is sold, transferred, or assigned.
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% or a higher percentage that may hereafter be provided by law of its outstanding capital stock 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.
Reportorial Requirement (Section 17):
- 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.
Equality Clause (Section 18):
- Any advantage, favor, privilege, exemption, or immunity granted under existing franchise 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, except for provisions concerning territory covered by the franchise, the life span of the franchise, or the type of service authorized by the franchise.
Separability Clause (Section 19):
- If any of the sections or provisions of this Act is held invalid, all the other provisions not affected thereby shall remain valid.
Repeatability and Nonexclusivity Clause (Section 20):
- 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 herein provided for.
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.