April 8, 2022
REPUBLIC ACT NO. 11675
AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE GRANTED TO ODIONGAN TELEPHONE CORPORATION UNDER REPUBLIC ACT NO. 8956, ENTITLED "AN ACT GRANTING THE ODIONGAN TELEPHONE CORPORATION A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN LOCAL EXCHANGE NETWORK IN THE PROVINCE OF ROMBLON"
SECTION 1.Nature and Scope of Franchise. — Subject to the provisions of the Constitution and applicable laws, rules and regulations, the franchise granted to Odiongan Telephone Corporation, hereunder referred to as the Grantee, its successors or assignees, under Republic Act No. 8956, to construct, install, establish, operate and maintain for commercial purposes and in the public interest in the Province of Romblon, wire and wireless telecommunications systems including copper, fiber optics, satellite transmit and receive systems, switches and their value-added services such as transmission of voice, data, facsimile, control signs, audio and video, information services and all other telecommunications system technologies as are present available or will be made available through technological advances or...
Nature and Scope of Franchise (Section 1):
- Renews the franchise granted to Odiongan Telephone Corporation under Republic Act No. 8956 for another 25 years.
- Allows the corporation to construct, install, operate and maintain wire and wireless telecommunications systems in the Province of Romblon.
- Covers technologies like copper, fiber optics, satellite systems, switches, and value-added services like voice, data, facsimile, control signs, audio, video, and information services.
Manner of Operation (Section 2):
- Stations or facilities must be operated in a way that results in minimum interference with existing or future stations.
Authority of NTC (Section 3):
- The corporation must secure necessary permits and licenses from the National Telecommunications Commission (NTC).
- NTC has the power to regulate and impose conditions on the construction, operation, maintenance, or service level.
- NTC can revoke or suspend permits for violations, and recommend revocation of the franchise to Congress.
Excavation and Restoration Works (Section 4):
- The corporation can make excavations or lay conduits in public places with prior approval from DPWH or LGU.
- It must repair and replace any public place disturbed, or DPWH/LGU can do it and charge the corporation double the cost.
Responsibility to the Public (Section 5):
- The corporation must conform to ethics of honest enterprise and not transmit obscene or indecent content.
- It must operate and maintain its systems satisfactorily and keep up with technological advances.
- It must improve and extend services to unserved areas, hazard-prone areas, and comply with the Free Mobile Disaster Alerts Act.
Rates for Services (Section 6):
- Charges and rates for regulated services are subject to NTC approval.
- Rates must be unbundled and separable, and regulated services cannot subsidize unregulated ones.
Right of the Government (Section 7):
- The government can take over and operate the corporation's stations and facilities during war, rebellion, peril, calamity, emergency, or disturbance, with due compensation.
Term of Franchise (Section 8):
- The franchise is valid for 25 years from the effectivity date, unless revoked earlier.
- It will be revoked if the corporation fails to operate continuously for 2 years.
Right of Interconnection (Section 9):
- The corporation can connect or demand connection with other telecommunications systems to provide extended services, subject to NTC review.
Warranty to the Government (Section 10):
- The corporation must hold the national and local governments free from claims arising from accidents during construction or operation.
Sale, Transfer, or Assignment (Section 11):
- The corporation cannot sell, transfer, or assign the franchise without prior Congressional approval.
- It must inform Congress within 60 days of any such transaction.
- Failure to report will revoke the franchise.
Dispersal of Ownership (Section 12):
- The corporation must offer at least 30% of outstanding capital stock to Filipino citizens within 5 years.
- Noncompliance will revoke the franchise.
Employment Opportunities (Section 13):
- The corporation must create employment opportunities and accept on-the-job trainees, prioritizing local residents.
- It must comply with labor standards and allowances.
Reportorial Requirement (Section 14):
- The corporation must submit an annual report to Congress on its compliance and operations by April 30 each year.
- The report must include updates on activities, financial statements, permits status, and ownership dispersal.
Fine (Section 15):
- Failure to submit the annual report will be fined P1,000,000 per working day of noncompliance.
- In the interim, the fine is P500 per working day to NTC.
Equality Clause (Section 16):
- Any advantage granted to other telecommunications franchises shall also apply to this franchise.
Repealability and Nonexclusivity (Section 17):
- The franchise is subject to amendment, alteration, or repeal by Congress in the public interest.
- It is not an exclusive grant of privileges.
Separability Clause (Section 18):
- If any section is held invalid, other provisions remain valid.
Repealing Clause (Section 19):
- Inconsistent laws, orders, rules, and regulations are repealed or modified accordingly.
Effectivity (Section 20):
- The Act takes effect 15 days after publication in the Official Gazette or a newspaper.