May 27, 2022
REPUBLIC ACT NO. 11773
AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE GRANTED TO PANAY TELEPHONE CORPORATION UNDER REPUBLIC ACT NO. 8704, ENTITLED "AN ACT GRANTING THE PANAY TELEPHONE CORPORATION, INC. A FRANCHISE TO CONSTRUCT, ESTABLISH, INSTALL, MAINTAIN AND OPERATE LOCAL EXCHANGE NETWORK IN THE PROVINCES OF AKLAN AND ANTIQUE AND IN THE MUNICIPALITY OF JANIUAY, PROVINCE OF ILOILO," LIMITING THE AREA OF OPERATION TO THE PROVINCES OF AKLAN AND ANTIQUE
SECTION 1.Nature and Scope of Franchise. — Subject to the provisions of the Constitution and applicable laws, rules and regulations, the franchise granted to Panay Telephone Corporation, hereunder referred to as the Grantee, its successors or assignees, under Republic Act No. 8704, to construct, install, establish, operate, and maintain for commercial purposes and in the public interest in the provinces of Aklan and Antique, wire and wireless telecommunications system, copper, fiber optics, satellite transmit and receive systems, switches and their value-added services such as the transmission of voice, data, facsimile,...
Summary of Republic Act No. 11773
Nature and Scope of Franchise (Section 1):
- Renews the franchise granted to Panay Telephone Corporation under Republic Act No. 8704 for another 25 years.
- Allows Panay Telephone Corporation to construct, install, operate, and maintain telecommunications systems in the provinces of Aklan and Antique.
- Covers wire and wireless telecommunications systems, including copper, fiber optics, satellite systems, switches, and value-added services.
Manner of Operation (Section 2):
- Stations or facilities shall be constructed and operated to minimize interference with existing or future stations.
Authority of the National Telecommunications Commission (NTC) (Section 3):
- Grantee must secure a Certificate of Public Convenience and Necessity or appropriate permits and licenses from the NTC.
- NTC has the power to regulate and impose conditions on the construction, operation, maintenance, or service level.
- NTC can revoke or suspend permits or licenses after due process for violations.
- NTC can recommend to Congress the revocation of the franchise for violations.
Excavation and Restoration Works (Section 4):
- Grantee can make excavations or lay conduits in public places with prior approval from DPWH or LGU.
- Grantee must repair and replace any disturbed public places according to DPWH or LGU standards.
- If Grantee fails to repair after 10-day notice, DPWH or LGU can repair and charge the Grantee double the cost.
Responsibility to the Public (Section 5):
- Grantee shall conform to ethics of honest enterprise and not use facilities for obscene, indecent, false, or subversive transmissions.
- Grantee shall operate and maintain facilities satisfactorily and keep up with technological advances.
- Grantee shall improve and extend services in unserved areas and hazard-prone areas determined by the National Disaster Risk Reduction and Management Council.
- Grantee shall comply with the Free Mobile Disaster Alerts Act.
Rates for Services (Section 6):
- Charges and rates for regulated services shall be subject to NTC approval.
- Rates shall be unbundled and separable among services offered.
- Regulated services shall not subsidize unregulated services.
Right of the Government (Section 7):
- The radio spectrum is part of the national patrimony, and its use is a privilege that may be withdrawn.
- In times of war, peril, calamity, or disturbance, the President can temporarily take over, suspend, or authorize government use of the Grantee's facilities, with due compensation.
Term of Franchise (Section 8):
- The franchise is valid for 25 years from the effectivity of this Act, unless sooner cancelled.
- The franchise shall be deemed revoked if the Grantee fails to operate continuously for 2 years.
Right of Interconnection (Section 9):
- Grantee is authorized to interconnect with other telecommunications systems for improved services, subject to NTC review and modification.
Warranty in Favor of National and Local Governments (Section 10):
- Grantee shall hold the national, provincial, city, and municipal governments free from claims or liabilities arising from accidents during construction or operation.
Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise (Section 11):
- Grantee cannot sell, lease, transfer, grant usufruct, or assign the franchise without prior approval from Congress.
- Grantee must inform Congress of any such transaction within 60 days.
- Failure to report shall render the franchise revoked.
- Any entity acquiring the franchise shall be subject to the same conditions.
Dispersal of Ownership (Section 12):
- Grantee shall offer at least 30% of its outstanding capital stock to Filipino citizens in a securities exchange within 5 years.
- Noncompliance shall render the franchise revoked.
Commitment to Provide and Promote Employment Opportunities (Section 13):
- Grantee shall create employment opportunities and accept on-the-job trainees, prioritizing residents where the principal office is located.
- Grantee shall comply with labor standards and entitlements.
- Employment opportunities shall be reflected in the GIS submitted to the SEC annually.
Reportorial Requirement (Section 14):
- Grantee shall submit an annual report to Congress on its compliance and operations by April 30 each year.
- The report shall include business updates, audited financial statements, GIS, NTC certification, and ownership dispersal update.
- A reportorial compliance certificate from Congress shall be required before NTC accepts permit applications.
Fine (Section 15):
- Failure to submit the annual report shall be penalized with a fine of ₱1,000,000 per working day of noncompliance.
- In the interim, the fine shall be ₱500 per working day of noncompliance.
Equality Clause (Section 16):
- Any advantage or privilege granted to other telecommunications franchises shall also apply to this Grantee, except for territory, life span, or type of service.
Repealability and Nonexclusivity Clause (Section 17):
- 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.
Separability Clause (Section 18):
- If any section is held invalid, other provisions shall remain valid.
Repealing Clause (Section 19):
- All laws, orders, rules, and issuances inconsistent with this Act are repealed, amended, or modified accordingly.
Effectivity (Section 20):
- The Act shall take effect 15 days after publication in the Official Gazette or a newspaper of general circulation.
Nature and Scope of Franchise (Section 1):
- Renews the franchise granted to Panay Telephone Corporation under Republic Act No. 8704 for another 25 years.
- Allows Panay Telephone Corporation to construct, install, operate, and maintain telecommunications systems in the provinces of Aklan and Antique.
- Covers wire and wireless telecommunications systems, including copper, fiber optics, satellite systems, switches, and value-added services.
Manner of Operation (Section 2):
- Stations or facilities shall be constructed and operated to minimize interference with existing or future stations.
Authority of the National Telecommunications Commission (NTC) (Section 3):
- Grantee must secure a Certificate of Public Convenience and Necessity or appropriate permits and licenses from the NTC.
- NTC has the power to regulate and impose conditions on the construction, operation, maintenance, or service level.
- NTC can revoke or suspend permits or licenses after due process for violations.
- NTC can recommend to Congress the revocation of the franchise for violations.
Excavation and Restoration Works (Section 4):
- Grantee can make excavations or lay conduits in public places with prior approval from DPWH or LGU.
- Grantee must repair and replace any disturbed public places according to DPWH or LGU standards.
- If Grantee fails to repair after 10-day notice, DPWH or LGU can repair and charge the Grantee double the cost.
Responsibility to the Public (Section 5):
- Grantee shall conform to ethics of honest enterprise and not use facilities for obscene, indecent, false, or subversive transmissions.
- Grantee shall operate and maintain facilities satisfactorily and keep up with technological advances.
- Grantee shall improve and extend services in unserved areas and hazard-prone areas determined by the National Disaster Risk Reduction and Management Council.
- Grantee shall comply with the Free Mobile Disaster Alerts Act.
Rates for Services (Section 6):
- Charges and rates for regulated services shall be subject to NTC approval.
- Rates shall be unbundled and separable among services offered.
- Regulated services shall not subsidize unregulated services.
Right of the Government (Section 7):
- The radio spectrum is part of the national patrimony, and its use is a privilege that may be withdrawn.
- In times of war, peril, calamity, or disturbance, the President can temporarily take over, suspend, or authorize government use of the Grantee's facilities, with due compensation.
Term of Franchise (Section 8):
- The franchise is valid for 25 years from the effectivity of this Act, unless sooner cancelled.
- The franchise shall be deemed revoked if the Grantee fails to operate continuously for 2 years.
Right of Interconnection (Section 9):
- Grantee is authorized to interconnect with other telecommunications systems for improved services, subject to NTC review and modification.
Warranty in Favor of National and Local Governments (Section 10):
- Grantee shall hold the national, provincial, city, and municipal governments free from claims or liabilities arising from accidents during construction or operation.
Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise (Section 11):
- Grantee cannot sell, lease, transfer, grant usufruct, or assign the franchise without prior approval from Congress.
- Grantee must inform Congress of any such transaction within 60 days.
- Failure to report shall render the franchise revoked.
- Any entity acquiring the franchise shall be subject to the same conditions.
Dispersal of Ownership (Section 12):
- Grantee shall offer at least 30% of its outstanding capital stock to Filipino citizens in a securities exchange within 5 years.
- Noncompliance shall render the franchise revoked.
Commitment to Provide and Promote Employment Opportunities (Section 13):
- Grantee shall create employment opportunities and accept on-the-job trainees, prioritizing residents where the principal office is located.
- Grantee shall comply with labor standards and entitlements.
- Employment opportunities shall be reflected in the GIS submitted to the SEC annually.
Reportorial Requirement (Section 14):
- Grantee shall submit an annual report to Congress on its compliance and operations by April 30 each year.
- The report shall include business updates, audited financial statements, GIS, NTC certification, and ownership dispersal update.
- A reportorial compliance certificate from Congress shall be required before NTC accepts permit applications.
Fine (Section 15):
- Failure to submit the annual report shall be penalized with a fine of ₱1,000,000 per working day of noncompliance.
- In the interim, the fine shall be ₱500 per working day of noncompliance.
Equality Clause (Section 16):
- Any advantage or privilege granted to other telecommunications franchises shall also apply to this Grantee, except for territory, life span, or type of service.
Repealability and Nonexclusivity Clause (Section 17):
- 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.
Separability Clause (Section 18):
- If any section is held invalid, other provisions shall remain valid.
Repealing Clause (Section 19):
- All laws, orders, rules, and issuances inconsistent with this Act are repealed, amended, or modified accordingly.
Effectivity (Section 20):
- The Act shall take effect 15 days after publication in the Official Gazette or a newspaper of general circulation.