Renewing for Another 25 Years the Franchise Granted to Polaris Telecommunications, Inc., Presently Known as Radius Telecoms, Inc.
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Renewing for Another 25 Years the Franchise Granted to Polaris Telecommunications, Inc., Presently Known as Radius Telecoms, Inc.
Republic Act No. 11841
June 17, 2022
Case Overview and Summary
Summary of Republic Act No. 11841:Nature and Scope of Franchise (Section 1):
- Renews the franchise granted to Radius Telecoms, Inc. (formerly Polaris Telecommunications, Inc.) for 25 years to operate telecommunications systems and services in the Philippines and between the Philippines and other countries.
- Covers basic and enhanced telecommunications services, including mobile, cellular, wired/wireless systems, fiber optics, satellite systems, and other technologies.
Manner of Operation (Section 2):
- Stations/facilities shall be operated to minimize interference with existing or future stations.
Authority of NTC (Section 3):
- Grantee must secure permits/licenses from the National Telecommunications Commission (NTC).
- NTC can regulate and impose conditions on the construction, operation, maintenance, and service levels.
- NTC can revoke/suspend permits for violations after due process.
Excavation and Restoration Works (Section 4):
- Grantee can excavate public places for erecting poles/supports and laying underground wires/cables with prior approval from DPWH or LGU.
- Grantee must repair/replace any disturbed public places according to DPWH or LGU standards.
Responsibility to the Public (Section 5):
- Grantee must conform to ethics of honest enterprise and not transmit obscene/indecent content or false information.
- Grantee must operate and maintain stations/facilities satisfactorily and improve/upgrade to keep up with technological advances.
- Grantee must improve and extend services in unserved areas and hazard-prone areas determined by the National Disaster Risk Reduction and Management Council.
- Grantee must comply with the Free Mobile Disaster Alerts Act.
Rates for Services (Section 6):
- Charges and rates for regulated telecommunications services are subject to NTC approval.
- Rates must be unbundled and separable among services offered.
Right of the Government (Section 7):
- The President can temporarily take over, suspend operations, or authorize government use of Grantee's stations/facilities during war, public peril, calamity, or disturbance, with due compensation.
Term of Franchise (Section 8):
- Franchise is valid for 25 years from the effectivity date, unless sooner cancelled.
- Franchise is deemed revoked if Grantee fails to operate continuously for 2 years.
Right of Interconnection (Section 9):
- Grantee can connect or demand connection to other telecommunications systems for providing extended/improved services, subject to NTC review.
Mobile Number Portability (Section 10):
- Grantee must provide mobile number portability and its implementing mechanism.
- Grantee must interconnect with other telecommunications franchise grantees and not impede the implementation of a nationwide MNP system.
Warranty in Favor of National and Local Governments (Section 11):
- Grantee shall hold national, provincial, city, and municipal governments free from claims/liabilities arising from accidents during construction or operation.
Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise (Section 12):
- Grantee cannot sell, lease, transfer, grant usufruct, assign franchise, merge, or transfer controlling interest without prior Congressional approval.
- Grantee must inform Congress within 60 days of such transactions.
- Failure to report shall render the franchise revoked.
- Any entity to which the franchise is transferred shall be subject to the same conditions.
Dispersal of Ownership (Section 13):
- Grantee must offer at least 30% of 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 14):
- Grantee must create employment opportunities and accept on-the-job trainees, prioritizing residents where the principal office is located.
- Grantee must comply with labor standards and allowance entitlements.
- Employment opportunities must be reflected in the General Information Sheet submitted to the SEC annually.
Reportorial Requirement (Section 15):
- Grantee must submit an annual report to Congress on compliance with franchise terms, operations, financial statements, NTC certification, and ownership dispersal by April 30 every year.
- Reportorial compliance certificate from Congress is required before NTC accepts permit applications.
Fine (Section 16):
- Failure to submit annual report shall be penalized with a fine of ₱1,000,000 for each working day of noncompliance, effective upon applicability to other franchise grantees.
- In the interim, a fine of ₱500 per working day of noncompliance shall be paid to the NTC.
Equality Clause (Section 17):
- Any advantage, favor, privilege, exemption, or immunity granted under existing or future telecommunications franchises shall be accorded to the Grantee, except for provisions concerning territory, life span, or type of service.
Repealability and Nonexclusivity Clause (Section 18):
- The franchise is subject to amendment, alteration, or repeal by Congress when the public interest requires and shall not be interpreted as an exclusive grant.
Separability Clause (Section 19):
- If any section or provision is held invalid, all other valid provisions shall remain in effect.
Repealing Clause (Section 20):
- All laws, decrees, orders, resolutions, instructions, rules and regulations inconsistent with this Act are repealed, amended, or modified accordingly.
Effectivity (Section 21):
- The Act shall take effect 15 days after publication in the Official Gazette or a newspaper of general circulation.
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Renewing for Another 25 Years the Franchise Granted to Polaris Telecommunications, Inc., Presently Known as Radius Telecoms, Inc.
Republic Act No. 11841
•June 17, 2022
June 17, 2022
REPUBLIC ACT NO. 11841
AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE GRANTED TO POLARIS TELECOMMUNICATIONS, INC., PRESENTLY KNOWN AS RADIUS TELECOMS, INC., UNDER REPUBLIC ACT NO. 8955, ENTITLED "AN ACT GRANTING THE POLARIS TELECOMMUNICATIONS, INC. A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE AND MAINTAIN TELECOMMUNICATIONS SYSTEMS THROUGHOUT THE PHILIPPINES"
SECTION 1. Nature and Scope of Franchise. — Subject to the provisions of the Constitution and applicable laws, rules and regulations, the franchise granted to Polaris Telecommunications, Inc., presently known as Radius Telecoms, Inc., hereunder referred to as the Grantee, its successors or assignees, under Republic Act No. 8955, to construct, install, establish, operate, and maintain for commercial purposes and in the public interest, the business of providing basic and enhanced telecommunications services in and between provinces, cities, and municipalities in the Philippines and between the Philippines and other countries and territories, including mobile, cellular, and wired or wireless telecommunications systems, fiber optics, multi-channel distribution systems, local multipoint distribution system, satellite transmit and receive systems, and other telecommunications systems and...
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