April 8, 2022
REPUBLIC ACT NO. 11676
AN ACT RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE GRANTED TO R.C. YULO TELEPHONE SYSTEM, INC. UNDER REPUBLIC ACT NO. 8348, ENTITLED "AN ACT GRANTING THE RC YULO TELEPHONE SYSTEM, INC., A FRANCHISE TO CONSTRUCT, ESTABLISH, INSTALL, MAINTAIN AND OPERATE LOCAL EXCHANGE NETWORK IN THE MUNICIPALITIES OF BINALBAGAN, HINIGARAN, PONTEVEDRA, MURCIA, HIMAMAYLAN, AND ISABELA, PROVINCE OF NEGROS OCCIDENTAL"
SECTION 1.Nature and Scope of Franchise. — Subject to the provisions of the Constitution and applicable laws, rules and regulations, the franchise granted to R.C. Yulo Telephone System, Inc., hereunder referred to as the Grantee, its successors or assignees, under Republic Act No. 8348, to construct, install, establish, operate, and maintain for commercial purposes and in the public interest, in the municipalities of Binalbagan, Hinigaran, Pontevedra, Isabela, Murcia and the City of Himamaylan in the Province of Negros Occidental, wire and wireless telecommunications system, copper, fiber optics, satellite transmit and receive systems, switches and their value-added services such as transmission...
Summary of Republic Act No. 11676
Nature and Scope of Franchise
- Renews the franchise granted to R.C. Yulo Telephone System, Inc. under Republic Act No. 8348 for another 25 years. (Section 1)
- Allows the Grantee to construct, install, operate, and maintain telecommunications systems in specified municipalities of Negros Occidental for commercial purposes. (Section 1)
- Covers wire and wireless telecommunications systems, including copper, fiber optics, satellite transmit and receive systems, switches, and value-added services like voice, data, facsimile, control signs, audio and video, and information services. (Section 1)
Manner of Operation
- The Grantee's stations or facilities shall be constructed and operated in a manner that results in minimum interference with existing or future stations. (Section 2)
Authority of the National Telecommunications Commission (NTC)
- The Grantee must secure a Certificate of Public Convenience and Necessity or appropriate permits and licenses from the NTC. (Section 3)
- The NTC has the power to regulate and impose conditions on the construction, operation, maintenance, or service level of the Grantee's systems or facilities. (Section 3)
- The NTC can revoke or suspend the Grantee's permits or licenses after due process for any violation of the franchise provisions. (Section 3)
- The NTC can recommend to Congress the revocation of the franchise for any violation. (Section 3)
Excavation and Restoration Works
- The Grantee can make excavations or lay conduits in public places, roads, highways, etc., with prior approval from the DPWH or LGU. (Section 4)
- The Grantee must repair and replace any public place, road, highway, etc., disturbed by its works according to DPWH or LGU standards. (Section 4)
- If the Grantee fails to repair or replace after a 10-day notice, the DPWH or LGU can do it and charge the Grantee double the cost. (Section 4)
Responsibility to the Public
- The Grantee must conform to ethics of honest enterprise and not use its facilities for obscene, indecent, false, or subversive transmissions. (Section 5)
- The Grantee must operate and maintain its systems and equipment satisfactorily and keep up with advances in science and technology. (Section 5)
- The Grantee must improve and extend its services in unserved areas and hazard- and typhoon-prone areas determined by the National Disaster Risk Reduction and Management Council. (Section 5)
- The Grantee must improve and upgrade its equipment, facilities, and services to comply with the Free Mobile Disaster Alerts Act. (Section 5)
Rates for Services
- The Grantee's rates and charges for regulated telecommunications services are subject to NTC approval, except for non-regulated services. (Section 6)
- The rates must be unbundled, separable, and distinct among services offered, and regulated services must not subsidize unregulated ones. (Section 6)
Right of the Government
- The radio spectrum is part of the national patrimony, and its use by the Grantee is a privilege that may be withdrawn after due process. (Section 7)
- The President can temporarily take over, suspend, or authorize government use of the Grantee's stations, transmitters, facilities, or equipment during times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, with due compensation to the Grantee. (Section 7)
Term of Franchise
- The franchise is valid for 25 years from the effectivity of this Act, unless sooner cancelled. (Section 8)
- The franchise shall be deemed revoked if the Grantee fails to operate continuously for 2 years. (Section 8)
Right of Interconnection
- The Grantee is authorized to connect or demand connection of its systems to other telecommunications systems for providing extended and improved services, subject to NTC review and modification. (Section 9)
Warranty in Favor of National and Local Governments
- The Grantee shall hold the national, provincial, city, and municipal governments free from claims, liabilities, accounts, demands, or actions arising out of accidents causing injury or damage during construction or operation. (Section 10)
Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise
- The Grantee cannot sell, lease, transfer, grant usufruct, assign the franchise or rights, or merge with another entity without prior approval from Congress. (Section 11)
- The Grantee must inform Congress within 60 days after any such transaction. Failure to report shall render the franchise revoked. (Section 11)
- Any entity to which the franchise is sold, transferred, or assigned shall be subject to the same conditions, terms, restrictions, and limitations. (Section 11)
Dispersal of Ownership
- The Grantee must offer at least 30% of its outstanding capital stocks to Filipino citizens in a securities exchange within 5 years from the effectivity of this Act. (Section 12)
- If public offer of shares is not applicable, other methods of encouraging public participation must be implemented. (Section 12)
- Non-compliance shall render the franchise revoked. (Section 12)
Commitment to Provide and Promote Employment Opportunities
- The Grantee must create employment opportunities and accept on-the-job trainees, with priority to residents where the principal office is located. (Section 13)
- The Grantee must comply with applicable labor standards and allowance entitlement under existing labor laws, rules, and regulations. (Section 13)
- The employment opportunities created shall be reflected in the GIS submitted to the SEC annually. (Section 13)
Reportorial Requirement
- The Grantee must submit an annual report on its compliance with the franchise terms and conditions and its operations to Congress on or before April 30 of every year. (Section 14)
- The annual report must include updates on activities, development, operation, expansion, audited financial statements, latest GIS, NTC certification on permits and operations, and update on dispersal of ownership undertaking. (Section 14)
- A reportorial compliance certificate from Congress shall be required before the NTC accepts any application for permit or certificate from the Grantee. (Section 14)
Fine
- Failure to submit the annual report to Congress shall be penalized with a fine of ₱1,000,000 for each working day of non-compliance, effective upon applicability with other telecommunications franchise grantees. (Section 15)
- In the interim, the Grantee shall be liable to pay a fine of ₱500 per working day of non-compliance to the NTC. (Section 15)
- The fine shall be collected separately from NTC penalties and remitted to the Bureau of the Treasury. (Section 15)
Equality Clause
- Any advantage, favor, privilege, exemption, or immunity granted under existing or future telecommunications franchises, upon prior review and approval of Congress, shall become part of this franchise and be accorded to the Grantee, except for provisions concerning territory, life span, or type of service. (Section 16)
Repealability and Non-exclusivity Clause
- This franchise is subject to amendment, alteration, or repeal by Congress when the public interest so requires and shall not be interpreted as an exclusive grant of privileges. (Section 17)
Separability Clause
- If any section or provision of this Act is held invalid, all other provisions not affected shall remain valid. (Section 18)
Repealing Clause
- All laws, decrees, orders, resolutions, instructions, rules and regulations, and other issuances or parts thereof inconsistent with this Act are repealed, amended, or modified accordingly. (Section 19)
Effectivity
- This Act shall take effect 15 days after its publication in the Official Gazette or a newspaper of general circulation. (Section 20)
Nature and Scope of Franchise
- Renews the franchise granted to R.C. Yulo Telephone System, Inc. under Republic Act No. 8348 for another 25 years. (Section 1)
- Allows the Grantee to construct, install, operate, and maintain telecommunications systems in specified municipalities of Negros Occidental for commercial purposes. (Section 1)
- Covers wire and wireless telecommunications systems, including copper, fiber optics, satellite transmit and receive systems, switches, and value-added services like voice, data, facsimile, control signs, audio and video, and information services. (Section 1)
Manner of Operation
- The Grantee's stations or facilities shall be constructed and operated in a manner that results in minimum interference with existing or future stations. (Section 2)
Authority of the National Telecommunications Commission (NTC)
- The Grantee must secure a Certificate of Public Convenience and Necessity or appropriate permits and licenses from the NTC. (Section 3)
- The NTC has the power to regulate and impose conditions on the construction, operation, maintenance, or service level of the Grantee's systems or facilities. (Section 3)
- The NTC can revoke or suspend the Grantee's permits or licenses after due process for any violation of the franchise provisions. (Section 3)
- The NTC can recommend to Congress the revocation of the franchise for any violation. (Section 3)
Excavation and Restoration Works
- The Grantee can make excavations or lay conduits in public places, roads, highways, etc., with prior approval from the DPWH or LGU. (Section 4)
- The Grantee must repair and replace any public place, road, highway, etc., disturbed by its works according to DPWH or LGU standards. (Section 4)
- If the Grantee fails to repair or replace after a 10-day notice, the DPWH or LGU can do it and charge the Grantee double the cost. (Section 4)
Responsibility to the Public
- The Grantee must conform to ethics of honest enterprise and not use its facilities for obscene, indecent, false, or subversive transmissions. (Section 5)
- The Grantee must operate and maintain its systems and equipment satisfactorily and keep up with advances in science and technology. (Section 5)
- The Grantee must improve and extend its services in unserved areas and hazard- and typhoon-prone areas determined by the National Disaster Risk Reduction and Management Council. (Section 5)
- The Grantee must improve and upgrade its equipment, facilities, and services to comply with the Free Mobile Disaster Alerts Act. (Section 5)
Rates for Services
- The Grantee's rates and charges for regulated telecommunications services are subject to NTC approval, except for non-regulated services. (Section 6)
- The rates must be unbundled, separable, and distinct among services offered, and regulated services must not subsidize unregulated ones. (Section 6)
Right of the Government
- The radio spectrum is part of the national patrimony, and its use by the Grantee is a privilege that may be withdrawn after due process. (Section 7)
- The President can temporarily take over, suspend, or authorize government use of the Grantee's stations, transmitters, facilities, or equipment during times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, with due compensation to the Grantee. (Section 7)
Term of Franchise
- The franchise is valid for 25 years from the effectivity of this Act, unless sooner cancelled. (Section 8)
- The franchise shall be deemed revoked if the Grantee fails to operate continuously for 2 years. (Section 8)
Right of Interconnection
- The Grantee is authorized to connect or demand connection of its systems to other telecommunications systems for providing extended and improved services, subject to NTC review and modification. (Section 9)
Warranty in Favor of National and Local Governments
- The Grantee shall hold the national, provincial, city, and municipal governments free from claims, liabilities, accounts, demands, or actions arising out of accidents causing injury or damage during construction or operation. (Section 10)
Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise
- The Grantee cannot sell, lease, transfer, grant usufruct, assign the franchise or rights, or merge with another entity without prior approval from Congress. (Section 11)
- The Grantee must inform Congress within 60 days after any such transaction. Failure to report shall render the franchise revoked. (Section 11)
- Any entity to which the franchise is sold, transferred, or assigned shall be subject to the same conditions, terms, restrictions, and limitations. (Section 11)
Dispersal of Ownership
- The Grantee must offer at least 30% of its outstanding capital stocks to Filipino citizens in a securities exchange within 5 years from the effectivity of this Act. (Section 12)
- If public offer of shares is not applicable, other methods of encouraging public participation must be implemented. (Section 12)
- Non-compliance shall render the franchise revoked. (Section 12)
Commitment to Provide and Promote Employment Opportunities
- The Grantee must create employment opportunities and accept on-the-job trainees, with priority to residents where the principal office is located. (Section 13)
- The Grantee must comply with applicable labor standards and allowance entitlement under existing labor laws, rules, and regulations. (Section 13)
- The employment opportunities created shall be reflected in the GIS submitted to the SEC annually. (Section 13)
Reportorial Requirement
- The Grantee must submit an annual report on its compliance with the franchise terms and conditions and its operations to Congress on or before April 30 of every year. (Section 14)
- The annual report must include updates on activities, development, operation, expansion, audited financial statements, latest GIS, NTC certification on permits and operations, and update on dispersal of ownership undertaking. (Section 14)
- A reportorial compliance certificate from Congress shall be required before the NTC accepts any application for permit or certificate from the Grantee. (Section 14)
Fine
- Failure to submit the annual report to Congress shall be penalized with a fine of ₱1,000,000 for each working day of non-compliance, effective upon applicability with other telecommunications franchise grantees. (Section 15)
- In the interim, the Grantee shall be liable to pay a fine of ₱500 per working day of non-compliance to the NTC. (Section 15)
- The fine shall be collected separately from NTC penalties and remitted to the Bureau of the Treasury. (Section 15)
Equality Clause
- Any advantage, favor, privilege, exemption, or immunity granted under existing or future telecommunications franchises, upon prior review and approval of Congress, shall become part of this franchise and be accorded to the Grantee, except for provisions concerning territory, life span, or type of service. (Section 16)
Repealability and Non-exclusivity Clause
- This franchise is subject to amendment, alteration, or repeal by Congress when the public interest so requires and shall not be interpreted as an exclusive grant of privileges. (Section 17)
Separability Clause
- If any section or provision of this Act is held invalid, all other provisions not affected shall remain valid. (Section 18)
Repealing Clause
- All laws, decrees, orders, resolutions, instructions, rules and regulations, and other issuances or parts thereof inconsistent with this Act are repealed, amended, or modified accordingly. (Section 19)
Effectivity
- This Act shall take effect 15 days after its publication in the Official Gazette or a newspaper of general circulation. (Section 20)