3 bills granting, extending franchise of telcos signed into law

MANILA – President Rodrigo Duterte has signed three laws granting and renewing the franchise of telecommunication companies.

Duterte signed Republic Act 11757 and RA 11758 renewing for another 25 years the franchise granted to Biñan-based Independent Telephone Company, Inc. and Sultan Kudarat Telephone System Inc., respectively.

He also approved RA 11759 granting Derecho Telecommunications, Inc. a franchise to construct, install, establish, operate, and maintain telecommunications systems throughout the Philippines.

All laws require the grantees to secure from the National Telecommunications Commission (NTC) a certificate of public convenience and necessity or the appropriate permits and licenses for the construction, installation, and operation of its telecommunications systems or facilities.

“In issuing the certificate, the NTC shall have the power to regulate and impose such conditions relative to the construction, operation, maintenance, or service level of the telecommunications systems or facilities,” the laws read.

Such certificate must state the areas covered and the date the grantee will commence the service.

Under the laws, the grantees must “conform to the ethics of honest enterprise and not use its stations or facilities for obscene or indecent transmission, or for dissemination of deliberately false information, or willful misrepresentation, or assist in subversive or treasonable acts.”

The NTC may revoke or suspend their permits or licenses in case of any violations of the provisions of the laws.

Under the laws, the grantees must submit an annual report on its compliance with the terms and conditions of the franchise and on its operations to the Congress of the Philippines.

The annual report must include an update on the commencement of activities, development, operation, and expansion of business; audited financial statements; latest general information sheet (GIS) officially submitted to the Securities and Exchange Commission (SEC), if applicable certification of the NTC on the status of its permits and operations; and an update on the dispersal of ownership undertaking, if applicable.

Failure to submit the annual report will be penalized with a fine of PHP1 million for each working day of noncompliance.

The laws also give the President of the Philippines a special right to temporarily take over and operate the stations, transmitters, facilities, or equipment of the grantees “in times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order.”

The grantees must also “create employment opportunities and accept on-the-job trainees in its franchise operations.”

All laws were signed on April 29 but copies of the law were released to reporters on Thursday.

Senator Grace Poe said telcos that have been granted franchises are expected to rise to the challenge of proving their competence and capacity in providing Filipinos, especially in far-flung areas, with quality and affordable connectivity and communications.

“The government and private sector must turn the corner to serve our people better and help them recover from the pandemic,” she said. (With reports from Wilnard Bacelonia/PNA)