Know the
truth:
WHAT IS RA
9857?
CONGRESS OF THE
PHILIPPINES
Metro Manila
Metro Manila
Fourteenth
Congress
Third Regular Session
Third Regular Session
Begun and held in Metro
Manila, on Monday, the twenty-seventh day of July, two thousand nine.
Republic Act No. 9857
AN ACT GRANTING THE
SCHUTZENGEL TELECOM, INC. A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH, OPERATE
AND MAINTAIN TELECOMMUNICATIONS SYSTEMS THROUGHOUT THE PHILIPPINES
Be it enacted by the Senate and House of
Representatives of the Philippines in Congress assembled:
Section 1. Nature and Scope
of Franchise. - Subject to the provisions of the Constitution and
applicable laws, rules and regulations, there is hereby granted to Schutzengel
Telecom, Inc., hereunder referred to as the grantee, its successors or assigns,
a franchise to construct, install, establish, operate and maintain for
commercial purposes and in the public interest, throughout the Philippines and between
the Philippines and other countries and territories, wire and/or wireless
telecommunications systems, multi - media systems, networks, stations, services
including, but not limited to, fixed, mobile, cellular, paging systems, digital
trunk radio systems, fiber optics, multi - channel multi - point distribution
system (MMDS), local multi - point distribution system (LMDS), terrestrial,
submarine and satellite transmit and receive systems, switches, gateway
stations and their value - added or enhanced services such as, but not limited
to, transmission and reception of impressions, pictures, music, voice, data,
facsimile, control signs, audio and video, information services bureau and all
other telecommunications systems, including information and communications
technologies (lCT), as are at present available or will be made available
through technological advances, evolution or innovations in the future; and/or
to construct, install, acquire, lease and operate, maintain or manage
terrestrial, submarine or satellite transmitting and receiving and/or landing
stations, lines, microwave, optical fiber cables or systems, whether digital or
analogue, for local and international services, as is, or are, convenient or
essential to efficiently carry out the purpose of this franchise.
Section 2. Manner of
Operation of Stations or Facilities. - The stations or facilities of the
grantee shall be constructed and operated in a manner as will at most result
only in the minimum interference on the wavelengths or frequencies of existing
stations or other stations which may be established by law, without in any way
diminishing its own right to use its selected wavelengths or frequencies and
the quality of transmission or reception thereon as should maximize rendition
of the grantee's services and/or the availability thereof.
Section 3. Authority of the
National Telecommunications Commission. - The grantee shall secure from the
National Telecommunications Commission (NTC), hereinafter referred to as the
Commission, a certificate of public convenience and necessity or the
appropriate permits and licenses for the construction, installation and
operation of its telecommunications systems/facilities. In issuing the
certificate, the Commission shall have the power to impose such conditions
relative to the construction, operation, maintenance or service level of the
telecommunications system. The Commission shall have the authority to regulate
the construction and operation of its telecommunications systems. The grantee
shall not use any frequency in the radio spectrum without having been
authorized by the Commission. Such certificate shall state the areas covered
and the date the grantee shall commence the service. The Commission, however,
shall not unreasonably withhold or delay the grant of any such authority,
permits or licenses.
Section 4. Eminent Domain.
- The grantee may acquire such private property as is actually necessary for
the realization of the purposes for which this franchise is granted: Provided,
That in case the owner refuses to sell or allow the use thereof, the proper
proceedings shall be instituted: Provided, further, That just compensation is
paid.
Section 5. Ingress and Egress.
- For the purpose of erecting and maintaining poles or other supports for said
wires or other conductors for the purpose of laying and maintaining underground
wires, cables or other conductors, it shall be lawful for the grantee, its
successors or assigns, with the prior approval of the Department of Public
Works and Highways (DPWH), to make excavations or lay conduits in any of the
public places, highways, streets, lanes, alleys, avenues, sidewalks or bridges
of the said province, cities and/or municipalities; Provided, however, '!'hat a
public place, highway, street, Jane, alley, avenue, sidewalk or bridge
disturbed, altered or changed by reason of erection of poles or other supports,
or the underground laying of wires, other conductors or conduits, shall be
repaired and replaced in workmanlike manner by the said grantee, its successors
or assigns, in accordance with the standards set by the DPWH. Should the
grantee, its successors or assigns, after the ten (10) - day notice from the
said authority, fail, refuse or neglect to repair or replace any part of pub he
place, road, highway, street, lane, alley, avenue, sidewalk or bridge altered,
changed or disturbed by the said grantee, its successors or assigns, then the
DPWH shall have the rig - ht to have the same repaired and placed in good order
and condition at double expense to be charged against the grantee, its
successors or assigns.
Section 6. Responsibility to
the Public. - The grantee shall conform to the ethics of honest enterprise
and not use its stations/facilities for obscene or indecent transmission or for
dissemination of deliberately false information or willful misrepresentation,
or assist in subversive or treasonable acts.
The grantee shall provide
basic or enhanced telephone service in any municipality in the Philippines
where it has an approved certificate of public convenience and necessity for
the establishment, operation and maintenance of basic and/or enhanced local
exchange service, without discrimination to any applicant therefore, in the
order of the date of their applications, up to the limit of the capacity of its
local telephone exchange, and should the demand for the telephone service at
any time increase beyond the capacity thereof, the grantee shall increase the
same to meet such demand: Provided, That in case the total demand to be
satisfied by the expansion is less than the smallest viable local exchange
available in the market as determined by the Commission, the grantee shall not
be obliged to furnish such service unless the applicant for telephone service
defrays the actual expenses for the installation of the telecommunications
apparatus necessary for such services and in such case, the Commission may
extend the time within which the grantee shall furnish such service.
The grantee shall operate and
maintain all its stations, lines, cables, systems and equipment for the
transmission and reception of messages, signals and pulses in a satisfactory
manner at all times and, as far as economical and practicable, modify, improve
or change such stations, lines, cables, systems and equipment to keep abreast
with the advances in science and technology.
Section 7. Rates for Services.
- The charges and rates for telecommunications services of the grantee, except
the rates and charges on those that may hereafter be declared or considered as
nonregulated services, whether flat rates or measured rates or variation
thereof, shall be subject to the approval of the Commission or its legal
successor. The rates to be charged by the grantee shall be unbundled, separable
and distinct among the services offered and shall be determined in such a
manner that regulated services do not subsidize the unregulated ones.
Section 8. Right of
Government. - A special right is hereby granted to the President of the
Philippines in times of war, rebellion, public peril, calamity, emergency,
disaster or disturbance of peace and order, to temporarily take over and
operate the stations, transmitters, facilities or equipment of the grantee, to
temporarily suspend the operation of any station, transmitter, facility or
equipment in the interest of public safety, security and public welfare, or to
authorize the temporary use and operation thereof by any agency of the
government, upon due compensation to the grantee for the use of said stations,
transmitters, facilities or equipment during the period when they shall be so
operated.
The radio spectrum is a finite
resource that is part of the national patrimony and the use thereof is a
privilege conferred upon the grantee by the State and may be withdrawn anytime
after due process.
Section 9. Term of Franchise.
- This franchise shall be for a term of twenty - five (25) years from the date
of effectivity of this Act, unless sooner revoked or cancelled. This franchise
shall be deemed ipso facto revoked in the event the grantee fails to comply
with any of the following conditions:
(a) Commence
operation within three (3) years from the approval of its operating permit by
the NTC;
(b) Operate
continuously for two (2) years; and
(c) Commence
operations within five (5) years from the effectivity of this Act.
Section 10. Acceptance and
Compliance. - Acceptance of this franchise shall be given in writing within
sixty (60) days from the effectivity of this Act. Upon giving such acceptance, the
grantee shall exercise the privileges granted under this Act. Nonacceptance
shall render the franchise void.
Section 11. Bond. - The
grantee shall file a bond issued in favor oft he NTC, which shall determine the
amount, to guarantee the compliance with and fulfillment of the conditions
under which this franchise is granted. If, after five (5) years from the date
of the approval of its permit by the Commission, the grantee shall have
fulfilled the same, the bond shall be cancelled by the Commission. Otherwise,
the bond shall be forfeited in favor of the government and the franchise ipso
facto revoked.
Section 12. Right of
Interconnection. - The grantee is hereby authorized to connect or demand
connection of its telecommunications systems to any other telecommunications
systems installed, operated and maintained by any other duly authorized person
or entity in the' Philippines for the purpose of providing extended and
improved telecommunications services to the public, under such terms and
conditions mutually agreed upon by the parties concerned and the same shall be
subject to the review and modification of the Commission.
Section 13. Gross Receipts.
- The grantee, its successors or assigns, shall keep a separate account of the
gross receipts of the business transacted by it and shall furnish the
Commission on Audit (COA) and the National Treasury a copy of such account not
later than the thirty. first (31") day of January of each year for the
preceding twelve (12) months.
Section 14. Books and
Accounts. - The books and accounts of the grantee, its successors or
assigns, shall always be open to the inspection of the COA or its authorized
representatives and it shall be the duty of the grantee to submit to the COA
two (2) copies of the quarterly reports on the gross receipts, the net profits
and the general condition of the business.
Section 15. Warranty in Favor
of the National and Local Governments. - The grantee shall hold the
national, provincial, city and municipal governments of the Philippines
harmless from all claims, accounts, demands or actions arising out of accidents
or injuries, whether to property or to persons, caused by the construction or
operation of the stations, transmitters, facilities and equipment of the
grantee.
Section 16. Sale, Lease, Transfer,
Usufruct, etc. - The grantee shall not lease, transfer, grant the usufruct
of, sell nor assign this franchise or the rights and privileges acquired
thereunder to any person, firm, company, corporation or other commercial or
legal entity, nor merge with any other corporation or entity, nor shall the
controlling interest of the grantee be transferred, whether as a whole or in
parts and whether simultaneously or contemporaneously, to any such person,
firm, company, corporation or entity without the prior approval of the Congress
of the Philippines: Provided, That the foregoing limitation shall not apply to:
(a) any transfer or issuance of shares of stock in the implementation of
requirement for the dispersal of the grantee's ownership pursuant to Section 17
of this Act; (b) any transfer or issuance of shares to any investor pursuant to
or in connection with any increase in the grantee's authorized capital stock
which shall result in the dilution of the stockholdings o{the grantee's then
existing stockholders; (c) any transfer or sale of shares of stock to any local
investor or investors; (d) any sale, transfer or assignment by the stockholders
of the grantee in favor of a holding company whose stockholders are identical
to the7 stockholders of the grantee; and (e) any combination thereof where such
transfer, sale or issuance is effected in order to enable the grantee to raise
the necessary capital or financing for the provision of any services authorized
by this Act and/or carry out the purposes for which the grantee has been
incorporated or organized. Any person or entity to which this franchise is
validly sold, transferred or assigned shall be subject to the same conditions,
terms, restrictions and limitations of this Act.
Section 17. Dispersal of
Ownership. - In accordance with the constitutional provision to encourage
public participation in public utilities, the grantee shall offer at least
thirty per centum (30%) of its outstanding capital stock or a higher percentage
that may hereafter be provided by law ill any securities exchange ill the
Philippines within five (5) years from the commencement of its operations.
Noncompliance therewith shall render the franchise ipso facto revoked.
Section 18. Equality Clause.
- Any advantage, favor, privilege, exemption or immunity granted under existing
franchise for telecommunications systems, or which may hereafter be granted,
shall ipso facto become part of this franchise and shall be accorded
immediately and unconditionally to the herein grantee: Provided, however, That
the foregoing shall neither apply to nor affect provisions of
telecommunications franchises concerning territory covered by the franchise,
the life span of the franchise or the type of service authorized by the
franchise.
Section 19. Reportorial Requirement.
- The grantee shall submit an annual report to the Congress of the Philippines
on its compliance with the terms and conditions of the franchise and on its
operations within sixty (60) days from the end of every year.
Section 20. Separability Clause.
– If any of the sections or provisions of this Act is held invalid, all other
provisions not affected thereby shall remain valid.
Section 21. Repealability and
Nonexclusivity Clause. - This franchise shall be subject to amendment,
alteration or repeal by the Congress of the Philippines when the public
interest so requires and shall not be interpreted as an exclusive grant of the
privileges herein provided for.8
Section 22. Effectivity
Clause. - This Act shall take effect fifteen (15) days after its publication,
upon the initiative of the grantee, in at least two (2) newspapers of general
circulation in the Philippines.
Approved,
JUAN PONCE ENRILE
President of the Senate |
PROSPERO C. NOGRALES
Speaker of the House of Representatives |
This Act which originated in the
House of Representatives was finally passed by the House of Representatives and
the Senate on September 23, 2009 and October 12, 2009, respectively.
EMMA LIRIO-REYES
Secretary of the Senate |
MARILYN B. BARUA-YAP
Secretary General House of Representatives |
Approved:
GLORIA MACAPAGAL-ARROYO
President of the Philippines
President of the Philippines
Lapsed into law on DEC 20 2009
without the signature of the President,
in accordance with Article VI, Section 27 (1) of the Constitution.
without the signature of the President,
in accordance with Article VI, Section 27 (1) of the Constitution.
SOURCE: http://www.lawphil.net/statutes/repacts/ra2009/ra_9857_2009.html
Thanks po for disclosing this information. Due to curiosity, I now understood the main intention of those excommunicated and why this project did not commence.Please correct me if I'm wrong po.
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