ChanRobles Virtual law Library
PHILIPPINE LAWS, STATUTES & CODES
A collection of Philippine laws, statutes and codes not included or cited in the main indices of the Chan Robles Virtual Law Library.
Republic Acts :
REPUBLIC ACTS
PLEASE CLICK HERE FOR THE LATEST ➔ PHILIPPINE LAWS, STATUTES & CODES
REPUBLIC ACT NO. 7398 - AN ACT
GRANTING THE CORONA INTERNATIONAL, INC., A FRANCHISE TO ESTABLISH,
INSTALL, MAINTAIN, LEASE AND OPERATE WIRE AND/OR WIRELESS
TELECOMMUNICATIONS SYSTEMS, LINES, CIRCUITS AND STATIONS THROUGHOUT THE
PHILIPPINES FOR PUBLIC DOMESTIC AND INTERNATIONAL
COMMUNICATIONS, AND FOR OTHER PURPOSES 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 the Corona International, Inc., hereunder referred to as the grantee, its successors or assigns a franchise to establish, install, maintain, lease and operate for commercial purposes and in the public interest wire and/or wireless telecommunications systems, lines, circuits and stations throughout the Philippines for public domestic and international communications and to install corresponding transmitting and receiving stations at such places in the Philippines as it may consider necessary and convenient. Sec. 2. Manner of Operation of Stations. — The stations 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 the existing stations or other stations which may be established in accordance with law of other telecommunication services grantees without in any way diminishing its own right to use its selected wavelengths or frequencies and the quality or transmission or reception thereon as would maximize rendition of the grantee's services and/or the availability thereof. Sec. 3. Prior Approval of the National Telecommunications Commission. — The grantee shall secure from the National Telecommunications Commission the appropriate permits and licenses for its stations and shall not use any frequency in the radio spectrum without having been authorized by the Commission. Sec. 4. Responsibility to the Public. — The grantee shall conform to the ethics of honest enterprise and shall not use its stations for obscene or indecent transmissions or for the dissemination of deliberately false information or willful misrepresentation, or assist in subversive or treasonable acts. Sec. 5. Rates of Services. — The subscription charges and rates for services, excluding the sale or lease of equipment or units, that the grantee shall offer to the public shall be subject to the approval of the National Telecommunications Commission or its legal successor. Sec. 6. Right of Government. — A special right is hereby reserved to the President of the Philippines, in times of war, rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order, to take over and operate the stations, transmitter systems, facilities and equipment of the grantee, to temporarily suspend the operation of any station 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, transmitter systems, facilities and equipment during the period when they shall be so operated. Sec. 7. 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. In the event the grantee fails to operate continuously for two (2) years, this franchise shall be deemed ipso facto revoked. Sec. 8. Public Ownership. — In compliance with the constitutional mandate to democratize ownership of public utilities, the herein grantee shall make public offering through the stock exchanges of at least thirty percent (30%) of its common stock within a period of three (3) years from the date of effectivity of this Act: provided, that no single person or entity shall be allowed to own more than five percent (5%) of the stock offerings. Sec. 9. Tax Provisions. — The grantee, its
successors or assigns shall be liable to pay the same taxes on their
real estate, buildings and personal property, exclusive of this
franchise, as other persons or corporations which are now or hereafter
may be required by law to pay. In addition thereto, the grantee, its
successors or assigns shall pay a franchise tax equivalent to three
percent (3%) of all gross receipts of the business transacted under
this franchise by the grantee, its successors or assigns and the said
percentage shall be in lieu of all taxes on this franchise or earnings
thereof: provided, that the grantee, its successors or assigns shall
continue to be liable for income taxes payable under Title II of the
National Internal Revenue Code pursuant to Sec. 2 of Executive Order
No. 72 unless the latter enactment is amended or repealed, in which
case the amendment or repeal shall be applicable thereto. Approved: April 13, 1992 |
chanroblesvirtuallawlibrary