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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 :
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REPUBLIC ACT NO. 7961 - AN ACT
GRANTING TO CRUZ TELEPHONE COMPANY, INC., (CRUZTELCO), A FRANCHISE TO
INSTALL, OPERATE AND MAINTAIN A TELECOMMUNICATIONS SYSTEM THROUGHOUT
THE PHILIPPINES |
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 Cruz Telephone Company,
Inc. (CRUZTELCO), its successors or assigns and hereunder referred to
as the grantee, for a period of twenty-five (25) years from the
approval of this Act, the right, privilege, and authority to carry out
the business of providing telecommunications services in and between
provinces, cities, and municipalities in the Philippines and for this
purpose, to establish, operate, manage, lease, maintain and purchase
telecommunications systems, including mobile, cellular and wired or
wireless telecommunications systems, fiber optics, satellite transmit
and receive systems, and other telecommunications systems and their
value-added services such as, but not limited to, transmission of
voice, data, facsimile, control signals, audio and video, information
service bureau, and all other telecommunications systems technologies
as are at present available or will be made available through technical
advances or innovations in the future, or construct, acquire, lease and
operate or manage transmitting and receiving stations and switching
stations, for local services, lines, cables or systems, as is, or are,
convenient or essential to efficiently carry out the purpose of this
franchise.
Sec. 2. Authority of the National Telecommunications Commission. — The grantee shall secure from the National Telecommunications Commission, hereinafter referred to as the Commission, a certificate of public convenience or appropriate permits and licenses for the location, construction, installation, and operation of its telecommunications systems. 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. In issuing the certificate, 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 date the grantee shall commence the service. The Commission, however, shall not unreasonably withhold or delay the grant of any such certificate/authority. Sec. 3. Responsibility to the Public. — The
grantee shall provide telephone service in any municipality, city or
province in the Philippines where it has approved certificate of public
convenience for the establishment, operation and maintenance of a local
exchange service, without discrimination to any applicant thereof, in
the order of the date of their applications. Sec. 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. Sec. 5. Ingress and Egress. — For the purpose of installing, operating and maintaining its telecommunication lines, it shall be lawful for the grantee to make excavations or lay conduits in any of the public places, highways, streets, lanes, sidewalks, bridges or infrastructure in any provinces, cities and municipalities: provided, however, that any public place highway, street, lane, sidewalk, bridge or infrastructure disturbed, altered or changed thereby, the same shall be repaired and placed in a workmanlike manner by the grantee to the satisfaction of the Department of Public Works and Highways or the local engineering office, as the case may be, and/or in accordance with existing laws or rules on excavations reconstitution of such public civil works. Sec. 6. Interconnection. — The grantee is authorized to connect or demand connection of its telecommunications systems to any other telecommunications systems installed, maintained and operated 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 and the same shall be subject to the review and modification of the Commission. Sec. 7. Equality Clause. — If any subsequent franchise for telecommunications service is awarded or granted by the Congress of the Philippines with terms, privileges and conditions more favorable and beneficial than those contained in this Act, then the same privileges or advantages shall ipso facto accrue to the herein grantee and be deemed part of this Act. Sec. 8. Sale, Lease, Transfer, Usufruct, etc. — The grantee shall not lease, transfer, grant the usufruct of, sell or assign this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation or entity, nor merge with any corporation or entity, except where the grantee is the surviving corporation, without the prior approval of the Congress of the Philippines. Any person or entity to which the franchise herein granted is validly sold, transferred or assigned shall be subject to the same conditions, terms, restrictions, and limitations of this Act. Sec. 9. Tax Provisions. — The grantee 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 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. The grantee shall file the return with and pay the tax due
thereon to the Commissioner of Internal Revenue or his duly authorized
representative in accordance with the National Internal Revenue Code,
and the return shall be subject to audit by the Bureau of Internal
Revenue. Approved: March 29, 1995 |
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