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
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AN ACT GRANTING THE PRIMEWORLD
DIGITAL SYSTEMS, INC. A FRANCHISE TO CONSTRUCT INSTALL, ESTABLISH,
OPERATE AND MAINTAIN TELECOMMUNICATIONS SYSTEMS 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 Primeworld Digital Systems,
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, the business of
providing basic and enhanced telecommunications services in and between
provinces, cities and municipalities in the Philippines and between the
Philippines and other countries and territories, including mobile,
cellular and wired or wireless, fiber optics, multi-channel
distribution systems, local multipoint distribution system, 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 presently available or will be available through technical advances
and innovations in the future; and/or construct, acquire, lease, manage
or operate transmitting and receiving stations and switching stations,
both for local and international services, lines, cables or systems, as
are convenient or essential to effectively and efficiently carry out
the purposes of this franchise. a)
Commence operations within three (3) years from the approval of its
operating permit or provisional authority by the NTC; Sec. 10. Bond. — The grantee shall file a bond issued in favor of the 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. Sec. 11. 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 or modification of the Commission. Sec. 12. Tax Provisions. — The grantee, its successors or assigns, shall be subject to the payment of taxes under the National Internal Revenue Code (NIRC) of 1997, as amended, and other applicable laws: Provided, That nothing herein shall be construed as repealing any specific tax exemptions, incentives, or privileges granted under any relevant law: Provided, further, That all rights, privileges, benefits and exemptions accorded to existing and future telecommunications shall likewise be extended to the grantee. The grantee shall file the return with, and pay the taxes due thereon to the Commissioner of Internal Revenue or his duly authorized representatives in accordance with the NIRC and the return shall be subject to audit by the Bureau of Internal Revenue. Sec. 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 (31st) day of January of each year for the preceding twelve (12) months. Sec. 14. Books and Accounts. — The books and accounts of the grantee, its successors or assigns, shall always be open to the inspection of the Commissioner on Audit or his 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. Sec. 15. Warranty in Favor of 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. Sec. 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. Any person or entity to which this franchise is sold, transferred or assigned, shall be subject to the same conditions, terms, restrictions and limitations of this Act. Sec. 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 in any securities exchange in the Philippines within five (5) years from the commencement of its operations. Noncompliance therewith shall render the franchise ipso facto revoked. Sec. 18. Equality Clause. — Any advantage, favor, privilege, exemption, or immunity granted under existing franchises, or may hereafter be granted, shall ipso facto become part of previously granted telecommunications franchises and shall be accorded immediately and unconditionally to the grantees of such franchises: 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. Sec. 19. Separability Clause. — If any of the sections or provisions of this Act is held invalid, all the other provisions not affected thereby shall remain valid. Sec. 20. 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. Sec. 21. 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. Sec. 22. Effectivity Clause. — This Act shall take effect fifteen (15) days from the date of its publication, upon the initiative of the grantee, in at least two (2) newspapers of general circulation in the Philippines. Approved:
January 5, 2001. |
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