REPUBLIC ACT NO. 6520 - AN ACT
GRANTING THE CITY GOVERNMENT OF BASILAN A FRANCHISE TO INSTALL, OPERATE
AND MAINTAIN TELEPHONE SYSTEM IN THE CITY OF BASILAN
Section 1.
Subject to the provisions of the Constitution and of Commonwealth Act
Numbered One hundred forty-six, as amended, there is hereby granted to
the City Government of Basilan City, hereinafter called the grantee,
its successors or assigns, for a period of twenty-five years from the
approval of this Act, the right, privilege, and authority to construct,
operate and maintain telephone system in the City of Basilan. The
grantee is authorized to construct, operate and maintain exchanges and
branches tributary lines within the city and municipal districts
traversed to connect with the main system, as the public interest may
warrant.
For the purpose of operating said telephone system, the grantee is
authorized to construct, operate, and maintain and use all apparatus,
conduits, appliances, receivers, transmitters, antennas, and equipment
necessary for the transmission of messages and to erect poles,
structures, string wires, build conduits, lay cables, and to construct,
operate and maintain and use such other approved and generally accepted
means of electrical conduction in, on, over, under the public roads,
government right-of-ways, lands, bridges, rivers, waters, streets,
lanes and sidewalks of said city and municipal districts, and overhead
or underground or submarine lines or on the surface of the ground, as
may be necessary and best adapted to said transmission: provided,
however, that all cables laid, all poles erected and all conduits
constructed or used by the grantee, its successors or assigns, shall be
located in places designated by the Secretary of Public Works and
Communications and poles shall be erected in workmanlike manner to the
satisfaction of said official. Provided, further, that upon reasonable
notice of the Secretary of Public Works and Communications the grantee,
its successors and assigns, may be required to relocate poles or remove
or raise wires or other conductors so as to permit the passage of
buildings or other structures from one place to another, and one-half
the actual cost of such relocation of poles or raising or removing of
wires or other conductors to be paid by the person at whose instance
the building or structures is moved; and, at the expense of the
grantee, its successors or assigns, to relocate conduits, poles, and
wires and to remove or raise wires or other conductors when the
Secretary of Public Works and Communications so orders and when public
interest so requires: and provided, finally, that from any order to
relocate conduits, poles or wires, or to raise or remove wires or other
conductors, the said grantee, its successors or assigns, shall have the
right to appeal to the President of the Philippines, whose decision in
the matter shall be final.
Should the grantee, its successors or assigns, fail, refuse, or neglect
within a period of ninety days after notice to relocate its poles,
conduits, wires or other conductors, or to raise its wires or other
conductors when so directed by the Secretary of Public Works and
Communications, then this official may relocate said poles, conduits,
wires, or other conductors or raise said wires or other conductors at
the expense of the grantee, its successors or assigns. The
installations of all instruments, inside wiring, and all outside
construction work shall be done in accordance with the rules and
regulations prescribed by the Secretary of Public Works and
Communications. Whenever twenty-five or more pairs of wires or other
conductors are carried on in one line of poles in any city or municipal
district center, said wires or conductors shall be placed in one cable
and that whenever more than eight hundred pairs of wires or other
conductors are carried on one line of poles, said cable shall be placed
underground by the grantee, its successors or assigns, whenever ordered
to do so by the Secretary of Public Works and Communications.
The poles erected, wires and cable strung, or conduit laid by virtue of
this franchise shall be no placed as not to impair the efficient and
effective transmission of messages or signals by any other company
where poles are erected, whose wires and cables are strung, or whose
conduits are actually laid at the time that the poles are to be
erected, wires and cables strung and conduits laid under and by virtue
of this franchise. The poles erected by the grantee shall be of such
height of at least ten feet above the level of the ground providing a
height of at least fifteen feet in crossing roads or streets, and shall
be placed so as not to be a danger to public safety, in accordance with
a plan approved by the Secretary of Public Works and Communications.
Sec. 2. The grantee may install, operate and
maintain radiotelephone equipment to furnish an economical medium of
telephone communications in and between the city and the Municipal
districts mentioned in Section one of this Act and between telephone
systems of other franchise grantees within the Philippines. The
location of such radiotelephonic equipment and its operation must be
previously approved by the President of the Philippines upon
recommendation of the Secretary of Public Works and Communications. The
said Secretary, subject to the approval of the President of the
Philippines, shall have the authority to supervise and regulate the
installation or operation of such radiotelephone equipments. The
privilege to install, operate and maintain radiotelephonic equipment
shall not be construed to authorize the broadcasting of any commercial
message, or the transmission of any messages for hire by radiographic
equipment or the transmission of radiotelegraphic message for hire.
Sec. 3. The grantee shall supply telephone service
in said city and municipal districts mentioned in Section one where it
may have established a local telephone exchange to any applicant for
the same, within thirty days after the date of their applications, and
as between such applicant and other like applicants, in the order of
the date of their applications, up to the limit of the capacity of the
telephone system of said grantee, to be determined by the Public
Service Commission on the application of such grantee and should demand
for telephone service at any time increase beyond the capacity of the
telephone system of said grantee to supply the same, the capacity of
said telephone system shall be increased by said grantee to meet such
demand, in accordance with the decision of the Public Service
Commission or its legal successor.
In case the point at which the telephone service is to be supplied is
more than fifty meters from the local exchange lines operated by said
grantee, the latter shall not be obliged to furnish said service,
unless the applicant for telephone service defrays the actual expenses
for the poles and wires and installation thereof necessary for such
service; and in such case the public Service Commission may extend the
time which the grantee must furnish such service beyond the said period
of thirty days.
Sec. 4. For the purpose of erecting and
maintaining poles or other supports for said wires or other conductors
or for the purpose of laying and maintaining underground said wires,
cables, or other conductors, it shall be lawful for the grantee, its
successors or assigns, with the prior approval of the Secretary of
Public Works and Communications, to make excavations or lay conduits in
any of the public places, highways, streets, lanes, alleys, avenues,
sidewalks, or bridges of said city and municipal districts, any public
place, highway, street, lane, alley, avenue, sidewalk or bridge
disturbed, altered or changed by reason of the erection of poles or
other supports, or the laying underground of wires, or other
conductors, or of conduits, shall be repaired and replaced in a
workmanlike manner by said grantee, its successors or assigns, to the
satisfaction of the Secretary of Public Works and Communications.
Should the grantee, its successors or assigns, after ten days notice
from said authority, fail, refuse, or neglect to replace any part of a
public place, road, highway, street, lane, alley, avenue, sidewalk or
bridge altered, changed or disturbed by said grantee, its successors or
assigns, then the Secretary of Public Works and Communications, shall
have the right to have the same repaired and placed in good order and
condition at the cost and expense of the grantee, its successors or
assigns.
Sec. 5. All telephone lines and system for the
transmission of messages and signals owned, maintained, or operated by
the grantee, its successors or assigns, shall be operated and
maintained at all times in a satisfactory manner, and it shall be the
further duty of said grantee, its successors or assigns, whenever
required to do so by the Public Service Commission, to modify, improve,
and change such telephone system or systems, for the transmission of
messages and signals by means of electricity, in such manner and to
such extent as the progress of science and improvements in the method
of transmission of messages and signals by means of electricity may
sake reasonable and proper.
Sec. 6. The grantee, its successors or assigns,
shall keep a separate account of the gross receipts of the telephone
and electrical transmission business and shall furnish to the Auditor
General and the Treasurer of the Philippines a copy of such account not
later than the thirty-first day of July.
Sec. 7. The grantee, its successors or assigns,
shall be liable to pay the same taxes on its real estate, buildings,
and personal property, exclusive of this franchise, as other persons or
corporations are nor or hereafter may be required by law to pay.n
addition, the grantee, its successors or assigns, shall pay to the
Treasurer of the Philippines each year, within ten days after the audit
and approval of the accounts as prescribed in Section six of this Act,
two per centum of all gross receipts of the telephone or other
electrical transmission business transacted under this franchise by the
grantee, its successors or assigns.
Sec. 8. The grantee shall not begin any
construction whatever pursuant to this franchise without first
obtaining a certificate of public necessity and convenience from the
Public Service Commission, of the form and character provided for in
Commonwealth Act Numbered One hundred and forty-six, as amended,
specially authorizing such construction. The grantee shall not exercise
having obtained such certificate of public necessity and convenience
from the Public Service Commission.
The Public Service Commission shall have the power to issue such
certificate of public necessity and convenience whenever it shall,
after due hearing, determine that such construction, or such exercise
of the right, privilege or franchise, is necessary and proper for the
public convenience. The Commission shall have the power in so approving
to impose such conditions as to construction, equipment, maintenance,
service or operation as the public convenience and interest may
reasonably require. Such certificate shall state the date the grantee
commences construction work and the period within which the work shall
be completed.
In order to avail itself of the rights granted by such certificate of
public necessity and convenience with the Public Service Commission,
within such period as said Commission shall fix, its acceptance,
together with the document evidencing the fact that the deposit
required by said certificate has been made, in writing.n the event that
the true grantee shall not commence the furnishing of telephone service
referred to in the certificate obtained and filed as herein provided
within such period as the Public Service Commission shall fix, deposits
made pursuant to Section nine of this Act shall be forfeited to the
National Government unless the grantee shall have been prevented from
doing so by an act of God, force majeure, usurpation by military
power, martial law, riot, uprising, or other cause beyond its control.f
the grantee shall have been so prevented by one or more or all of such
causes from commencing to furnish telephone service within the
specified period, the time during which it shall have been so prevented
shall be added to said period.
Sec. 9. The grantee shall be required by the
Public Service Commission, for each certificate of public necessity and
convenience obtained by it subsequent to the date of this Act, to make
within such period as the said Commission shall fix a deposit of not
less than ten thousand pesos, Philippine currency, or negotiable bonds
of the Government of the Philippines, or other securities approved by
the Public Service Commission, of the par value of not less than ten
thousand pesos, Philippine currency, in the National Treasury as a
guaranty of good faith that the grantee, within the period also
specified by the Public Service Commission, shall and terminate the
necessary work and shall be provided with all the equipment necessary
to commence furnishing telephone service in the corresponding city,
and/or municipal district.
The Public Service Commission shall order the return of the deposit
hereby required to the grantee upon the termination of the Work for the
furnishing of telephone service in accordance with the terms and
conditions of the certificate obtained. The Treasurer of the
Philippines shall return said deposit immediately upon presentation to
him of a certified copy of the order of the Public Service Commission.
SECTION 10. Within forty days after the approval of
this Act, the grantee shall file with the Secretary of Public Works and
Communications its written acceptance of this franchise and all the
terms and conditions hereof, and in default of such acceptance, within
the time so limited, this franchise shall become null and void.
SECTION 11. The books and accounts of the grantee,
its successors and assigns, shall always be open to the inspection of
the district auditors or their authorized representatives and it shall
be the duty of the grantee to submit to the Auditor General quarterly
reports in duplicate showing the gross receipts and the not receipts
for the quarter past and the general condition of business.
SECTION 12. The rights herein granted shall not be
exclusive, and the rights and powers to grant to any corporation,
association or person other than the grantee, franchise for the
telephone or electrical transmission of messages or signals shall not
be impaired or affected by the granting of this franchise. The poles or
antennas erected, wires strung or cable or conduits laid by virtue of
any franchise for telephone, or other electrical transmission of
messages and signals granted subsequent to this franchise, shall be so
placed as not to impair the efficient and effective transmission of
messages or signals under this franchise by means of poles or antennas
erected, wires strung, or cable or conduits actually laid and in
existence at the time of the granting of said subsequent franchise. The
Public Service Commission, after hearing both parties interested, may
compel the grantee of this franchise or its successors or assigns to
remove, relocate or replace its poles, wires, or conduits; but in such
case the reasonable count of the removal, relocation, or replacement
shall be paid by the grantee of the subsequent franchise or his
successors or assigns to the grantee of this franchise or its
successors or assigns.
SECTION 13. The grantee, its successors or assigns,
shall hold the national city and municipal governments 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 telephone, radiotelephone or electrical
transmission of the telephone, radiotelephone or electrical
transmission system of the said grantee, its successors or assigns.
SECTION 14. All rates for the telephone service, flat
rates, toll rates as well as measured rates are subject to the approval
of the Public Service Commission.
SECTION 15. The grantee shall not, without the
previous and explicit approval of the Congress of the Philippines
directly or indirectly, transfer, sell, or assign this franchise to any
person, association, company or corporation or other mercantile or
legal entity.
SECTION 16. The grantee may install, operate,
maintain, purchase or lease such telephone stations, lines, cables or
telecommunication system, as is, or are, convenient or essential to
efficiently carry out the purpose of this franchise; but the grantee,
its successors or assigns, shall not, without the permission of the
Public Service Commission first had, install, operate, maintain,
purchase, or lease such stations, lines, cables, or systems.
SECTION 17. The Philippine Government, including any
and all of its departments and bureaus, shall have the privilege
without compensation, of using such space on the poles of the grantee
for wire attachments as will not impair public safety, employees
safety, or service requirements of the grantee. The municipalities
shall also have the privilege, without compensation, of using the poles
of the grantee for local police and fire alarm systems under the same
terms and conditions.f the requirements of the Philippine Government or
of a municipality for the use of the grantee's poles exceed the
limitations named above in respect to public safety, employees' safety,
or service impairments, mutual arrangement may be entered into between
the Government entities and the grantee for pole replacements or other
construction. The cost of said construction shall be borne by the
government entitles concerned or, if undertaken by the grantee, to be
amortized on a basis of fair compensation to the grantee.n case of
disagreement as to pole replacement or other construction and/or
compensation therefore or the absorption of cost, the same shall be
fixed by the Public Service Commission of the Philippines. Written
request providing a ninety-day advance notice of needs will be filed
with the grantee ahead of any attachment by the Philippine Government
or any municipality to grantee's poles.
SECTION 18. The grantee, its successors or assigns,
shall not issue stock or bonds under this franchise except in exchange
for actual cash or property at a fair valuation equal to the market
value of the stock or bonds so issued.
SECTION 19. This franchise is granted upon the
condition that it shall be subject to amendment, alteration or repeal
by the Congress of the Philippines when the public interest so
requires. All public lands or rights of use or occupation of lands
secured by virtue of this franchise shall revert upon its termination,
revocation or nullification to the national, provincial or municipal
governments which were the owners thereof on the date when this
franchise was granted.
Sec. 20. The grantee agrees that should the
National Government desire to maintain and operate for itself the
system and enterprise herein authorized, the grantee shall surrender
its franchise and certificate of public necessity and convenience in
the aforesaid territory and turn over to the National Government all
serviceable equipment at replacement cost, less depreciation to be
fixed by the Public Service Commission.
Sec. 21. Whenever in this franchise the term
"grantee" is used, it shall be held and understood to mean and
represent the City Government of Basilan City, its representatives,
successors or assigns.
Sec. 22. This Act shall take effect upon its
approval.
Enacted without Executive
approval, July 22, 1972.
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