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 ACT NO. 8721 - AN ACT
GRANTING THE MULTI-LINE CONSTRUCTION INTERNATIONAL, INC., A FRANCHISE
TO CONSTRUCT, ESTABLISH, INSTALL, MAINTAIN AND OPERATE LOCAL EXCHANGE
NETWORK IN 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 Multi-Line Construction
International, Inc., hereunder referred to as the grantee, its
successors or assigns, a franchise to construct, establish, install,
maintain and operate for commercial purposes and in the public
interest, including local exchange network, including public calling
stations or pay telephone stations or wireless local loop and for such
purpose provide basic telephone service or other means related to the
foregoing now known to science or which in the future may be developed,
in the Philippines, for public domestic telecommunications.
Sec. 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 the 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. In no way shall the operations of the grantee, nor the radiated power of its stations or facilities, exceed that required to cover the area where it is allowed to operate.
Sec. 3. 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 and Necessity or the 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 systems. 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 authority, permits or licenses.
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 transmission or for
dissemination of deliberately false information or willful
misrepresentation, or assist in subversive or treasonable acts.
Sec. 5. 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 successors. 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.
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 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.
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. This franchise shall be
deemed ipso facto revoked, in the event the grantee fails to comply
with any of the following conditions:
Sec. 8. 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. Non-acceptance shall render the franchise void.
Sec. 9. Bond. — The grantee shall file a bond issued in favor of the National Telecommunications Commission, 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 10. 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.
Section 11. 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 are now or hereafter may be
required by law to pay. In addition thereto, the grantee, its
successors or assigns, shall pay the value-added tax under Republic Act
No. 7716, as amended, or a franchise tax of three percent (3%) per
annum or at such percentage as may be prescribed by law, on all gross
receipts of its telecommunications business transacted under this
franchise, whichever is higher: 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
Section 12. 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 and the National Treasury a copy of such account not later than the 31st day of January of each year, for the preceding twelve (12) months.
Section 13. 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 Commission on Audit two (2) copies of the quarterly reports on the gross receipts, the net profits and the general condition of the business.
Section 14. 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.
Section 15. 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 corporation or entity, nor shall the controlling interest in 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, except when such person, firm, company, corporation or entity has a valid and existing legislative franchise for telecommunications or it is in pursuance of the provision of Section 16 of this Act. 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.
Section 16. Dispersal of Ownership. — In accordance with the constitutional provisions to encourage public participation in the 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 ten (10) years from the commencement of its operations. Noncompliance therewith shall render the franchise ipso facto revoked.
Section 17. 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.
Section 18. 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.
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 its franchise and on its operations within sixty (60) days from the end of every year.
Sec. 20. Effectivity Clause. — This Act shall take
effect fifteen (15) days from the date of its publication in at least
two (2) newspapers of general circulation.
Approved: July 16, 1998