Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
6172
EXPLANATORY NOTE

As enshrined in the Constitution, the State recognizes the vital role of communication
and information in nation-building and the indispensable role of the private sector.

This bill seeks to renew the franchise granted to Iriga Telephone Company, Inc. for
another Call five (25) years. The initial franchise was granted in June 29, 1969 which was
subsequently renewed in September 7, 2000.

Iriga Telephone company has the distinction of being the first telephone company in the
Bicol Region to offer an Automatic dial System for its subscribers.

Thereafter, the service area of Iriga Telephone Company, Inc. expanded to the
Municipalities of Nabua, Baao and Buhi, all in the province of Camarines Sur. This area is
commonly known as “Rinconada”, the Fifth Congressional District of Camarines Sur.

With the coming 50" year of operation in 2021 Iriga Telephone Company, Inc, continues
to provide latest telecommunications technology to its subscriber who are literally based in the
countryside. With this, Iriga Telephone Company, Inc. lives its by-line “Providing Global Access
for People in the Countryside through more Telephone and Broadband Lines...”

Iriga Telephone Company, Inc. as its primary offering provides its subscribers with both
the landline voice connection and the more in demand data connection. It now focuses its
‘operations to the more remote communities in the municipalities within its franchise area.

Advances in the telecommunications technological landscape had been exponential
over the past two decades and will continue to grow even at a more accelerated pace in the
coming decades. Iriga Telephone Company, Inc. is committed to make these services and
products available to the locality it serves. Iriga Telephone Company, Inc. over its almost five
decades of service had seen that it had substantially contributed to the modernization and
development in Rinconada.

Hence, the approval of this bill is earnestly sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

6172

House Bill No.

Introduced by Rep. JOCELYN F. FORTUNO

RENEWING
TO IRIGA TI

AN ACT
OR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE GRANTED
LEPHONE COMPANY, INC., UNDER REPUBLIC ACT NO. 5974 AS

AMENDED BY REPUBLIC ACT NO. 8962 ENTITLED “AN ACT GRANTING THE IRIGA

TELEPHONE
OPERATE, Al
CAMARINES

(OMPANY, INC. A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH,
ID MAINTAIN LOCAL EXCHANGE NETWORK IN THE PROVINCE OF
UR AND ALL CITIES THEREIN.”

Be it enacted by the Senate and House of Representatives of the Philippines in Congress

assembled:

SECTION 1. Nature and Scope of franchise. ~ Subject to the provisions of the Constitution and

applicable laws,
Republic Act No
its successors or

rules and regulations, the franchise granted to Iriga Telephone Company, Inc., under
5974, as amended by Republic Act No. 8962, and hereunder referred to as the grantee,
assignees, to construct, install, establish, operate and maintain for commercial purposes

and in the public interest, in the Province of Camarines Sur, Philippines, wire and/or wireless

telecommunicati

nis system, copper, fiber optics, satellite transmit and receive systems, switches and their

value-added services such as the transmission of voice, data, facsimile, control signs, audio and video,
information services and all other telecommunication system technologies as are at present available or
will be made available through technological advances or innovations in the future; or construct, acquire,

lease, and oper
convenient or es:
twenty-five (25)

SEC. 2.

{e, or manage transmitting and receiving stations, lines, cables, or systems as are
ntial to efficiently carry out the purpose of this franchise, is hereby renewed for another
ears from the effectivity of this Act.

fanner 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 existing stations or other stations which may be established by law,

without any way diminishing its own privilege to use its assigned wavelengths or frequencies and the

ality of transmission or reception thereon as should maximize rendition of the grantee’s services or the
beortrtrens

availability the

yf.



Juthority of the National Telecommunications Commission. ~ The grantee shall secure
mmunications Commission (NTC) a Certificate of Public Convenience and Necessity

ice. The NTC, however, shall not unreasonably withhold or delay the grant of such
license.

:xeavation and Restoration Works. ~ For the purpose of erecting and maintaining poles
for said wires or other conductors for the purpose of laying and maintaining

roads, highways, streets, lanes, alleys, avenues, sidewalks, or bridges of the provinces,
cities, or municipalities: Provided, however, that a public place, road, highway, street, lane, alley, avenue,
sidewalk, or bridge disturbed, altered or changed by reason of erection of poles or other supports or the
underground laying of wires, other conductors or conduits shall be repaired and replaced in workmanlike
manner by said grantee, its successors or assignees, in accordance with the standards set by the DPWH or
the LGU con: Should the grantee, its successors or assignees, after the ten (10)-day notice from the
said authority, fail, refuse or neglect to repair or replace any part of public place, road, highway, street,
lane, alley, avenue, sidewalk, or bridge altered, changed or disturbed by the said grantee, its successors or
assigned, then the DPWH or the LGU concerned shall have the right to have the same repaired and placed
in good order and condition at double the amount spent for such repair or replacement, to be charged
against the grantee, its successors or assignees.

SEC. 5. Responsibility to the Public. — The grantee shall conform to the ethics of honest
enterprise and nat use its stations or facilities for obscene or indecent transmission, or for dissemination
of deliberately false information, or willful misrepresentation, or assist in subversive or treasonable acts.

The grantee shall operate and maintain all its stations, lines, cables, systems, and equipment for
the transmission and reception of messages, signals, and pulses in a satisfactory manner at all times and,
as far as economical and practicable, modify, improve, or change such stations, lines, cables, systems, and
equipment to keep abreast with the advances in science and technology.

The grantee shall improve and extend its services in areas not yet served, and hazard-and
typhoon-prone areas that shall be determined by the National Disaster Risk Reduction and Management
Council in coordination with NTC.

SEC. 6. [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 rate or measured rates or variation thereof, shall be subject to the
approval of the NTC or its legal successor.

SEC. 7. Right of the Government. ~ The radio spectrum is a finite resource that is part of the
national patrimony and the use thereof is a privilege conferred upon the grantee by the State and may be
withdrawn any time after due process.



A special
public peril, cal
‘operate the stati
operation of any
public welfare;
upon due comy
equipment duri

SEC. 8.
five (25) years
franchise shall
2) years.

SEC. 9.
grantee shall
‘operation: Provi
entitlement und.
the employment
be submitted to

SEC. 10,
connection of its
maintained by ant
extended and ii

mutually agreed
of the NTC

SEC. 11
national, provinci
accounts, deman<
during the con

SEC. 12.
shall not sell, le
acquired thereun:
corporation or
contemporaneou:
Congress of the
person or entity
conditions, terms,

SEC. 13.
public participati
percent (30%) or
securities exch:
That in cases
participation by

right is hereby reserved to the President of the Philippines, in times of war, rebellion,
ity emergency, disaster or disturbance of peace and order: to temporarily take over and
, transmitters, facilities, or equipment of the grantee; to temporarily suspend the
station, transmitter, facility, or equipment in the interest of public safety, security, and
to authorize the temporary use and operation thereof by any agency of the government,
sation to the grantee for the use of said stations, transmitters, facilities, or
1g the period when these shall be operated

’erm of Franchise. ~ This franchise shall be extended and in effect for a period of twenty
1m the date of the effectivity of this Act, unless sooner revoked or cancelled. This
deemed ipso facto revoked in the event the grantee fails to operate continuously for two

ommitment 10 Provide and Promote the Creation of Employment Opportunities. ~ The

ate employment opportunities and shall allow on-the-job training in their franchise

fed, further, That the grantee shall follow the applicable labor standards and allowance

existing labor laws, rules and regulations and similar issuances: Provided, finally, That

portunities or jobs created shall be reflected in the General Information Sheet (GIS) to
Securities and exchange Commission annually.

Right of Interconnection. ~ The grantee is hereby authorized to connect or demand
telecommunication systems to other telecommunication systems installed, operated, and
other duly authorized person or entity in the Philippines for the purpose of providing
proved telecommunications services to the public, under the terms and conditions
ipon by the parties concerned, the right shall be subject to the review and modification

Warranty in Favor of the National and Local Governments. ~The grantee shall hold the

jal, city, and municipal governments of the Philippines free from all claims, liabilities,
or actions arising out of accidents, causing injury to persons or damage to properties,

ction or operation of the stations, transmitters, facilities, or equipment of the grantee.

Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise. ~ The grantee
transfer, grant the usuftuct of, nor assign this franchise or the rights and privileges
jer to any person, firm, company, corporation or other entity, nor merge with any other
ity, nor shall transfer the controlling interest of the grantee, simultaneously or
ly, to any person, firm, company, corporation, or entity without the prior approval of the
Philippines and compliance with legal requirements stipulated in other statutes. Any
which this franchise is validly sold, transferred, or assigned shall be subject to the same
restrictions, and limitations of this Act.

Dispersal of Ownership. — In accordance with the constitutional provision to encourage
mn in public utilities, the grantee shall continue to offer to Filipino citizens at least thirty
a higher percentage that may hereafter be provided by law of its common stocks in any

in the Philippines within five (5) years from the renewal of its franchise: Provided,
ere public offer of shares is not applicable, other methods of encouraging public
itizens and corporations operating public utilities must be implemented. Noncompliance

therewith shall render the franchise ipso facto revoked.

SEC. 14.

Reportorial Requirement. ~The grantee shall submit an annual report to the Congress of

the Philippines, through the Committee on Legislative Franchises of the House of Representatives and the



Committee on
franchise and on
‘The compliance
CPCN, or any eq}

SEC. 15
Congress shall
day of noncoi
telecommunicati
the fine of five
by the NTC fro
NTC and the si

SEC. 16
under other exi
Congress, shall
the herein grant
telecommunicati
franchise.

SEC. 17.

lic Services of the Senate, on its compliance with the terms and conditions of the
ts operations on or before April 30 of every year during the term of its franchise,
certificate issued by Congress shall be required before an application for any permit,
valent thereof is accepted by the NTC.

Penalty Clause. ~ Failure of the grantee to submit the requisite annual report to
penalized with fine in the amount of One million pesos (P1,000,000.00) per working
iance, the effectivity of which shall commence upon applicability with other
ns franchise grantees: Provided, That in the interim, the grantee shall be liable to pay

idred pesos (P500.00) per working day of noncompliance. The fine shall be collected
the delinquent franchise grantee separate from the reportorial penalties imposed by the
le shall be remitted to the Bureau of Treasury.

Equality Clause. ~ Any advantage, favor, privilege exemption, or immunity granted
ing, franchises, or which may hereafter be granted, upon prior review and approval of
-come part of this franchise and shall be accorded immediately and unconditionally to

Provided, That the foregoing shall neither apply to nor affect the provisions of
ms franchises concerning territory, life span, or type of service authorized by the

Separability Clause. — If any of the sections or provisions of this Act is held invalid, all

other provisions tot affected thereby shall remain valid.

Repealability and Nonexclusivity Clause. — This franchise shall be subject to
tion, 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 privilege herein provided for.

SEC. 19.
thereof inconsiste

SEC. 20,
Official Gazette

wii s

Repealing Clause. ~ All other laws, orders, issuances, rules and regulations or parts
ent with this Act are hereby repealed, amended or modified accordingly.

Effectivity. — This Act shall take effect fifteen (15) days after its publication in the
rin a newspaper of general circulation.