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EIGHTEENTH CONGRESS ) = oareDEC 1,1 20
REPUBLIC OF THE PHILIPPINES. }
First Regular Session )
HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez
House Bill No.9 796

EXPLANATORY NOTE

AZ Communications Network Inc. (AZCOM) was founded in April 1988 as altemative service
Provider in telecommunications. In 1995, Congress granted AZCOM a franchise to construct,
establish, install, operate and Maintain, for commercial purposes and in the public interest,

{t has a flexible flat organization structure with highly skilled and experienced professionals
from the telecommunications industry. It is a data communication provider hat has the

Felocomerncdanizations. AZCOM has been given Provisional authority by the Notions
Jelecommunications Commission (NTC) to operate in 118 municipaliticg ttre course of its
carations, it has implemented the following services and technologies: Lives Multipoint
piatribution System (LMDS), Wireless Local Loop (WLL), Very Small Aperture Terminal
(YEA, Very High Frequency (VHF) and Ultra High Frequency (UHF) Microwave Radios,
Satellite Uplink Facilities,

AZCOM has been striving to provide Intemet access in remote areas therefore increasing
intemet penetration and is focused on delivering communication to underserved
communities in the provinces. This is in line with the govemment’s Policy for economic
inclusion for all citizens,

AZCOM also provides a long list of information technology services to the Filipino people,
especially in those areas which are underserved and neglected. They have bigger plans in
Store for the benefit of the Philippines and the Filipino people which is why it is imperative
that their franchise, expiring in September 2020, be renewed.

In view of the foregoing, immediate approval of this measure is eamestly requested.

RUFUS B. Ri EZ



EIGHTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES )
i)

First Regular Session
HOUSE OF REPRESENTATIVES
Introduced by Representative Rufus B. Rodriguez
House Bill No. EG
AN ACT

RENEWING THE FRANCHISE GRANTED TO THE AZ COMMUNICATIONS NETWORK
INC. UNDER REPUBLIC ACT NO. 8165 ENTITLED “AN ACT GRANTING THE AZ
COMMUNICATIONS NETWORK INC., A FRANCHISE TO CONSTRUCT, INSTALL,
OPERATE AND MAINTAIN PUBLIC RADIOTELEPHONE AND RADIOTELEGRAPH

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

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

Sec. 3. Prior Approval of the National Telecommu:
Seems an all Secure from the National Telecommunications Commission the appropriate
pommits and licenses for its stations and shall not use any frequency in the radio spectrum
without having been authorized by the Commission. The Commission, however, shall hot
unreasonably withhold or delay the grant of any such authority.

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 or for the dissemination of
deliberately false information or willful misrepresentation, or assist in subversive or
treasonable acts.


Sec. 6, Right of Government. — The President of the Philippines, in times of war, rebellion,
Public peril, calamity, emergency, disaster or disturbance of peace and order, may

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. In the event the

.. fails to operate Continuously for two (2) years, this franchise shall be deemed ipso
cto revoked.

Sec. 8. 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
Ackition thereto, the grantee, its successors or assigns, shat! Pay a franchise tax equivalent
eave Percent (3%) of all gross receipts of the business trancevted under this franchise by
the grantee, its successors or assigns: provided, that the grantee, its successors or assigns,

Sec. 9. 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 there under
{0 any Person, firm, company, corporation or other commercial or legal entity, nor merge with
ey corporation or entity without the prior approval of the Congress of the Philippines.

Sec. 10. Warranty in favor of National and Local Governments. — The grantee shall
pines harmless from all

Sec. 11. Separability Clause. — If any of the sections or provisions of this Act is held invalid,
all other provisions not affected thereby shall remain valid

Sec. 12. Repealing and Non-exclusivity Clause. — This franchise Shall be subject to
amendment, alteration, or repeal by the Congress of the Philippines when the Public interest
S0 ‘requires and shall not be interpreted as an exclusive grant of the privileges herein
provided for.


Sec. 13. Publication. — This Act shall be published, through the initiative of the Grantee,
fifteen (15) days after this Act is Signed by the President of the Philippines or has lapsed into
law.

Sec. 14. Effectivity Clause. — This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a Newspaper of general circulation.

Approved,