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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
Nineteenth Congress
First Regular Session
HOUSE BILL NO.
Introduced by: Rep. Claudine Diana D. Bautista-Lim
EXPLANATORY NOTE
Pacific wireless, Inc. (hereiaafter, '?'wI" or the "company") was incorporated in &e
Philippines and registered with the Philippine Securities and Exchange Commission on
September 29,1995" The Company is 60% owned by Lungsod,Inc. (a 100% owned subsidiary
of Kalasag lnvestments,Inc.) and 40% oby Sandaigdigmr,Inc.
In April 14,1997, Republic Act No. 8281 entitled: "An Act Granting the Pacific \Yireless,
fnc., a Franchise to Construct, Establish, Install, Maintain and Operate Wire and/or
Wireless Telecommunications Systems Throughout the Philippines" was signed iato law,
thereby creating numerous possibilities for PWI's growth and expansion.
As such, PWI is engaged in providing telecommunications services through all forms of
telecommunications services including mobile, cellular, wired, or wireless throughout the
Philippines.
PWI was also granted by National Telecommunications Commission a VSAT license to
operate international and domestic leased channel (IDLC) services using satellite
technology. The company has applied for two other licenses: aarnely, wireless lnternet and
broadband network.
As such, PWI has VSAT license and currently offers international and domestic leased channel
services using satellite technology. Its other activities are in Wireless Internet and Broadband
Network. PWI has been pre-qualified by the National Telecommunications Commission to
participate in the Public Mobile Telecommunications System (PMTS).
Thus, the passage of this bill is fervently sought.
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CLAUDIFI-E I'IANA D. BAUTISTA-LIM
September 13, 2022
2:10 pm
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Republic of Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon Cify
Nineteenth Congress
First Regular Session
HOUSE BILL NO.
lntroduced by: Rep. Claudine Diana D. Bautista-Lim
AN ACT
RENE\IrING TOR ANOTHER TWENTY-FI\TE (25) YEARS THE FRANCMSE
GRANTED TO PACIF'IC WIRELESS, INC. UNDER RTPUBLIC ACT NO. 8281 TO
CONSTRUCT, ESTABLISH,INSTALL, OPERATE AND MAINTAIN WIRE ANDIOR
WIRELESS TELECOMMUNICATIONS SYSTEMS THROUGHOUT THE
PHILIPP$IES
Be it enacted by tke Senate and the House of Representatives of the Philippines in Cangress
assembled:
SECTION l. Rencwat af Franchise * The franchise of Pacific Wireless, Inc., its sllccessors
and assignees, hereinafter refered to as the grantee, to construct, install, establish, operate and
maintain fcr commercial purposes and in the public interest, throughout the Philippines, and
between the Philippines and other countries and territories, telecommunications system
including mobile, cellular, wired or wireless telecommunications systems, and their value
added services such as, but not limited to, transmission of voice, data, facsimile, control signs,
audio and video, information and service bureau, and all other telecommunications systems
technolagies as are at present available or will be made available through technological
advances or innovations in the future, and construct, acquire, lease and operate or manage
transmitting and receiving stations, lines, cables or systems, as is, or are, convenient or essential
to ef{iciently carry cut its puq)ose, is hereby renewed for another twenty five (25) years from
the date of approval of this Act.
SEC. 2. Manner af Operation af Stations or Faeilities -The stations or facilities ofthe grantee
shall be construed 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 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 an#or availability thereof.
SEC 3. Prior Approval otthe Notional Telecommanications Commission -The grantee shall
secure from the National Telecommunications Commission the appropriate permit and license
for its stations and shall not use any frequency in the radio/television spectrum without having
been authoized by the Commission. The Commission, however, shall not unreasonably
withhold or delay the grant of such authority.
SEC 4. Responsibility to tke Public -The grantee shall conform to the ethics of honest
enterprise and shall not use its stations for obscene or indecent bansmission or for
dissemination or deliberately false information or willful misrepresentation, or assist in
subversive or treasonable acts.
The grantee shall provide basic or enhanced telephone service in any municipality in the
Philippines where it has an approved certificate of convenience for the establishmen! operation
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and maintenance of a local exchanges service, without discrimination to any applicarit therefor,
in the order of the date of their applications, up to the limit of the capacity of its locai telephone
exchange, and should the demand for the telephone service at any time increase beyond the
capacity thereof the grantee shall increase the same to meet such demand: Provided, That in
case the total demand satisfied by the expansion is less than the smallest viable local exchange
available in the market as determined by the Commission, the grantee shal1 not be obliged to
furnish said service, unless the applicant for telephone service defrays the actual expenses for
the installation of the telecommunications apparatus necsssary for such services and in such
case, the Commission may extend the time within which the grantee shall furnish such service.
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
alltimes, 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 aad
technology.
SEC. 5. Right af the Governmenl -A special right is hereby reserved to the President of the
Philippines intimes ofwar, rebellion, public peril, calamity, emergency, disaster or disturbance
of peace and order, to temporarily suspend the operation of any station or facility in the interest
of public safety, security and public welfare, or to authorize the temporary use and operation
theteof by any agercy of the government, upon due compensation to the grantee.
SEC. 6. Term of Franchke -The franchise shall be in effect for a period of twenty-five (25)
years from approval of this Act, unless sooner revoked or cancelled. This franchise shall be
deemed ipso facto revoked in the event the grantee fails to operate continuously for two (2)
yeaxs.
SEC. 7. Acceptance and Compliance -Acceptance of this new franchise shall be given in
writing to the Congress of the Philippines, through the Committee on Legislative Franchises
of the House of Representatives and the Committee on Public Services of the Senate, within
sixty (60) days from the effectivity of this Act. Upon giving such accepknce, the grantee sha11
exercise the privileges granted under this Act. Non-acceptance shall render &e franchise void.
SEC. 8. Right af Interconnection - The grantee is hereby authorized to connect or demand
connection to its telecommunications systems to any other telecommunications systems,
installed, maintained, md operated by arry other duly authorized person or entity in &e
Philippines for the pwpose of providing extended and improved telecommunications services
to the public, under such terms and conditions mutually agreed upon by the parties concemed
and the same shall be subiect to the review of modifications of the Commission.
SEC 9. Tssc Provisions -The glantee, 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 acw or hereafter may be required by law to pay. In addition thereto,
the grantee, its successors or assigns, shall pay a franchise tax equivalent to three percent {3%)
of all gross receipts of the radio/television business transacted under this franchise by &e
granteeo its successors or assigns, and the said percentage shall be in lieu ofall taxes on this
franchise or earnings thereof; Pravided, 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 Section 2 of Executive Order No. 72 unless the latter as enacted is amended
or repealed, in which case tlre amendment or repeal shall be applicable thereto.
The grantee shall fi1e the return with and pay the tax due thereon to the Commissioner of
Intemal Revenue ofhis duly authorized representative, in accordance with the National Intemal
Revenue Code, and the retum shall be subject to audit by the Bureau of Internal Revenue"
SEC. 10. Dkpersal of Ownership ln accordance with constitutional provisions to encourage
public participation in public utilities, the grantee shall o{fer 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 conlmencement of its
operations. Noncompliance therewith shall render the franchise ipso facto revoked.
SEC. 1 l. Self-Regulation by and Undertaking of Grantee -The grantee shall not require any
previous censorship of any speech, play, act or scene, or other matter to be broadcasifrom i*
stations. Provided, That the grantee, during any broadcast, shall cut offfrom the air the speech,
pla3r, act or scene, or other matter being broadcast if the tendency thereof is to propose and/or
incite treason, rebellion or seditiorq or the language used therein or the theme thereof is
indecent or immoral. Pravided, fllrther, That willful failure to do so shall constitute a valid
cause for the cancellation of this franchise.
SEC. 12. iYarranty in Favor of National and Local Governments -The grantee shall hotd the
national, provincial, city and mrmicipal government of the Philippines free &om all claims,
accounts, demands or actions arising out of accidents or injuries, rvhether to property or
persons, caused by the construction or operation of the stations of the gmntee.
SEC. 13. Separability Cluase -If any of the sections or provisions of this Act as held invalid,
all other provisions not affected thereby shall remain valid.
SEC. 14. Sale, Lease, Transfer, Usufract, orAssignment of Franchise -The grantee shall not
lease, transfer, grar$ the usufruct of, sell or assign this franchise or the rights and privileges
acquired thereunder to any person, firm, company, co{poration or other commercial or legal
entity, nor shall the controlling interest of the grantee be traffifered to any such private person,
firm, company, cotporation or entity to which this franchise is sold, transferred or assigned
shall be subject to all the same conditions, terms, restrictions and limitation of this Act.
SEC. 15. ReportorialRequiremenl, -The grantee shall submitanannual reportto the Congress
of the Philippines on its compliance with the terms and conditions of its franchise and on its
operations within sixry (60) days from the end of every year.
SEC. 16. Repealability and Non-Exelusivity Clauses -This franchise shall be subject to
amendment, alteration, or repeal by the Congress of the Philippines when the publie interest so
required and shall not be interpreted as an exclusive grant or privileges hereinafter provided
for.
SEC. 17. Effeet*tty--:yris Act shall take eflect fifteen days following its complete publication
in at least two (2) newspapers of general cireulation.
Approved,