Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

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EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 6302

Introduced by HON. ELEANDRO JESUS F. MADRONA

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 Odiongan Telephone Corporation for
another twenty five (25) years. The initial franchise lapsed into law (Republic Act 8956) on
September 2, 2000.

Telecommunications is as vital as our natural resources. And for the Philippines to
cope with its growing demand for success, we must continue to promote the upliftment and
improvement of our present telecommunications system.

Itis a fact well known to us that there are still a lot of areas in the countryside which
do not have adequate telecommunications connectivity. Odiongan Telephone Corporation as
its primary offering provides its subscribers with both the landline voice connection and the
more in demand data connection. It continues to expand 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. Odiongan Telephone Corporation is committed to make these services and
products available to the locality it serves.

Odiongan Telephone Corporation, over its two decades of service had substantially
contributed to the modernization and development of the municipality of Odiongan,
Romblon.

Hence, the approval of this bill is earnestly sought.

HON. ELEANDRO JESUS F. MADRONA
Representative, Rombion


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 8302

Introduced by HON. ELEANDRO JESUS F. MADRONA

AN ACT
RENEWING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE
GRANTED TO ODIONGAN TELEPHONE CORPORATION, UNDER REPUBLIC
ACT NO. 8956 ENTITLED “AN ACT GRANTING THE ODIONGAN TELEPHONE
CORPORATION A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH,
OPERATE AND MAINTAIN LOCAL EXCHANGE NETWORK IN THE PROVINCE
OF ROMBLON.”

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

SEC. 1. Nature and Scope of Franchise. ~ Subject to the provisions of the Constitution and
applicable laws, rules and regulations, the franchise granted to Odiongan Telephone Corporation,
under Republic Act No. 8956, and hereunder referred to as the grantee, its successors or assignees, to
construct, install, establish, operate and maintain for commercial purposes and_in the public interest,
in the Province of Romblon, Philippines, wire and/or wireless telecommunications systems including
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 telecommunications 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
operate, or manage transmitting and receiving stations, lines, cables, or systems as are convenient or
essential to efficiently carry out the purpose of this franchise, is hereby renewed for another twenty-
five (25) years from the effectivity of this Act.

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 existing stations or other stations which may be
established by law, without in any way diminishing its own privilege to use its assigned wavelengths
s and the quality of transmission or reception thereon as should maximize rendition of
vices or the availability thereof.

3. Authority of the National Telecommunications Commission. - The grantee shall
secure from the National Telecommunications Commission (NTC) a Certificate of Public
Convenience and Necessity (CPCN) and the appropriate permits and licenses for the construction,
installations and operation of its telecommunications systems or facilities. In issuing the certificate,
the NTC shall have the power to impose such conditions relative to the construction, operation,



maintenance, or service level of the telecommunications system. ‘The NTC 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 authorization from the NC. Such certificate shall state
the areas covered and the date the grantee shall commence the service. The NTC, however, shall not
unreasonably withhold or delay the grant of such authority, permit or license.

SEC. 4, Excavation and Restoration Works. — For the purpose of erecting and maintaining
poles or other supports for said wires or other conductors for the purpose of laying and maintaining
underground wires, cables or other conductors, it shall be lawful for the grantec, its successors or
assignees, with the prior approval of the Department of Public Works and Highways (DPWH) or the
local government unit (LGU) concemed, as may be appropriate, to make excavations or lay conduits
in any of the public places, roads, highways, streets, lanes, alleys, avenues, sidewalks, or bridges of
the provinces, cities, or municipalities: Provided, however, That a public place, road, highway, strect,
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 concerned. 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 concemed 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 grantec, its successors or assignees.

SEC. 5. Responsibility to the Public. - The grantee shall conform to the ethics of honest
ise and not use its stations or facilities for obscene or indecent transmission, or for
ion 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 right is hereby reserved to the President of the Philippines, in times of war,
rebellion, public peril, calamity emergency, disaster or disturbance of peace an 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,
curity, 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 these shall be operated.



SEC. 8. Term of Franchise. ~ This franchise shall be extended and in effect for a period of
twenty-five (25) years from the date of the effectivity 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) years.

SEC. 9. Commitment to Provide and Promote the Creation of Employment Opportuniti
‘The grantee shall create employment opportunities as well as allow on-the-job trainees in th
franchise operations: Provided, That priority shall be accorded to the residents in areas where any of
its offices is located: Provided, further, That the grantee shall follow the applicable labor standards
and allowance entitlement under existing labor laws, rules and regulations and similar issuances:
Provided, finally, That the employment opportunities or jobs created shall be reflected in the General
Information Sheet (GIS) to be submitted to the Securities and Exchange Commission annually.

SEC. 10, Right of Interconnection. ~ The grantee is hereby authorized to connect or demand
connection of its telecommunications systems to 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 the
terms and conditions mutually agreed upon by the parties concerned, the right shall be subject to the
review and modification of the NTC.

SEC. 11. Warranty in Favor of the National and Local Governments. ~The grantee shall hold
the national, provincial, city, and municipal governments of the Philippines free from all claims,
liabilities, accounts, demands, or actions arising out of accidents, causing injury to persons or damage
to properties, during the construction or operation of the stations, transmitters, facilities, or equipment
of the grantee.

SEC. 12. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise. ~The grantee
shall not sell, lease, transfer, grant the usufruct of, nor assign this franchise or the rights and privileges
acquired thereunder to any person, firm, company, corporation or other entity, nor merge with any
‘other corporation or entity, nor shalll transfer the controlling interest of the grantee, simultancously or
contemporancously, to any person, firm, company, corporation, or entity without the prior approval of
the Congress of the Philippines and compliance with legal requirements stipulated in other statutes.
Any person or entity to which this franchise is validly sold, transferred, or assigned shall be subject to
the same conditions, terms, restrictions, and limitations of this Act.

SEC. 13, Dispersal of Ownership. — In accordance with the constitutional provision to
‘encourage public participation in public utilities, the grantee shall continue to offer to Filipino citizens
at least thirty percent (30%) or a higher percentage that may hereafter be provided by law of its
common stocks in any securities exchange in the Philippines within five (5) years from the renewal of
its franchise: Provided, That in cases where public offer of shares is not applicable, other methods of
‘encouraging public participation by citizens 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 Public Services of the Senate, on its compliance with the terms
and conditions of the franchise and on its operations on or before April 30 of every year during the
term of its franchise.

‘The annual report shall include an update on the roll-out, development, operation and/or
expansion of business; audited financial statements; latest GIS officially submitted to the SEC, if
applicable; certification of the NTC on the status of its permits and operations; and an update on the
dispersal of ownership undertaking, if applicable.



The reportorial compliance certificate issued by Congress shall be required before any
application for permit or certificate is accepted by the NTC.

SEC. 15. Fine. — Failure of the grantee to submit the requisite annual report to Congress shall
be penalized with fine in the amount of One million pesos (P1,000,000.00) per working day of
noncompliance, the effectivity of which shall commence upon applicability with other
telecommunications franchise grantees: Provided, That in the interim, the grantee shall be liable to
pay the fine of Five hundred pesos (P500.00) per working day of noncompliance. The fine shall be
collected by the NTC from the delinquent franchise grantee separate from the reportorial penalties
imposed by the NTC and the same shall be remitted to the Bureau of Treasury.

SEC. 16. Equality Clause. — Any advantage, favor, privilege exemption, or immunity granted
under other existing franchises, or which may hereafter be granted, upon prior review and approval of
Congress, shall become part of this franchise and shall be accorded immediately and unconditionally
to the herein grantee: Provided, That the foregoing shall neither apply to nor affect the provisions of
telecommunications franchises concerning territory, life span, or type of service authorized by the
franchise.

SEC. 17. 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. 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 privilege herein provided for.

SEC. 19. Repealing Clause. ~ All other laws, orders, issuances, rules and regulations or parts
thereof inconsistent with this Act are hereby repealed, amended or modified accordingly.

SEC. 20. Efectivity. — This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approved,