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Republic of the Philippines
IF REPRE: TATIVI
Quezon City

SEVENTEENTH CONGRESS:
Regular Session

4658

HOUSE BILL No.

Introduced by REPRESENTATIVE CELSO L. LOBREGAT

EXPLANA

OTE

Based_on the pronouncement of the United Nations Human Rights_Council
Sa basic human right and not just a privilege of every human

{n.2003, the UNHRC convened a summit that made reference on the importance
of freedom of expression in the information society.

The members of the Council discussed that an individual has the righteto seek,
and_impart information and ideas of all kinds through the internet that
) seek, receive _and impart infon jeas_of all_kinds

ind inexpensively across national boi

instantaneous!

The Council further argued that not providing internet and cutting off internet
gardiess of justifi provi yn-of basic human rights_and
calls upon all states to ensure that internet access is maintained at all times.

While the United Nation Human Right Counsil considers restriction and cutting
off of internet connection as a violation of basic human right, the United States view
itas_an economic sabotage. The United States statistic shows that by doubling the

speed of internet. it has a direct effec! lhe Gross Domestic Product (GDP) by
003%,
__Considering therefore that as become an indispensable tool for realizing

a_fange of human. rights ing development human progress, ensuring
universal access to the internet should be a priority for all states.



The Philippines is considered as the country which has the slowest internet

sonnection, reby thwarting the entry of information and iness opportunities.

____In_response to the call_of UNHRC, the US and the commitment_of Ermita

Electronics Inc. (presently known as G. Telecoms Inc.), to provide innovative ways to.

deliver public services and to ensure that access to the internet is broadly available

{o_the_areas_in_the Philippines where. the big_players are not servicing, Ermita

Electronics. Incorporated (presently known as G, Telecoms, Inc.) is seeking the
| renewal of its. franchise granted for another twenty-five (25) years.

__In view, hereof, the passage of this bill is earnestly requested;

enter al

HON. CELSO L. LOBI



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

4658

HOUSE BILL No.

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

SECTION 1. Section 1 of Republic Act No. 8196 is hereby amended to read as
follows:

“Section 1. Name, RENEWAL, and Scope of Franchise.— Subject to the
provisions of the Constitution and applicable laws, rules and regulations, [there is
hereby] THE FRANCHISE granted to Ermita Electronics, Incorporated,
(PRESENTLY KNOWN AS G. TELECOMS, INC.), hereunder referred to as the
grantee, its successors or assignEEs UNDER REPUBLIC ACT NO. 8196, IS
HEREBY RENEWED FOR ANOTHER TWENTY-FIVE (25) YEARS to construct,
ESTABLISH, install, maintain, and operate for commercial purposes and in the
public interest, IN THE PHILIPPINES AND BETWEEN THE PHILIPPINES AND
OTHER COUNTRIES AND TERRITORIES, [radio stations for the reception and
transmission of messages in the foreign and domestic public fixed point-to-point,
Public base, aeronautical, and land mobile and including coastal marine service with
the corresponding relay stations for the reception and transmission of wireless
messages on radiotelegraph and/or radiotelephone, radioteletype, radiophoto,
facsimile, advertisements, and such other types of emission from or to foreign
countries and within the Philippines and with vessels at sea and aircrafts over the air,
irespective of whether such vessels and aircrafts are within or without the


Philippines.]| WIRE AND/OR WIRELESS TELECOMMUNICATIONS SYSTEMS
INCLUDING INTERNATIONAL AND LOCAL EXCHANGE CARRIER (LEC),
INTERNATIONAL AND DOMESTIC GATEWAY FACILITY, INTERNATIONAL AND.
DOMESTIC SUBMARINE CABLE LANDING STATIONS, MOBILE CELLULAR,
COPPER 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.
SYSTEMS TECHNOLOGIES AS ARE AT PRESENT AVAILABLE OR WILL BE
MADE AVAILABLE THROUGH TECHNOLOGICAL ADVANCES OR INNOVATIONS
IN THE FUTURE; AND/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.”

SEC. 2. Anew section is hereby inserted after Section 3 of Republic Act No. 8196,
to read as follows:

“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 GRANTEE, ITS SUCCESSORS
OR ASSIGNEES, WITH THE PRIOR APPROVAL OF THE DEPARTMENT OF
PUBLIC WORKS AND HIGHWAYS (DPWH) OR THE LOCAL GOVERNMENT UNIT
(LGU) CONCERNED, 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
PROVINCE, CITIES, AND/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


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SET BY DPWH OR THE LGU CONCERNED. SHOULD THE GRANTEE, ITS
SUCCESSORS 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 ASSIGNEES, 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 EXPENSE TO BE
CHARGED AGAINST THE GRANTEE, ITS SUCCESSORS OR ASSIGNEES.”

SEC. 3. All sections are to be renumbered accordingly.

SEC. 4. Section 7 of Republic Act No. 8196 is hereby amended to read as follows:
“SEC. 8. Term of Franchise. — This franchise shall be in effect for a period of

twenty-five (25) years from the date of the effectivity of this Act, unless sooner
cancelled. This franchise shall be deemed jpso facto revoked in the event the
grantee fails to OPERATE CONTINUOUSLY FOR TWO (2) YEARS. [comply with
any of the following conditions: (a) Commence operations within three (3) years from
the approval of its permit by the National Telecommunications Commission;

(b) Operate continuously for two (2) years; and

(c) Commence operations within five (5) years from the effectivity of this Act.]

SEC. 5. Section 8 of Republic Act No. 8196 is hereby amended to read as follows:

“SEC. 9. Acceptance and Compliance. — Acceptance of this 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 [after] FROM the effectivity of this Act. Upon giving
such acceptance, the grantee shall exercise the privileges granted under this Act.
Nonacceptance shall render the franchise void.”

SEC. 6. Section 10 of Republic Act No. 8196 is hereby repealed


SEC. 7. Anew section is hereby inserted after Section 8 of Republic Act No. 8196 to
read as follows:

“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, THIS RIGHT
SHALL BE SUBJECT TO THE REVIEW AND MODIFICATION OF THE NTC.”

SEC. 8. Section 14 of Republic Act No. 8196 is hereby amended to read as follows:

"SEC. 15. Sale, Lease, Transfer, Usufruct, [etc.] OR ASSIGNMENT OF
FRANCHISE. - The grantee shall not SELL, lease, transfer, grant the usufruct off,
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 OTHER CORPORATION OR ENTITY, nor shall
TRANSFER the controlling interest of the grantee [be transferred], whether as a
whole or in part[s], and whether simultaneously or contemporaneously, to any [such]
person, firm, company, corporation, or entity without the prior approval of the
Congress of the Philippines[.]: PROVIDED, THAT CONGRESS SHALL BE
INFORMED OF ANY SALE, LEASE, TRANSFER, GRANT OF USUFRUCT, OR
ASSIGNMENT OF FRANCHISE OR THE RIGHTS OR PRIVILEGES ACQUIRED
THEREUNDER, OR OF THE MERGER, OR TRANSFER OF CONTROLLING
INTEREST OF THE GRANTEE, WITHIN SIXTY (60) DAYS AFTER THE
COMPLETION OF SAID TRANSACTION: PROVIDED, FURTHER, THAT FAILURE
TO REPORT TO CONGRESS SUCH CHANGE OF OWNERSHIP SHALL RENDER
THE FRANCHISE IPSO FACTO REVOKED: PROVIDED, FINALLY, THAT [Alany
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.


SEC. 9. Section 16 of Republic Act No. 8196 is hereby amended to read as follows:

“SEC. 17. 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 COVERED
BY THE FRANCHISE, THE LIFE SPAN OF THE FRANCHISE, OR THE TYPE OF
SERVICE AUTHORIZED BY THE FRANCHISE.”

SEC. 10. Section 19 of Republic Act No. 8196 is ereby amended to read as follows:
“SEC. 20. 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
REPORTORIAL COMPLIANCE CERTIFICATE ISSUED BY CONGRESS SHALL BE
REQUIRED BEFORE ANY APPLICATION FOR PERMIT OR CERTIFICATE IS
ACCEPTED BY THE NTC.”
SEC. 11, Penalty Clause. — Failure of the grantee to submit the requisite annual
report to Congress shall be penalized with a fine in the amount of Five hundred
pesos (P500.00) per working day of noncompliance. The fine shall be collected by
the NTC from delinquent franchise grantee separate from the reportorial penalties
imposed by the NTC.

SEC. 12. Adoption of Provisions Not Inconsistent with this Act. - All other provisions
of Republic Act 8196, which are not inconsistent with the provisions of this Act, shall
continue to be in full force and effect.


SEC. 13. 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. 14. 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. 15 Effectivity. ~ This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved,