Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

?
HOUSE BILL Nome

INTRODUCED BY REPRESENTATIVE JOSE “PINGPING” I. TEJADA

EXPLANATORY NOTE

The proposed law seeks to extend Bayan Telecommunications, Inc. (formerly
“International Communications Corporation; hereinafter “Bayantel”) legislative
franchise for another twenty-five (25) years

Fayantel is a corporation organized and existing under the laws of Republic of the
Philippines, and one hundred percent (100%) owned and controlled by Globe Telecors
Inc. The registered address and principal place of business of Bayantel is Bayantel
Operation Center, 234 Roosevelt Avenue, San Francisco Del Monte, Quezon City.

Bayantel provides wireline, data and corporate communications solutions to
households and business clients under the Globe Group of Companies. It provides
fixed-line telecommunications, wireless and fixed line broadband and convergent
services, and networks for enterprise clients. It also offers wireline voice services,
which offers businesses access to advanced telecommunications functions and
features; and wireline data services, which provides business customers high-speed
data services over a nationwide broadband network.

The National Telecommunications Commission (NTC), in Certificates of Public
Convenience and Necessity (CPCN), granted Bayantel with the authority to install,
Construct, operate and maintain Local Exchange Carrier (LEC); International Gateway
Facility (IGF); Cellular Mobile Telephone System (CMTS); digital telephone exchanges;
trunk mobile radio system (Metro Manila); domestic (data and voice) communications
at additional speeds; full duplex point-to-multi Point radio communications network
for data throughout the Philippines; and cable landing station and submarine cable
system that links the Philippines and the United States of America. As of March 2019,
Bayantel serves a total of not less than 110,000 subscribers in wired/fixed line,
wireless home broadband, fixed line broadband - residential and business telecom
services.


Bayantel's franchise will expire on 09 August 2021. The extension thereof will alow
Bayantel to continue providing various telecommunications services throughout the
Philippines and between the Philippines and other countries and territories at rates
affordable to the consuming public.

The immediate passage of the measure, which will further amend and further extend
Republic Act No. 3259, as amended by Republic Act No. 7633 willbe, in essence, in
recognition of Bayantel’s contribution in nation-building. Over the years, Bayantel has
been rolling-out its fixed line, wireless broadband and fixed line broadband and
telecommunication services throughout the country. Bayantel proved its financial and
technical capability to operate and maintain a vast telecommunications network.

Extending Bayantel’s franchise will also ensure the uninterrupted and improved
delivery of its services to the Filipino people and will allow Bayantel to construct,
establish, install, maintain, lease, co-use, purchase and operate the corresponding
transmitting and receiving stations, satellites, lines, systems, networks, international
Bateways, local exchanges, and platforms as it may consider necessary and
convenient, or reasonable.

{tis to the best interest of the State and public that Bayantel's franchise be extended.

The immediate passage of the proposed law is earnestly sought.

ih

JOSE “PING |. TEAADA
3" District, Proyfnce of Cotabato


SeocmyuMuaune

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

5797
HOUSE BILLNO._

INTRODUCED BY REPRESENTATIVE JOSE “PINGPING” |. TEIADA

AN ACT

EXTENDING FOR ANOTHER TWENTY-FIVE (25) YEARS THE FRANCHISE GRANTED To
INTERNATIONAL COMMUNICATIONS CORPORATION PRESENTY KNOWN AS BAYAN
TELECOMMUNICATIONS INC., FURTHER AMENDING CERTAIN SECTIONS OF
REPUBLIC ACT NO. 3259, ENTITLED “AN ACT GRANTING THE INTERNATIONAL
COMMUNICATIONS CORPORATION A FRANCHISE TO ESTABLISH RADIO STATIONS,
FOR DOMESTIC TELECOMMUNICATIONS, RADIOPHONE, BROADCASTING AND
TELECASTING” AS AMENDED BY REPUBLIC ACT NO. 7633, AND FOR OTHER
PURPOSES

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

Section 1. Section Four of Republic Act No. 3259, as amended by Republic Act No.
4905, which was further amended by Republic Act No. 7633 is hereby furthermore
amended to read as follows:

"Sec. 4. The franchise of the grantee, as herein amended, is hereby
extended by twenty-five (25) years from the expiration thereof on 9
August [1996] 2021."

Section 2. Section Five of Republic Act No. 7633 is hereby amended to read as follows:

“Sec. 5. SUBJECT TO THE REQUIREMENTS OF SECURITIES AND
EXCHANGE COMMISSION AND THE STOCK EXCHANGE CONCERNED
[In compliance which the constitutional mandate to democratize
ownership of public utilities], the herein grantee shall make public
Utilities offering to the stock exchanges at least thirty percent (30%) of
its AUTHORIZED CAPITAL [common] stock IN ANY SECURITIES


19 EXCHANGE IN THE PHLIPPINES within a period of three (3) years from

20 the date of effectivity of this Act [: provided, that no single person or
21 entity shall be allowed to own more than five percent (5%) of the stock]
22 UNLESS THE GRANTEE IS WHOLLY OWNED BY A PUBLICLY LISTED
23 COMPANY WITH AT LEAST THIRTY PERCENTUM (30%) OF WHOSE
24 AUTHORIZED CAPITAL STOCK IS PUBLICLY OWNED.”

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27 Section 3. Section Sixteen of Republic Act No. 7633 is hereby amended to read as
28 follows:

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31 “SECTION 16. The grantee shall not lease, transfer, grant the usufruct
32 Of, sell or assign this franchise, or the rights and privileges acquired
33 thereunder to any person, firm, company, partnership, corporation or
34 other commercial or legal entity, nor merge with any other Person,
35 firm, company, partnership or corporation organized for the same
36 purpose WITHOUT THE PRIOR APPROVAL OF THE CONGRESS OF THE
37 PHILIPPINES, except (A) where the grantee is the surviving corporation;
38 (8) WHEN THE TRANSFER IS DONE THROUGH A STOCK EXCHANGE
39 TRANSACTION; (C) WHEN THE TRANSFER IS DONE FOR PURPOSES. OF
40 QUALIFYING PERSONS FOR ELECTION TO THE BOARD; (D) WHEN THE
41 TRANSFEREE IS A CORPORATION THAT IS. CONTROLLED BY THE SAME
42 STOCKHOLDERS AS THAT OF THE GRANTEE; (E) WHEN THE
43 TRANSFEREE IS A PERSON, FIRM, COMPANY, CORPORATION OR
44 ENTITY WITH A VALID AND EXISTING LEGISLATIVE FRANCHISE FOR
45 TELECOMMUNICATIONS [without the Prior approval of the Congress
46 of the Philippines.]; PROVIDED, FURTHER, THAT, ANY SUCH TRANSFER,
47 SALE OR ISSUANCE IS IN ACCORDANCE WITH ANY APPLICABLE
48 CONSTITUTIONAL PROVISION.

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50 Any corporation to which this franchise may be sold, transferred or
51 assigned shall be subject to [the corporation laws of the Philippines
32 Now existing or hereafter enacted, and any person, firm, company,
53 Partnership, corporation or other commercial or legal entity to which
34 this franchise is sold, transferred or assigned shall be subject to) all
55 conditions, terms, restrictions and limitations of this ACT [franchise as
56 fally and completely and to the same extent as if the franchise had
57 been originally granted to the said person, firm, company, partnership,
58 corporation or other cornmercial or legal entity].”

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65 Section 4. Section Eighteen of Republic Act No. 7633 is hereby amended to read as
66 follows:

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69 “SECTION 18. [Within sixty (60) days after effectivity of this Act, the
70 grantee shall file with the National Telecommunications Commission
n its written acceptance of this Act and all the terms and conditions
2 hereof and, in default of such acceptance, within the time so limited,
B this Act shall become null and void.) THE GRANTEE SHALL IMPROVE
14 AND UPGRADE ITS EQUIPMENT, FACILITIES, AND SERVICES IN ORDER
75 TO ENSURE EFFECTIVE COMPLIANCE WITH THE OBJECTIVES OF
76 REPUBLIC ACT NO. 10639 OR THE ‘FREE MOBILE DISASTER ALERTS
77 acr’”

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80 Section 5. The present Sections 20, 21 and 22 of Republic Act No. 7633 are hereby
81 renumbered as Sections 23, 24 and 25 respectively.

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84 Section 6. The new Section 20 shall now read as follows:

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86 “SEC. 20. CONTRACT WITH PRIVATE ENTITIES. THE GRANTEE IS
87 AUTHORIZED TO CONTRACT THE INSTALLATION AND OPERATIONS OF
88 THE TELECOMMUNICATIONS SYSTEM WHICH IS THE SUBJECT OF THIS
89 GRANT WITH ENTITIES WITH EXPERTISE IN THE FIELD OF
90 TELECOMMUNICATIONS UNDER SUCH TERMS AND CONDITIONS AS
91 MAY BE APPROVED BY THE NATIONAL TELECOMMUNICATIONS
92 COMMISSION.”

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94 Section 7. The new Section 21 shall now read as follows:

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96 “SECTION 21. REPORTORIAL REQUIREMENTS. - THE GRANTEE SHALL
97 SUBMIT AN ANNUAL REPORT TO THE CONGRESS OF THE PHILIPPINES,
98 THROUGH THE COMMITTEE ON LEGISLATIVE FRANCHISES OF THE
99 HOUSE OF REPRESENTATIVES AND THE COMMITTEE ON PUBLIC
100 SERVICES OF THE SENATE, ON ITS COMPLIANCE WITH THE TERMS
101 AND CONDITIONS OF THE FRANCHISE AND ON ITS OPERATIONS ON
102 OR BEFORE APRIL 30 OF EVERY YEAR DURING THE TERM OF ITS
103 FRANCHISE. THE REPORTORIAL COMPLIANCE CERTIFICATE ISSUED BY
104 CONGRESS SHALL BE REQUIRED BEFORE ANY APPLICATION FOR
105 PERMIT OR CERTIFICATE IS ACCEPTED BY THE NTC.”
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Section 8. The new Section 22 shall now read as follows:

“SECTION 22. EQUALITY CLAUSE. - ANY ADVANTAGE, FAVOR,
PRIVILEGE, EXEMPTION, OR IMMUNITY GRANTED UNDER EXISTING
FRANCHISE, 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 AND
UNCONDITIONALLY TO THE HEREIN GRANTEE: PROVIDED, THAT THE
FOREGOING SHALL NEITHER APPLY NOR AFFECT PROVISIONS OF
TELECOMMUNICATIONS FRANCHISES CONCERNING TERRITORY
COVERED BY THE FRANCHISE, THE LIFESPAN OF THE FRANCHISE OR
TYPE OF SERVICE AUTHORIZED BY THE FRANCHISE.”

Section 9. All the other provisions, terms and conditions contained in Republic Act No.
3259 and Republic Act No. 7633 which are not inconsistent with the provisions of this
act and remain unrepealed shall continue to be in full force and effect.

Section 10. This Act shall take effect fifteen (15) days after its publication in the Official

Gazette or in an newspaper of general circulation in the Philippines.

Approved: