Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. __________ 
INTRODUCED BY REPRESENTATIVE JOSE “PINGPING” TEJADA 
EXPLANATORY NOTE 
Pacific Wireless, Inc. (hereinafter, “PWI” or the “Company”) was incorporated in the 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 Investments, 
Inc.) and 40% oby Sandaigdigan, Inc.  
In July 26, 1996, Republic Act No. 8281 entitled: “An Act Granting the Pacific Wireless, Inc., a 
Franchise to Construct, Establish, Install, Maintain and Operate Wire and/or Wireless 
Telecommunications Systems Throughout the Philippines” was granted 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; namely, wireless Internet 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. 
JOSE “PINGPING” I. TEJADA 
 3rd District, Province of Cotabato 
March 3, 2022
10:22 am
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. __________ 
INTRODUCED BY REPRESENTATIVE JOSE “PINGPING” I. TEJADA 
AN ACT 
RENEWING THE FRANCHISE GRANTED TO PACIFIC WIRELESS, INC. TO CONSTRUCT, ESTABLISH, 
INSTALL, OPERATE AND MAINTAIN WIRE AND/OR WIRELESS TELECOMMUNICATIONS 
SYSTEMS THROUGHOUT THE PHILIPPINES UNDER R.A. 8281 FOR ANOTHER TWENTY-FIVE (25) 
YEARS FROM THE DATE OF APPROVAL OF THIS ACT 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
Section 1. Renewal of Franchise - The franchise of Pacific Wireless, Inc., its successors and 
1 
assignees, hereinafter referred to as the grantee, to construct, install, establish, operate and 
2 
maintain for commercial purposes and in the public interest, throughout the Philippines, and 
3 
between the Philippines and other countries and territories, telecommunications system 
4 
including mobile, cellular, wired or wireless telecommunications systems, and their value added 
5 
services such as, but not limited to, transmission of voice, data, facsimile, control signs, audio and 
6 
video, information and service bureau, and all other telecommunications systems technologies 
7 
as are at present available or will be made available through technological advances or 
8 
innovations in the future, and construct, acquire, lease and operate or manage transmitting and 
9 
receiving stations, lines, cables or systems, as is, or are, convenient or essential to efficiently carry 
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out its purpose, is hereby renewed for another twenty five (25) years from the date of approval 
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of this Act. 
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Section 2. Manner of Operation of Stations or Facilities - The stations or facilities of the grantee 
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shall be construed and operated in a manner as will at most, result only in the minimum 
14 
interference on the wavelengths or frequencies of existing stations or other stations which may 
15 
be established by law, without in any way diminishing its own right to use its selected 
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wavelengths or frequencies and the quality of transmission or reception thereon as should 
17 
maximize rendition of the grantee’s services and/or availability thereof. 
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Section 3. Prior Approval of the National Telecommunications Commission - The grantee shall 
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secure from the National Telecommunications Commission the appropriate permit and license 
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for its stations and shall not use any frequency in the radio/television spectrum without having 
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been authorized by the Commission. The Commission, however, shall not unreasonably withhold 
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or delay the grant of such authority. 
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Section 4. Responsibility to the Public - The grantee shall conform to the ethics of honest 
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enterprise and shall not use its stations for obscene or indecent transmission or for dissemination 
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or deliberately false information or willful misrepresentation, or assist in subversive or 
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treasonable acts. 
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The grantee shall provide basic or enhanced telephone service in any municipality in the 
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Philippines where it has an approved certificate of convenience for the establishment, operation 
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and maintenance of a local exchanges service, without discrimination to any applicant therefor, 
30 
in the order of the date of their applications, up to the limit of the capacity of its local telephone 
31 
exchange, and should the demand for the telephone service at any time increase beyond the 
32 
capacity thereof, the grantee shall increase the same to meet such demand: Provided, That in 
33 
case the total demand satisfied by the expansion is less than the smallest viable local exchange 
34 
available in the market as determined by the Commission, the grantee shall not be obliged to 
35 
furnish said service, unless the applicant for telephone service defrays the actual expenses for 
36 
the installation of the telecommunications apparatus necessary for such services and in such 
37 
case, the Commission may extend the time within which the grantee shall furnish such service. 
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The grantee shall operate and maintain all its stations, lines, cables, systems, and equipment for 
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the transmission and reception of messages, signals and pulses in a satisfactory manner at all 
40 
times, and as far as economical and practicable, modify improve or change such stations, lines, 
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cables, systems, and equipment to keep abreast with the advances in science and technology. 
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Section. 5. Right of the Government - A special right is hereby reserved to the President of the 
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Philippines in times of war, rebellion, public peril, calamity, emergency, disaster or disturbance 
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of peace and order, to temporarily suspend the operation of any station or facility in the interest 
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of public safety, security and public welfare, or to authorize the temporary use and operation 
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thereof by any agency of the government, upon due compensation to the grantee.  
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Section 6. Term of Franchise - The franchise shall be in effect for a period of twenty-five (25) 
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years from approval of this Act, unless sooner revoked or cancelled. This franchise shall be 
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deemed ipso facto revoked in the event the grantee fails to operate continuously for two (2) 
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years. 
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Section 7. Acceptance and Compliance - Acceptance of this new franchise shall be given in writing 
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to the Congress of the Philippines, through the Committee on Legislative Franchises of the House 
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of Representatives and the Committee on Public Services of the Senate, within sixty (60) days 
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from the effectivity of this Act. Upon giving such acceptance, the grantee shall exercise the 
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privileges granted under this Act. Non-acceptance shall render the franchise void.  
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Section 8. Right of Interconnection - The grantee is hereby authorized to connect or demand 
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connection to its telecommunications systems to any other telecommunications systems, 
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installed, maintained, and operated by any other duly authorized person or entity in the 
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Philippines for the purpose of providing extended and improved telecommunications services to 
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the public, under such terms and conditions mutually agreed upon by the parties concerned and 
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the same shall be subject to the review of modifications of the Commission. 
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Section 9. Tax Provisions - The grantee, its successors or assigns, shall be liable to pay the same 
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taxes on their real estate, buildings and personal property, exclusive of this franchise, as other 
64 
persons or corporations are now or hereafter may be required by law to pay. In addition thereto, 
65 
the grantee, its successors or assigns, shall pay a franchise tax equivalent to three percent (3%)  
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of all gross receipts of the radio/television business transacted under this franchise by the 
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grantee, its successors or assigns, and the said percentage shall be in lieu of all taxes on this 
68 
franchise or earnings thereof; Provided, That, the grantee, its successors or assigns, shall continue 
69 
to be liable for income taxes payable under Title II of the National Internal Revenue Code 
70 
pursuant to Section 2 of Executive Order No. 72 unless the latter as enacted is amended or 
71 
repealed, in which case the amendment or repeal shall be applicable thereto. 
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The grantee shall file the return with and pay the tax due thereon to the Commissioner of Internal 
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Revenue of his duly authorized representative, in accordance with the National Internal Revenue 
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Code, and the return shall be subject to audit by the Bureau of Internal Revenue. 
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Section 10. Dispersal of Ownership - In accordance with constitutional provisions to encourage 
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public participation in public utilities, the grantee shall offer at least thirty per centum (30%) of 
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its outstanding capital stock or a higher percentage that may hereafter be provided by law in any 
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securities exchange in the Philippines within five (5) years from commencement of its operations. 
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Noncompliance therewith shall render the franchise ipso facto revoked. 
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Section 11. Self-Regulation by and Undertaking of Grantee - The grantee shall not require any 
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previous censorship of any speech, play, act or scene, or other matter to be broadcast from its 
82 
stations. Provided, That the grantee, during any broadcast, shall cut off from the air the speech, 
83 
play, act or scene, or other matter being broadcast if the tendency thereof is to propose and/or 
84 
incite treason, rebellion or sedition, or the language used therein or the theme thereof is 
85 
indecent or immoral. Provided, further, That willful failure to do so shall constitute a valid cause 
86 
for the cancellation of this franchise.  
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Section 12. Warranty in Favor of National and Local Governments - The grantee shall hold the 
88 
national, provincial, city and municipal government of the Philippines free from all claims, 
89 
accounts, demands or actions arising out of accidents or injuries, whether to property or persons, 
90 
caused by the construction or operation of the stations of the grantee. 
91 
Section 13. Separability Clause - If any of the sections or provisions of this Act as held invalid, all 
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other provisions not affected thereby shall remain valid.  
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Section 14. Sale, Lease, Transfer, Usufruct, or Assignment of Franchise - The grantee shall not 
94 
lease, transfer, grant the usufruct of, sell or assign this franchise or the rights and privileges 
95 
acquired thereunder to any person, firm, company, corporation or other commercial or legal 
96 
entity, nor shall the controlling interest of the grantee be transferred to any such private person, 
97 
firm, company, corporation or entity to which this franchise is sold, transferred or assigned shall 
98 
be subject to all the same conditions, terms, restrictions and limitation of this Act. 
99 
Section 15. Reportorial Requirement - The grantee shall submit an annual report to the Congress 
100 
of the Philippines on its compliance with the terms and conditions of its franchise and on its 
101 
operations within sixty (60) days from the end of every year. 
102 
Section 16. Repealability and Non-Exclusivity Clauses - This franchise shall be subject to 
103 
amendment, alteration, or repeal by the Congress of the Philippines when the public interest so 
104 
required and shall not be interpreted as an exclusive grant or privileges hereinafter provided for. 
105 
Section 17. Effectivity - This Act shall take effect fifteen days following its complete publication 
106 
in at least two (2) newspapers of general circulation. 
107 
Approved, 
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