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   Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
EIGHTEENTH CONGRESS 
Third Regular Session 
House Bill No. _______ 
Introduced by Representative Ron P. Salo 
EXPLANATORY NOTE 
Omninet Philippines, Inc. (Omninet) is a domestic corporation engaged in the 
public mobile radio system operation industry. It was founded in October of 1991 with 
its principal place of business in Quezon City. Omninet was granted a Congressional 
franchise to operate through Republic Act No. 7298, entitled “An Act Granting Omninet 
Philippines, Inc. a Franchise to Establish, Install, Maintain, Lease and Operate Wire 
and/or Wireless Telecommunications System, Lines, Circuits and Stations Within and 
Without the Philippines, and for Other Purposes” on March 26, 1992. 
Initially, Omninet mainly operated its Public Mobile Radio System nationwide. 
Later on, the company also applied for a license to establish, install, maintain, lease 
and 
operate 
a 
Personal 
Communications 
Network 
from 
the 
National 
Telecommunications Office. 
At present, the objective of Omninet is to become one of the fastest and most 
reliable providers of calls, texts, and internet services in the country. It aims to enhance 
the connectivity, productivity, and means of communication in the Philippines through 
better and more efficient telecommunication systems and internet services. However, 
the franchise had already expired upon the termination of the 25-year term granted by 
Republic Act No. 7298. Without the franchise, Omninet cannot legally operate under 
our laws and jurisdiction. Thus, it is requested in this bill that a new Congressional 
franchise be granted to Omninet Philippines Inc. 
Omninet aims to provide high quality and affordable communication and 
internet services to sectors like local businesses, students, farmers, and Overseas 
Filipino Wokers (OFW) and their families. Omninet will also position its services to be 
a channel to convey messages of hope, good Christian values, current news and 
events, and access to information to every Filipino. 
The 
pandemic 
has 
exposed 
the 
critical 
importance 
of 
efficient 
telecommunications as an essential service in keeping the economy and society 
afloat. The times demand continuous improvement and enhancement of our 
communications and information systems to provide connectivity and instant access 
to education, medical, and financial facilities. Omninet plans to use its existing 
infrastructure and facilities to continuously adapt and upgrade its system to the 
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demand of the times and deliver the most appropriate and reliable services to the 
people. The advancement of our telecommunications and internet services will be 
essential in our recovery in the new normal. 
In view of the foregoing, approval of this bill is earnestly sought. 
RON P. SALO   
 KABAYAN Party List 


 
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   Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
EIGHTEENTH CONGRESS 
Third Regular Session 
House Bill No. _______ 
Introduced by Representative Ron P. Salo 
AN ACT 
GRANTING OMNINET PHILIPPINES, INC. A FRANCHISE TO CONSTRUCT, 
ESTABLISH, INSTALL, MAINTAIN, LEASE AND OPERATE WIRE AND/OR 
WIRELESS TELECOMMUNICATIONS SYSTEMS, LINES, CIRCUITS AND 
STATIONS WITHIN AND WITHOUT THE PHILIPPINES, AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippine Congress 
assembled: 
SECTION 1. Nature and Scope of Franchise. – Subject to the provisions of 
the 1987  Constitution and applicable laws, rules and regulations, there is hereby 
granted to Omninet Philippines, Inc., hereunder referred to as the grantee, its 
successors or  assignees, a franchise to construct, establish, install, maintain, lease 
and operate, for commercial purposes and in the  public interest wire and/or wireless 
telecommunication systems, lines, circuits and stations, fiber  optics, microwave and 
other facilities that are appropriate to the provision of up-to-date  telecommunication 
facilities within and without the Philippines, for public communications  including, but 
not 
limited 
to, 
two-way 
radio 
communications 
systems, 
paging, 
mobile/cellular  services, packet switched system, satellite transmit and receive 
systems, switches, pay television  and/or program services by wire or wireless means, 
internet, and other telecommunication  systems and their value-added services. 
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 or frequencies and the 
quality of transmission or reception thereon as should  maximize rendition of the 
grantee’s services and/or the availability thereof.  
SEC. 3. Authority of the National Telecommunications Commission. – The 
grantee shall secure from the National Telecommunications Commission (NTC) a 
Certificate of Public Convenience and Necessity, or the appropriate permits and 
licenses for the construction, installation, and operation of its telecommunications 
systems or facilities. In issuing the certificate, the NTC shall have the power to impose 
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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 NTC.  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, permits or licenses.  
 
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 set by  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 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. 5. Responsibility to the Public. – The grantee shall conform to the ethics 
of honest enterprise and shall not use its stations and facilities for obscene or indecent 
transmissions, or for the dissemination of deliberately false information, or willful 
misrepresentation, or assist in subversive or treasonable acts.   
 
The grantee shall operate and maintain all its facilities, 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  facilities, lines, cables, systems and equipment to keep 
abreast with advances in science and technology.  
 
The grantee shall also improve and extend its services in areas not yet served, 
and in  hazard- and typhoon-prone areas that shall be determined by the National 
Disaster Risk  Reduction and Management Council, or its legal successor, in 
coordination with the NTC.  
 
The grantee shall also improve and upgrade its equipment, facilities and 
services, in order to ensure effective compliance with the objectives of Republic Act 
No. 10639 or the “Free Mobile Disaster Alerts Act.”  
 
SEC. 6. Rates for Services. – The charges and rates for services of the 
grantee, except  the rates and charges on those that may hereafter be declared or 


 
 
 
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considered as non-regulated  services, whether flat rates or measured rates or a 
variation thereof, shall be subject to the  approval of the NTC or its legal successor. 
The rates to be charged by the grantee shall be unbundled, separable, and distinct 
among the services offered, and shall be determined in a manner that regulated 
services do not subsidize the unregulated ones.  
 
SEC. 7. Right of the Government. – 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 and order, to temporarily take over and 
operate the stations or facilities of  the grantee; 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 thereof by  any agency of the 
government, upon due compensation to the grantee, for the use of the stations  or 
facilities during the period when these shall be so operated.  
 
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.  
 
SEC. 8. Term of Franchise. – This franchise shall be in effect for a period of 
twenty-five (25) years from the date of 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. 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 by the NTC.  
 
SEC. 10. Mobile Number Portability. – The grantee shall provide mobile 
number portability (MNP) and its implementing mechanism, and shall interconnect, 
directly or indirectly, with the infrastructure, facilities, systems, or equipment of other 
telecommunications franchise grantees. It shall not install network features, functions, 
or capabilities that will impede the implementation of a nationwide MNP system. The 
NTC shall issue rules and regulations for this purpose, the effectivity of which shall 
commence upon applicability with other telecommunications franchise grantees.   
 
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,  whether to property or to persons, by the construction or 
operation of the stations, transmitters,  facilities, or equipment of the grantee.  
 
SEC. 12. Sale, Lease, Transfer, 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, partnership, corporation or other commercial  or legal entity, nor merge with 


 
 
 
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any other corporation or entity, nor the controlling interest of the  grantee be 
transferred 
simultaneously 
or 
contemporaneously, 
to 
any 
person, 
firm, 
company,  partnership, corporation or entity without the prior approval of the Congress 
of the Philippines. Congress shall be informed of any sale, lease, transfer, grant of 
usufruct or assignment of  franchise or the rights and privileges acquired thereunder, 
or of the merger or transfer of the  controlling interest of the grantee, within sixty (60) 
days after the completion of said transaction.  Failure to report to Congress such 
change of ownership shall render the franchise ipso facto revoked. Any person or 
entity to which this franchise is sold, transferred or assigned shall be subject to all 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 offer to 
Filipino citizens at least  thirty percent (30%) of its common stocks or a higher 
percentage that may hereafter be provided  by law, in any securities exchange in the 
Philippines within five (5) years from the effectivity of this Act: 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. Non-compliance therewith shall render the franchise ipso facto 
revoked.  
 
SEC. 14. Commitment to Provide and Promote the Creation of 
Employment Opportunities. – The grantee shall create employment opportunities as 
well as accept on-the-job  trainees in the franchise operation: Provided, That priority 
shall be accorded to the residents of the  place where the principal office of the grantee 
is located: Provided further, That the grantee shall  comply with 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 (SEC) annually.   
 
SEC. 15. Reportorial Requirement. – The grantee shall submit an annual 
report on its  compliance with the terms and conditions of the franchise and on its 
operations 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 or before April 30 of  every year during the term of the franchise.  
 
The Annual Report shall include an update on the roll-out, development and 
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 operation; and an  update on the dispersal of ownership and 
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. 16. Fine. – Failure of the grantee to submit the requisite annual report to 
Congress  shall be penalized by a fine 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 


 
 
 
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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 the Treasury.  
 
SEC. 17. Equality Clause. – Any advantage, favor, privilege, exemption, or 
immunity  granted under 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 provisions of telecommunications 
franchises concerning territorial coverage, the term, or  the type of service authorized 
by the franchise.  
 
SEC. 18. Repealability and Non-Exclusivity 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 privileges herein provided for.  
 
SEC. 19. Separability Clause. – If any of the sections or provisions of this Act 
is held invalid, all the other provisions not affected thereby shall remain valid.  
 
SEC. 20. Repealing Clauses. – All laws, decrees, orders, resolutions, 
instructions, rules and regulations, and other issuance or parts thereof which are 
inconsistent with the provisions of this Act are hereby repealed, amended or modified 
accordingly. 
 
SEC. 21. Effectivity. – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.  
 
Approved.