Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Fifteenth Congress
First Regular Session

2231

HOUSE BILL NO.

Introduced by HON, JOSE MA. F. ZUBIRI TH

EXPLANATORY NOTE

PHILIPPINE WIRELESS, INC. has been the Philippines’ leading network paging service
provider under the trade name “POCKETBELL”

POCKETBELL is a predominantly Filipino owned and controlled corporation, and it is managed
by Filipino professional managerial experts. It has a long history of telecommunications services
to the nation, starting with domestic telegraphy and then voice and alpha-numeric paging

With the advancement of messaging technology, POCKETBELL is engaged in providing
affordable international text messaging, catering to overseas Filipino workers and their
Philippine based families.

POCKETBELL’s franchise will allow it to provide advance wireless messaging services
beneficial to the general public.

Hence, the approval of this bill is earnestly sought

F. “Sak Ta

JBIRE MIE

SE MA. F,
Representative
3" District, Bukidnon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
FIFTEENTH CONGRESS

First Regular Session

2231

House Bill No.

Introduced by HON. JOSE MA, F, ZUBIRI TIL

AN ACT
GRANTING PHILIPPINE WIRELESS, INC. A FRANCHISE TO CONSTRUCT,
INSTALL, ESTABLISH, OPERATE AND MAINTAIN TELECOMMUNICATIONS
SYSTEMS THROUGHOUT THE PHILIPPINES

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

SECTION 1. Nature and Scope of Franchise. ~ Subject to the provisions of the
Constitution and applicable laws, rules and regulations, there is hereby granted to PHILIPPINE
WIRI

construct, install, establish, operate and maintain for commercial purposes and in the public

ESS, INC., hereunder referred to as the grantee, its successors or assigns, a franchise to

interest, throughout the Philippines and between the Philippines and other countries and
territories, wire and/or wireless telecommunications systems, including but not limited to mobile,
cellular, paging, fiber optics, multi-channel distribution system (MMDS), local multi-point
distribution system (LMDS), satellite transmit and receive systems, switches, and their value-
added services such as, but not limited to, transmission of voice, data, facsimile, control signs,
audio and video, information services bureau 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 in or are convenient or essential to efficiently
carry out the purpose of this franchise


SEC. 2. Mamer of Operation of Stations of 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
imerference on the wavelengths or frequencies of existing stations or other stations which may
be established by law, without in any way diminishing its own right to use its selected
wavelengths or frequencies and the quality of transmission or reception thereon as should

maximize rendition of the grantees services and/or the availability thereof.

SEC. 3. Authority of the National Telecommunications Commission. ~ The grantee shall
secure from the National Telecommunications Commission (NTC), hereinafter referred to as the

Commission, a Certificate of Public Convenience and Neces

ity or the appropriate permits and
licenses for the construction, installation and operation of its telecommunications
systems/facilities, In issuing the certificate, the Commission shall have the power to impose such
conditions relative to the construction, operation, maintenance, or service level of the
telecommunications system. The Commission 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 having been authorized by the Commission, Such
certificate shall state the areas covered and date the grantee shall commence the service, The
Commission, however, shall not unreasonably withhold or delay the grant of any such authority,

permits or licenses.

SEC. 4. Ingress and Egress. ~ 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
assigns, with the prior approval of the Department of Public Works and Highways (DPWH), to
make excavations or lay conduits in any of the public places, highways, streets, lanes, alleys,
avenues, sidewalks or bridges of said province, cities and/or municipalities: Provided, however,
That a public place, 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

antee, its successors or assigns, i

accordance with the standards set by DPWH. Should the

grantee, its successors assigns, after the ten days 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

ssigns,
then the DPWH 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 assigns

SEC. 5, Responsibility to the Public. - The grantee shall conform to the ethics of honest

ities for obscene or indecent transmission or for

enterprise and not use its. stations/faci

dissemination of deliberately false information or willful misrepresentati

fn, or assist in

subversive or treasonable acts.

‘The grantee shall provide basic or enhanced telephone service in any municipality in the
Philippines where it has an approved Certificate of Public Convenience and Necessity for the
establishment, operation and maintenance of a local exchange service, without discrimination to
any applicant therefor, in the order of the date of their applications, up to the limit of the capacity
of its local telephone exchange, and should the demand for the telephone service at any time
increase beyond the capacity thereof, the grantee shall increase the same to meet such demand:
Provided, That in case the total demand to be satisfied by the expansion is less than the smallest
viable local exchange available in the market as determined by the Commission, the grantee shall
not be obliged to furnish such service unless the applicant for telephone service defrays the
actual expenses for the installation of the telecommunications apparatus necessary for such
services and in such case, the Commission may extend the time within which the grant shall

furnish such service.

‘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


SEC. 6. Rates for Ser

ices. — The charges and rates for telecommunications services of

the grantee, except the rates and charges on those that may hereafier be declared or considered as

nonregulated ser

ices, whether flat rates or measured rates or variation thereof, shall be subject
to the approval of the Commission 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

such a manner that regulated services do not subsidize the unregulated ones.

SEC. 7. Right of Government. ~ A special right is hereby granted 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, 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,

urity 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

id stations, transmitters, facilities or equipment during the period
when they 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 withrawn anytime afer
due process.

SEC. 8. Term of Franchise. ~ This franchise shall be for a term 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 fa

to comply with any of the following
conditions

(a) Commence operation within three (3) years from the approval of its operating 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. 9. Acceptance and Compliance. ~ Acceptance of this franchise shall be given in

writing within sixty (60) days from the effectivit

y of this Act. Upon such acceptance, the
grantee shall exercise the privileges granted under this Act. Nonacceptance shall render the

franchise void

SEC. 10. Bond. - The grantee shail file a bond issued in favor of the National
Telecommunications Commission, which shall determine the amount, to guarantee the
compliance with and fulfillment of the conditions under which this franchise is granted. If, after
five (5) years from the date of the approval of its permit by the Commission, the grantee shall
have fulfilled the same, the bond shall be cancelled by the Commission. Otherwise, the bond

shall be forfeited in favor of the government and the franchise ipso facto revoked.

SEC. 11. Right of Intercomection. ~ The grantee is hereby authorized to connect or
demand connection of its telecommunications systems to any other telecommunications systems
installed, operate 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 such terms and conditions mutually agreed upon by the parties concerned and the same

shall be subject to the review and modification of the Commission.

SEC. 12. Gross Receipts. - The grantee, its successors or assigns, shall keep a separate
account of the gross receipts of the business transacted by it and shall furnish the Commission on
Audit and the National Treasury a copy of such account not later than the thirty-first G Ist) day

of January of each year for the preceding twelve (12) months.

13. Books and Accounts. ~ The books and accounts of the grantee, its successor or
assigns, shall always be open to the inspection of the Commissioner on Audit or his authorized
representatives and it shall be the duty of the grantee to submit to the COA two (2) copies of the

quarterly reports on the gross receipts, the net profits and the general condition of the business


14. Warranty in Favor of the National aud Local Governments. ~ The grantee shall

hold the national, provincial, city and municipal governments of the Philippines harmless trom

all claim:

‘counts, demands or actions arising out of accidents or injuries, whether to property
oF to persons, caused by the construction or operation of the stations, wansmitters, facilities and

equipment of the g1

mee

15, Nomransferability of Franchise. ~ The grantee shall not lease, transfer, grant
the usuffuct of, 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 the controlling interest of the grantee be transferred,
whether as a whole or in parts and whether simultaneously or contemporaneously, to any such
person, firm, company, corporation or entity without the prior approval of the Congress of the

Philippines, Any person or entity to which this franchise is validly sold, transferred or

igned,

shall be subject to the same conditions, terms, restrictions and limitations of this Act.

SEC. 16, Dispersal of Ownership. ~ In accordance with the constitutional provision to
encourage public participation in public utilities, the grantee shall offer at least thirty percentum
(30%) of its outstanding capital stock or a higher percentage that may hereafter be provided by

law in any 5

ecurities exchange in the Philippin

within five (5) years from the commencement

s operations. Noncompliance therewith shall render the franchise ipso facto revoked.

SEC. 17. Equality Clause. ~ Any advantage, favor, privilege, exemption, or immunity
granted under existing franchise, or which may hereafter be granted, shall ipso facto become part
of this franchise and shall be accorded immediately and unconditionally to the herein grantee:
Provided, however

That the foregoing shall neither apply to nor affect provisions of

telecommunications franchises concerning territory covered by the franchise, the life span of the

‘anchise or the type of service authorized by the franchise.

SEC. 18, Reportorial Requirement. ~The grantee shall submit an annual report to the
Congress of the Philippines on its compliance with the terms and conditions of the franchise and

on its operations within si

ty (60) days from the end of every year.


SEC. 19. Separability Clause —\f any of the sections or provisions of this Act is held

invalid, all other provisions not affected thereby shall remain valid,

SEC. 20. Repeatability and Nonexctusivity Clause — This franchise shall be subject to

amendment, alteration, or repeal by the Congress of the Phi

pines when the public interest so

requir

's and shall not be interpreted as an exclusive grant of the privileges herein provided for

EC. 21. Kffectivity Clause, ~ This Act shall take effect fifieen (15) days from the date of

its publication, upon the initiative of the grantee, in at least two (2) newspapers of general

circulatic

the Philippines.

Approved,