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Republic of the Philippines 
HOUSE OF THE REPRESENTATIVES 
Quezon City, Metro Manila 
HB. NO. 
EXPLANATORY    NOTE 
      One year into the Covid-19 pandemic, we are now more than ever aware of how 
critical and important telecommunications services are for our country. Most of the business 
and commercial, educational, medical, banking and even religious activities have gone 
online, and the need for better and faster telecommunications services is a priority for our 
country.  And bringing in more new players in the telecommunications landscape is a step in 
the right direction. 
Our country today is adjusting to new ways of doing business, new ways of 
conducting classes in schools, new ways to deliver important medical services, new ways to 
conduct banking processes and even new ways of doing spiritual events. None of these can be 
done without a stable telecommunications landscape that will serve ideally all parts of our 
country, most importantly, the unserved and unserved areas. 
      While the incumbent players have committed their fair share to achieve this, more 
new telecommunications players coming into the telecommunications ecosystem assure us 
that we can achieve a better telecommunications landscape sooner than later. 
This is where NU Communications Corporation intends to play an active and 
critical role, at this important juncture of our nation building. It offers to quickly make itself 
an active player in the telecommunications landscape, in order to benefit our nation building, 
as a consequence of which progress and national development can be achieved. 
This bill is earnestly recommended for immediate approval. 
 HON. ALFREDO GARBIN, JR 
Rm. SW-105, House of Representatives, Batasan Hills, Quezon City 
Trunkline: (632) 8931-5001 loc. 7204 / Direct line:  (632) 8931-5823 
May 19, 2021
6:53 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. ________ 
___________________________________________________________________ 
Introduced by Rep. ALFREDO GARBIN, JR. 
AN ACT 
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GRANTING NU COMMUNICATIONS CORPORATION A FRANCHISE TO CONSTRUCT, 
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INSTALL, ESTABLISH, OPERATE AND MAINTAIN TELECOMMUNICATIONS SYSTEMS 
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THROUGHOUT THE PHILIPPINES” 
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Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
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assembled: 
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SECTION 1. Nature and Scope of Franchise. - Subject to the provisions of the 
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Constitution and applicable laws, rules and regulations, the franchise granted to NU 
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COMMUNICATIONS CORPORATION, hereunder referred as the grantee, its successor or 
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assignee,  a franchise to construct, install, establish, operate, and maintain for commercial 
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purposes and in the public interest, throughout the Philippines and between the Philippines 
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and other countries and territories, wired and/or wireless telecommunications systems 
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including mobile, fixed line, paging, trunked radio, fiber optics, multi-channel multipoint 
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distribution system (MMDS), local multi-point distribution system (LMDS), satellite transmit 
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and receive systems, switches, and value added services such as transmission of voice, 
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data, images, facsimile, control signs, audio and video, and all other telecommunications 
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system technologies as are present available or will be made available through technological 
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advances or innovations in the future; or construct, acquire, lease, and operate or manage 
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transmitting and receiving stations, landing stations of submarine cables, lines, systems, or 
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other cables as it may consider necessary and convenient to efficiently carry out the purpose 
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of this franchise. 
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SEC. 2.  Manner of Operation of Stations or Facilities. – The stations or facilities of 
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the grantee shall be constructed and operated in a manner as will, at most, result only in the 
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minimum interference on the wavelengths or frequencies of existing stations or other 
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stations which may be established by law, without in any way diminishing its own right to use 
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its assigned wavelengths or frequencies and the quality of transmission or reception thereon 
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as should maximize rendition of the grantee’s services or the availability thereof. 
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SEC. 3. Authority of the National Telecommunications Commission. – The grantee 
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shall secure from the National Telecommunications Commission (NTC) a Certificate of 
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Public Convenience and Necessity or the appropriate permits and licenses for the 
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construction, installation and operation of its telecommunications systems or facilities. In 
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issuing the certificate, the NTC shall have the power to regulate and impose such conditions 
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relative 
to 
the 
construction, 
operation, 
maintenance, 
or 
service 
level 
of 
the 
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telecommunications systems or facilities. Such certificate shall state the areas covered and 
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the date the grantee shall commence the service. The grantee shall not use any frequency in 
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the radio spectrum without authorization from the NTC. The NTC, however, shall not 
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unreasonably withhold or delay the grant of such authority, permit or license. 
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In case of any violation of the provisions of this franchise, the NTC shall have the 
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authority to revoke or suspend, after due process, the permits or licenses it issued pursuant 
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to the franchise. The NTC may recommend to Congress the revocation of the franchise for 
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any violation of the provisions of this franchise. 
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SEC. 4. Excavation and Restoration Works. – For the purpose of erecting and 
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maintaining poles or other supports for said wires or other conductors for the purpose of 
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laying and maintaining underground wires, cables, or other conductors, it shall be lawful for 
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the grantee, its successor or assignee, with the prior approval of the Department of Public 
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Works and Highways (DPWH) or the local government unit (LGU) concerned, as may be 
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appropriate, to make excavations or lay conduits in any of the public places, roads, 
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highways, streets, lanes, alleys, avenues, sidewalks, or bridges of the province, cities, or 
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municipalities: Provided, however, That a public place, road, highway, street, lane, alley, 
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avenue, sidewalk, or bridge disturbed, altered or changed by reason of erection of poles or 
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other supports or the underground laying of wires, other conductors or conduits, shall be 
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repaired and replaced in workmanlike manner by said grantee, its successor or assignee, in 
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accordance with the standards set by DPWH or the LGU concerned. Should the grantee, its 
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successor or assignee, after the ten (10)-day notice from the said authority, fail, refuse, or 
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neglect to repair or replace any part of public place, road, highway, street, lane, alley, 
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avenue, sidewalk, or bridge altered, changed or disturbed by the said grantee, its 
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successors or assignees, then the DPWH or the LGU concerned shall have the right to have 
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the same repaired and placed in good order and condition, and charge the grantee, its 
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successor or assignee at double the amount of the costs and expenses for such repair or 
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replacement. 
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SEC. 5. Responsibility to the Public. - The grantee shall conform to the ethics of 
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honest enterprise and not use its stations or facilities for obscene or indecent transmission, 
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or for dissemination of deliberately false information, or willful misrepresentation, or assist in 
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subversive or treasonable acts.  
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The grantee shall operate and maintain all its stations, lines, cables, systems, and 
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equipment for the transmission and reception of messages, signals, and pulses in a 
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satisfactory manner at all times, and as far as economical and practicable, modify, improve, 
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or change such stations, lines, cables, systems, and equipment to keep abreast with the 
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advances in science and technology. 
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The grantee shall improve and extend its services in areas not yet served, and in 
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hazard- and typhoon-prone areas that shall be determined by the National Disaster Risk 
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Reduction and Management Council, or its legal successor, in coordination with the NTC.   
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The grantee shall also improve and upgrade its equipment, facilities and services, in 
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order to ensure effective compliance with the objectives of Republic Act No. 10639 or the 
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“Free Mobile Disaster Alerts Act”. 
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SEC. 6. Rates for Services. – The charges and rates for telecommunications 
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services of the grantee, except the rates and charges on those that may hereafter be 
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declared or considered as nonregulated services, whether flat rates or measured rates or 
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variation thereof, shall be subject to the approval of the NTC or its legal successor. The rates 
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to be charged by the grantee shall be unbundled, separable and distinct among the services 
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offered and shall be determined in such a manner that regulated services do not subsidize 
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the unregulated ones. 
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SEC. 7.  Right of Government. – The radio spectrum is a finite resource that is part of 
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the national patrimony and the use thereof is a privilege conferred upon the grantee by the 
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State and may be withdrawn any time after due process. 
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A special right is hereby reserved to the President of the Philippines, in times of war, 
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rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order: to 
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temporarily take over and operate the stations, transmitters, facilities, or equipment of the 
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grantee; to temporarily suspend the operation of any station, transmitter, facility, or 
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equipment in the interest of public safety, security, and public welfare; or to authorize the 
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temporary use and operation thereof by any agency of the government, upon due 
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compensation to the grantee for the use of said stations, transmitters, facilities, or equipment 
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during the period when these shall be so operated. 
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SEC.  8. Term of Franchise. – This franchise shall be in effect for a period of twenty-five 
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(25) years from the effectivity of this Act, unless sooner revoked or cancelled. This franchise 
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shall be deemed ipso facto revoked in the event the grantee fails to operate continuously for 
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two (2) years. 
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SEC. 9. Right of Interconnection. – The grantee is hereby authorized to connect or 
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demand connection of its telecommunications systems to other telecommunications systems 
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installed, operated, and maintained by any other duly authorized person or entity in the 
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Philippines for the purpose of providing extended and improved telecommunications 
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services to the public, under the terms and conditions mutually agreed upon by the parties 
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concerned. This right shall be subject to the review and modification of the NTC. 
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SEC. 10.  Mobile Number Portability. – The grantee shall provide mobile number 
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portability (MNP) and its implementing mechanism, and shall interconnect, directly or 
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indirectly, 
with 
the 
infrastructure, 
facilities, 
systems, 
or 
equipment 
of 
other 
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telecommunications franchise grantees. It shall not install network features, functions, or 
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capabilities that will impede the implementation of a nationwide MNP system. The NTC shall 
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issue rules and regulations for this purpose, the effectivity of which shall commence upon 
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applicability with other telecommunications franchise grantees. 
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SEC. 11. Warranty in Favor of the National and Local Governments. - The grantee 
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shall hold the national, provincial, city, and municipal governments of the Philippines free 
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from all claims, liabilities, accounts, demands, or actions arising out of accidents causing 
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injury to persons or damage to properties, during the construction or operation of the 
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stations, transmitters, facilities, or equipment of the grantee.  
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SEC. 12. Sale, Lease, Transfer, Grant of Usufruct, or Assignment of Franchise. – 
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The grantee shall not sell, lease, transfer, grant the usufruct of, nor assign this franchise or 
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the rights and privileges acquired thereunder to any person, firm, company, partnership, 
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corporation, or other commercial or legal entity, nor merge with any other corporation or 
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entity, nor shall transfer the controlling interest of the grantee, simultaneously or 
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contemporaneously, to any person, firm, company, partnership or corporation organized for 
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the same purpose without the prior approval of the Congress of the Philippines. Congress 
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shall be informed of any sale, lease, transfer, grant of usufruct, or assignment of franchise or 
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the rights and privileges acquired thereunder, or of the merger or transfer of the controlling 
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interest of the grantee, within sixty (60) days after the completion of the transaction. Failure 
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to report to Congress such change of ownership shall render the franchise ipso facto 
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revoked.  
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Any corporation to which this franchise may be sold, transferred, or assigned shall be 
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subject to all conditions, terms, restrictions, and limitations of this Act. 
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SEC. 13. Dispersal of Ownership. -  In accordance with the constitutional provision to 
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encourage public participation in public utilities, the grantee shall offer to Filipino citizens at 
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least thirty percent (30%) of its common stocks, or a higher percentage that may hereafter 
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be provided by law, in any securities exchange in the Philippines within five (5) years from 
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the effectivity of this Act: Provided, That in cases where public offer of shares is not 
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applicable, other methods of encouraging public participation by citizens and corporations 
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operating public utilities must be implemented. Noncompliance therewith shall render the 
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franchise ipso facto revoked. 
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SEC. 14. Commitment to Provide and Promote the Creation of Employment 
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Opportunities. – The grantee shall create employment opportunities and accept on-the-job 
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trainees in the franchise operations: Provided, That priority shall be accorded to the 
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residents of the place where their principal office is located: Provided, further, That the 
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grantee shall ensure that at least sixty percent (60%) of its employees are regular 
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employees and in no case shall the percentage of contractual employees, job orders, 
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casuals, and independent contractors combined, exceed forty percent (40%) of its total 
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workforce: Provided, finally, That the grantee shall comply with the applicable labor 
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standards and allowance entitlement under existing labor laws, rules and regulations, and 
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similar issuances.   
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The employment opportunities or jobs created shall be reflected in the General 
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Information Sheet (GIS) to be submitted to the Securities and Exchange Commission (SEC) 
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annually. In addition, the grantee shall include in its annual report to Congress the number of 
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its regularized employees and secure a compliance and clearance certificate from the 
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Department of Labor and Employment and its relevant attached agencies. 
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SEC. 15. Reportorial Requirement. – The grantee shall submit an annual report on its 
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compliance with the terms and conditions of the franchise and on its operations to the 
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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, on or before April 
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30 of every year during the term of its franchise. 
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The annual report shall include an update on the roll-out, development, operation 
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and/or expansion of business; audited financial statements; latest GIS officially submitted to 
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the SEC, if applicable; certification of the NTC on the status of its permits and operations; 
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and an update on the dispersal of ownership undertaking, if applicable. 
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The reportorial compliance certificate issued by Congress shall be required before 
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any application for permit or certificate is accepted by the NTC. 
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SEC. 16. Fine. – Failure of the grantee to submit the requisite annual report to 
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Congress shall be penalized with a fine in the amount of one million pesos (P1,000,000.00) 
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per working day of noncompliance, the effectivity of which shall commence upon applicability 
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with other telecommunications franchise grantees: Provided, That in the interim, the grantee 
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shall be liable to pay the fine of five hundred pesos (P500.00) per working day of 
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noncompliance. The fine shall be collected by the NTC from the delinquent franchise grantee 
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separate from the reportorial penalties imposed by the NTC, and the same shall be remitted 
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to the Bureau of the Treasury. 
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SEC. 17. Equality Clause. - Any advantage, favor, privilege, exemption, or immunity 
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granted under existing franchises, or which may hereafter be granted, shall ipso facto 
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become part of previously granted telecommunications franchises and shall be accorded 
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immediately and unconditionally to the grantees of such franchises: Provided, however, That 
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the foregoing shall neither apply to nor affect provisions of telecommunications franchises 
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concerning territory covered by the franchise, the life span of the franchise, or the type of 
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service authorized by the franchise. 
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SEC. 18. Repealability and Nonexclusivity Clause.  – This franchise shall be subject 
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to amendment, alteration, or repeal by the Congress of the Philippines when the public 
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interest so requires and shall not be interpreted as an exclusive grant of the privilege herein 
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provided for.  
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SEC. 19.  Separability Clause. – If any of the sections or provisions of this Act is held 
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invalid, all other provisions not affected thereby shall remain valid. 
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SEC. 20. Repealing Clause. – All laws, decrees, orders, resolutions, instructions, 
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rules and regulations, and other issuances or parts thereof which are inconsistent with the 
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provisions of this Act are hereby repealed, amended, or modified accordingly. 
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SEC. 21. Effectivity. – This Act shall take effect fifteen (15) days after its publication 
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in the Official Gazette or in a newspaper of general circulation. 
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Approved
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