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JUNE 8, 2012 DATE

NR # 2764B
REF. NO.

House renews the franchise of Global Communications Inc. for another 25 years
The House of Representatives has approved on third and final reading a bill renewing the franchise granted to Philippine Global Communications, Inc. for another 25 years. House Bill 6032 substitutes House bill 5872 authored by Rep. Paolo Javier (Lone District, Antique) and was endorsed for plenary approval by the Chairperson of the House Committee on Legislative Franchises, Rep. Marcelino Teodoro (1st District, Marikina City). The measure grants the Global Communications, Inc., formerly RCA Communications, Inc., another 25 year franchise to construct, install, establish, operate and maintain for commercial purposes and in the public interest, throughout the country, between the Philippines and other countries, wire or wireless telecommunications systems including mobile cellular, paging, fiber optics, multi-channel, multi-point distribution system (MMDS), local multi-point distribution system (LMDS), satellite transmit and receive systems, switches and their value-added services such as, transmission of voice, data, facsimile, control signs, audio and video, information service 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 are convenient or essential to efficiently carry out the purpose of this franchise. Under the measure, the grantee shall secure from the National Telecommunications Commission the necessary certificate of public convenience and necessity or the appropriate permits and licenses for the construction, installation and operation of its telecommunications systems/facilities. Teodoro said the grantee is prohibited from using any frequency on the radio spectrum without having been authorized by the Commission. The measure requires the grantee to secure prior approval from the Department of Public Works and Highways (DPWH) or the local government unit (LGU) concerned to make excavations or lay conduits in any of the public places, highways, streets, lanes, alleys, avenues, sidewalks or bridges of the said province, cities or municipalities. Furthermore, in accordance with the constitutional provision to encourage public participation in public utilities, the grantee shall offer to Filipino citizens at least 30% or a higher percentage that may hereafter be provided by law of its outstanding capital stock in any securities exchange in the Philippines within five years from the commencement of its

JUNE 8, 2012 DATE

NR # 2764B
REF. NO.

operation. The grantee shall submit an annual report 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 its compliance with the terms and conditions of the franchise and on its operations on or before April 30 of the succeeding year. Any grantee who fails to submit the annual report to Congress shall be fined P500 per working day of noncompliance and the reportorial compliance certificate issued by Congress shall be required before an application for permit or certificate is accepted by the NTC. The grantee shall conform to the ethics of honest enterprise and not use its stations/facilities for obscene or indecent transmission or for dissemination of deliberately false information or willful misrepresentation, or assist in a subversive or treasonable act. Co-authors of the bill are Reps. Giorgidi Aggabao (4th District, Isabela), Arturo Robes (Lone District, San Jose del Monte City), Eleandro Jesus Madrona (Lone District, Romblon), George Arnaiz (2nd District, Negros Oriental), Andres Salvacion, Jr.(3rd District, Leyte), Jeci Lapus (3rd District, Tarlac), Yevgeny Vincente Emano (2nd District, Misamis Oriental) and Sigfrido Tinga(2nd District, Taguig City). (30) jsc

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