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H. No.

6012

-a-

Begun and held in Metro Manila, on Monday, the twenty-seventh


day of July, two thousand fifteen.

[REPUBLIC ACT NO. 10900]


AN ACT EXTENDING FOR ANOTHER TWENTY-FEVE (25)
Y E A R S T H E F R A N C H I S E G R A N T E D TO B E L L
TELECOMMUNICATION PHILIPPINES, INC.,
AMENDING FOR T H E PURPOSE R E P U B L I C ACT
NO. 7692, ENTITLED "AN ACT GRANTING TO B E L L
TELECOMMUNICATION PHILIPPINES, INC.,
A F R A N C H I S E T O I N S T A L L , O P E R A T E AND
MAINTAIN T E L E C O M M U N I C A T I O N S SYSTEMS
T H R O U G H O U T T H E P H I L I P P I N E S AND F O R
OTHER PURPOSES"

Be it enacted by the Senate and Bouse of Representa


Philippines in Congress assembled:
SECTION l . Tfae &aiiGbise of Bell Telecomnmnication
PhilappiJies, Inc. granted under Republic Act No. 7692 is
hereby amended to read as follows:
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"SECTION l .
- Subject to the provisions of the transmission or
1987 Philippine Constitution and applicable maximize rendit
and/or the availab
laws, rules and regulations on public
telecommunications, Bell Telecommunication
Philippines, Inc., hereunder referred to as the " S E C . 3.
grantee, its successors or assignees, is hereby The
granted the right, privilege and authority to carry grantee shall se
on the business of providing telecommunications of Pubhc Conve
eeryices in and between provinces, cities and appropriate pe
mumdpaiities in the Philippines and between the construction, in
Philippines and other countries and territories telecommunica
and, for tliis purpose, to establish, operate, issuing the certif
manage, lease, maintain and purchase ^ power to impose
telecommunications systems, including mobile, construction,
cellular and wired or witness telecommunicatbns service level of t
systems, fiber optics, satellite transmit and The NTC shall li
receive systems, and other telecommunications the constructi
^ systems and their value-added services such as telecommunicat
' transmission of voice, data, facsimile, control shall not use anyf
signals, audio and video, information service without authori
bureau, and aU other telecommunications certificajte shall
systems technologies as are at present available the date the gran
or be made available through technical advances The NTC, howe
or innovations in the future, or construct, withhold or dela
acquire, lease, and operate or manage permit or Ucense
transmitting and receiving stations and
switching stations, both for local and international " S E C . 4.
services, lines, cables or systems, as is, or are, For the purp
convenient or essential to efficiently carry out maintaining poles
the purposes of this franchise." or other conduct
maintaining unde
" S E C . 2. conductors, it sh
The stations or facilities of the successors or as
grantee shall be constructed and operated in a of the Depart
manner as will, at most, result only in the Elighways (DPW
^ minimum interference on the wavelengths or unit (LGU) concer
make excavation
frequencies of existing stations or other stations
public places, ro
which may be established by law, without in any
alleys, avenues,
way diminishing its own right to use its assigned
province, cities, a
wavelengths or frequencies and the quaUty of
That a pubUc
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street, lane, aUey, avenue, sidewalk, or bridge


dist-urbed, altered or cliaaged by reason of erection case the total
of poles or other supports or the underground expansion is les
l^dng of v^dres, other conductor or conduits, shall exchange availa
be repaired and replaced in workmanlilte manner by the NTC, the
by said grantee, its successors or assignees, in furnish such se
accordance with the standards set by the DPWH telephone seivic
or the LGU concerned. Should the grantee, its the installatio
successors or assignees, after the ten (10)-day apparatus nece
notice from the said authority, fail, refuse or case, the NTC m
neglect to repair or replace any part of pubUc the grantee shal
place, road, highway, street, lane, alley, avenue,
sidewalk, or bridge altered, changed or dist-urbed "The grant
by the said grantee, its successors or assignees, all its stations,
then the DPWH or the LXJU concerned shall have equipment for th
the right to have the same repaired and placed in messages, sign
good order and condition at double expense to be manner at all ti
charged against the grantee, its successors or and practicable,
assignees." stations, lines, c
to keep abreast
" S E C . 5. technology."
The grantee shall conform to the ethics of honest
enterprise and not use its stations/facilities for " S E C . 6, Th
obscene or indecent transmission, or for and rates for t
dissemination of deliberately false information, the grantee, exc
or willful misrepresentation, or assist in that may hereaft
subversive or treasonable acts. uonregulated s
measured rates
"The grantee shall provide basic or subject to the a
enhanced telephone service in any city and/or successor. The r
municipalitj'- in the Philippines where it has an shallbe unbundle
approved Certiiicate of Public Convenience and the services offe
Necessity for the establishment, operation and manner that reg
maintenance of a local exchange service, without the unregulated
discrimination to any applicant therefor, in the
order of the date of their appUcations, up to "SEC. 7.
the limit of the capadty of its local telephone right is hereby
exchange and, should the demand for the the Philippines, i
telephone service at any time increase beyond the peril, calamit
capacity thereof, the grantee shall increase the disturbance of p
same to meet the demand: That in talra over and op
facilities, or e
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temporarily suspend the operation of ai^ station, receipts of the


transmitter,fiacdEty,or equipment in the interest fi-anchise in th
of pubUc safety, security, and public welfare; or all taxes of an
to authorize the temporary use and operation including, but not
thereof by any agency of the government, localfranchiseta
upon due compensation to the grantee, for the local communica
use of said stations, transmitters, facilities, or collected, or may
equipment during the period when these shall be by any city, muni
so operated. authority, from
expressly exem
"The radio spectrum is a finite resource approval of this
"that is part of the national patrimony and the shall continue to
use thereof is a privilege conferred upon the ^ under Title I I of t
grantee by the State, and may be withdrawn Code pursuant t
anytime after due process," No. 72 unless th
or repealed, in
" S E C . 8. This repeal shall be a
franchise shall be in effect for a period of
twenty-five (25) years from the date of the " S E C . 10.
effectivity of this Act, unless sooner cancelled. Acceptance of t
This francliise shall be deemed revoked writingio the
in the event the grantee fails to operate througb: the Com
continuously for two (2) years." of the House
Committee on P
" S E C . 9. The grantee within sixty (60)
shall be liable to pay the same taxes on its real Act. Upon givin
estate, buildings and personal property excliisive shall exercise th
of thisfranchise, except on its antennas, radios, Act. Nonaccepta
base transceiver stations, telecommunications void. As a guar
and electronic communications equipment, franchise in goo
machineries and spare parts needed in thirty (30) days
connection with the business from the grantee, Treasury the sum
as well as the seU-supporting, monopole and/or (P100,000.00) in
guyed towers, and other similar structures of the Philippine
and facilities on which said antennas, the amount of on
radios, telecommunications and electronic
communications equipment, machineries and "Shotild th
spare parts are installed, which shall be exempt to begin the bus
from real property taxes, customs duties, tariffe, service within t
and other taxes and fees. In addition thereto, the Certificate of Pub
grantee shall pay value-added tax on all gross and for any reas
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of the public enemy, military power, martial " S E C . 14.


law, riot, civil commotion, or unavoidable cause, - The grante
then the deposit prescribed under this section shall shall hold the n
be forfeited in favor of the National Govermnent municipal govern
as liquidated damages. Should the grantee &om all daims, a
perform on time the undertaking forwhich the arising out of ac
deposit is required, then the deposit shall be property or to per
returned to the grantee and its bond cancelled or operation of
within six (6) months of commencement of | facilities, or equi
service."
" S E C . 15.
The grantee sha
" S E C . 11.
not lease, transfe
grantee is hereby authorized to connect or
assign thisfranc
demand connection of its telecommunications
acquired there
systems to other telecommunications systems
company, corpor
installed, operated, and maintained by any other
any other corpor
duly authorized person or entity in the
approval of the
Philippines forthe purpose of providing extended
Neither shall th
andimproved telecommunications services to tlie
grantee be transf
public, under the terms and conditions mutually
parts fwid wh
agreed upon by the parties concerned; tbis right
contemp^iraneou
shall be sul^ect to the review and modification of
company, corpor
the NTC."
approval of the
" S E C . 12. Gross Receipts. - The grantee, That the fore
not apply to: (a)
its successors or assignees, shall keep a separate
shares of stock
account of the gross receipts of the business
requirement for
transacted by it and shall furnish the Commission
ownership purs
on Audit (COA) and the National Treasury a copy
(b) any transfer
of such account not later than the thirty-first
foreign investor
(31®^) day of January of each year for the shares to any for
preceding twelve (12) months." to or in connect
grantee's autho
" S E C . 13. The result in the dilut
books and accounts of the grantee, its successors grantee's then
or assignees, shall always be open to the \ combination ther
inspection of the COA and its duly authorized issuance is effect
representatives. It shall be the duty of the to raise the nece
grantee to submit to the COA two (2) copies of provision of any
the quarterly reports on the gross receipts, the this Act and/or t
net profits and the general condition of the for which the gr
business." organized: T
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transfer, sale or issuance is in accordance with " S E C . 18. F


any applicable constitutional limitations. Any the grantee to sub
person or entity to which tliisfranchiseis vaHdly to Congress ehall b
sold, transferred or assigned shall be subject to amount of five hu
all the same conditions, terms, restrictions, and workingd^ofnonc
limitations of this Act: collected by the
That Congress shall be informedof any sale, lease, fi^anchise grante
transfer, grant of usufruct, or assignment of penalties imposed
franchise or the rights and privileges acquired
thereunder, or of the merger, or transfer of " S E C . 19, -
controlling interest of the grantee, within advantage, favor,
sixty (60) days after the completion of said immunity grante
transaction: That failure franchises, or wlii
to report to Congress such change of ownership ^ upon prior review an
shall render the franchise revoked: become part of t
That any person or entity to accorded immedia
wliich this franchise is sold, transferred, or the herein grantee:
assigned, shall be subject to the same conditions, shall neither appl
terms, restrictions, and limitations of this Act." telecommunicatio
territory covered b
of the franchise
" S E C . 16. In
authorize^ by the f
accordance with the constitutional provision to
encourage pubUc participation in public utiHties,
the grantee shall offer to Fihpino citizens at least " S E C . 20. If
thirty percent (30%) or a higher percentage that of the sections or
may hereafter be provided by law of its invalid, all other pr
outstanding capital stock in any securities shall remain vaUd.
exchange in the Philippines withinfrve(5) years
from the commencement of its operations." " S E C . 21.
This franchise s
" S E C . 17. amendment, alt
The grantee shall submit an annual report to Congress of the
the Congress of the Philippines, through the interest so require
Committee on Legislative Franchises of the as an exclusive
House of Representatives and the Committee on provided for."
Public Services of the Senate, on its comphance
with the terms and conditions of the franchise S E C . 2. All laws, d
and on its operations on or before ^ r i l 30 of every resolutions, instructions
year during the term of its franchise. The thereof which are inconsi
reportorial compliance certificate issued by repealed or modified accor
Oingress ehall bo required before ai^ apphcation
for permit or certificate is accepted by the NTC."
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S E C . 3. Thia Act shall take effect fifteen (15)


days after its publication in at least two (2) newspapers of
general circulation.

Approved,

F E L i C I A N O B E L M O N T E JfR.
of the Senate Speaker of the House
ofRepresentatives
This Act which originated Mn the House of
Representatives was passed by the House of
Representatives on September 21, 2015, amended by the
Senate on January IS, 2016, and which amendments were
concurred in by thetHouse of Representatives on May 23,2016.

OSCARty^TiBES MARILYN B^ARUA-YAP


Secretary of the Senate Secretary General
House of Representatives
Approved:

BENIGNO S. AQUINO HI
President of the Philippines
O

U ^ s e d into on 2 ^
W i t h o u t ( h e s i g n a t u r e of t h e P f e s i d e n t
I n a c c o r d a n c e w i t h Article V f i , Saction
(1) of t h e C o n s t i t u t i o n .