REPUBLIC ACT No. 3662
An Act Granting the Republic Telephone Company, Incorporated, a Franchise to Install, Operate and Maintain Telephone Systems in and Between the Provinces, Cities and Municipalities in the Philippines and Circuits and/or Stations for International and Domestic Communications
Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:
Section 1. Subject to the provisions of the Constitution and of Commonwealth Act Numbered One hundred forty-six, as amended, there is hereby granted to the Republic Telephone Company, Incorporated, hereinafter called the grantee, its successors or assigns, for a period of fifty years from the approval of this Act, the right, privilege, and authority to construct, maintain and operate telephone systems in Cabanatuan City and Lipa City; Calamba, Santa Cruz, Santa Rosa, Cabuyao, Los Baños, Pagsanjan and Lumban, Province of Laguna; Batangas, Tanauan and Bauan, Province of Batangas; Pasig and Antipolo, Province of Rizal; Balanga, Province of Bataan; and Malolos and Baliuag, Province of Bulacan; and in and between the provinces, cities and municipalities in the Philippines, it being understood that the grantee is authorized to construct, operate and maintain such exchanges and branch tributary lines within the provinces, cities and municipalities traversed to connect with the main systems, as public interest may warrant. The grantee is authorized to carry on the business of the electrical transmission of messages, impressions, pictures and signals in and between said provinces, cities and municipalities in the Philippines, and/or to connect such systems within the Philippines to the telephone systems of other countries, and for the purpose of operating said telephone systems and transmitting messages and signals by means of electricity, to construct, maintain, and operate and use all apparatus, conduits, appliances, receivers, transmitters, antennas, and equipment necessary for the electrical transmission of messages and signals, and to erect poles, structures, string wires, build conduits, lay cables, and to construct, maintain and use such other approved and general accepted means of electrical conduction in, on, over, or under the public roads, government right-of-ways, lands, bridges, rivers, waters, streets, lanes and sidewalks of said provinces, cities and municipalities, and overhead or underground or submarine lines or on the surface of the ground, as may be necessary and best adapted to said transmission: Provided,however, That all cables laid, all poles erected and all conduits constructed or used by the grantee, its successors or assigns, shall be located in places designated by the Secretary of Public Works and Communications and poles shall be erected in a workmanlike manner to the satisfaction of said official: And Provided, further, That upon reasonable notice of the Secretary of Public Works and Communications the grantee, its successors or assigns may be required to relocate poles or remove or raise wires or other conductors so as to permit the passage of buildings or other structures from one place to another, one-half the actual cost of such relocation of poles or raising or removal of wires or other conductors to be paid by the person at whose instance the building or structures is moved; and, at the expense of the grantee, its successors or assigns, to relocate conduits, poles, and wires and to remove or raise wires or other conductors when the Secretary of Public Works and Communications so orders and when public interest so requires: Provided, finally, That from any order to relocate conduits, poles or wires, or to raise or remove wires or other conductors, the said grantee, its successors or assigns, shall have the right to appeal to the President of the Philippines, whose decision in the matter shall be final.
Should the grantee, its successors or assigns, fail, refuse, or neglect within a period of ninety days after notice to relocate its poles, conduits, wires, or other conductors, or to raise its wires or other conductors when so directed by the Secretary of Public Works and Communications then this official may relocate said poles, conduits, wires, or other conductors or raise said wires or other conductors at the expense of the grantee, its successors or assigns: Provided, That the installation of all instruments, inside wiring, and all outside construction work shall be done in accordance with the rules and regulations, prescribed by the Secretary of Public Works and Communications: Provided, further, That whenever twenty-five or more pairs of wires or other conductors are carried on in one line of poles in any city or municipal center, said wires or conductors shall be placed in one cable and that whenever more than one thousand two hundred twelve pairs of wires or other conductors are carried on one line of poles, said cables shall be placed underground by the grantee, its successors or assigns, whenever ordered so to do by the Secretary of Public Works and Communications: Provided, further, That the poles erected, wires and cables strung, or conduit laid by virtue of this franchise shall be so placed as not to impair the efficient and effective transmission of messages or signals by any other company where poles are erected, whose wires and cables are strung, or whose conduits are actually laid at the time that poles are to be erected, wires and cables strung and conduits laid under and by virtue of this franchise: And Provided, finally, That poles erected by the grantee shall be of such a height as to maintain the wire stretched on the same at a height of at least ten feet above the level of the ground providing a height of at least fifteen feet in crossing roads or streets, and shall be placed so as not to be a danger to public safety, in accordance with a plan approved by the Secretary of Public Works and Communications.
Section 2. The grantee may install, maintain, and operate radio-telephone equipment to furnish an economical medium of telephonic communications in and between the provinces, cities and municipalities mentioned in Section one of this Act and between the telephone systems of other franchise grantees and between the Philippine telephone systems and those of other countries: Provided, That the location, installation or operation of such radio-telephonic equipment must be previously approved by the President of the Philippines upon recommendation of the Secretary of Public Works and Communications: And Provided, further, That the Secretary of Public Works and Communications, subject to the approval of the President of the Philippines, shall have the authority to supervise and regulate the installation or operation of such radio-telephone equipment. The privilege to install, maintain and operate radio-telephonic equipment shall not be construed to authorize the broadcasting of any commercial message, or the transmission of any message for hire by radio-graphic equipment or the transmission of radio-telegraphic messages for hire.
Section 3. The grantee shall supply telephone service in said provinces, cities and municipalities mentioned in Section one where it may have established a local telephone exchange to any applicant for the same, within thirty days after the date of their applications, and as between such applicant and other like applicants, in the order of the date of their applications, up to the limit of the capacity of the telephone system of said grantee, to be determined by the Public Service Commission on the application of such grantee and should the demand for telephone service at any time increase beyond the capacity of the telephone system of said grantee to supply the same, the capacity of said telephone system shall be increased by said grantee to meet such demand, in accordance with the decision of the Public Service Commission or its legal successor: Provided, That in case the point at which the telephone service is to be supplied is more than fifty meters from the local exchange lines operated by said grantee, the latter shall not be obliged to furnish said service, unless the applicant for telephone service defrays the actual expenses for the poles and wires and installation thereof necessary for such service and in such cases the Public Service Commission may extend the time within which the grantee must furnish such service beyond the said period of thirty days.
Section 4. For the purpose of erecting and maintaining poles or other supports for said wires or other conductors or for the purpose of laying and maintaining underground said wires, cables, or other conductors, it shall be lawful for the grantee, its successors or assigns, with the prior approval of the Secretary of Public Works and Communications, to make excavations or lay conduits in any of the public places, highways, streets, lanes, alleys, avenues, sidewalks, or bridges of said provinces, cities and municipalities: Provided, However, That any public place, highway, street, lane, alley, avenue, sidewalk or bridge disturbed, altered, or changed by reason of the erection of poles or other supports, or the laying underground of wires, or other conductors, or of conduits shall be repaired and replaced in a workmanlike manner by said grantee, its successors or assigns, to the satisfaction of the Secretary of Public Works and Communications. Should the grantee, its successors or assigns, after ten days notice from said authority, fail, refuse, or neglect to replace any part of a public place, road, highway, street, lane, alley, avenue, sidewalk or bridge altered, changed, or disturbed by said grantee, its successors or assigns, then the Secretary of Public Works and Communications, shall have the right to have the same repaired and place in good order and condition at the cost and expense of the grantee, its successors or assigns.
Section 5. All telephone lines and systems for the transmission of messages and signals owned, maintained, or operated by the grantee, its successors or assigns, shall be operated and maintained at all times in a satisfactory manner, and its shall be the further duty of said grantee, its successors or assigns, whenever required to do so by the Public Service Commission, to modify, improve, and change such telephone system or systems, for the transmission of messages and signals by means of electricity, in such manner and to such extent as the progress of science and improvements in the method of transmission of messages and signals by means of electricity may make reasonable and proper.1âшphi1
Section 6. The grantee, its successors or assigns, shall keep a separate account of the gross receipts of the telephone and electrical transmission business and shall furnish to the Auditor General and the Treasurer of the Philippines a copy of such account not later than the thirty-first day of July of each year for the twelve months preceding the first day of July.
Section 7. The grantee, its successors or assigns, shall be liable to pay the same taxes on its real estate, buildings, and personal property, exclusive of this franchise, as other persons or corporations are now or hereafter may be required by law to pay. In addition, the grantee, its successors or assigns, shall pay to the Treasurer of the Philippines each year, within ten days after the audit and approval of the accounts as prescribed in Section six of this Act, two per centum of all gross receipts of the telephone or other electrical transmission business transacted under this franchise by the grantee, its successors or assigns, and the said percentage shall be in lieu of all other taxes.
Section 8. The grantee shall not begin any construction whatever pursuant to this franchise without first obtaining a Certificate of Public Necessity and Convenience from the Public Service Commission, of the form and character provided for in Commonwealth Act Numbered One hundred and forty-six, as amended, specifically authorizing such construction. The grantee shall not exercise any right or privilege under this franchise without first having obtained such Certificate of Public Necessity and Convenience from the Public Service Commission. The Public Service Commission shall have the power to issue such Certificate of Public Necessity and Convenience whenever it shall, after due hearing, determine that such construction, or such exercise of the right, privilege or franchise, is necessary and proper for the public convenience; and the Commission shall have the power in so approving to impose such conditions as to construction, equipment, maintenance, service or operation as the public convenience and interest may reasonably require, and such certificate shall state the date that the grantee commences construction work and the period within which the work shall be completed. In order to avail itself of the rights granted by such Certificate of Public Necessity and Convenience the grantee must file with the Public Service Commission, within such period as said Commission shall fix, its acceptance in writing of the terms and conditions of said certificate, together with the document evidencing the fact that the deposit required by said certificate has been made. In the event that the grantee shall not commence the furnishing of telephone service referred to in the certificate obtained and filed as herein provided within such period as the Public Service Commission shall have fixed, deposits made pursuant to Section nine of this Act shall be forfeited to the National Government unless the grantee shall have been prevented from doing so by an act of God, force majeure, usurpation by military power, martial law, riot, uprising, or other cause beyond its control: Provided, However, That if the grantee shall have been so prevented by one or more or all of such causes from commencing to furnish telephone service within the period specified, the time during which it shall have been so prevented shall be added to said period.
Section 9. The grantee shall be required by the Public Service Commission for each Certificate of Public Necessity and Convenience obtained by it subsequent to the date of this Act, to make within such period as the said Commission shall fix, a deposit of not less than ten thousand pesos, Philippine currency, or negotiable bonds of the Government of the Philippines, or other securities approved by the Public Service Commission, of the par value of not less than ten thousand pesos, Philippine currency, in the National Treasury as a guaranty of good faith that the grantee, within the period also specified by the Public Service Commission, shall commence and terminate the necessary work and shall be provided with all the equipment necessary to commence furnishing telephone service in the corresponding province, city or municipality. The Public Service Commission shall order the return of the deposit hereby required to the grantee upon the termination of the work for the furnishing of telephone service in accordance with the terms and conditions of the certificate obtained, and the Treasurer of the Philippines shall return said deposit immediately upon presentation to him of a certified copy of the order of the Public Service Commission.1âшphi1
Section 10. Within forty days after the approval of this Act, the grantee shall file with the Secretary of Public Works and Communications its written acceptance of this franchise and of all the terms and conditions hereof, and in default of such acceptance, within the time so limited, this franchise shall become null and void.
Section 11. The granting of this franchise takes cognizance of the fact that on its date of issuance the grantee is providing telephone exchange service under the authority of Certificates of Public Convenience and Necessity issued by the Public Service Commission of the Philippines at all locations named in Section one hereof and further that the grantee had previously installed properties having a value substantially in excess of one million pesos and further that financial responsibility and intent of performing under the obligations specified hereunder had thereby been established.
Section 12. The books and accounts of the grantee, its successors or assigns, shall always be open to the inspection of the district auditors or their authorized representatives and it shall be the duty of the grantee to submit to the Auditor General quarterly reports in duplicate showing the gross receipts and the net receipts for the quarter past and the general condition of the business.
Section 13. The rights herein granted shall not be exclusive, and the rights and power to grant to any corporation, association or person other than the grantee, franchise for the telephone or electrical transmission of messages or signals shall not be impaired or affected by the granting of this franchise: Provided, That the poles or antennas erected, wires strung or cables or conduits laid by virtue of any franchise for telephone, or other electrical transmission of messages and signals granted subsequent to this franchise shall be so placed as not to impair the efficient and effective transmission of messages or signals under this franchise by means of poles or antennas erected, wires strung, or cables or conduits actually laid and in existence at the time of the granting of said subsequent franchise: And Provided, further, That the Public Service Commission, after hearing both parties interested, may compel the grantee of this franchise or its successors or assigns to remove, relocate, or replace its poles, wires or conduits; but in such case the reasonable cost of the removal, relocation, or replacement shall be paid by the grantee of the subsequent franchise or his successors or assigns to the grantee of this franchise or its successors or assigns.
Section 14. The grantee, its successors or assigns, shall hold the national, provincial, city and municipal governments harmless from all claims, accounts, demands, or actions arising out of accidents or injuries, whether to property or persons, caused by the construction or operation of the telephone, radio-telephone or electrical transmission system of the said grantee, its successors or assigns.
Section 15. All rates for the telephone service, flat rates, toll rates as well as measured rates are subject to the approval of the Public Service Commission.
Section 16. The grantee shall not, without the previous and explicit approval of the Congress of the Philippines directly or indirectly, transfer, sell, or assign this franchise to any person, association, company, or corporation or other mercantile or legal entity.
Section 17. The grantee may install, maintain, operate, purchase or lease such telephone stations, lines, cables or telecommunication system, as is, or are, convenient or essential to efficiently carry out the purpose of this franchise: Provided, However, That the grantee, its successors or assigns, shall not, without the permission of the Public Service Commission first had, install, maintain, operate, purchase, or lease such stations, lines, cables, or systems.
Section 18. The Philippine Government, including any and all of its departments and bureaus shall have the privilege, without compensation, of using such space on the poles of the grantee for wire attachments, cable attachments, or crossarm attachments as will not impair the public safety, employees safety, or service requirements of the grantee. Municipalities shall also have the privilege, without compensation, of using the poles of the grantee for local police and fire alarm systems under the same terms and conditions. If the requirements of the Philippine Government or of a municipality for the use of the grantee’s poles exceed the limitations named above in respect to public safety, employees safety, or service impairments, mutual arrangement may be entered into between the government entities and the grantee for pole replacements or other construction, the cost of said construction to be borne by the government entities or, if undertaken by the grantee, to be amortized on a basis of fair compensation to the grantee. In the case of disagreement as to pole replacement or other construction and/or compensation therefor or the absorption of cost the same shall be fixed by the Public Service Commission of the Philippines. Written request providing ninety-days advance notice of needs will be filed with the grantee in advance of any attachments by the Philippine Government or any municipality to grantee’s poles.
Section 19. The grantee, its successors or assigns, shall not issue stock or bonds under this franchise except in exchange for actual cash or property at a fair valuation equal to the market value of the stock or bonds so issued.
Section 20. This franchise is granted with the condition that it shall be subject to amendment, alteration or repeal by the Congress of the Philippines when the public interest so requires, and that all public lands or rights of use or occupation of lands secured by virtue of this franchise shall revert upon its termination, revocation or nullification to the national, provincial or municipal governments which were the owners thereof on the date when this franchise was granted.
Section 21. The grantee agrees that in the event the Philippine Government should desire to maintain and operate for itself the system and enterprise herein authorized, the grantee shall surrender its franchise and Certificates of Public Necessity and Convenience in the aforesaid territory and will turn over to the government all serviceable equipment at replacement cost, less depreciation to be fixed by the Public Service Commission.
Section 22. Wherever in this franchise the term "grantee" is used, it shall be held and understood to mean and represent the "Republic Telephone Company, Incorporated," its representative, successors or assigns.
Section 23. This Act shall take effect upon its approval.
Approved: June 22, 1963.
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