Title 13 – Franchise


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Chapter I

Franchise to Asia Link (Cellular) Philippines

Section 1. Subject to the conditions established in this ordinance and the provisions of the Constitution and the laws, orders or issuances not inconsistent herewith, there is hereby granted to Asia Link (Cellular) Philippines its successors or assigns, for a period of twenty five (25) years from the approval of this ordinance, the right, privilege and authority to construct, maintain, operate, purchase, sell, manufacture, assemble and generally deal with a telephone system, including mobile, cellular and wired telephone services, personal communication networks, fiber optics, paging and trunk radio services, multi-channel microwave distribution systems and other value-added services (such as but not limited to the transmission of voice, data, facsimile, audio and video and all other improvements and innovations thereof), and to construct, acquire and/or lease transmitting and receiving stations and central switching stations including, but not limited to, those which interconnect with the traditional wireline service and to provide such telephone services in and between the City of General Santos and other countries and territories and for the purpose of providing said telephone services and connecting its telephone system with telecommunications systems of other countries, to construct, operate and maintain an international digital gateway facility and to lay submarine telecommunications cables in the surrounding waters of the City of General Santos.

Section 2. A special right is reserved to the President of the Philippines in time of war, rebellion, public peril, calamity, emergency, disaster, or disturbances of peace to take over and operate the transmitting, receiving and switching stations or to authorize the temporary use and operation thereof by any department of the Government upon due compensation to the grantee for the use of said stations during the period when they shall be operated.

Section 3. The grantee may install, maintain, and operate such telephone system within the City of General Santos: Provided, that the National Telecommunications Commission certifies that the grantee is technically and financially capable of complying with all the requirements of public service.

Section 4. For the purpose of installing, operating and maintaining its telecommunications lines, it shall be lawful for the grantee, its successors or assigns, to make excavation or lay conduits in any of the public places, highways, streets, lanes, alleys, avenues, sidewalks, bridges of the City of General Santos; Provided, however that any public place, highway, street, lane, alley, avenue, sidewalk or bridge disturbed, altered, or changed by reason of the installations, operation and maintenance of said telecommunication lines underground shall be repaired and replaced in a workmanlike manner by said grantee, its successors, or assigns, to the satisfaction of the City Government of General Santos. Should the grantee, its successors or assigns, after thirty (30) days notice from proper authority, fail, refuse, or neglect to repair or replace any part of the public place, road, highway, lane, street, alley, avenue, sidewalk, or bridge altered, changed or disturbed by said grantee, its successors or assigns, then the City Government of General Santos, shall have the right to have the same repaired and placed in good order and condition at the cost and expense of the grantee, its successors and/or assigns.

Section 5. All telecommunications systems owned, maintained or operated by the grantee, its successors or assigns, shall be operated and maintained at all times in a satisfactory manner. However, failure on their part to satisfy their clients, the Sangguniang Panlungsod has the power to cancel or revoke their franchise herein granted.

Section 6. The grantee, its successors or assigns, shall keep a separate account of the gross receipts of the telecommunications service business transacted by it and shall furnish to the City Treasurer of General Santos City a copy of such account not later than first quarter of each year for the preceding twelve (12) months.

Section 7. The stations of the grantee shall be so constructed and operated and the wave lengths so selected as to avoid interference with existing stations and to permit the expansion of the grantee’s services.

Section 8. No private property shall be taken for any purpose by the grantee without proper condemnation proceedings and just compensation paid or tendered therefor, and any authority to take and occupy land contained herein shall not apply to the taking, use or occupation of any land except such as is required for the actual and necessary purposes which this franchise is granted.

Section 9. The grantee is authorized to connect its telephone system to any other telecommunications system installed, maintained, and operated by any other grantee in the City of General Santos for the purpose of providing telecommunications services to the public on such terms and conditions as may be prescribed from time to time by the Mayor of the City of General Santos.

Section 10. The books and accounts of the grantee, its successors or assigns, shall always be open to the inspection of the City Treasurer of General Santos or his authorized representatives, and it shall be the duty of the grantee to submit to the Office of the City Treasurer quarterly reports in duplicate showing the gross receipts and the net receipts for the quarter past and the general conditions of the business.

Section 11. 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 a franchise for the provision of telephone service or the installation, operation and maintenance of a telecommunications systems shall not be impaired or affected by the granting of this franchise; Provided, that the telecommunications lines installed by virtue of any franchise for the provision of a telecommunications service or the installation, operation and maintenance of a telecommunications service or the installation, operation and maintenance of a telecommunications systems granted subsequent to this franchise shall be so placed as not to impair the efficient and effective operation of the telecommunication systems installed under this franchise and actually in existence at the time of the granting of said subsequent franchise.

Section 12. The grantee shall not, without the previous and explicit approval of the Sangguniang Panlungsod, directly or indirectly, transfer, sell, or assigns this franchise to any person, association, company, or corporation or other mercantile or legal entity.

Section 13. The grantee is authorized to contract the installation and operation of the telecommunications system subject to this grant to private entities with expertise in the field of telecommunications under such terms and conditions as may be approved by the City Government of General Santos.

Section 14. This franchise is granted with the understanding and upon the conditions that it shall be subject to amendment, alteration, or repeal by the Sangguniang Panlungsod of General Santos, and that all lands or rights or use or occupation of lands secured by virtue of this franchise shall revert upon its termination to the national, provincial, or municipal government which were the owners thereof upon the date on which this franchise was granted. These pertinent provisions of the Constitution are hereby incorporated in and made part of these presents, with the same effect as if they were expressed herein.

Section 15. The grantee shall:

  1. Be liable to pay the same taxes on his/her real estate, building, personal property, exclusive of the franchise, as other persons or corporations are now or hereafter may be required by law to pay;
  2. Pay to the Commissioner of Internal Revenue or his/her duly authorized representative each year, within ten (10) days after the audit and approval of the accounts as prescribed in this ordinance, three per centum (3%) of all gross receipts from the business transacted under this franchise by the said grantee in accordance with Section 117 of the National Internal Revenue Code as amended by Executive Order No. 72, (November 25, 1986).
  3. Pay to the City Treasurer of General Santos City or his/her duly authorized representative each year, within ten (10) days after the audit and approval of the accounts as prescribed in this Ordinance, one half (1/2) of one percent (1%) of all gross receipts from the business transacted under this franchise by the said grantee in accordance with Chapter II, Article I, Section 9 of the Local Tax Code as amended by Presidential Decree No. 863.
  4. Start its operation within six (6) months after AMPS frequency band will be granted by the National Telecommunications Commission (NTC) otherwise the franchise would be considered revoked.

Section 16. Wherever in this franchise the terms “grantee” is used, it shall be held and understood to mean and represent ASIA LINK (CELLULAR) PHILIPPINES, its representatives, successors or assigns.

Section 17. This Ordinance shall take effect immediately after the “Grantee” shall have secured a certification from the National Telecommunications Commission that it is technically and financially capable of complying with all the requirements of public service as required under the Municipal Telephone Act.

 

Chapter II

Guidelines for Issuance of Cable TV Franchise

Section 1. There is hereby established the guidelines for the approval of Cable TV franchise in General Santos City, viz.:

A. A franchise shall be granted to a person, natural or juridical, to construct, install and operate a community antenna cable television station within the territorial jurisdiction of General Santos City. This proviso shall apply to all existing antenna cable station operating in General Santos City.

B. The franchise shall be for a period of ten (10) years, counted from its approval and renewable for the same period upon approval of the Sangguniang Panlungsod. Provided that in the event, the operation of the service should turn out to be financially unprofitable to the grantee, and upon satisfactory proof of its difficult financial position, then it may discontinue the service upon at least three (3) months written notice to the City Mayor and the Sangguniang Panlungsod. Any cessation of service shall not release the grantee from whatever obligations arising from any contract or agreement it may enter into with any subscriber.

C. QUALIFICATIONS:

C.1. In case of juridical person, must be a domestic corporation owned by at least 60% Filipinos as provided and determined under the Corporation Code of the Philippines.

C.2. In case of individual, he/she must be of legal age, Filipino and resident of the Philippines.

D. REQUIREMENTS FOR APPLICATION:

D.1. The applicant must submit to the Sangguniang Panlungsod the following:

         D.1.a. – For individual:

  – Certificate of Registration of business trade name with the DTI; and

  – Certification from a bank in General Santos City on the deposits of his/her capitalization. 10% of which shall not be withdrawn within three (3) years after the issuance of franchise.

         D.1.b. – For juridical person:

  – Certificate of Registration with the SEC including the Articles of Incorporation and By-Laws; and

  – Certification from a bank in General Santos City on the deposits of its capitalization. 10% of which shall not be withdrawn within three (3) years after the issuance of franchise.

D.2. Capitalization:

– The minimum capitalization shall be ten (10) Million Pesos.

D.3. Channels:

– The applicant must be able to provide at least twenty-six (26) channels.

E. The grantee shall provide the following services:

E.1. It shall furnish television signals of local and international productions, copy of which should be submitted to the Sangguniang Panlungsod within one (1) month from approval hereof to form an integral part of this grant.

E.2. Very high frequency and ultra-high frequency as well as sub-very high frequency, channels for distribution by cables, locally originated channels as originated by the grantee or a broadcast by local, national and international television channels or repeater television channels; background music facilities commercial and industrial establishments; special pay-by program channel for channels; other communications; facsimile reproduction and program facilities as may be feasible.

F. That the franchise issued in favor of the applicant shall not be sold, transferred, conveyed, assigned or leased to any person, natural or juridical.

G. The community antenna and the trunk cable from the community antenna to the City of General Santos area must comply with the Building Code of the Philippines; must have the approval of the City Engineer and should be installed as operative within one (1) year from the approval of this franchise.

H. The City of General Santos shall collect from the grantee Franchise Tax and such other taxes levied upon under the Local Tax Code and City Ordinances.

I. The right-of-way over all City Property is hereby granted by the City of General Santos to the grantee for the installation of cables, including the right to attach to all city facilities; PROVIDED, that the grantee shall make, construct all attachments at his own expense; and PROVIDED FURTHER, that he will not prejudice the existing city services in which case the grantee shall secure a clearance after proper inspection from City Engineers Office certifying compliance with this proviso. In the event of discontinuance of the business, the grantee is hereby required to remove such attachments at his own expense.

J. The City of General Santos shall provide all other local construction permits and/or other permit requirements for the construction and operation of the cable television system within the City of General Santos, subject to the payment of necessary fees as provided for under existing city ordinances; PROVIDED, that nothing herein shall be construed as exempting the grantee from compliance with building and related rules and regulations.

K. The grantee is hereby authorized to charge affordable rates to subscribers.

L. The grantee shall retain ownership of all installation lines and other materials owned by the grantee but those provided by the subscriber shall retain to the latter.

Section 2. In case of violation by the grantee of the provisions specifically provided herein, the city government shall, upon indubitable proof thereof, has the right to withdraw the franchise herein granted.

Section 3. A copy of this ordinance shall be furnished the National Telecommunications Commission, Manila for its information.

 

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