THE Senate passed on third and final reading the bill extending the franchise granted to G. Telecoms, Inc., a subsidiary of Shenzhen-based China Communication Technology Co. (CCT), for another 25 years.
House Bill No. 5559 was approved with 18 affirmative votes, zero negative votes, and no abstention.
The bill introduced several amendments to Republic Act No. 8196, which originally granted the company a franchise to operate radio stations in 1996. Its previous franchise was set to expire in 2021, according to the National Telecommunications Commission (NTC).
G. Telecoms, Inc., formerly called Ermita Electronics, Inc., offers satellite broadband services.
The franchise allows G. Telecoms to operate “wire and/or wireless telecommunications systems” and “other telecommunications systems technologies presently available or will be made available” in the future.
The franchise may be revoked upon failure to operate continuously for two years.
Under the bill, G. Telecoms, Inc. is authorized to “connect or demand connection of its telecommunications systems to other telecommunications systems… for the purpose of providing extended and improved telecommunications services to the public.”
The company is also required to inform Congress of any sale, lease, transfer, grant of usufruct or transfer of controlling interests within 60 days of the completion of the transaction. Failure to report to Congress will result to a franchise revocation.
Failure to also provide Congress with the company’s annual report of its compliance to the terms and conditions of the franchise will subject the company to a fine of P500 per working day of noncompliance.
Aside from G. Telecoms, Inc., the Senate has also granted the franchise of Mindanao-based Malindang Broadcasting Corp. House Bill No. 5665 was approved with 18 affirmative votes, zero negative vote, and no abstention. — Camille A. Aguinaldo
