BILLS extending for another 25 years the franchise of Smart Broadband, Inc. and Air Philippines Corp. on Thursday passed on third and final reading, receiving unanimous support from the Senate.
House Bill 8970 or an act renewing for another 25 years the franchise granted to Smart Broadband, previously known as the Meridian Telekoms, Inc. was passed with 20 affirmative votes.
Under the proposed measure, the grantee is permitted and will have the authority “to construct, install, establish, maintain, lease, and operate wired and wireless telecommunication systems throughout the Philippines.”
It must also operate, maintain, and upgrade all its stations, lines, cables, systems, facilities, and equipment for the satisfactory transmission and reception of messages, signals, and pulses at all times.
The proposed bill also mandates that it improves and extends its services in areas not yet served, and hazard- and typhoon-prone areas.
The grantee no longer has to apply for renewal of its franchise three years before its expiration.
On the dispersal of ownership, the grantee must offer Filipino citizens at least 30% of its outstanding capital stocks in any securities exchange or through any methods allowed by law.
The provision that the grantee must ensure that 60% of its employees are regular employees was also removed.
Smart Broadband is a unit of Smart Communications, Inc., which is a subsidiary of PLDT, Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.
Meanwhile, House Bill 10442 or the act renewing for another 25 years the franchise granted to Air Philippines was also passed with 20 affirmative votes.
Air Philippines, formerly known as Airphil Express, is under listed firm PAL Holdings, Inc.
Under the proposed measure, its air transport services must include “the maintenance and operation of hangars and aircraft service stations and facilities and other services of similar nature which may be necessary, convenient or useful as an auxiliary to aircraft transportation.”
The grantee must secure from the Civil Aeronautics Board and the Civil Aviation Authority of the Philippines the appropriate certificates, permits, and licenses for its operation.
It must also create employment opportunities and accept on-the-job trainees in its operations.
The franchise will be deemed ipso facto revoked if the grantee fails to operate continuously for two years.
On the dispersal of ownership, the grantee should also offer its outstanding stocks to at least 30% of Filipino citizens in any securities exchange or through any methods allowed by law.
The grantee must submit an annual report to Congress. If it fails to comply, the airline will be fined P500 per working day of noncompliance. — Alyssa Nicole O. Tan
