Law Summary: Republic Act No. 8622

Republic Act No. 8622 grants Hi-Frequency Telecommunications, Inc. a franchise to construct, establish, install, maintain, and operate wire and/or wireless telecommunications systems in the Philippines. This franchise includes the provision of various telecommunications services such as mobile, cellular, wired, or wireless systems, and their value-added services. The Act ensures that the grantee can operate these systems for commercial purposes and in the public interest, both within the Philippines and internationally.

The Act mandates that the grantee must secure a certificate of public convenience and necessity from the National Telecommunications Commission (NTC) before operating its telecommunications systems. The NTC has the authority to regulate the construction and operation of these systems and to impose conditions related to their operation. The grantee is also required to avoid interference with existing stations and to maintain the quality of its transmissions.

In times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, the President of the Philippines has the right to temporarily take over and operate the grantee's stations, transmitters, facilities, or equipment. This special right ensures that the government can maintain public safety and security during critical times. The franchise is granted for a term of twenty-five years, subject to renewal, and can be revoked if the grantee fails to comply with specific operational conditions.

The grantee is required to pay taxes on its real estate, buildings, and personal property, as well as a value-added tax or a franchise tax on its gross receipts. Additionally, the grantee must keep separate accounts of its gross receipts and submit annual reports to the Commission on Audit and the National Treasury. The Act also includes provisions for the dispersal of ownership, requiring the grantee to offer at least thirty percent of its outstanding capital stock to the public within five years of commencing operations. Non-compliance with this provision will result in the automatic revocation of the franchise.