Senate OK’s extension of Innove’s franchise
THE SENATE on Tuesday approved on third and final reading the bill extending the franchise of Isla Communications Co., Inc., presently known as Innove Communications Inc., for another 25 years.
Senator Grace S. Poe-Llamanzares, chair of the Senate committee on public services, earlier sponsored House Bill No. 55566 to the Senate.
The bill received 17 affirmative votes, no negative votes and two abstentions in the Senate.
The bill introduced several amendments to Republic Act No. 7372, which originally granted the telecommunications company a legislative franchise in 1995.
Under the original franchise, the telecommunications company was required to make a public offering of at least 30% of its common stocks within three years from effectivity of the act.
However, this was replaced under HB 55566 with the provision, “in accordance with the Constitutional mandate to encourage public participation in public utilities, the herein grantee shall comply with the enabling law implementing the democratization of ownership of public utilities.”
It also requires the telecommunications company to submit an annual report to Congress through the House Committee on legislative franchises and the Senate committee on public services on its compliance to the terms and conditions of the franchise and on its operations on or before April 30.
It also added an equality clause, which says: “Except for taxes and customs duties, any advantage, favor, privilege, exemption, or immunity which may hereafter be granted shall become part of this franchise and shall be accorded immediately and unconditionally to the herein grantee: Provided, that the foregoing shall neither apply to nor affect the provisions of telecommunications franchises concerning territorial coverage, the term, or the type of service authorized by the franchise.
Innove Communications, Inc. is a wholly-owned subsidiary of Globe Telecom, Inc. It provides fixed line telecommunications and broadband, highspeed Internet and private data network services.