Philcomsat franchise extension bill passed by Senate on 3rd reading

THE Senate passed on third and final reading the bill extending the telecommunications franchise granted to Philippine Communications Satellite Corp. (PhilComSat) for another 25 years.

House Bill No. 7385 was adopted by the Senate with 20 affirmative votes, zero negative note, and no abstentions. According to the National Telecommunications Commission (NTC), PhilComSat’s franchise is set to expire in June 2019.

The franchise allows the company to operate “telecommunications satellite systems, satellite terminal stations, lines, cables or systems, and associated equipment and facilities for international and domestic communications” within the Philippines and between here and other countries.

PhilComSat is currently owned by the Philippine Overseas Telecommunications Corp. (POTC). About 35% of its shares are owned by the government, according to the company’s Web site. The company was originally granted a 25-year telecommunications franchise under Republic Act No. 5514 in 1966. It was later extended for another 25 years under Republic Act. No. 7949 in 1995.

Its services include providing very small aperture services (VSAT) technology, which transmits and receives data via satellite, to the government. Among its main clients is the Armed Forces of the Philippines, which uses VSAT as its primary and backup communication system.

The House bill directs PhilComSat to secure a certificate of public convenience and necessity (CPCN) as well as the necessary permits and licenses for operation of its telecommunications systems or facilities from the NTC.

Its rates for its telecommunications services, whether flat rates or measured rates, must also be approved by the NTC.

Any sale, lease, transfer, or assignment of the franchise to a person or company requires Congressional approval. PhilComSat must also submit an annual report to Congress of its compliance with the franchise’s terms and conditions.

The Senate also inserted amendments in the House Bill, which directs PhilComSat to create employment opportunities and on-the-job training in its franchise operations.

The company must also agree not to use its facilities to transmit obscene material, false information, and messages that assist in the commission of subversive or treasonable acts.

It also requires the company to offer services in underserved areas and in disaster-prone areas, as determined by the National Disaster Risk Reduction and Management Council in coordination with the NTC. Its facilities should also comply with Republic Act No. 10639 or the Free Mobile Disaster Alerts Act. —