Duterte signs law giving 25-year franchise to Derecho telco

President Rodrigo Duterte has signed a law granting a 25-year franchise to operate to Derecho Telecommunications.

This is provided under Republic Act 11759 which states that Derecho Telecommunications, its successors or assignees, has been granted a franchise to construct, install, establish, operate, and maintain, for commercial purposes and in the public interest, wired and wireless telecommunications systems, in the Philippines.

These include internet access through copper, fiber optics as well as satellite systems, switches and all other telecommunication system or information and communication technologies available or will be made available through technological advances or innovations in the future.

"This franchise will be in effect for a period of 25 years from the date of the effectivity of this Act, unless sooner cancelled," the law, signed last April 29 but was only released on Thursday, read.

Likewise, the franchise requires Derecho to offer telecommunications services, value-added services, including internet access service, or other electronic communication services such as the transmission and reception of voice, data, facsimile, control signs, audio and video information services; or to construct, acquire, lease, and operate, or manage transmitting and receiving stations, lines, cables, or systems as are convenient and essential.

"The stations or facilities of Grantee [Derecho] will be constructed and operated in a manner as will, at most, result only in the minimum interference on wavelengths or frequencies of existing stations or other stations which may be established by law, without in any way diminishing its own privilege to use its assigned wavelengths or frequencies and the quality of transmission or reception thereon as should maximize rendition of the Grantee's services or the availability thereof.

The franchise also mandates Derecho to secure a Certificate of Public Convenience and Necessity or the appropriate permits and licenses for the construction, installation, and operation of its telecommunications systems or facilities before the National Telecommunications Commission (NTC).

In issuing the certificate, the NTC will have the power to regulate and impose such conditions relative to the construction, operation, maintenance, or service level of the telecommunications systems or facilities.

"The Grantee should improve and extend its services in areas not yet served, and in hazard and typhoon-prone areas that will be determined by the National Disaster Risk Reduction and Management Council, or its legal successor, in coordination with the NTC.

In case of any violation of the provisions of this franchise, the NTC will have the authority to revoke or suspend the franchise, the permits or licenses it issued pursuant to the franchise, after due process.

Further, the NTC  may  recommend  to Congress the revocation of the franchise for any violation of the provisions of this franchise. — Llanesca T. Panti/RSJ, GMA News