MANILA, Philippines - The House of Representatives approved on third and final reading a bill extending the franchise granted to the Philippine Telegraph and Telephone Corp. (PT&T) for another 25 years.
Bill 5601 authorizes PT&T to continue providing communications services using the latest technology.
“PT&T has a long history of providing telegraph and telephone communications since 1966 when it was first granted its legislative franchise,” Leyte Rep. Sergio Apostol said in defending the measure.
He said the company sold shares to the public in 1989 “in compliance with the constitutional mandate of democratizing ownership of all public utilities.”
Under Bill 5601, PT&T would be allowed to establish, install, maintain, and operate wire and or wireless telecommunications systems, lines, circuits and stations throughout the Philippines for public domestic and international communications.
The measure requires PT&T to secure from the National Telecommunications Commission (NTC) and other agencies the necessary permits and licenses.
The company is prohibited from leasing, transferring, selling or assigning the franchise or its controlling interest without prior approval from Congress.
It is also mandated to offer Filipino citizens at least 30 per cent of its outstanding capital stock.
PT&T is required to submit a report to Congress on its compliance with the terms of its renewed franchise.