Republic Act No. 7401

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled

Section 1

The term of the franchise of the Concepcion Industries, Incorporated, or its successors or assigns, under Republic Act Numbered Thirty-nine hundred and thirty-two, is hereby renewed to another twenty-five years from the date of the effectivity of this Act.

Any provision of Republic Act Numbered Thirty-nine hundred and thirty-two to the contrary notwithstanding, the grantee shall pay franchise, income and other taxes as provided for in Section 2 of Executive Order No. 72 unless the latter enactment is amended or repealed, in which case the amendment or repeal shall be applicable thereto.

Section 2

Subject to the applicable rules and regulations of the National Telecommunications Commission, the grantee is hereby authorized to construct, install, operate, maintain, lease and manage radio stations and transmission facilities and equipment of whatever technology existing at present or may hereafter be invented, and to provide for a fee or engage in the operation of telecommunications services such as, but not limited to, value-added or enhanced services, trunked radio, and private networks services, whether one-way or two-way, fixed, land based or mobile communications, in the form of tone, voice, data, images or any other type of messages and impressions, to individuals, corporations and other juridical or natural entities, within the Philippines.

Nothing in the is provision shall be construed as allowing the grantee to engage in the business of operating a public switched telephone system or as a local exchange carrier, national toll service or inter-exchange carrier, international carrier, satellite communications or public broadcasting.

The services that are to be extended by the franchise shall not be used to enhance the candidacy or partisan political interest of any person or party.

Section 3

All the other provisions, terms and conditions contained in Republic Act Numbered Thirty-nine hundred and thirty-two are hereby made integral parts of this Act.

Section 4

The grantee is hereby given the option to assign or transfer this franchise to a wholly owned subsidiary for purposes of complying with the enabling law that may hereafter be enacted requiring public ownership in accordance with the constitutional mandate of broadening the base of ownership of public utilities. In such a case, the subsidiary shall be entitled to the franchise as if the same was originally granted to it.

Section 5

Except as provided in the immediately preceding section, the grantee or its subsidiary shall not lease, assign, sell or transfer the franchise or the rights and interest therein to any person, firm, corporation or entity without the prior approval of the Congress of the Philippines. Neither shall the controlling interest in the grantee be transferred, sold or assigned, whether as a whole or in parts and whether simultaneously or contemporaneously, to any such person, firm, corporation or entity without the prior approval of the Congress of the Philippines. Any person, firm, corporation or entity to which this franchise is validly sold, transferred or assigned shall be subject to the same terms, conditions, restrictions and limitations of this Act.

Section 6

The franchise hereby granted shall be subject to amendment, alteration or repeal by the Congress of the Philippines when the common good so requires.

Section 7

The grantee shall submit an annual report under oath on its operations to the Congress of the Philippines not later than April 30 of every year.

Section 8

This Act shall take effect fifteen (15) days after its in at least two (2) newspapers of national circulation.

Approved,

(Sgd.) NEPTALI A. GONZALES President of the Senate	(Sgd.) RAMON V. MITRA Speaker of the House of Representatives
This Act which originated in the House of Representatives was finally passed by the House of Representatives and the Senate on February 3, 1992 and February 4, 1992, respectively.
(Sgd.) ANACLETO D. BADOY, JR. Secretary of the Senate	(Sgd.) CAMILO L. SABIO Secretary General House of Representatives

Approved: April 13, 1992

(Sgd.) CORAZON C. AQUINO President of the Philippines