House panel extends Smart Communications franchise for 25 years

MANILA, Philippines - The House committee on legislative franchises has endorsed for plenary approval a measure extending for 25 years the franchise of Smart Communications Inc., which expires in 2017.

Marikina City Rep. Marcelino Teodoro, committee chairman, said House Bill 5942 allows Smart to continue providing electronic telecommunication services in the Philippines and abroad.

“This will also ensure the uninterrupted and improved delivery of its services to the Filipino people,” Teodoro said.

Deputy Speaker and Isabela Rep. Giorgidi Aggabao, author of the bill, said Smart was granted authority to operate a mobile cellular service in 1993 and has since been actively operating as a telecommunications provider in the country for both domestic and international markets.

“Smart began its commercial operations, grown as one of the country’s leading telecommunications providers. It is operating cell sites, cellular mobile broadband base stations, and fixed wireless broadband-enabled base stations, covering 1,634 cities and municipalities in the country,” Aggabao said.

The franchise allows Smart to construct, establish, install, maintain, lease, co-use, purchase and operate the corresponding transmitting and receiving stations, satellites, lines, systems, networks, international gateways, local exchanges and platforms as it may consider necessary and convenient or reasonable.

Smart is required to secure from the National Telecommunications Commission (NTC) a Certificate of Public Convenience and Necessity and the appropriate permits and licenses.

The President reserves a special right to temporarily take over and operate the stations or facilities of Smart in times of war, rebellion, public peril, calamity, emergency, disaster or disturbance of peace and order.

Smart is prohibited from leasing, transferring, selling, granting the usufruct or assigning the franchise, rights or privileges or its controlling interest without prior approval of Congress.

Refusal or failure to accept the franchise or to operate within two years shall render the franchise void.

The measure also accords to Smart any advantage, favor, privilege, exemption, exception or conditions granted under existing franchises, or which may be granted for telecommunications.

Smart faces a fine of P500 per working day for non-compliance in the submission of its annual report to Congress.