House bill seeking to extend franchise of Smart Communications gets Senate support

A House proposal to amend and extend for 25 years the franchise granted to Smart Communications, Inc. to establish, install, maintain, lease and operate integrated telecommunications/computer/electronic services, and stations throughout the country had already been approved on second reading by the Senate before the congressional adjournment.

House Bill 5942 principally authored by Deputy Speaker and Isabela Fourth District Rep. Giorgidi Aggabao was approved without amendment by the Senate on second reading last February 3, 2016 before the congressional adjournment, with Sen. Sergio Osmeña III as floor sponsor.

Aggabao said he was glad to hear about the Senate approval of his proposal. He said Smart is a huge company whose business is vested with public interests.

“We should not allow uncertainty to hang on its head. I am hoping that with its fresh mandate, Smart could now go full throttle to upgrade its services, all for the benefit of the public,” said Aggabao.

Under Republic Act 7294, Smart Communications, Inc. (formerly Smart Information Technologies. Inc.) was granted a franchise to establish, install, maintain, lease and operate integrated telecommunications/computer/electronic services, and stations throughout the country for public domestic and international telecommunications, and for other purposes.

House Bill 5942 extends for 25 years, subject to the provisions of the Constitution and applicable laws, rules and regulations, the franchise granted to Smart, its successors and assignees to carry on the business of providing telecommunications, including electronic communications or electronic communications services throughout the country, and between the country and other countries and territories.

It grants Smart the right 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, convenient, or reasonable.

The bill refers to “telecommunications” to include “electronic communications. Meanwhile, it refers to “electronic communications network” as a transmission system for conveyance, by use of electrical, magnetic or electro-magnetic energy, of signals of any description; and any of the following as are used, by the person providing the system and in association with it, for conveyance of the signals: 1) apparatus comprised in the system; 2) apparatus used for the switching and routing of the signals; and 3) software and stored data.

Lastly, it refers to “electronic communications service” as a service consisting in, or having as its principal feature, the conveyance by means of an electronic communications network of signals. It includes wired, wireless, fixed, cellular, and/or mobile or integrated telecommunications/computer/electronic services, or technologies related to such service, which are at present available or made available through technical advances or innovations in the future and fixed and mobile stations. (30) rbb

NR # 4204

MAY 18, 2016