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REPUBLIC ACT NO. 1988

Added by Ronel Jess Jimenez

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AN ACT GRANTING THE C. M. S. ESTATE, INC., A FRANCHISE TO CONSTRUCT, MAINTAIN AND OPERATE PRIVATE FIXED POINT-TO-POINT AND LAND BASED RADIO STATIONS FOR THE RECEPTION AND TRANSMISSION OF RADIO COMMUNICATIONS WITHIN THE PHILIPPINES

Section 1. There is hereby granted to the C.M.S. Estate, Inc., its successors or assigns, as franchise to construct, maintain and operate private fixed point-to-point and land based radio stations between the City of Manila, Davao City and any place in the Province of Davao, subject to the approval of the Secretary of Public Works and Communications, for the reception and transmission of wireless messages on radiotelegraphy or radiotelephony.

Section 2. The grantee shall not engage in domestic business of telecommunications in the Philippines without further assent of the Congress of the Philippines, it being understood that the purpose of this franchise is to secure to the grantee the right to construct, install and maintain radio stations within the Philippines as the interest of the company and of its business may justify.

Section 3. This franchise shall continue to be in force during the time when the Government has not established similar service at the places selected by the grantee, and is granted upon the express condition that the same shall be void unless the construction or installation of said stations be begun within one year from the date of approval of this Act and be completed within two years from said date.

Section 4. No fees shall be charged by the grantee as the radio stations that may be established by virtue of this Act shall engage in communications regarding the grantee’s business only.

Section 5. The grantee shall file a bond in the amount of fifty thousand pesos only to guarantee full compliance and fulfillment of the conditions under which this franchise is granted.

Section 6. The grantee, its successors or assigns, shall so construct and operate its radio stations as not to interfere with the operation of other radio stations maintained and operated in the Philippines.

Section 7. The grantee, its successors or assigns, shall be subject to the corporation laws of the Philippines now existing or which may hereafter be enacted.

Section 8. The grantee shall not lease, transfer, grant the usufruct of, sell or assign this franchise, nor the rights or privileges acquired thereunder to any person, firm, company, corporation or other commercial or legal entity, to merge with any other person, firm, company or corporation organized for the same purpose without the approval of Congress of the Philippines first had. Any corporation to which this franchise may be sold, transferred or assigned, shall be subject to the corporation laws of the Philippines now existing or hereafter enacted, and any person, firm, company, corporation, or other commercial or legal entity to which this franchise is sold, transferred or assigned shall be subject to all conditions, terms, restrictions and limitations of this franchise as fully and completely and to the same extent as if the franchise had been originally granted to the said person, firm, company, corporation, or other commercial or legal entity.

Section 9. This franchise shall not take effect until the Secretary of Public Works and Communications shall have allotted to the grantee the frequencies and wave lengths to be used thereunder.

Section 10. A special right is hereby reserved to the President of the Philippines in time of war, insurrection, public peril, calamity, emergency, disaster, disturbance of peace or order to cause the closing of the grantee’s radio stations or to authorize the temporary use or possession thereof by any department of the Government, upon payment of just compensation.

Section 11. The franchise granted under this Act shall not be interpreted to mean an exclusive grant of the privileges herein provided for and is subject to amendment, alteration, or repeal by the Congress of the Philippines when the public interest so requires.

Section 12. This Act shall take effect upon its approval.

Approved, June 22, 1957.

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