AUG 9, 2015

NR # 3921B

Smart Communications to get 25 years extended franchise

The House Committee on Legislative Franchises has approved for plenary approval a measure
extending for 25 years the franchise of the Smart Communications, Inc. (SMART) which will expire
in 2017.
Rep. Marcelino R. Teodoro (1st District, Marikina City), committee chairman, said House Bill
5942 allows Smart to continue carry on the business of 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 Giorgidi B. Aggabao (4 th District, Isabela), author of House Bill 5942, said
Smart was granted authority to operate a mobile cellular service in 1993 and has since then 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 countrys 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 of the Philippines 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 to lease, transfer, sell, grant the usufruct, or assign the franchise, rights or
privileges or its controlling interest without the prior approval of Congress.
Refusal or failure to accept the franchise or to operate within two years period 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. (30) jc