Right of Way for Fiber in the Philippines: How Telecommunications Franchises Work

Telecommunications entities in the Philippines operate under a franchise granted by Congress, and the National Telecommunications Commission (NTC) is the principal administrator of the law governing them. There is no single statute called a "right of way for fiber" law. Instead, a fiber or transmission build rests on two things: a legislative franchise authorizing the entity to operate, and a Certificate of Public Convenience and Necessity (CPCN) issued by the NTC. Under Republic Act No. 7925, no person may commence or conduct the business of being a public telecommunications entity without first obtaining a franchise, and the NTC may impose conditions on the CPCN covering the technical aspects of equipment, rates, and service.

What the law says about telecommunications franchises

Republic Act No. 7925, the Public Telecommunications Policy Act of the Philippines, applies to all public telecommunications entities. It defines a franchise as a privilege conferred upon a telecommunications entity by Congress, authorizing that entity to engage in a certain type of telecommunications service.

A telecommunications entity may operate in one or more categories under the law, provided each category is covered by its franchise. These categories include the local exchange operator, the inter-exchange carrier, the international carrier, value-added service providers, mobile radio services, and radio paging services.

The law also states that no single franchise shall authorize an entity to engage in both telecommunications and broadcasting, either through the airwaves or by cable. This matters for infrastructure planners structuring the corporate and regulatory side of a build.

The role of the NTC and the CPCN

Under Section 5 of Republic Act No. 7925, the NTC is the principal administrator of the Act and must adopt an administrative process that facilitates the entry of qualified service providers.

When granting a CPCN, the NTC may impose conditions as to duration and termination of the privilege, the standard or technical aspects of the equipment, rates, or service, so long as these are not contrary to the terms of the franchise. The law sets a floor and a ceiling: the CPCN shall not be shorter than five (5) years, nor longer than the life of the franchise.

The NTC is also tasked with ensuring the quality, safety, reliability, security, compatibility, and inter-operability of telecommunications facilities and services, in conformity with standards set by international organizations to which the Philippines is a signatory.

Building out the network: what does not need new approval

Republic Act No. 7925 eases the path for network expansion. Expansion and financing of network and services, using equipment compatible with or homologous to existing or previously approved plant and facilities, to service additional demand in the same areas where the previously approved network and services have been installed, does not require approval by the Commission.

The same is true for upgrading existing plant and network facilities, including the financing, to retire or replace obsolete or outmoded equipment with state-of-the-art equipment and technology to improve the quality or grade of service within the same areas covered by the existing plant and facilities previously approved.

This means that once a franchise and CPCN are in place, incremental fiber and equipment upgrades within the covered service area generally do not trigger a fresh approval cycle.

Interconnection and access to facilities

A viable fiber network depends on interconnection. Under the law, interconnection means the linkage, by wire, radio, satellite, or other means, of two or more existing telecommunications carriers or operators so that subscribers of one carrier can access or reach subscribers of the other.

The NTC is mandated to require fair and reasonable interconnection of facilities of authorized public network operators and other providers of telecommunications services, through appropriate modalities and at a reasonable and fair level of charges.

Access charge and revenue sharing arrangements between interconnecting carriers are negotiated between the parties, and the agreement is submitted to the NTC. If the parties fail to agree within a reasonable period, the dispute is submitted to the Commission for resolution.

Rights of end-users over the network

Section 20 of Republic Act No. 7925 sets out the basic rights of telecommunications users, including entitlement to utility service that is non-discriminatory, reliable, and conforming with minimum standards set by the Commission, and the right to regular, timely, and accurate billing.

These service standards shape how fiber and transmission facilities must be operated once built: the infrastructure is not merely a private asset but is measured against public service obligations.

How electric transmission law compares

For power infrastructure, a different framework applies. Republic Act No. 9136, the Electric Power Industry Reform Act of 2001, created the National Transmission Corporation (TRANSCO) to assume the electrical transmission function of the National Power Corporation, including the planning, construction, and centralized operation and maintenance of high voltage transmission facilities, grid interconnections, and ancillary services.

Under that law, the TRANSCO may exercise the power of eminent domain subject to the requirements of the Constitution and existing laws, and except as provided therein, no person, company, or entity other than the TRANSCO shall own any transmission facilities. A generation company may develop and own or operate dedicated point-to-point limited transmission facilities consistent with the Transmission Development Plan, subject to prior authorization by the Energy Regulatory Commission.

The contrast is instructive: electric transmission ownership is tightly centralized, while telecommunications infrastructure is built by franchised private entities under NTC regulation.

Frequently asked questions

Do I need a franchise to build a fiber network in the Philippines? Yes. Under Republic Act No. 7925, no person shall commence or conduct the business of being a public telecommunications entity without first obtaining a franchise. A value-added service provider that does not put up its own network need not secure a franchise.

How long is a CPCN valid? The CPCN shall not be shorter than five (5) years, nor longer than the life of the franchise. A CPCN expiring at the same time as the franchise is deemed renewed for the same term if the franchise itself is renewed or extended.

Does expanding an existing network require new NTC approval? Expansion and financing of network and services using compatible or homologous equipment to serve additional demand in the same areas already covered generally does not require Commission approval, and neither does upgrading existing plant to replace obsolete equipment.

Practical takeaways

• A fiber or transmission build in the Philippines begins with a legislative franchise and an NTC-issued CPCN; there is no standalone "right of way" statute for fiber.
• The CPCN runs no shorter than five (5) years and no longer than the life of the franchise.
• Network expansion and equipment upgrades within an already approved service area generally do not require fresh NTC approval.
• Interconnection terms and access charges are negotiated between carriers and submitted to the NTC, which resolves disputes.
• Electric transmission follows a separate, more centralized regime under Republic Act No. 9136, where TRANSCO holds the transmission function and may exercise eminent domain.

Primary sources

The rules discussed above are drawn from the following primary sources, as published in the Official Gazette and the national statute book.

• REPUBLIC ACT NO. 9136 - AN ACT ORDAINING REFORMS IN THE ELECTRIC POWER INDUSTRY, AMENDING FOR THE PURPOSE CERTAIN LAWS AND FOR OTHER PURPOSES

• REPUBLIC ACT NO. 7925 - AN ACT TO PROMOTE AND GOVERN THE DEVELOPMENT OF PHILIPPINE TELECOMMUNICATIONS AND THE DELIVERY OF PUBLIC TELECOMMUNICATIONS SERVICES

• REPUBLIC ACT NO. 7832 - AN ACT PENALIZING THE PILFERAGE OF ELECTRICITY AND THEFT OF ELECTRIC POWER TRANSMISSION LINES/MATERIALS, RATIONALIZING SYSTEM LOSSES BY PHASING OUT PILFERAGE LOSSES AS A COMPONENT THEREOF, AND FOR OTHER PURPOSES

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.