CONCLUSION

As Smart Telecommunications hasnt conducted its public offering of shares, the

Philippine Congress may revoke the franchise of Smart for its failure in complying with
law under Republic Act No. 7925, Article VIII, Section 21 which is the
Telecommunications Policy Act of the Philippines. The bill seeks to declare that a
telecommunication entity with regulated types of services that is controlled, directly or
indirectly, by a listed company, shall be deemed to comply of making a public offering of
at least 30 percent of its stocks within a period of five (5) years. Smarts franchise will be
due to expire on March 27, 2017 that is exactly 25 years after the date of which its
current franchise was granted.
Smart Communications Inc. which is the Philippines current leading
telecommunications and digital services provider could possibly stop its operation by the
end of March, 2017 this is the thing we couldnt possibly imagine to actually happen.
Just imagine how it would greatly affect all the Filipino subscribers and also the small
businesses that relies to the services of Smart. But as the law dictates, it cant be
avoided unless theyll be able to list 30 percent of their shares in the stock market within
a few months before its termination. Smart also insists that since its main subsidiary
which is the PLDT, is listed and offered 30 percent of their shares in the stock market
would also mean that Smart was in compliance with the law. However, the Securities
and Exchange Commission invoked that every corporation has a separate and distinct
juridical personality and must commit according to the law provided.

RECOMMENDATIONS

Republic Act no. 7925 known as the Public Telecommunications Policy Act
(1995) mandates the National Telecommunications Commission (NTC), the principal
administrator of the said law, to foster a healthy competitive environment, one in which
telecommunications carriers are free to make business decisions and interact with one
another in providing telecommunications services, with the end view of encouraging
their financial viability while maintaining affordable rates. It is important for the big
corporations operating with huge amount of profit every year to comply with the laws
and regulations of the Philippines. Specially Smart Telecommunication Inc., which has
its services highly acquired all over the nation that any problems regarding with its
operations could lead to a huge ruckus.
By simply following and understanding the laws and regulations, given by the
Republic of the Philippines, could be a savior for the possibilities of commotion and
severe penalties that could befall on any telecommunications entity. It is more profitable
to follow the law than to lose the investment to legal charges.