Law does not prohibit Telecommunications Bureau from operating own telephone system

BUTELCO's initiative to operate and maintain a telephone system in Malolos, Bulacan, was undertaken pursuant to Section 79 (b) of Executive Order No. 94, Series of 1947. Said provision vested in BUTELCO the following powers and duties, among others: "xxx (b) To investigate, consolidate, negotiate for, operate and maintain wire-telephone or radio telephone communication service throughout the Philippines by utilizing such existing facilities in cities, towns, and provinces as may be found feasible and under such terms and conditions or arrangements with the present owners or operators thereof as may be agreed upon to the satisfaction of all concerned x x x." While affirmed in the case of Republic v. PLDT, that "[t]he Bureau of Telecommunications, under Section 79 (b) of Executive Order No. 94, may operate and maintain wire telephone or radio telephone communications throughout the Philippines by utilizing existing facilities in cities, towns, and provinces under such terms and conditions or arrangement with present owners or operators as may be agreed upon to the satisfaction of all concerned," we also at the same time clarified that "nothing in these provisions limits the Bureau to non-commercial activities or prevents it from serving the general public." "xxx It may be that in its original prospectuses the Bureau officials had stated that the service would be limited to government offices; but such limitations could not block future expansion of the system, as authorized by the terms of the terms of the Executive Order, nor could the officials of the Bureau bind the Government not to engage in services that are authorized by law." In other words, BUTELCO cannot be said to be prohibited under the aforecited legal provision from operating and maintaining its own telephone system in Malolos, Bulacan. [G.R. No. 64888. November 28, 1996]