What is the prior operator rule?

Provides existing franchise operator preferential right within authorized territory as long as said operator renders satisfactory and economical service. This rule subordinates the prior applicant rule which gives first applicant priority only if things and circumstances are equal. A prior operator must be given the opportunity to extend its transportation services before permitting a new operator to operate in the territory of said prior operator.

What are the exceptions of prior operator rule?

Where public interest would be better served by the new operator:

1. Where the old operator failed to make an offer to meet the increase in traffic;

2. Where the CPC granted to the new operator s a maiden certificate;

3. When the application of the rule would be conducive to monopoly.