Franchise for Satellite Communication Corp.

The grantee is authorized to exercise the right of eminent domain for establishment, maintenance, and operation of its stations.
Private property may only be taken through proper condemnation proceedings with just compensation paid or tendered.
The President may reserve any portion of the public domain or government lands for the grantee's use.

The franchise and rights granted shall last for twenty-five years from the approval date of the Act unless terminated earlier.

The President of the Philippines, through the proper government agency, supervises and controls the grantee's relationships with foreign governments, entities, or international bodies to ensure consistency with national interests.
The government may ensure the grantee’s facilities are used for governmental purposes as needed.

The Public Service Commission (PSC) has no general jurisdiction over the grantee.
However, for voice or data services, the grantee cannot charge rates higher than those authorized by the PSC for overseas telecommunications carriers.

In times of war, insurrection, or national emergency, the President may order government takeover and operation of the grantee’s station(s) without compensation for the period of operation.

The grantee must keep separate accounts of gross receipts from its satellite transmission business.
Annually, by April 30, a copy of such accounts must be furnished to the Auditor General and the Treasurer of the Philippines covering the preceding twelve months.

The grantee is liable for taxes on real estate, buildings, and personal property similar to other persons or corporations.
Annually, within thirty days after account audit and approval, the grantee must pay 5% of all gross receipts from its satellite transmission business to the Treasurer, in lieu of all other taxes.
Exempt from customs duties, tariffs, and charges on machinery, equipment, supplies, and spare parts imported for construction and maintenance of permanent earth stations.

The franchise cannot be leased, transferred, sold, or assigned except to a government branch or instrumentality without Congressional approval.
Management contracts with persons/entities require Presidential approval.
Such contractors must be Filipino citizens or corporations with at least 60% capital owned by Filipino citizens.

The grantee shall hold national, provincial, and municipal governments harmless from any claims or liabilities arising from accidents or injuries caused by station construction or operation.

The grantee is subject to existing or future corporation laws of the Philippines.

Congress may amend, alter, or repeal the franchise whenever public interest requires.

The grantee must execute a bond of fifty thousand pesos in favor of the government, conditioned on faithful performance of obligations during the first three years of the franchise.
The bond may be canceled after the three-year period upon fulfillment of obligations.

The grantee must accept the franchise in writing within six months of the Act’s approval.
Upon written acceptance and bond approval, the grantee is empowered to exercise the franchise rights.
The Act takes effect upon approval.