Franchise grant to Philippine Wireless, Inc.

The grantee has the right of eminent domain to acquire property reasonably necessary for establishing and maintaining its communication circuits and stations.
Authorized to construct and maintain infrastructure over government-owned public properties such as streets, highways, squares, and reservations.

The franchise duration is fifty (50) years, commencing from the start of operations of the circuits or stations.
The franchise becomes void if the grantee does not begin operation of at least one domestic or international circuit/station within one year from approval, and complete it within two years.

Operation under the franchise requires the prior allotment of frequencies and wavelengths by the Secretary of Public Works and Communications.
The Secretary issues licenses to use the assigned frequencies, except when using pre-existing government-licensed channels or stations.
The Secretary can modify, cancel, or change frequency allotments to prevent interference, monopolization, or to serve public interest.
Investigation boards or agents may be appointed with subpoena powers to assist in frequency regulation.

Stations must be constructed and operated to minimize signal interference.
Wave lengths should be chosen to avoid interference with other stations and allow service expansion.
Operations must comply with Philippine communication laws and international agreements binding the Philippines.

The President may order closure or assume control of the grantee’s circuits/stations during war, rebellion, public peril, or other emergencies without compensation to the grantee.

Operations must contribute to public welfare and comply with ethical standards.
Stations must aid public information and education.
Use of franchise for distributing false information, harming public health, or inciting subversion or treason is prohibited.

The government, through the Public Service Commission or authorized office, reserves the right to fix minimum and maximum rates for services offered by the grantee.

The grantee must comply with corporate and public communication carrier regulations.
Taxes on real estate, buildings, and personal property (excluding franchise) are applicable as to other corporations.
A yearly payment of 1.5% of gross receipts from business operations under the franchise is required to the national treasury.

Congress retains the power to amend, alter, or repeal the franchise.
Upon termination or repeal, rights to use public property revert to the government.
Franchise terminates upon expiration after 50 years unless extended or earlier terminated.

The grantee must post a bond of Fifty Thousand Pesos to guarantee faithful performance of obligations for the first three years.
The bond may be cancelled after proof of compliance.

The franchise must be accepted in writing within one year of the Act’s approval.
Upon acceptance and bond approval, the grantee may exercise franchise privileges.

The franchise cannot be leased, transferred, assigned, sold, or usufruct granted without Congressional approval.
Transferees are subject to Philippine corporate laws and all franchise conditions.

The franchise does not grant exclusive privileges; other entities may also operate similar services.

The law takes effect immediately upon approval, enacted without Executive approval on June 19, 1960.