Section 7Sec./Art. 7

(a) The franchise shall not take effect nor shall any power thereunder be exercised by the grantee until the National Telecommunications Commission shall have allotted to the grantee the frequencies, wavelengths and channels to be used thereunder, have determined the stations to and from which frequency and wavelength may be used, and have issued to the grantee a license for such use.

(b) The National Telecommunications Commission on reasonable notice to the grantee, may at any time change or modify, in whole or in part, any or all of the allotments of frequencies or wavelengths to be used. It may take such actions whenever in its judgment:

1. Such frequencies and wavelengths have been used, or there is danger that they will be used by the grantee to impair of stifle competition, or to obtain a monopoly in electrical communication, or to secure unreasonable rates for such communications, or to violate otherwise the laws of public policy of the Republic of the Philippines.

2. The public interests require that such frequencies and wavelengths should be used for purposes other than those of the grantee, either by the government of the Republic of the Philippines or by other individuals or other corporations licensed by it; and

3. For any reason, the public interest so requires.