Section 7Sec./Art. 7

(a) This 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 and channels to be used hereunder and determined the stations to and from which each frequency may be used, and 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 cancel, or modify, in whole or in part, any or all of the allotments of frequencies to be used.

It may take such action: (1) whenever in its judgment the public interest of the Republic of the Philippines requires that such frequencies should be used for other purposes than those of the grantee, either by the government of the Philippines or by other individuals or corporations licensed by it; and (2) whenever in its judgment for any reason, the public interest of the Philippines so requires.