Section 1Sec./Art. 1

Nature and Scope of Franchise. Subject to the provisions of the Constitution and applicable laws, rules and regulations, there is hereby granted to the H.T.

Telesis, Inc., hereunder referred to as the grantee, its successors or assigns, a franchise to establish, construct, install, operate and maintain for commercial purposes and in the public interest, satellite earth stations in the Philippines for the purpose of transmitting video, audio and digital information, including movies, music, advertising, still pictures, and any other form of entertainment or information to a satellite or satellites for retransmission, either scrambled or unscrambled, within the Republic of the Philippines and the surrounding regions; to build, construct, distribute, install and maintain, by lease or sale, such satellite receive antennas and related electronic equipment for business and residential customers or other terrestrial redistribution systems for reception of the grantee's satellite transmissions or such other ground receiving equipment as may be necessary for the grantee to receive the satellite transmissions and redistribute them to its customers.