Section 1. Nature and Scope of Franchise.— Subject to the provisions of the Constitution and applicable laws, rules and regulations, the franchise granted to Philippine Communications Satellite Corporation (PHILCOMSAT) under Republic Act No. 5514, as amended by Republic Act No. 7949, and hereunder referred to as the grantee, its successors or assignees, to establish, construct, maintain, operate, own, manage, lease and purchase, in the Philippines, or in such places as the grantee may select station or stations, telecommunication satellite systems, satellite terminal stations, lines, cables or systems, and associated equipment and facilities for international and domestic communications including satellite transmissions, for any and all forms or types of telecommunications services with authority to receive and transmit messages, facsimile, impressions, pictures, music, data, and voice, without however engaging in broadcasting, telecasting and cable television services, throughout the Philippines and between the Philippines and other countries and territories, ships at sea, aircrafts and other conveyances, stations, and telecommunications systems of other countries, is hereby extended for twenty-five (25) years from the effectivity of this Act.

This franchise includes the right and privilege of cable and wireless operations, such as telephone, mobile, cellular and wired or wireless telecommunications systems, fiber optics, multi-channel transmission distribution system, satellite transmit, receive and other telecommunications systems and their value-added services, control signals, audio and video, information service bureau and other telecommunications systems/technologies as are at present available or be made available through technological/technical advances or innovations in the future, and to purchase any or all of the equipment and materials needed in its operations; and to establish, construct, maintain, operate, own, manage, lease and purchase transmitting and receiving stations, switching stations and gateway facilities, for local and international services, lines, cables or systems as may be convenient to efficiently carry out the purpose of this franchise. The grantee, its successors or assignees, are further authorized to connect and keep connected its telecommunications systems in the Philippines and other countries and territories. The grantee shall be authorized to lease or acquire facilities, channels or circuits in the pursuance of its business.