Section 12
SEC. 12. (a) This franchise shall not take effect nor shall any power thereunder be exercised by the grantee until the Secretary of Public Works and Communications shall have allotted to the grantee the frequencies and wave lengths to be used thereunder and determined the stations to and from which each frequency and wave length may be used, and issued to the grantee a license for such use. The Secretary of Public Works and Communications in allotting to the grantee the frequencies and wave lengths referred to above, shall give due regard to the government's program of expanding its radio telecommunications. (b) The Secretary of Public Works and Communications, 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 or wave lengths to be used. He may take such action : (1) whenever in his judgment such frequencies and wave lengths have been used, or there is danger that they will be used by the grantee to impair electrical communications, or stifle competition, or to obtain a monopoly in electrical communications or to secure unreasonable rates for such communications, or to violate otherwise the laws or public policy of the Philippine Republic; (2) whenever in his judgment the public interest of the Republic of the Philippines requires that such frequencies or wave lengths should be used for other purpose than those of the grantee, either by the Government of the Philippines or by other individuals or corporations licensed by it; and (3) whenever in his judgment, for any reason, the public interest of the Philippines so requires.