Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

17" Congress
2" Regular Session

HOUSE BILL NO. 7328

Introduced by: HON. “KUYA” JOSE ANTONIO R. SY-ALVARADO

EXPLANATORY NOTE

The Iglesia Ni Cristo (Church Of Christ) is a Christian religion whose primary purpose is
to serve and worship the Almighty God based on His teachings recorded in the Bible. The Church
Of Christ is a church for everyone who will heed the call of God and embrace its faith — regardless
of one's nationality, cultural background, social standing, economic status, and educational
attainment.

Today, the membership of the Iglesia Ni Cristo comprises at least 110 nationalities. It
maintains about 104 ecclesiastical districts in the Philippines and in 100 more countries and
territories.

With their wide and vast membership not only in the Philippines but worldwide, Iglesia Ni
Cristo has a considerable need for an efficient interconnection over extended geographical areas.
Being a global church that disseminates uniform biweekly preaching in all their regular religious
congregations and worship services worldwide, INC has the need for the use and maintenance of
a private telecommunications network to preserve its privacy and exclusivity for their members.
Immediate accessibility to pastoral guidance and counselling on a regular basis is a must for the
Iglesia Ni Cristo which is devoted to an intensive edification of its members thru direct
implementation of religious instructions to its locale leadership and officers from its Church
Administration.

For over half a century, INC complied with the terms and conditions given to them thru
Republic Acts 4339 and 7225. Therefore, an extension of another twenty five years to the franchise
granted to the Iglesia Ni Cristo is just.

‘Thus, the early passage of this bill is earnestly requested.

“KUYA” JOSE ANTONIO R. SY-ALVARADOZ
Representative
First District of Bulacan


Republic of the Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

SEVENTEENTH CONGRESS
‘Second Regular Session

7329
HOUSE BILL NO.
Introduced by: HON. “KUYA” JOSE ANTONIO R. SY-ALVARADO.

AN ACT EXTENDING FOR ANOTHER TWENTY-FIVE (25) YEARS THE
FRANCHISE GRANTED TO THE IGLESIA NI CRISTO, AMENDING FOR THE
PURPOSE REPUBLIC ACT NO. 4339, ENTITLED "AN ACT GRANTING THE
IGLESIA NI CRISTO A FRANCHISE TO ESTABLISH RADIO STATIONS FOR
PRIVATE TELECOMMUNICATION", AS AMENDED BY REPUBLIC ACT NO.
7225, AND FOR OTHER PURPOSES

Section 1. Section 1 of Republic Act No. 4339 is hereby amended to read as follows:

"Sec. 1. Nature and Scope of Franchise.- Subject to the provisions of the Philippine
Constitution and applicable laws, rules and regulations, the franchise granted to the
IGLESIA NI CRISTO, hereunder referred to as the grantee, to construct, establish, install,
maintain, lease, purchase, operate and carry on a private telecommunications, including
electronic telecommunications or electronic communications services throughout the
Philippines and between the Philippines and other countries and territories, including outer
space, as public interest may warrant, for domestic and international telecommunications
is hereby extended for twenty-five (25) years from the effectivity of this Act. For this
purpose, the grantee is hereby granted the right to construct, establish, install, maintain,
lease, purchase and operate the corresponding transmitting and receiving stations,
satellites, lines, systems, networks, international gateways, local exchanges, and platforms
as it may consider necessary, convenient, or reasonable.

"In this Act, the term ‘telecommunications' shall include _ selectronic
communications’. In addition, the following terms shall have the meanings set forth herein:
"Electronic communications network’ shall mean: (a) a transmission system for
conveyance, by use of electrical, magnetic or electro-magnetic energy, of signals of any
description; and (b) any of the following as are used, by the person providing the system
and in association with it, for conveyance of the signals: (1) apparatus comprised in the
system; (2) apparatus used for the switching and routing of the signals; and (3) software
and stored data.

"Electronic communications service' shall mean a service consisting in, or having
as its principal feature, the conveyance by means of an electronic communications network
of signals. It includes wired, wireless, fixed, cellular, and/or mobile, or integrated
telecommunications Computers, electronic services, including value-added services, or
technologies related to such service which are at present available or made available
through technical advances or innovations in the future, and fixed and mobile stations."
Section 2. Sections 2 & 3 of Republic Act No. 4339 are hereby amended to read as follows:
"Sec. 2. Right of Government. —A special right is hereby reserved to the President of the
Philippines, in times of war, rebellion, public peril, calamity, emergency, disaster or
disturbance of peace and order to temporarily take over and operate the stations,
transmitters, facilities, or equipment of the grantee; to temporarily suspend the operation


of any station, transmitter, facility, or equipment in the interest of public safety, security
and public welfare; or to authorize the temporary use and operation thereof by any agency
of the government, upon due compensation to the grantee, for the use of the stations,
transmitters, facilities, or equipment during the period when these shall be so operated.
The radio spectrum is a finite resource that is part of the national patrimony and the use
thereof is a privilege conferred upon the grantee by the State and may be withdrawn any
time after due process.

Section 3. Section 4 of Republic Act No. 4339 is hereby amended to read as follows:
"Sec. 4. Term of Franchise. — The franchise shall be extended and in effect for a period
of twenty-five (25) years from the date of the effectivity of this Act, unless sooner revoked
or cancelled. In the event the grantee fails to operate continuously for two (2) years, this
franchise shall be deemed ipso facto revoked."

Section 4. Section 5 of Republic Act No. 4339 is hereby amended to read as follows:
"Sec. 5. Authority of the National Telecommunications Commission (NTC). — The grantee
shall secure from the NTC a Certificate of Public Convenience and Necessity or the
appropriate permits and licenses for the construction, installation, and operation of its
telecommunications systems/facilities. In issuing the certificate, the NTC shall have the
power to impose such conditions relative to the construction, operation, maintenance, or
service level of the telecommunications system. The NTC shall have the authority to
regulate the construction and operation of its telecommunications systems. The grantee
shall not use any frequency in the radio spectrum without authorization from the NTC
Such certificate shall state the areas covered and the date the grantee shall commence the
service.

The NTC, however, shall not unreasonably withhold or delay the grant of any such
authority, permit, or license.

Section 5. Section 6 of Republic Act. No. 4339 is hereby amended to read as
follows:
"Sec, 6. Manner of Operation of Stations or Facilities. - The stations or facilities of the
grantee shall be constructed and operated in a manner as will, at most, result only in the
minimum interference on the wavelengths or frequencies of existing stations or other
stations which may be established by law, without in any way diminishing its own right to
use its assigned wavelengths or frequencies and the quality of transmission or reception
thereon as should maximize rendition of the grantee's services and/or the availability
thereof."

Section 6. Section 7 of Republic Act No. 4339 is hereby amended to read as follows:

Sec. 7. Warranty in Favor of the National and Local Governments. - The grantee
shall hold the national, provincial, city, and municipal governments of the Philippines free
from all claims, accounts, demands, or actions arising out of accidents or injuries, whether
to property or to persons, caused by the construction or operation of the stations,
transmitters, facilities, and equipment of the grantee.

Section 7. Section 8 of Republic Act No. 4339 is hereby amended to read as follows:

Sec. 8. "Excavation and Restoration Works. - For the purpose of erecting and
maintaining poles or other supports for said wires or other conductors for the purpose of
laying and maintaining underground wires, cables or other conductors, it shall be lawful
for the grantee, its successors or assignees, with the prior approval of the Department of


Public Works and Highways (DPWH) or the local government unit (LGU) concerned, as
may be appropriate, to make excavations or lay conduits in any of the public places, roads,
highways, streets, lanes, alleys, avenues, sidewalks, or bridges of the province, cities and/or
municipalities: Provided, however, that a public place, road, highway, street, lane, alley,
avenue, sidewalk, or bridge disturbed, altered or changed by reason of erection of poles or
other supports or the underground laying of wires, other conductors or conduits, shall be
repaired and replaced in workmanlike manner by the said grantee, its successors or
assignees, in accordance with the standards set by the DPWH or the LGU concerned.
Should the grantee, its successors or assignees, after the ten (10)-day notice from the said
authority, fail, refuse, or neglect to repair or replace any part of public place, road, highway,
street, lane, alley, avenue, sidewalk, or bridge disturbed, altered or changed by the said
grantee, its successors or assignees, then the DPWH or the LGU concerned shall have the
right to have the same repaired and placed in good order and condition at double expense
to be charged against the grantee, its successors or assignees.”

Section 8. Section 10 of Republic Act No. 4339 is hereby amended to read as
follows:

Sec. 10. “Bond. — The grantee shall file a bond with the NTC in the amount that it
shall determine to guarantee compliance with and fulfillment of the conditions under which
this franchise is granted. If, after three (3) years from the date of the approval of its permit
by the NTC, the grantee shall have fulfilled the conditions, the bond shall be cancelled by
the NTC. Otherwise, the bond shall be forfeited in favor of the government and the
franchise ipso facto revoked."

Section 9. A new Section 12 is hereby inserted after Section 11 of Republic Act No.
4339 to read as follows:

Sec. 12. "Acceptance and Compliance. - Acceptance of this franchise shall be given
in writing to the Congress of the Philippines, through the Committee on Legislative
Franchises of the House of Representatives and the Committee on Public Services of the
Senate, within sixty (60) days from the effectivity of this Act. Upon giving such
acceptance, the grantee shall exercise the privileges granted under this Act. Nonacceptance
shall render the franchise void."

Section 10. A new Section 13 shall now read as follows:

"Sec. 13, Reportorial Requirement. — The grantee shall submit an annual report to
the Congress of the Philippines, through the Committee on Legislative Franchises of the
House of Representatives and the Committee on Public Services of the Senate, on its
compliance with the terms and conditions of the franchise and on its operations on or before
April 30 of every year during the term of its franchise. The reportorial compliance
certificate issued by Congress shall be required before any application for permit or
certificate is accepted by the NTC."

Section 11. A new Section 14 shall now read as follows:

"Sec. 14. Penalty Clause. - Failure of the grantee to submit the requisite annual
report to Congress shall be penalized with a fine of five hundred pesos (P500.00) per
working day of noncompliance. The fine shall be collected by the NTC from the delinquent
franchise grantee separate from the reportorial penalties imposed by the NTC."


Section 12. A new Section 15 shall now read as follows:

"Sec. 15. Equality Clause. - Any advantage, favor, privilege, exemption, or
immunity granted under other existing franchises, or which may hereafter be granted, upon
prior review and approval of Congress, shall become part of this franchise and shall be
accorded immediately and unconditionally to the herein grantee: Provided, That the
foregoing shall neither apply to nor affect the provisions of telecommunications franchises
concerning territory covered by the franchise, the life span of the franchise, or the type of
service authorized by the franchise."

Section 13. A new Section 16 shall now read as follows:

"Sec. 16, Separability Clause. — If any of the sections or provisions of this Act is
held invalid, all other provisions not affected thereby shall remain valid.”
Section 14. A new Section 17 shall now read as follows:

"Sec. 17. Repealability and Nonexclusivity Clause. - This franchise shall he subject
to amendment, alteration, or repeal by the Congress of the Philippines when the public
interest so requires and shall not be interpreted as an exclusive grant of the privileges herein
provided for."

Section 15. Effectivity. This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.