Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

7398

HOUSE BILLNO.

Introduced by Representative Manuel Jose M. Dalipe

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

EXPLANATORY NOTE

Article Il, Section 20 of the Philippine Constitution provides that the State shall
recognize the indispensable role of the private sector, encourage private enterprise and
provide incentives to needed investments.

The establishment of private telecommunications networks is now an acceptable
practice among large organizations for their efficient interconnection over extended
geographical areas. The privacy of communication through telecommunications networks
and the exclusivity for transmission and exchange of information should be recognized and
deserved protection by the State.

The Iglesia Ni Cristo- a home- grown religious organization has expanded its
memberships not only nationwide but even worldwide. Their radio stations disseminates
uniform bi-weekly preaching of the biblical doctrine in all their regular religious
congregations. It also serve to be informative, strengthening positive Filipino values, and
Supportive of national programs of the government. Hence, there is a need for the use and
maintenance of a private telecommunications network to serve their proselytization.
Immediate accessibility to pastoral guidance and counseling on a regular basis is necessary
for such an organization conscious about direct implementation of religious instructions to
its locale officers and members as well.

The renewal and continued operation and maintenance of radio stations for private
telecommunications by the Iglesia Ni Cristo for another twenty-five (25) years is the clamor
by many.

In view of the foregoing, the approval of this bill is earnestly sought.

MANUEL JOSE ft) DAAPE
2nd District, Zampbanggcity


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS

Second Regular Session

HOUSE BILL No. 7398

Introduced by: Representative Manuel Jose M. Dalipe

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

Be it enacted by the Senate and the House of Representatives of the Philippines
in the Congress assembled:

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, maintain, lease, purchase, operate and carry on a private
telecommunication, 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, satellite, 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 electronic
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, 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 telecommunication 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 ofthe 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 place 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. Non-acceptance 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
reportto 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 be 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 be
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.

Approved.