Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Introduced by Representatives John Marvin “Yul Servo” Nieto, Edward Vera Perez Maceda,
Eric M. Martinez, Federico II "Ricky" S. Sandoval, and Dale "Along" R. Malapitan

EXPLANATORY NOTE

Operating radio stations for Private telecommunications have been considered as one of the efficient
way of disseminating information to the public. In year 1992, Iglesia ni Cristo have been granted the
franchise to construct, install, establish and operate radio stations for Private Telecommunications
through Republic Act No. 7225, which was later on extended by Republic Act No. 4339.

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.

‘The membership of the Iglesia cover a huge number of people, that efficient communication between
and among the members are necessary in order to facilitate a fruitful religious discussion and/or
information among themselves, Private telecommunication in the congregation, to the exclusion of
others is imperative for them to maintain the privacy in their religious organization, but at the same
time, connecting them to their members from different parts of the country.

In view of the foregoing, the passage of this measure is earnestly sough

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SERVO” NIETO
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EDWARD VERA PEREZ MACEDA DAI

3 M. MARTINEZ,

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FEDFRICO Il "RICKY'S. SANDOVAL



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

7461

House Bill No.

Introduced by Representatives John Marvin “Yul Servo” Nieto, Edward Vera Perez Maceda,
Eric M. Martinez, Federico II "Ricky" S. Sandoval, and Dale "Along" R. Malapitan

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 i enacted by the Senate and the House of Representatives of the Philippines in 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, 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,
intemational 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, 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 Goverment. — 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 Govemments. ~ The grantee shall hold
the national, provincial, city, and municipal governments of the Philippines free from all
claims, accounts, demands, o 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) concemed, 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 concemed 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. 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 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.

Approved,