ABS-CBN asks NTC to suspend proceedings seeking to recall its frequencies

ABS-CBN to NTC: No reason to hastily recall frequencies as Congress hinted grant of franchise

MANILA -- There is no basis for the National Telecommunications Commission (NTC) to hastily recall the frequencies assigned to ABS-CBN Corp. as it would turn out to be useless and costly, the media giant told the regulatory body last Friday.

"Recent developments in Congress...strongly indicate that ABS-CBN will soon be granted a new legislative franchise and will be able to resume operations," ABS-CBN said in its Verified Answer and Compliance.

Instead, ABS-CBN asked the NTC to suspend its proceedings pending the resolution of the network's petition before the Supreme Court.

The NTC, on May 5, gave the network 10 days to explain why the frequencies assigned to it should not be recalled as it ordered the ABS-CBN, DZMM and all its stations nationwide to immediately cease its broadcasts. The network complied with the cease and desist order.

The order covered 23 AM and FM radio stations, 42 analog TV stations and 10 DTV stations across the country.

On May 13, the House of Representatives passed on second reading House Bill No. 6732 which seeks to grant ABS-CBN a provisional franchise to operate until October 31 this year.

According to the network, the Senate, which is expected to also pass the bill, and the President, who will sign it, have indicated the grant of a franchise to ABS-CBN.

"An order to recall ABS-CBN's existing frequencies at this time will not only be useless but will even be wasteful," it argued, explaining that recalling ABS-CBN's frequencies would mean that the network would not be able to resume its broadcasts immediately.

"Worse, if the frequencies were to be reassigned to a third party, ABS-CBN would have to comply with all the regulatory processes for transferring to a new set of frequencies, even assuming that there would be available frequencies. ABS-CBN would also have to incur significant capital expenditures for re-tuning its equipment or replacing its broadcast system," it explained.

The network also said allowing ABS-CBN to continue operating is consistent with legislative intent, Congress having the sole power to grant and renew legislative franchises.

SUSPEND PROCEEDINGS

Rather than continue with the recall proceedings, ABS-CBN said the NTC should halt its proceedings as a matter of judicial courtesy, invoking the same reason NTC said in its response to the House of Representatives' show cause order.

The House had asked the NTC to explain why it should not be cited for disobeying its order to issue a provisional authority to ABS-CBN and instead issued a CDO.

The network cited its pending petition before the Supreme Court.

"While the relief sought before the Supreme Court is distinct, some arguments on the invalidity of the CDO are inextricably intertwined with the issue of whether this Honorable Commission should recall ABS-CBN's existing frequencies, in particular: (a) that due deference should have been accorded by this Honorable Commission to the legislature's exercise of its plenary power, and (b) that the Honorable Commission deviated from past practice and violated ABS-CBN's right to equal protection of the laws," it said.

"Due respect for the Supreme Court and practical and ethical considerations, therefore, dictate that that this Honorable Commission await the final determination of ABS-CBN's Petition in G.R. No. 252119 before proceeding with the instant case."

On Monday, ABS-CBN urged the Supreme Court to act on its plea for a temporary restraining order to halt the implementation of the NTC's cease and desist order and bring it back to air in a bid to stem P30-35 million pesos in revenue losses every day and save the jobs of its 11,000 workers.

ABS-CBN also reminded the NTC to comply with the requirements of procedural due process such as the right to a hearing before its frequencies can be recalled.

In its Supreme Court petition, it said its right to due process was violated when it was not notified nor heard prior to the issuance of the closure order.

"[T]he recall of ABS-CBN's frequencies at this time would serve no useful purpose, in light of the forthcoming grant of a franchise and the pendency of a case with similar issues before the Supreme Court," the network stressed.

"In fact, the recall could only be detrimental to the public interest, as it would hamper the ability of ABS-CBN to immediately resume serving the public through its broadcasts, once the franchise is granted."

https://news.abs-cbn.com/news/05/18/20/abs-cbn-asks-ntc-to-suspend-proceedings-seeking-to-recall-its-frequencies

ABS-CBN urges Supreme Court to stop shutdown immediately, protect 11,000 workers

ABS-CBN Corp on Monday urged the Supreme Court to immediately act on its plea to resume its broadcast operation in a bid to stop millions of pesos in revenue loss and protect the jobs of 11,000 workers.

The country's top broadcaster said it had lost P30 to P35 million in advertising revenues daily since the National Telecommunications Commission (NTC) forced it off air last May 5 over its stalled franchise renewal in Congress.

"If this severe financial hemorrhage is not stopped, ABS-CBN may be constrained to eventually let go of workers, reduce salaries and benefits, and substantially cut down on costs and expenses," the network said in a motion filed before the Supreme Court.

ABS-CBN on May 7 filed petition for the high court to stop the NTC's cease and desist order. The Supreme Court will tackle the petition on Tuesday, May 19.

In its motion, the media giant said the Court had granted temporary restraining orders (TRO) in the past where it found irreparable damage which could lead to tremendous loss or even closure of a business and where there is no assurance that a company can recover from the losses.

It also cited public interest as a ground for the issuance of the TRO or a writ of preliminary injunction, noting that ABS-CBN employed 11,000 workers throughout its various subsidiaries and affiliates.

Its shutdown, its lawyers argued, also affects third parties like talents, content creators, security guards, canteen helpers, drivers, utility personnel, even the multibillion-peso advertising industry which spends 75 percent of its P151-billion business into television.

ABS-CBN also invoked its contributions to Philippine society: P70.5 billion in taxes paid from 2003 to 2020; providing needed information to 99 percent of households in the Philippine, 70% of whom tuned in to ABS-CBN in 2019.

"With ABS-CBN's unparalleled reach, it is imperative that ABS-CBN be on air to give timely and reliable information to the public, especially in light of the current public health emergency and the natural calamities that regularly threaten the country, such as typhoons, earthquakes and floods," it said.

The network also noted that is has raised P237 million to fund response to the coronavirus pandemic but fund raising efforts have been curtailed by the CDO.

ABS-CBN shares fell by 9.6 percent as it resumed trading on Monday, down to P15.82 per share from P17.50 on May 5 when the CDO was served. Analysts predict it could go as low as P12.25 per share.

PROVISIONAL FRANCHISE BILL

While the network acknowledged efforts in Congress to pass a provisional franchise to allow it to operate until October 31 this year, it said it would still take time before House Bill No. 6732 is passed into law and it will still go through approval in the Senate and by the President as well as publication in the Official Gazette or in a newspaper of general circulation.

"Moreover, ABS-CBN will, thereafter, have to seek and obtain from the NTC the necessary permits to operate. This may take some week, if not months," it said.

"In the meantime, ABS-CBN, its employees, various stakeholders, and the general public will continue to suffer grave and irreparable injury as a result of the Cease and Desist Order issued by the NTC."

Cagayan de Oro Rep. Rufus Rodriguez earlier said he would ask House leaders on Monday to recall the approval of the bill on second reading to prevent questions on its constitutionality.

Rodriguez also said he wanted to amend a provision that required ABS-CBN to allot 10 percent of its advertisement airtime to "public service time for the judiciary, for the executive, for the legislature, for the constitutional commission."

https://news.abs-cbn.com/news/05/18/20/abs-cbn-urges-supreme-court-to-stop-shutdown-immediately-protect-11000-workers

House bill on Kapamilya franchise a welcome development

Thank you, Our Lady of Fatima! On May 13, her feast day, ABS-CBN got its Provisional License from Congress with House Bill 6732, authored by Congressmen Alan Peter Cayetano, Boyet Gonzalez, Raneo Abu, Robbie Puno, Dan Fernandez, LRay Villafuerte, Martin Romualdez and Jose Antonio Sy-Alvarado.

The bill allows the network to operate until Oct. 31, 2020. An optimistic and expeditious timeline starts today, May 18, where congress is expected to have its third and final reading, after which the bill will be transmitted to the Senate tomorrow, May 19. On May 20, the Senate will have its first hearing, its second reading on May 25, and its third and final reading on June 1.

Hopefully, both houses will ratify the bill by June 3 and then submit it to Pres. Rodrigo Duterte for his signature. The president then has three options: One, sign it into law; two, veto it; and three, not sign it and wait 30 days until it automatically becomes a law. Barring any delays or objections, ABS-CBN will be back on air by the first week of June. In the interim, the House of Representatives and the Senate will start deliberating on the franchise renewal good for 25 years.

This is a very welcome development since ABS-CBN went off the air on May 5. Social media was flooded with messages of sympathy, support and love for the network. On the other hand, many netizens also gloated and criticized the network, rejoicing at ABS-CBN’s plight. The network became a divisive issue that added more stress and anxiety during this pandemic, especially to loyal viewers and listeners of ABS-CBN and DZMM who only have free TV and radio to rely on for their news and entertainment. At least TV Patrol and Teleradyo are still available online and on SkyCable Channel 26 and TV Plus Channel 5.

There is also a chance that ABS-CBN can go back on air sooner if the Supreme Court issues a Temporary Restraining Order (TRO) on the Cease and Desist Order (CDO) earlier filed by the National Telecommunications Commission (NTC) against the network. Several legal luminaries have expressed that what NTC did was a clear violation of due process. It blatantly disregarded the power of Congress, which has the sole authority to revoke and issue franchises. Hopefully, the Supreme Court will come out with a favorable decision.

The clamor for ABS-CBN to return has been overwhelming. As I write this (on May 15), signal No. 3 has been raised over Samar and Sorsogon because of Typhoon Ambo, which has brought heavy rains and strong winds. There are some remote areas in these regions that rely solely on the radio for news. Sadly, because ABS-CBN is off the air there, those who reside in these remote areas will not be getting the accurate weather updates and pandemic situationers. They count on us to deliver. The loyal viewers of our teleseryes are also undoubtedly restless at this time, the hours seeming longer because entertainment options are limited or absent.

At this point, however, all we can do is wait for our lawmakers to conduct fair and impartial hearings, and pray fervently and relentlessly that our lawmakers are blessed with discernment, propriety and compassion for the majority.

OKS gives Kapamilya a new viewing experience

Beginning May 20, Kapamilya will be able to enjoy a new digital channel called OKS (Online Kapamilya Shows), a straight-to-digital website housed in abscbn.com. Because the globe is going digital, the Kapamilya network is pioneering our country’s efforts to produce original online content. When the COVID-19 pandemic halted the production of taped shows, an opportunity arose to focus the network’s efforts on the creation of short-form web content. Thirty shows were approved for the May 20 launch, all of which are edgy, experimental, interactive and highly entertaining. Of course, the shows will all bear the “tatak Kapamilya” seal since they are topbilled by ABS-CBN artists. According to Digital Content head Richard Reynante, OKS will be a new viewing experience.

https://www.philstar.com/entertainment/2020/05/18/2014664/house-bill-kapamilya-franchise-welcome-development-pat-p

House panel to probe ABS-CBN violations

A key leader of the House of Representatives served notice to the Lopez-owned ABS-CBN that the chamber will still look into alleged violations of the TV giant’s legislative franchise even if a new franchise is already underway.

Palawan Rep. Franz Alvarez, chairman of the House committee on legislative franchises, made it clear that they will take up all House resolutions related to the renewal, “including” that of Davao City Rep. and Deputy Speaker Paolo Duterte’s House Resolution 853. 

The resolution, co-authored by Reps. Abraham Tolentino (Tagaytay) – brother of Sen. Francis Tolentino – and ACT-CIS Rep. Eric Go Yap, wants the House leadership to conduct “an investigation into ABS-CBN’s alleged violations of its franchise.” 

Both Tolentino and Yap are allies of the Duterte administration – Tolentino heads the House accounts committee while Yap sits as chairman of the committee on appropriations.

“Whereas, ABS-CBN Corp. is operating a pay-per-view channel through free-to-air signals in violation of its legislative franchise. By charging the public with this pay-per-view Kapamilya Box Office channel through TV Plus, it has been gaining huge profits at the expense of the public while using the air frequencies provided by the government for free,” they declared.

The Alvarez committee was tasked to investigate the alleged franchise violations as ABS-CBN tries to renew its expired May 4 franchise, hoping to extend it for another 25 years, or until 2045. 

The House has constituted itself into a committee of the whole and approved on second reading a bill giving the broadcast network franchise that will be valid until Oct. 31 this year, subject to the lawmakers’ final decision to issue a 25-year franchise or not.

Last week, Speaker Alan Peter Cayetano has asked their counterparts in the Senate to respect the discretion and actions of the House on the franchise renewal application of broadcast giant ABS-CBN.

“We want to work with you, to build our nation, but respect our timing and manner of holding our hearings. In other words, let’s all play nice and not just pretend to be nice,” Cayetano said in a statement.

“Allow us to do our jobs. Remember it is always easier to get 24 people to agree than 300. Remember we represent specific constituencies and sectors and that is why the 1987 Constitution provides that franchise bills will exclusively emanate from the House,” he said.

The Speaker made the appeal as several senators questioned the bill passed by the House allowing the network to return on air by granting a provisional franchise until October while Congress deliberates on its franchise renewal application.

Albay Rep. Edcel Lagman, meantime, called on Cayetano to “cure” what he called as “defective passage of interim franchise” that may eventually be passed on third reading in the chamber. 

“Exigency or even good motives cannot excuse or validate the repetition of an unconstitutional act or procedure,” he said, calling on the House leader to “desist from intransigence to cure defective passage of interim franchise.”

https://www.philstar.com/headlines/2020/05/18/2014788/house-panel-probe-abs-cbn-violations