A BILL seeking to give media company ABS-CBN Corp. a new 25-year license was introduced in the House of Representatives on Tuesday, more than four years after lawmakers rejected their original request to renew the franchise.
Albay Rep. Jose Ma. Clemente S. Salceda said he filed House Bill (HB) No. 11252 to promote a “free market of ideas.”
“We need a free market of ideas in the reporting of events and in relation to what is happening in our country,” Mr. Salceda, who heads the House ways and means committee, told reporters in Filipino. “In my opinion, this will benefit our country.”
ABS-CBN was forced to suspend its broadcast operations in May 2020 after allies of former President Rodrigo R. Duterte in Congress rejected their request to renew the franchise.
Alleged violations of the law, including tax issues and violation of the terms of the original franchise, which caused ABS-CBN’s license not to be renewed are “curable” in this bill, according to Mr. Let’s help.
“The SEC (Securities and Exchange Commission) and the BIR (Bureau of Internal Revenue) cleared ABS-CBN of the allegations against them,” said Mr. Salceda in a separate statement.
ABS-CBN will also be allowed to construct, install, operate, and maintain radio and television broadcasting stations for commercial and public benefit purposes, according to the proposed measure.
The media company will need to obtain permits from the National Telecommunications Commission (NTC) to legally operate on the radio, with telco authorities mandated not to “unreasonably withhold or delay” the granting of licenses to ABS-CBN, the bill added.
“The grant will provide sufficient public service time for the government, through the specified broadcasting channels or institutions, to reach people on important public issues,” the statement said.
ABS-CBN is required to practice “restraint” by not giving screen time to any “speech, play, action, or scene” that incites Filipinos to rebel against the government.
A media company is not allowed to merge with other companies or transfer its controlling interest to any “person, company, or organization” without congressional approval. The government also has the power to revoke ABS-CBN’s franchise if it fails to continue operating for two years.
A fine of P500 per day will also be paid if it fails to submit the annual performance report to the lawmakers.
The media network will be allowed to operate beyond its original goals if pending measures to seek its expansion are discussed in Congress.
“[The] said provision’s authority to continue to operate shall be effective only until the franchise is renewed, denied, or until the term of Congress in which the renewal bill expires,” the proposal states.
Although Mr. Salceda has not yet discussed with the Speaker of the House Ferdinand Martin G. Romualdez about his proposal, he hopes that the bill will be approved and become a law. “It’s unusual for me to post something that is illegal.”
Four bills seeking to grant ABS-CBN a new franchise have been filed starting in 2022, and the proposals are pending in the House Committee on Franchises.
“This development may create optimism among investors, as it indicates a possible recovery of the company’s broadcasting activities,” Globalinks Securities and Stocks, Inc. Head of Marketing Marketing Toby Allan C. Arce said in a Viber message.
Giving ABS-CBN new business can help grow its viewership, thereby generating advertising revenue, said April Lynn Lee-Tan, chief equity strategist at COL Financial Group, Inc., using Viber.
The media company may regain its position as one of the “leading” news sites in the Philippines, he added, pointing out that other television networks may face increased competition.
“ABS-CBN’s return to free-to-air broadcasting may lead to greater competition for ratings, forcing competitors to develop or adjust strategies to retain their audience shares,” said Mr. Arce.
Shares of ABS-CBN fell 23.41% or P0.96 to P5.06 apiece on Tuesday. – Kenneth Christiane L. Basilio with Ashley Erika O. Jose
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