House receives new bill for ABS-CBN franchise

A BILL seeking to provide media company ABS-CBN Corp. with a fresh 25-year franchise was filed at the House of Representatives on Tuesday, more than four years since lawmakers denied its initial franchise renewal application.

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 regarding what is happening in our country,” Mr. Salceda, who heads the House ways and means committee, told reporters in Filipino. “In my view, this will benefit our country.”

ABS-CBN was forced to stop its broadcast operations in May 2020 after former President Rodrigo R. Duterte’s allies in Congress denied its franchise renewal application.

Alleged violations, including tax issues and violations of its original franchise’s terms, that caused ABS-CBN’s franchise to not be renewed are being “cured” in the bill, according to Mr. Salceda.

“The SEC (Securities and Exchange Commission) and BIR (Bureau of Internal Revenue) have cleared ABS-CBN of the allegations against them,” Mr. Salceda said in a separate statement.

ABS-CBN would be allowed, once again, to construct, install, operate, and maintain radio and television broadcasting stations for commercial purposes and public good, according to the proposed measure.

The media company would need to secure permits from the National Telecommunications Commission (NTC) to legally operate on the airwaves, with the telco authority mandated to not “unreasonably withhold or delay” the granting of licenses to ABS-CBN, the bill added.

“The grantee shall provide adequate public service time to enable the government, through said broadcasting stations or facilities, to reach the population on important public issues,” it said.

ABS-CBN is required to practice “self-regulation” by not giving screen time to any “speech, play, act, or scene” inciting Filipinos to rebel against the government.

The media company is not allowed to merge with other companies or transfer its controlling interest to any “person, company, or corporation” without congressional approval. The government also has the power to revoke ABS-CBN’s franchise if it fails to continuously operate for two years.

It would also be subject to a fine of P500 per day if it fails to submit an annual operations report to lawmakers.

The media network will be allowed to operate beyond its original franchise terms if pending measures seeking its extension are being deliberated in Congress.

“[The] said provision authority to continue its operations shall only be valid until its franchise is renewed, rejected, or until the term of Congress when the bill for renewal was filed ends,” the proposal measure said.

While Mr. Salceda has not talked with House Speaker Ferdinand Martin G. Romualdez about his proposal, he is optimistic the bill will gain approval and become law. “I rarely file something that doesn’t become a law.”

Four bills seeking to provide ABS-CBN a new franchise have been filed since 2022, with the proposals pending at the House legislative franchises committee.

“This development is likely to generate optimism among investors, as it signals potential restoration of the company’s core broadcasting operations,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message.

Providing ABS-CBN with a fresh franchise could help improve its viewership, thereby generating advertising revenues, said April Lynn Lee-Tan, chief equity strategist at COL Financial Group, Inc., via Viber.

The media company could regain its position as one of the “leading” media networks in the Philippines, she added, citing that other television networks could face increased competition.

“ABS-CBN’s return to free-to-air broadcasting would likely lead to an intense rivalry for ratings, compelling competitors to innovate or adjust strategies to retain their audience shares,” said Mr. Arce.

ABS-CBN shares jumped by 23.41% or P0.96 to P5.06 apiece on Tuesday. — Kenneth Christiane L. Basilio with Ashley Erika O. Jose