The move in resurrecting a legislative
franchise for the Lopez-controlled and owned ABS-CBN Corporation is very much
on the go, since government is reacting to the circumstances leading to that.
The National Telecommunications
Commission, in a position paper filed through the Office of the Solicitor
General, said the proposed measure that will allow “hold-over franchises”
violates provisions of the 1987 Constitution.
The NTC has
opposed a new bill in the House of Representatives (HR) that seeks to allow
ABS-CBN Corp. to return to air via a “hold-over franchise” once its refiles
application for renewal of franchise.
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| (photo credit to owner) |
The NTC, in a
position paper filed with the committee on legislative franchises last Jan. 3
through the Office of the Solicitor General (OSG), raised strong objection to
House Bill 7923 filed by Parañaque City Rep. Joy Myra Tambunting, which seeks
to amend Section 18, Book VII, Chapter 3 of the Administrative Code of the
Philippines and allow applicants of legislative franchise to operate pending
approval by Congress.
SolGen Jose
Calida branded the proposed measure as “unconstitutional and illegal” and even
warned of “grave consequences” should the bill be passed into law.
Calida argued
that the proposed bill disregards the legislative nature and origin of a
franchise in contravention of the Constitution.
“The proposed
bills seek to provide a ‘holdover franchise’ to be enjoyed by an entity which
has applied for a renewal while Congress is still deliberating on the merits of
such renewal,” the chief state lawyer stressed.
The Solicitor
General stressed that by institutionalizing the system of “hold over franchise”
in the broadcast industry, the legislative measures already violate the
“settled rule that the privilege to operate a broadcasting station requires a
legislative franchise in the form of a law.”
Calida
emphasized that the practice of “hold-over franchise” poses the danger of
allowing a broadcasting entity with an expired franchise to continue using its
assigned frequency without a definitive legislative finding that it remains
qualified to retain such privilege.
The said
policy is also open to abuse because it paves the way for “shrewd broadcasting
entities the incentive to delay an impending denial of an application for
franchise renewal.”
“Furthermore,
to allow an expired franchise holder to continue its operations thereby
extending its use over the free signals granted by the State is akin to promoting
‘exclusivity’ which the Constitution abhors,” Calida pointed out.
The OSG noted
that Article XII, Section 10 of the Constitution provides that no such
franchise certificates are exclusive.
This is to
support and encourage equity participation in public utilities by the general
public also provided in Section 11, it added.
“By allowing
the select few to use these privileges despite having an expired franchise
limit the public to apply for these privileges. This promotes exclusivity which
will run counter to the true intention of the Constitution,” the OSG said.
NTC
Commissioner Gamaliel Cordoba informed the House panel that the agency fully
adopted the OSG position as its own position against HB 7923.
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