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MANILA, Philippines – The Federation of Philippine International Cable Television Associates (FICTAP) praised the order of the National Telecommunications Commission (NTC) for the ABS-CBN Corporation stop broadcasting operations on Tuesday May 5.
FICTAP President Estrellita Juliano Tamano went to national television to explain why the association is against the renewal of the ABS-CBN franchise, the same day the media giant went off the air. (READ: SCHEDULE: Duterte against the renewal of the ABS-CBN franchise)
Juliano-Tamano claimed that ABS-CBN had repeatedly violated its franchise rules and is “killing” the cable industry due to its other paid products, particularly the TVplus digital box.
She explained that the reason why they opposed House Bill (HB) No. 4997, the first ABS-CBN franchise renewal bill submitted in 2014, was because it was different from Republic Law (RA) No. 7966, the old franchise of the network approved in 1995.
He also said that the bill sought to include multiple channels on the network when it should only be one franchise per channel.
Thursday, May 7, ABS-CBN released a statement refute the claims made by Juliano-Tamano. Here is a summary of the main points related to this topic.
Should ABS-CBN file a franchise for each channel?
There is nothing established in the franchises, both in the law and in the bill, that there should only be one channel per franchise. Philippine Cable and Telecommunications Association Inc. (PCTA) President Ronaldo Manlapig explained in an interview with ANC on May 7 that a franchise can run multiple channels.
“Hindi natin kailangan na magkaroon ng isang franchise bawat channel. The broadcasting company is an ABS-CBN, broadcast frequency and frequency company.,Manlapig explained.
(We don’t need to have a franchise per channel. A broadcast company franchise like ABS-CBN already has its own frequency.)
He further explained that using current technology, a frequency can carry multiple digital channels.
ABS-CBN added that broadcasting multiple channels is good for consumers as it gives them options.
““Most of the channels are available worldwide,” the company said. “
(Having multiple channels competing with each other is beneficial to the public because it urges media companies to improve their shows and give viewers more options.) ”
FICTAP has around 1,000 members of cable companies, while PCTA currently has 392 regular and affiliated members. Although FICTAP has more members, PCTA serves 75% of the total cable television subscribers in the country.
Did ABS-CBN violate your existing franchise by launching TVplus?
FICTAP argued that HB No. 4997 only “justifies” TVplus from ABS-CBN, its digital television black box on which they broadcast 6 different channels.
ABS-CBN responded that the technology allows them to stream multiple channels through TVplus and argued that it is not a violation of the franchise.
Section 1 of RA No. 7966 says that ABS-CBN was awarded to build, operate, and maintain broadcast stations via microwave, satellite, or “any means that includes the use of any new technology” in television and radio systems.
Manlapig also explained that there is currently a government-mandated transition from analog to digital transmission.
In 2017, the Department of Information and Communications Technology (DICT) launched a framework for the “Migration Plan for Digital Terrestrial Television (TDTB)”, which aims to complete a national to digital transition by 2023.
Under the analog television system, broadcasters use the allocated bandwidth to broadcast an analog program. “Comparatively, in digital technology, it is possible to stream multiple standard definition television programs and / or high definition television using the same bandwidth,” the DICT wrote in its migration plan.
The country launched its “digital switch” in 2015 and began its “analog switch” in 2017. ABS-CBN launched TVplus in February 2015.
Are ABS-CBN’s pay-per-view services illegal?
FICTAP labeled ABS-CBN’s pay-per-view programs as “illegal activities,” arguing that the airwaves used by ABS-CBN are free.
Juliano-Tamano specifically mentioned the ABS-CBN movie channel Kapamilya Box Office (KBO) and the Pacquiao-Mayweather fight in May 2015, which ABS-CBN offered as a pay-per-event service for P2,500.
In the Pacquiao-Mayweather fight, ABS-CBN said the NTC only issued the cease and desist order after the fight was already sold by the company. The company had also previously insisted that KBO, which is delivered via TVplus and charges P30 to P99 for subscription and access to selected content, received the necessary government and regulatory approvals. (READ: ABS-CBN criticizes Calida: We did not break the law
During the Senate hearing on February 24, Attorney General Menardo Guevarra said that, in his opinion, ABS-CBN’s pay-per-view services do not constitute a violation of his franchise.
“We interpret the phrase ‘commercial purposes’ broad enough to include any other source of revenue in addition to advertising. But subject to specific guidelines that the NTC may impose,” said Guevarra.
In addition, Manlapig argued that KBO can be considered part of the government’s DTTB plan, where transmission companies adopt new technology so that they can also deliver programs over the airwaves.
But determining whether KBO is illegal or not is still up to the NTC. As of May 7, Manlapig said they are still waiting for the NTC to issue guidelines to clarify the problem.
If ABS-CBN is found to have violated a rule, the NTC said it may be subject to a P200 fine for violation.
Did ABS-CBN ‘do nothing’ from 2015 to 2019 to renew their franchise?
Juliano-Tamano said HB No. 4997 was not approved by Congress in 2014 because FICTAP opposed it. Furthermore, he blamed ABS-CBN for doing nothing from 2015 to 2019.
However, it is Congress, not private business, that has the power to convene hearings.
There were at least 12 bills for the ABS-CBN franchise renewal from 2014 to 2019. All were pending at the committee level.
ABS-CBN also denied that HB No. 4997 was rejected due to FICTAP. The company said the reason it was not approved was because Congress sat down on it.
HB No. 4997 was dated September 11, 2014. According to his legislative history, he has been pending with the legislative franchise committee since September 15, 2014. – Rappler.com
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