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Home»Business and Finance»New ABS-CBN Franchise Bill moves forward in Congress
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New ABS-CBN Franchise Bill moves forward in Congress

LionhearTVBy LionhearTVJanuary 14, 2025No Comments3 Mins Read
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A bill seeking to grant ABS-CBN Corporation a new 25-year franchise has moved forward in the House of Representatives, marking a significant step in the network’s bid to resume full broadcast operations.

The proposed measure, House Bill (HB) No. 11252, was filed by Albay 2nd District Representative Joey Salceda, Chairperson of the House Committee on Ways and Means.

“We need a free market of ideas in the reporting of events and regarding what is happening in our country,” Salceda said during a press briefing.

This development comes more than four years after ABS-CBN was forced to cease broadcasting in May 2020 when its franchise renewal was denied by Congress due to alleged violations, including tax issues and breaches of franchise terms. Salceda noted, however, that both the Securities and Exchange Commission (SEC) and the Bureau of Internal Revenue (BIR) have cleared the network of these accusations.

The bill would allow ABS-CBN to operate radio and television broadcasting stations for commercial purposes. However, it requires the network to secure permits from the National Telecommunications Commission (NTC), which is mandated not to “unreasonably withhold or delay” the issuance of licenses.

Allotting sufficient airtime for public service announcements on significant national issues. Self-regulating content to avoid airing material that could incite rebellion or undermine government authority. The franchise also bars ABS-CBN from merging with other companies or transferring its controlling interest without congressional approval. Failure to operate continuously for two years would allow the government to revoke the franchise. Additionally, the bill imposes a PHP 500 daily fine if the company fails to submit an annual operations report to Congress.

The bill includes a clause allowing ABS-CBN to continue operating while its franchise renewal application is pending in Congress. However, this authority would lapse upon franchise approval or rejection or at the end of the congressional term.

Following news of the bill’s filing, ABS-CBN shares surged by 23.41%, closing at PHP 5.06 per share.

In a statement, ABS-CBN expressed gratitude for Salceda’s support: “While we were not aware of Mr. Salceda’s filing of a bill to grant a broadcast franchise to ABS-CBN, we are deeply grateful for his belief in ABS-CBN’s contributions and mission to serve the Filipino public.”

The network also acknowledged the efforts of lawmakers who previously filed similar bills, including Reps. Gabriel Bordado Jr., Arlene Brosas, France Castro, Raoul Manuel, Johnny Pimentel, and Rufus Rodriguez.

The bill will undergo deliberation in the House Committee on Legislative Franchises before progressing to the second reading. Salceda remains optimistic, saying, “I rarely file something that doesn’t become a law.”

However, he acknowledged the challenges, noting that the process could be lengthy, especially with the upcoming elections.

Since 2022, four franchise bills have been filed on behalf of ABS-CBN, but all remain pending. Salceda’s bill offers a renewed sense of hope for the media giant as it seeks to reclaim its place on the airwaves after its controversial shutdown.

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