ABS-CBN’S DILLEMA
Jasper James P. Baldevizo
Rizal Technological University
College of Engineering & Industrial Technology
704 Boni Ave Cor Sacrepante, Mandaluyong City
www.rtu.edu.ph
james.pinca@yahoo.com
Abstract — In 1974, President Ferdinand Marcos issued PD No.
576-A, “Regulating the Ownership and Operation of Radio and
Television Stations and for other Purposes.” This presidential
decree mandated that no radio station or television channel may
obtain a franchise unless it has sufficient capital for its operation.
The law further provided that “all franchises or other forms of
authority to operate radio or television broadcasting systems
shall terminate on December 31, 1981.”
Associated Communications and Wireless Services-United
Broadcasting Networks (ACWS-UBN) was one of the franchise
holders affected by this decree. Nonetheless, it continued
operating its radio stations under permits granted by the
National Telecommunications Commission (NTC).
The succeeding turn of events worked against ACWS-UBN.
On May 3, 1994, the NTC, the Kapisanan ng mga Brodkaster sa
Pilipinas (KBP), and the Committee on Legislative Franchises of
Congress forged a Memorandum of Understanding (MOU). The
MOU specifically provided that the NTC shall continue to issue
and grant permits or authorization to operate radio and
television broadcast stations with a two-year validity, within
which the permittee shall be required to file an application for
legislative franchise with Congress not later than December 31,
1994. If the permittee fails to secure its franchise within this
period, the NTC shall not extend or renew its permit any further.
On December 20, 1994, ACWS-UBN filed with Congress an
application for its franchise. But pending its approval, NTC
issued to ACWS-UBN a temporary permit to operate a television
station via Channel 25 of the UHF Band from June 29, 1995 to
June 28, 1997.
Unfortunately, ACWS-UBN was not able to obtain the required
congressional franchise. After some squabbles at the
administrative level, NTC recalled the frequency band assigned
to ACWS-UBN for its failure to obtain the “much needed”
franchise. ACWS-UBN fought it out all the way to the Supreme
Court. One of the arguments raised by ACWS-UBN is that a
legislative franchise is not anymore needed considering that an
NTC permit will suffice.
On February 17, 2003, the Supreme Court held in the case of
ACWS-UBN versus National Telecommunications Commission
(GR No 144109, February 17, 2003) that the present state of laws
continues to require a franchise for the operation of radio and
television broadcasting stations. Therefore, the order of NTC
recalling the frequency band assigned to ACWS-UBN is valid
and in accordance with the law. With the recall of its frequency
band, ACWS-UBN cannot now anymore operate as a broadcast
station.
"A franchise started out as a 'royal privilege or (a) branch of the
King's prerogative, subsisting in the hands of a subject.' This
definition was given by Finch, adopted by Blackstone, and
accepted by every authority since. Today, a franchise, being
merely a privilege emanating from the sovereign power of the
state and owing its existence to a grant, is subject to regulation by
the state itself by virtue of its police power through its
administrative agencies."
The Supreme Court interpreted the use of the term franchise
under Section 1 of PD 576-A to mean the legislative franchise
issued by Congress. To distinguish, the franchise obtained by the
network from Congress is its primary franchise, while the
certificate, permit, or authority to operate issued by the NTC is
called secondary franchise.
Keywords— Franchise, PD 576-A
INTRODUCTION
In the issue of ABS-CBN franchise, here are the
possible things that will happen in the next days, months or
even in the next years.
It is a fact that the Kapamilya network has been airing for
several decades now and they acquire quite a big audience
share over the years.As it is now celebrating its 65 years in the
industry, ABS-CBN is facing a problem. Will its franchise be
renewed or not? The decision is up to President Rodrigo Yes, Abs-cbn sometimes was being biased but I think it's not
Duterte.According to the article by Ed de Leon in Pang-Masa, the main reason why he’s doing this, even I were the President
the Kapamilya network already fixed its problem when it I will do the same, think for sake of most people first. I know
comes to taxes.On the other hand, the TV network is also that ABS helps alot of people not only financial but the
facing the issue of the loan. Reportedly, ABS-CBN has P1.6 happiness they can give. But I also know that the president
Billion unpaid debt from the bank owned by the government. hates unfairness and corruption.
It was said that the transaction during the time of the Aquinos.
Based on the article, that debt was associated to other So I stand with the Duterte administration but,
companies of the Lopez family and not the TV network. I still look forward to watching the much-awaited Liz-Quen
teleserye, Ang Probinsyano with Coco Martin as well as the
When it comes to the issue of ABS-CBN other entertainment on primetime television.
franchise, this will take a long process because the next
session in Congress will just about to start. That will be the
start of the discussion regarding the franchise of the network.
The House Bill 4349 that aims to prolong the franchise of the
Kapamilya network for the nest 25 years is still pending in the
Congress. Based on the article, if the President will
choose not to give what ABS-CBN needs, it is his prerogative.
However, there are people who are trying to talk to the Chief
Executive regarding this issue. If ever, the network will no
longer have its franchise, at least it was already able to
establish the iWant TV and it also has its own cable channels
and TV box. In addition, its video streaming online does not
also need franchise.
Somehow, these can be the fall back of ABS-CBN when
things come to worst, based on the article.

State your opinion regarding the matter.

I know that when Duterte Administration closed the network
it isn’t only the artists that will be affected but as well as the
normal workers doing their jobs. Abs-cbn helped a lot of
people by bringing joy, fun and laughter to its viewers
everyday and we're always satisfied on their programs since
we're kids. But the President has his own reasons, and it is
something that the country needs. The president cited this
words in an interview,

“Ang ABS-CBN, 'yung bunganga ng inyong interes, they

protect you...Kayo ngayon, mag-renew kayo ng contract? Ilan
kayong mga senador ngayon na nagbayad sa inyo na hindi
ninyo pinalabas yung kanila?," Duterte added. "Unang
nilabas ninyo 'yung kay Trillanes 'yung using the children of a
propaganda.... Tinanggap ninyo ang ₱2 million ko, ni
wala...Hindi lang ako 'yung na-ganoon, Chiz Escudero,
marami. Lahat sa Congress," he said. "And you want us to
bow down to your wealth and money and influence? Well, not
with this administration. I am for the people and I will kill for
the people." Duterte said.