Franchise issues

THEY SAY: “Fight for Democracy, Uphold Press Freedom! Respect Workers Rights!”

These words may not be new to you. These were the words silently screamed by people behind the No. 1 television network in the country – ABS-CBN.

The public may share the same sentiments with these people. Yes, we live in a democratic state where we enjoy the rights to act and to speak, and without hindrance or restraint from anybody. We promote press freedom through free speech and safer environment with our journalists.

These rights are fundamental and are protected by the Constitution. However, these freedoms and rights are not absolute. There are certain limitations and boundaries. We don’t just exercise them whenever and wherever we want.

There are a lot of stories making headlines about these issues. But it all boils down to one issue which others may also benefit knowing the facts: broadcast or media license renewal.

With the purpose of helping the people know the law better, I have this first comeback article for this year.

An individual interested putting up a broadcast business must register its corporate entity with the Securities and Exchange Commission (SEC). The important part of this is to seek legislative franchise from Congress which is called the primary franchise. This franchise has a term of 25 years and is subject to renewal.

There is also a need to secure an authorization from the National Telecommunications Communication (NTC). This is through a Certificate of Public Convenience and Necessity (CPC) which is also known as the secondary franchise. These provisions are embodied in Republic Acts (RA) 7579 which grants broadcasting stations in the Philippines.

A comprehensive guide for the renewal of the franchise is provided in Republic Act 10793 which covers the provisions provided under RA 7579.

The franchise is renewed for another 25 years from the approval of the previous franchise. The grantee (or applicant) shall secure from NTC the appropriate permits and licenses for the construction and operation of stations and facilities. The grantee is prohibited from using any frequency in the radio or television spectrum without authority from the Commission.

The franchise is effective for another 25 years from approval. Of course, this may be revoked or cancelled by Congress in the event the grantee fails to comply with the laws and requirements. The franchise is deemed ipso facto revoked in the event the grantee fails to operate continuously for a period of two years.

There is nothing to renew once the franchise expires. The grantee must apply again for a new franchise.

Only Congress has the power to issue a franchise to operate a broadcasting network. The Constitution mandates that all bills in connection with the renewal of broadcasting networks must originate from the House of Representatives with the concurrence or proposal for amendments by the Senate.

Thus, in the recent issue the NTC cannot issue a provisional permit, unless its enabling law provides. It is a legislative power of Congress which should not be taken illegally from it.

I read from another source that it has been a practice of the NTC to issue provisional permits to broadcast networks with pending renewal bills in Congress once their franchise expires;  this is inaccurate. The same source says “a practice does not necessarily mean it is valid and lawful…equity cannot prevail over law.”

So, what’s next?

As mentioned in the earlier paragraphs, we uphold the exercise of the rights of the people. However, these rights are not absolute and are regulated and monitored.

We demand our rights. The law demands that it should be followed. We enjoy all these rights when we comply with the requirements set by the law.

The Constitution promotes press freedom and workers’ rights but at the same time prohibits irresponsible issuance of franchises. We cannot just bypass the law because we think we have rights. We need to adhere to the law. (ayindream.aplasca@gmail.com/PN)

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