Second shutdown: A recap of the ABS-CBN franchise non-renewal

Over the past several weeks, many among my friends reached out to ask how I’ve been doing — most of them, out of generous concern, while some, sheer curiosity. Whether the intent was concern or curiosity is immaterial for it is the asking that will be remembered.

Among those who sent me a message concerning ABS-CBN’s application for franchise renewal, I bear fondness to acquaintances who clarified the specifics of the issue with me to educate themselves, and maybe others, on the controversy and its consequences to the nation’s political, social, and economic landscape.

^ Show of support as seen from Sgt. Esguerra Ave.
during a noise barrage protest against
the non-renewal of the network’s franchise
(Photo from Nigel Lopez)

It has been exactly a month since the House of Representatives denied the franchise renewal application of the Philippines’ largest media network, ABS-CBN. In the rainy Friday afternoon of July 10, 70 district representatives voted yes for the denial of the franchise, 11 voted no, one abstained, and two inhibited. The turnout was met with public outcry and criticism.

Presidential spokesperson Harry Roque insisted that President Rodrigo Duterte is “neutral” on the issue despite repeated public threats to shut down the network previously — at some point even declaring, “If you are expecting na ma-renew ‘yan (franchise), I am sorry. I will see to it that you (ABS-CBN) are out.” — and asked the public to respect the “decision of the Filipino people”. But is it, really? Three out of every four Filipinos believe the ABS-CBN franchise should be renewed, according to a survey conducted by pollster Social Weather Stations (SWS).

In a speech to the military in Jolo, days after the Congress voted against the non-renewal of ABS-CBN’s franchise, the President said he was “very happy” that “without declaring martial law, I dismantled the oligarchy”. Through audio leaks of the full speech, it was learned that the presidential communications team tempered the President’s speech — and not for the first time — by editing out about 10 minutes from his address, including, in particular, mentions of ABS-CBN and Rappler, two media organizations Duterte has publicly harassed before.

The aired version did not contain this line at timecode 9:29: “’Yun namang ABS-CBN, binaboy ako. Pero sinabi ko kapag ako nanalo, bubuwagin ko ang oligarchy ng Pilipinas. Ginawa ko.”

(ABS-CBN defiled me. But as I said, if I win, I will dismantle oligarchy in the Philippines. I did it.)

To understand the multilayered issue on the ABS-CBN franchise, it is important to lay the premises upon which it is based.

The need for a franchise

In the Philippines, frequencies used for broadcast are government resources. These frequencies are allocated and assigned to media entities upon the granting of a franchise through a law. A franchise, therefore, is a privilege to use these government resources, and not a right.

A bill has to go through the two chambers of Congress, the Senate and the House of Representatives, before becoming a law. There are exemptions here, however. General appropriations and franchise laws always emanate from the House of Representatives.

Upon the lapse of a franchise, which has a limit of up to 50 years, a media entity may apply for renewal. With ABS-CBN’s 25-year franchise expiring on May 4, 2020, it is natural to turn to the House for a renewal application.

Timing: Why only now?

ABS-CBN had earlier filed for a franchise renewal in 2014. At the time, however, the 16th Congress did not see it as a priority because the franchise was not due until six years later.

Under the 17th and the 18th Congress, which both coincide with the term of President Rodrigo Duterte, numerous bills had been filed extending the franchise of ABS-CBN, but they were never scheduled for a hearing until March 2020, a day before Congress adjourns for Lent. The Cayetano-led chamber earned public ire for sitting on the franchise bills.

Palawan Rep. Franz “Chikoy” Alvarez, who chairs the House committee on legislative franchises, and House Speaker Alan Peter Cayetano of Taguig, who was Duterte’s running mate in the 2016 polls, had previously made statements against what the public perceived then to be the looming shutdown of the network.

”Why would we talk to you with forked tongues? What do we have to gain to lie to you? So nung sinabi naming ‘di magsasara, ‘yan ang paninindigan namin. Kung kailangan physically ako ang mag-on ng transmitter or pumunta doon, gagawin ko ‘yan. Gagawin ni Chairman Chikoy ‘yon,” Cayetano said.

A month earlier, on February 24, a day before the anniversary of the EDSA People Power Revolution that ousted dictator Ferdinand Marcos, the Senate conducted a hearing on the ABS-CBN franchise.

In the hearing, Sen. Christopher “Bong” Go, long-time aide and former Special Assistant to the President (a position that did not exist before this administration), demanded an explanation from ABS-CBN chairman and chief executive officer Carlo Katigbak on the unaired political ads of Duterte during the 2016 electoral campaign and on the aired “black propaganda” funded by then-senator Antonio “Sonny” Trillanes IV.

Katigbak explained that the network has a first-come, first-served policy and that on May 3, or four days before the last day of the campaign where there were already placements from other buyers, Duterte’s campaign team bought spots for national ads, totaling P117 million, and for local ads, amounting to P65 million.

He said that all of Duterte’s national ads aired, and that the network refunded P4 million for the unaired local ads. The remaining P2.6 million was delayed and later not accepted by Duterte’s camp.

Katigbak claimed the network had no political agenda and followed the regulations surrounding the broadcast of political advertisement in airing Trillanes’s paid commercial against Duterte.

The ad showed clips of Duterte cursing, uttering his controversial rape remark — “Dapat mayor muna ang mauna” (The mayor should have been first) — and saying he is ready to kill interspersed with videos of children criticizing the then-presidential candidate’s behavior.

Duterte later accepted Katigbak’s public apology and told the network executive to donate the remaining funds to charity.

Unprecedented long hearings

Deliberations on legislative franchises don’t typically take too long, but ABS-CBN’s application for a renewal spanned almost two months with 12 eight- to 10-hour-long hearings. As well, media entities have in the past been allowed to operate despite the expiry of their franchises.

Among the issues hurled against the network are the following: the dual Filipino and American citizenship of ABS-CBN chairman emeritus Gabby Lopez; Philippine depositary receipts, which are not proof of ownership; the Lopezes’ ownership of ABS-CBN during Marcos’ martial law takeover; the shift from analog to digital TV, leading to the use of multi-channels in one frequency and of set-top box device TV Plus; pay-per-view services that were allowed under the franchise; alleged labor violations, with the Department of Labor and Employment saying the network was “fully compliant”; alleged tax evasion, with the Bureau of Internal Revenue attesting that ABS-CBN is “regularly” paying its taxes and is, in fact, a top taxpayer; and malinformed allegations of media bias.

Further reading: Manifestation of Camarines Sur Rep. Gabriel Bordado

It is paramount that the manner by which these details form the context of the second shutdown of the Philippines’ largest media network under a president that follows the playbook of a former dictator is not lost in history.

One’s freedoms are only always recognized at the moment of losing them. And we are condemned to lose the very freedoms fought for in the bloodless revolution of EDSA if we forget and tolerate these abuses. •