Cabaero: Understanding media license

A FRANCHISE does not mean the media organization cannot be critical of the government or would have to prostrate itself before the powers that allowed it to operate.

But a franchise-holder would have to abide by rules and laws governing its organization and operation. It would have to be transparent in its registration and in its acceptance of additional investment. For allegedly violating laws, Solicitor General Jose Calida has asked the Supreme Court to invalidate franchises of ABS-CBN Corp. and ABS-CBN Convergence because of abuses, including violations of restrictions on foreign ownership.

Most of the public commentary, based on social media posts, rested however on the fallacy that a franchise granted to ABS-CBN meant the media company should not criticize the government or go with critics of the administration.

A broadcast company has to get two kinds of franchises before it could operate or continue to operate. This is unlike newspapers and online platforms where no such franchise is required.

According to the Media Ownership Monitor Philippines, with Vera Files and Reporters without borders at https://philippines.mom-rsf.org/, setting up a broadcast business follows a twin-franchising principle. Aspiring broadcast owners first have to register with the Securities and Exchange Commission, like all private corporate entities, in order to begin its corporate existence and conduct business in the Philippines.

The next step is to seek a legislative franchise from Congress, also called a primary franchise, with a term of 25 years, subject to renewal. Starting a new TV or media outlet then needs authorization by the National Telecommunications Commission (NTC) through a certificate of public convenience and necessity—a “secondary franchise,” although the NTC is powerless when it comes to revoking a license.

Licensing became necessary as broadcast frequencies constitute a scarce resource, the report added. “Without government control, the medium would be of little use because of the cacophony of competing voices, none of which could be clearly and predictably heard,” it said. The government has to limit the frequency to a set number of television and radio channels.

In Metro Manila, the report said, the frequency is limited to 23 physical spots for TV channels, 32 spots for AM radio channels, and 25 FM spots—and they are all taken. The same goes for the other metropolitan areas, it added. Cable television does not need a secondary franchise but an authorization by the NTC.

The physical limitation that applies to broadcast does not exist for print and online media. Thus, they do not need a media-specific franchise to operate. Print and online media, however, have to comply with laws governing ownership and operations.

But, sadly, this debate about the ABS-CBN franchise is not about the franchise. It’s about curtailing voices, not alone of the television network.

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