Bicol Rep. Joey Salceda on Tuesday filed a bill seeking to grant a new franchise to ABS-CBN Corporation, the Philippines’ largest broadcast network before its legislative operating permit expired in May 2020. The franchise renewal was rejected by Congress two months later, during the administration of President Rodrigo Duterte.
In proposing House Bill 11252, Salceda urged lawmakers to “reconsider the non-renewal of the franchise by the previous Congress,” emphasizing that the network “did not violate ownership restrictions and had no pending tax liabilities,” as certified by the Securities and Exchange Commission and the Bureau of Internal Revenue.
Salceda also noted that the network’s franchise non-renewal led to the loss of 11,000 jobs and deprived the public of a crucial information source at the height of the COVID-19 pandemic, which saw an alarming rise in infections and fatalities. “This action has had a devastating impact, both on the livelihood of thousands and on the availability of vital information during a national health crisis,” Salceda remarked.
If passed, the bill would grant ABS-CBN a new 25-year franchise to construct, install, operate, and maintain television and radio broadcasting stations across the Philippines.
In a statement, the listed company welcomed Salceda’s action, saying it is “deeply grateful for his support and belief in ABS-CBN’s contributions and mission to serve the Filipino public.” ABS-CBN also expressed gratitude to other lawmakers who have earlier filed similar bills to revived the company’s broadcast franchise.
A spokesperson for ABS-CBN said company executives have not yet reviewed the bill and will issue an official statement later.
Before Congress rejected its franchise renewal, the Lopez-controlled ABS-CBN was the country’s leading media and entertainment conglomerate. Its operations spanned television and radio broadcasting, film production, music production, publishing, cable TV, and digital content. ABS-CBN’s flagship platforms included free-to-air Channel 2 and radio station DZMM. In 2019, Channel 2 commanded a 44 percent audience share.
Despite facing impairment losses of P3.36 billion from its telecommunications, theme park, and attractions businesses, ABS-CBN reported a net loss of P2.64 billion. However, excluding these one-time charges, ABS-CBN would have posted a net profit of P2.95 billion, reflecting nearly a 7 percent revenue growth from the previous year, when it earned P1.91 billion.
Just last year, Leandro Antonio Leviste, founder of Solar Philippines Power Project Holdings Inc, bought an 8.5% stake in ABS-CBN, which made him as the listed media company’s second-largest shareholder after the Lopez group.
