Business News

ABS-CBN goes shutdown in compliance with NTC order

LAGUNA, Philippines — ABS-CBN has gone off the air following the National Telecommunications Commission (NTC) order dated May 5 to stop operating its television and radio broadcasting stations nationwide due to the expiry of its legislative franchise.

The Cease and Desist Order against ABS-CBN was issued on Tuesday after its legislative franchise expired on May 4 and the station was given 10 days to respond.

“No person, firm, company, association, or corporation shall construct, install, establish, or operate a radio transmitting station, or radio receiving station used for commercial purposes, or a radio broadcasting station, without having first obtained a franchise therefor from the Congress of the Philippines,” the Radio Control Law cited by NTC.

Therefore, the 25-year franchise of ABS-CBN to operate its broadcasting nationwide will be in accordance with the termination of the  Republic Act. No 7966.

NTC stated that ABS-CBN “no longer has a valid and subsisting congressional franchise as required by Act No. 3846.

“The NTC Regional Offices shall implement the closure order in their respective areas of jurisdiction,” NTC said in a statement.

ABS-CBN said in a statement, “millions of Filipinos will lose their source of news and entertainment when ABS-CBN is ordered to go off-air on TV and radio tonight (May 5) when people need crucial and timely information as the nation deals with the COVID-19 pandemic.”

“Despite Senate Resolution No. 40, the House of Representatives’ committee on legislative franchises’ letter, the guidance of the Department of Justice, and the sworn statement of NTC Commissioner Gamaliel Codoba, the NTC did not grant ABS-CBN a provisional authority to operate while its franchise renewal remains pending in Congress,” ABS-CBN said.

“In an interview with DZMM last week, House Speaker Alan Peter Cayetano even gave assurance that there is no move to shutdown the network,” it added.

After airing the national anthem, the network signed off at 7:52 p.m. on Tuesday.

The shutdown covers five AM stations, including DZMM, 18 FM stations and 42 TV stations, including Channels 2 and 23.

“We trust that the government will decide on our franchise with the best interest of the Filipino people in mind, recognizing ABS-CBN’s role and efforts in providing the latest news and information during these challenging times,” ABS-CBN said.

The bills seeking the renewal of ABS-CBN’s franchise remain pending before the House of Representatives.

Sources: CNN Philippines and Philippine Daily Inquirer

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