SC FINDINGS AND RECOMMENDATIONS

NTC confirmed that it directed ABS-CBN to wait for NTC’s guidelines prior to offering such
pay-per-view services. 49 ABS-CBN disregarded the directive of NTC when it continued to air
the Pacquiao-Mayweather fight.
ABS-CBN, contrary to the terms of its franchise, operated its pay-per-view (PPV) channel,
otherwise known as the Kapamilya Box Office, without a valid permit from the NTC. As per
NTC documents , the KBO PPV promo is a value added service authorized for ABS-CBN
Convergence, Inc. which is registered as a value-added service provider for
Telecommunications Carrier. 50
ABS-CBN Convergence, Inc. is not a legislative franchise holder for broadcasting operations.
ABS-CBN Convergence, Inc. is not authorized to use ABS-CBN’s digital frequency/ channels
assigned by the State or even ABS-CBN’s TV Plus Box. However, in almost all promo
mechanics of ABS-CBN Convergence, Inc., it required that subscribers also have the TV Plus
Box in order to watch the KBO shows. 51
To repeat, neither ABS-CBN nor ABS-CBN Convergence was authorized by the NTC or by
a legislative franchise to operate the TV Plus Box, or even charge subscribers for the KBO
service therein.
ABS-CBN TV Plus Box
system is akin to Cable
TV operations requiring
a separate legislative
franchise.
ABS-CBN’s legislative franchise is for Radio and Television broadcasting using the free-to-air
frequency granted by the State. However, its TV Plus Box, the encrypted channels therein,
and the KBO PPV service all pertain to the delivery of video and audio signals for a fee
through technological means including transmission via wired or wireless means.
ABS-CBN cites DOJ Opinion dated 11 June 2018 addressed to NTC to justify that it was
allowed to “commercialize” the digital channel 43 assigned to it by NTC. 52 However, the DOJ
Opinion expressly cautioned NTC to ensure that said “commercial activities” of TV
broadcasters should not amount to cable TV operations:
To summarize, it is our opinion that TV broadcasters may be
allowed to engage in Conditional Access (CA) or Conditional
Access System (CAS), more specifically to offer TV pay-per-view
services, provided that it does not amount to CATV service,
which shall only be considered as such if it is ‘for purposes
of providing multiple channel CATV service’. 53
Precisely, the Federation of International Cable TV Associations of the Philippines (FICTAP),
in opposing the franchise application of ABS-CBN, said that the TV Plus Box, the multiple
49
TSN of the 29 June 2020 hearing, at V-15.
50
Submission of ABS-CBN, copies of NTC Letters addressed to ABS-CBN Convergence, Inc.
51
Submission of ABS-CBN, copies of NTC Letters addressed to ABS-CBN Convergence, Inc.
52
Submission of ABS-CBN, copy DOJ Opinion dated 11 June 2018.
53
Submission of ABS-CBN, copy DOJ Opinion dated 11 June 2018; emphasis supplied.
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