Press Release
September 23, 2020

POE PANEL SCRUTINIZES 11 FRANCHISE BIDS

The Senate public services committee, led by Sen. Grace Poe, scrutinized on Wednesday the application of 11 companies for fresh franchise to continue operations.

"By authority under the Constitution and as practiced here in the Senate, we grant a franchise only after establishing that there is a public need for such a service and that the applicant has the means to adequately provide it," Poe said.

The applicants are composed of three telecommunications companies, five broadcast companies and three others from various industries.

Government regulators were also present in the hearing to determine if the applicants have faithfully complied with all the duties and deliverables attached as conditions for enjoying their franchise.

"Ang mga prangkisa ay hindi lamang pribilehiyo kung hindi isa ring checklist kung nagawa ba ng mga aplikante ang kanyang mga obligasyon at tungkulin sa publiko," Poe said.

Poe said the applicants will be given opportunity to prove that their services are crucial to serving the public needs.

"We want to make sure that all applicants are fit to offer their avowed public service so as to encourage competition and drive companies to provide better service. For those services that are natural monopolies, we will evaluate if they truly deserve the exclusive privilege of the franchise," she said.

"If the public wants or needs it, we will grant it," Poe added.

The three telco franchises are Cruztelco, Bayantel, and Tandag. The five broadcast franchises are FBS Radio Network, Inc., Century Communications Marketing Center, Inc., Caceres Broadcasting Corporation, Negros Broadcasting and Publishing Corporation, and Philippine Collective Media Corporation. The three other applicants are San Miguel Aerocity, Davao Light and Power Company Inc., and Metro Manila Turf Club, Inc.

The application of Metro Manila Turf Club Inc., which operates the racecourse in Batangas, was deemed approved after getting support from members of the panel.

Poe said the committee is waiting for pertinent documents from the Bureau of Internal Revenue (BIR) and the Securities and Exchange Commission on the compliance of the applicants seeking franchise renewal.

"When they are found compliant, we will submit our committee report," she said.

During the hearing, Poe reprimanded the BIR for coming to the hearing unprepared after several senators called out the bureau's absence of assessment on the compliance of applicants to their franchise's terms.

"I'm really disappointed because they always come to our hearings unprepared or sending even the wrong representative. I don't understand why you are doing the crosschecking only now. If for some reason, we pass these franchises and then you start running to us and telling us that you are mistaken, then that's your loss," she said.

"I am not going to sabotage the opportunities, the jobs for our countrymen because the government agencies are inefficient," Poe added.

Summary of information on franchise applications:

  • Cruz Telephone Company, Inc. Operates a telecommunications system under Manila East Holding Corporation and J.S. Cruz Construction and Development Inc. Franchise expired on March 29, 2020, seeking renewal of 25-year franchise.

  • Tandag Electric and Telephone Company, Inc. Operates a public domestic telecommunications. Franchise to expire on July 16, 2023, seeking renewal of 25-year franchise.

  • Bayan Telecommunications, Inc. Operates domestic telecommunications, radiophones, broadcasting and telecasting under the same company name and Globe Telecom Inc. Franhise to expire on August 9, 2021, seeking renewal of 25-year franchise.

  • FBS Radio Network Operates radio and television broadcasting. Franchise expired on July 9, 2020, seeking renewal of 25-year franchise.

  • Century Communications Marketing Center Inc. Operates radio and television broadcasting. Franchise expired on July 16, 2020, seeking renewal of 25-year franchise.

  • Caceres Broadcasting Corporation Operates radio and television broadcasting. Franchise expired on July 9, 2020, seeking renewal of 25-year franchise.

  • Philippine Collective Media Corporation Expanding to digital television. Franchise to expire on November 14, 2034, seeking renewal of 25-year franchise.

  • Negros Broadcasting and Publishing Corporation Operates radio and television broadcasting. Franchise expired on September 23, 2020, seeking renewal of 25-year franchise.

  • San Miguel Aerocity Inc. Applying for a 50-year franchise to operate domestic and international airport in Bulacan.

  • Davao Light and Power Company Operates electric light, heat and power system. Franchise to expire on September 7, 2025, seeking renewal of 25-year franchise.

  • Metro Manila Turf Club Inc. Operates racetrack for horse racing. Franchise expired on April 22, 2020, seeking a 35-year franchise.

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