Stated in the quo warranto of the office of the Solicitor General, specifically in PART Substantive number 66, it stated:
Respondent ABS-CBN Corporation violated its legislative franchise when it operated a pay-per-view channel through free air signals.
In February 2015, ABS-CBN Corporation launched the country's first digital terrestrial set 'top box' with free premium digital TV channels called ABS-CBN TV Plus. Thereafter, in March 2016, ABS-CBN launched a pay-per-view channel in ABS-CBN TV Plus, the Kapamilya Box Office (KBO).
The process of having a franchise of a TV network to be able to operate and broadcast on TV, undergoes two proper permits or franchise, one from the Congress, of which has approved the franchise, and two, the permit coming from the National Telecommunications Commission, a telecommunication department of the government. The franchise from the Congress will then be turn into a Republic Act, the RA 7966.
RA 7966 on Section 3 states:
Prior Approval of the National Telecommunications Commission . - The grantee shall secure from the National Telecommunications Commission the appropriate permits and licenses for its station and shall not use any frequency in the television or radio spectrum without having been authorized by the Commission. The Commission, however, shall not unreasonably withhold or delay the grant of any such authority.
ABS-CBN, according to the QW, violated Republic Act 7966. Because in 2015, during the peak of the confirmed fight of Manny Pacquiao VS Mayweather JR, ABS-CBN offered a Pay-Per-View for its viewers. Meaning, they get money from viewers who want to watch the boxing fight of Pacquiao and Mayweather live through the TV Plus cable system, the Kapamilya Box Office. However, ABS-CBN did not get any permit from NTC as of those times. Still ABS-CBN continued to offer the Pay-Per-View fight live on TV Plus to viewers. In short, ABS-CBN did not have any permit from NTC. Thus, ABS-CBN violated RA 7966.
What worse is, ABS-CBN have not done this once, but many times.
In the QW based on facts, ABS-CBN wrote a letter to NTC, promising that they would only offer the Pay-Per-View through their free channels on their TV PLus Box.
However, the QW stated:
In a letter dated April 29, 2015, NTC directed ABS-CBN to 'refrain from offering any pay television service in ts DTT trials until such time that the Commission has come up with appropriate guidelines for the same.
Watch the video below by RJ Nieto:
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