The National Telecommunications Commission along with the Philippine Competition Commission, will thoroughly review the partnership agreement struck by the Lopez family’s ABS-CBN Corp. and TV5.
“The NTC is monitoring developments in the proposed JV between TV5 and ABS-CBN,” NTC commissioner Gamaliel A. Cordoba said in a statement.
“Kailangan po natin ito busisiin mabuti dahil madami po lumabas na violations ang ABS-CBN noong nakaraang pagdinig ng renewal ng kanilang prangkisa noong nakaraang 18th Congress na nagresulta sa di pag-renew ng kanilang prangkisa,” he added.
Cordoba cited the memorandum order issued by NTC that a franchise grantee shall not enter into commercial agreements in which the agency has jurisdiction, with those that have outstanding obligations to the national and local governments.
“The franchise grantee shall ensure that all the parties it transacts, or enters into agreements, with obtain clearances from the BIR, BOC, NTC and SEC. The commercial agreements together with these clearances should be submitted by the franchise grantee to the NTC prior to consummation,” Cordoba said.
The two companies will be required to submit a copy of their signed commercial agreement along with clearances from relevant government agencies.