Lawmakers laud NTC move on MediaScape

Lawmakers welcomed yesterday the National Telecommunications Commission directive mandating direct broadcast service provider MediaScape (formerly GV Broadcasting System) to explain why its congressional franchise is being revoked.

“We laud the NTC’s strong and positive action. We have had enough of franchised entities brazenly violating the conditions of their congressional concessions,” Catanduanes Rep. Joseph Santiago, a former NTC commissioner, said.

“We are counting on the NTC to use this case as an example, so that every franchised entity will dutifully comply with the terms of their legislative grants going forward,” Santiago, chairman of the House information and communications technology committee and vice chairman of the legislative franchises committee, added.

Santiago was reacting to NTC commissioner Ruel Canobas’ directive for MediaScape to answer the issues raised by Agusan del Sur Rep. Rodolfo Plaza in House Bill 5028, which seeks to repeal MediaScape’s congressional franchise.

Canobas’ order was contained in a letter to Orlando Vea, president of MediaQuest Holdings Inc., the parent firm of MediaScape.

“You are hereby directed to submit to the commission, your explanation on the issues raised in (the House bill), and on whether or not the sale of GV (Media-Scape) as well as its franchise to Media-Quest was done in violation of Section 20 of the Public Service Act, as amended, and other relevant issues on the matter,” Canobas told Vea.

According to Plaza, MediaScape and its direct-to-home (DTH) broadcast franchise were illegally sold on at least two occasions, without the prior approval of Congress.

Under the law, franchised entities cannot lawfully transfer ownership or control of a franchise without the consent of Congress.

Plaza also accused former NTC commissioner Ponciano “Jacky” Cruz Jr. of “self-dealing” while he was at the helm of agency.

Plaza said Cruz, who served as NTC chief for less than six months, irregularly granted a “midnight” satellite TV license to MediaScape. It turned out that Cruz was one of the five members of the board of directors of SATVentures Inc., the controlling stockholder of MediaScape, Plaza said.

MediaQuest acquired MediaScape for P450 million last year.

MediaQuest is a holding entity wholly owned by the Beneficial Trust Fund of Philippine Long Distance Telephone Co. (PLDT). The fund is controlled by PLDT management and meant to guarantee the benefits due retiring employees of the telecommunications service provider.

PLDT had planned to use MediaScape to pursue new ventures into digital mobile TV and Internet Protocol TV as well as DTH broadcasting via satellite.

– Mary Ann Reyes