The ABS-CBN ELJ building in Quezon City lights up in the network’s colors on the eve of the first year anniversary of the denial of its franchise renewal at the hands of the House of Representatives on July 9, 2021. Basilio H. Sepe, ABS-CBN News/File

MANILA -- A lack of competition in the industry is a "compelling reason" to grant ABS-CBN a new franchise, a lawmaker said Wednesday. 

Rep. Johnny Pimentel, one of the authors of a bill seeking to grant ABS-CBN a new franchise, together with Cagayan de Oro Rep. Rufus Rodriguez, cited a study by the Philippine Competition Commission during the briefing of the House Committee on Legislative Franchises.

During the briefing, PCC Policy and Markets Division Chief Jestoni Olivo presented its study on "competition concerns" due to regulations on block-timing deals and the nonrenewal of the ABS-CBN franchise.

In the study, the PCC said GMA Network is the dominant player in the free TV industry with a market share of 92.8 percent based on revenue.

READ: PCC flags 'competition concerns' in free TV after non-renewal of ABS-CBN's franchise

"If there is high concentration in the market, there could be potential competition concerns. Because of high market concentration, there might be limited broadcasting frequencies," he said.

"If there is a dominant player in the industry, there may be a possibility they may deny small content creators access to airtime…. There's also this difficulty to enter the production market because content producers will no longer have a platform to air their content. In effect, there will be fewer choices for viewers and consumers," Olivo added. 

PCC said over-the-top platforms, like streaming services, mitigate the impact of increased market concentration. It recommended government interventions and policies that promote a competitive and dynamic television industry.

Lawmakers asked if GMA Network is already monopolizing the free TV industry.

"Monopoly kasi, that's a very technical term. For us the more appropriate term would be dominant firm or dominant market player. For us we don't have strict thresholds ... GMA is definitely a dominant firm in the market," PCC Legislative Division Chief Maria Dominique Lucenario said. 

Pimentel cited this dominance as a "compelling reason" why it should grant a new franchise to ABS-CBN while Rodriguez, who also filed a bill granting ABS-CBN a franchise, backed his sentiment.

"Hindi pwedeng isang TV station lang ang magdodominate ng free TV station," said Pimentel. "This should encourage us that we should rally to support this bill. Nakikita naman natin yung presentation ng PCC na the granting of a franchise to ABS-CBN is well justified."

"The last Congress committed a grave injustice against ABS-CBN contrary to constitutional provisions on freedom of the press, right of information of people and substantive due process. The previous Congress denied the application of ABS-CBN to renew its franchise," he said.

Lawmakers also asked PCC if they favor granting ABS-CBN a new franchise.

"From a competition perspective, we encourage any and all viable competitors. Whether it's ABS-CBN or any other viable competitor, for as long as they comply with the regulatory requirements the entry of any firm would be great for competition," Lucenario said.

WATCH: ABS-CBN statement to Congress on bills seeking to grant new franchise

AVAILABLE FREQUENCIES

Should ABS-CBN be granted a new franchise, the National Telecommunications Commission said there are frequencies available for the network.

"On the availability of frequencies, meron pa naman pong available na frequencies in several areas in the country," NTC Deputy Commissioner Alvin Blanco said. 

"So in the event that Congress decides to grant a franchise, NTC will be able to grant stations to ABS-CBN, specifically in areas where frequencies are available. Meron pa pong frequencies which ABS-CBN can apply for," he added.

The NTC earlier granted the Villar-led Advanced Media Broadcasting System (AMBS) the authority to operate Channel 16 and Channel 2, ABS-CBN's old digital and analog frequency. NTC also assigned Channel 43 to Pastor Apollo Quiboloy's Swara Sug Media Corp. which operates as Sonshine Media Network International (SMNI).

ABS-CBN ON FRANCHISE TALKS

ABS-CBN Chief Partnership Officer Bobby Barreiro said the network has been guided by its mission to be in the service of the Filipino and audiences worldwide, despite not having a franchise.

He noted that audiences demanding more control on how and when they consume content pushed the network to distribute its content on the widest array of platforms.

"While we want to reach our audiences anytime, anywhere, and in any medium or device, we know that for many Filipinos, the most practical and pervasive platform is still free-to-air television. For this reason, we have continued making our programs available on television through content supply and partnership arrangements with other TV networks," Barreiro said.

"The biggest loss has been our ability to reach our former audiences in the farthest and poorest corners of the country. If restoring our franchise allows us to reach them again and provide more options to all viewers, and if Congress feels this is a worthwhile objective, we would fully support the achievement of this shared ambition," he also said.