NTC orders ABS-CBN subsidiary SkyCable to stop direct broadcast service

The National Telecommunications Commission (NTC) on Tuesday ordered ABS-CBN Corp. subsidiary Sky Cable Corp. to stop its direct broadcast services -- SkyDirect.

In an order, the NTC directed Sky Cable to “immediately cease and desist operating its Direct Broadcast Satellite Service.”

JUST IN: The National Telecommunications Commission issued a cease and desist order against SkyCable. | via @Ted_Cordero pic.twitter.com/Dg2lTKdgHR

— GMA News (@gmanews) June 30, 2020

The NTC noted that the legislative franchise granted to Sky Cable by virtue of Republic Act No. 7969 has expired on May 4, 2020.

“Upon the expiration of R.A. No. 7966, Sky Cable Corporation no longer has a valid and subsisting congressional franchise to install, operate and maintain a Direct Broadcast Satellite Service,” it said.

The NTC also ordered Sky Cable to show cause in writing within 10 days from receipt of the order why the radio frequencies assigned to the company shall not be recalled for “lack of the necessary Congressional franchise as required by law.”

Sky Cable was also directed to refund to all its subscribers the amounts representing unconsumed prepaid loads, deposit or advanced payment in monthly charges for postpaid subscribers, and, if any, the charges collected from new applicants.

In a separate statement, the cable TV operator said it would comply with the NTC order to cease operations of SkyDirect and refund all unconsumed prepaid loads and advance postpaid payments of its subscribers.

However, it said that SkyDirect’s “1.5 million subscribers nationwide, including those in remote areas that do not receive television signals, will be deprived of access to the channels we carry that bring them news, information, education, and entertainment starting tonight June 30, 2020...”

“We assure our subscribers that we will exhaust all legal remedies to resume our services,” Sky Cable said.

The company said it will continue to appeal to the NTC to extend the same privilege given in the past to other companies whose franchises have expired but are currently pending in Congress to continue its operations until a resolution is passed.

Sky Cable entered into a Transponder Lease Agreement with New Skies Satellites V.V. for the lease of satellite capacity to Sky Cable for the operation of its direct broadcast service or DBS and was assigned 14421-14457 megahertz, 12673-12709MHz radio frequencies.

ABS-CBN president and CEO Carlo Katigbak during the House joint panel hearing on the company’s franchise admitted that Sky Cable’s 25-year franchise had already expired as he appealed for “fairness” since the Congress had allowed companies whose franchises had already expired to continue operating while the applications for renewal were pending. 

Katigbak said there were about 11 million homes, or around 55 million individuals, connected to TV Plus and Sky Cable.

The NTC also issued a similar order against Channel 43, which ABS-CBN uses to broadcast its TV Plus programs. 

To recall, ABS-CBN was ordered on May 5 to stop operating its various TV and radio stations nationwide following the expiration of its legislative franchise on May 4, 2020. 

The NTC issued a cease and desist order against ABS-CBN despite saying last March that it will follow the advice of the Department of Justice, which said, and has maintained, that there is sufficient basis to allow broadcast entities to operate pending congressional action on their application for renewal. -NB, GMA News