Malacanang has rejected the appeal by businessman Mel Velarde’s News and Entertainment Network Corp. (Newsnet) to reverse the Anti-Red Tape Authority (ARTA) decision nullifying the ruling granting automatic approval of the company’s application to install, operate and maintain a local multi-point distribution system or LMDS.
An LMDS uses microwave signals to deliver fixed telephony, video and internet services but its structure is fashioned as cellular-like networks.
The Office of the President (OPS) said applications involving radio frequency assignments are “not within the coverage of Republic Act 11032 or The Ease of Doing Business and Efficient Government Service Delivery Act of 2018, but is a sole function of the government regulatory body, which is the National Telecommunications Commission (NTC) in this case.”
Newsnet brought its case before the OP in a bid to reverse the ARTA resolution that nullified the February 12, 2020 Declaration of Completeness and Order of Automatic Approval of Newsnet’s application to install, operate and maintain an LMDS to deliver interactive pay television and multimedia services nationwide in the 25.35GHz-26.35GHz frequency range.
In the decision dated March 31, 2023 signed by Executive Secretary Lucas P. Bersamin on behalf of President Ferdinand “Bongbong” Marcos Jr., the OP found Newsnet’s appeal to have been rendered moot and academic by the expiration of its legislative franchise, which “effectively disqualified it from commercially operating radio transmitters and receivers, including an LMDS to deliver an interactive pay television and multimedia services, and being allocated with any radio frequency.”
“While it may be argued that the operation of a CATV does not require the grantee to have a prior legislative franchise, the same is not applicable to Newsnet since the object of its application is the operation of an LMDS, a wireless service which makes use of a frequency spectrum,” the OP said in its 16-page decision.
The OP also discarded Newsnet’s assertion the ARTA could not legally vacate its February 12, 2020 order, instead emphasizing that the final and executory resolution of Department of Justice at the time, which already ruled that ARTA exceeded its authority when it acted on Newsnet’s complaint by ordering the NTC to assign radio frequencies in favor of Newsnet.
With ARTA having no jurisdiction to issue the order, the OP maintained that “said Order never attained finality because it was null and void from the beginning.”
In the decision, the OP also cited Newsnet’s deliberate forum-shopping as another primary consideration for setting aside the appeal.
“Here, Newsnet does not deny, and even pleads, the fact that it filed a petition for mandamus before the CA to have NTC and (Commissioner) Cordoba comply with ARTA’s 12 February 2020 Order. In the instant appeal, Newsnet seeks to reinstate and enforce the same 12 February 2020 Order of ARTA.”
“If the acts of the party or his or her counsel clearly constitute willful and deliberate forum shopping, the same shall be ground for summary dismissal with prejudice and shall constitute direct contempt, as well as cause for administrative sanctions. Newsnet’s willful and deliberate forum shopping is thus another ground to dismiss the instant appeal,” Malacanang said in dismissing Newsnet’s appeal.
