The Makati Regional Trial Court has denied a request by businessman Mel Velarde’s News and Entertainment Network Corp. (Newsnet) to prevent the National Telecommunications Commission (NTC) from reassigning its frequency allocation.
“After due consideration of the evidence presented by both parties, this Court holds that plaintiff (Newsnet) was unable to establish a definite and enforceable right that would entitle it to a writ of preliminary injunction,” the RTC said in a decision handed down on 4 March this year. Newsnet had sought its intervention in July last year to prevent the NTC from reassigning its frequency allocation.
This development is the latest in a series of setbacks Newsnet has met at the hands of the regulator and the court.
Newsnet is a cable television (CATV) network affiliated with Velarde’s NOW Corp. and NOW Telecom Company Inc. that competed but failed to secure its place as third player in the telecommunications industry.
The RTC, in an earlier order dated July 31, 2023, also denied Newsnet’s application for the issuance of a temporary restraining order against the implementation of NTC Memorandum Circular No. 003-05-2023 dated May 23, 2023.
The NTC previously decided to reallocate Newsnet’s frequency for the terrestrial component of IMT, a generic term used by the International Telecommunication Union to designate broadband mobile systems.
This was after the regulator denied Newsnet’s request to renew its provisional authority to operate and maintain a CATV system at the 25.35 to 26.35 gigahertz frequency range, citing an expired legislative franchise.
Newsnet claimed the right to continue operating its CATV system using a previously assigned frequency even though its secondary 25-year legislative franchise under Republic Act (RA) 8197 expired in 2022.
It also asserted the provisional authority from NTC may be viewed as a separate administrative franchise issued in accordance with Executive Order 205 allowing Newsnet to continue operating even without a renewed congressional franchise
The RTC disagreed, pointing out the provisional authority and other permits the NTC issued to the company were all based on its legislative franchise.
The court said a separate administrative franchise could not have been issued during the lifespan of the 25-year franchise granted under RA 8197 as the NTC cannot bypass or supersede a law.
The trial court noted that as the legislative franchise approached expiration, Newsnet opted against pursuing an administrative franchise under EO 205 but worked to extend the provisional authority for when its legislative franchise passes muster at the House of Representatives.
The RTC also ruled Newsnet failed to establish the requisite of a “clear and unmistakable right” to a writ of preliminary injunction.
“Considering the expiration of the 25-year legislative franchise granted under RA 8197 from which plaintiff’s authority to operate as a CATV entity emanates, and in light of the foregoing exposition, this Court is of the opinion that plaintiff was unable to establish a clear, unmistakable right that would entitle it to injunctive relief,” the RTC declared.
“At this stage, plaintiff is not the holder of an existing franchise, whether legislative or administrative, that would allow it to exercise the privilege of providing CATV services to the public within the Philippines,” the court said.
