The Court of Appeals (CA) has ruled anew for the National Telecommunications Commission (NTC) to heed the Anti-Red Tape Authority (ARTA) allowing News and Entertainment Network Corporation (Newsnet), an affiliate of Now Corporation, by granting it a so-called certificate of public convenience (CPC).
In a 12-page resolution promulgated on March 28, 2023, the CA Special Eighth Division denied the NTC bid to block Newsnet’s continuing effort to push ahead, saying the court’s July 2022 decision stands.
On 20 July 2022, the CA Special Eighth Division granted the petition for mandamus filed by Newsnet against the NTC. Newsnet asked the CA to compel NTC to recognize the ARTA order dated 12 February 2020 approving its application for the issuance of a CPC to install, operate, and maintain a local multi-point distribution system (LMDS) to deliver interactive pay television and multimedia services in South Luzon, North Luzon, Visayas, and Mindanao in the 25.35 GHz 26.35 GHz frequency range, and authority to charge subcribers.
The NTC previously canceled Newsnet’s provisional authority (PA) to operate pay TV and LMDS nationwide due to the expiration of the latter’s legislative franchise on 1 October 2021
The CA, however, said in its resolution that a congressional or legislative franchise is “not a pre-requisite or condition” to a provisional certificate of authority to operate pay television service.
“There being no dispute that [Newsnet] is a CATV entity and not a (public telecommunications entity) PTE, a congressional or legislative franchise is not a pre-requisite or condition to a provisional or certificate of authority to operate. The applicable law is Executive Order No. 205 issued by President Corazon C. Aquino on June 30, 1987,” the appellate court said.
Based on the provisions of EO No. 205 , the maximum period of a Certificate of Authority that may be given to a CATV operator is 30 years.
“Thus, the NTC committed a reversible order in issuing the assailed order of termination of the PA of Newsnet, which is solely grounded on the expiration of the legislative franchise or Republic Act o. 8197 on October 1, 2021,” the CA said.
It its order, the NTC did not cite the absence of financial or technical qualifications of Newsnet’s or the violation of rules and regulations of the NTC as valid grounds for termination of Newsnet’s provisional authority to operate, the court said.
The CA also said that Newsnet is qualified and entitled to an extension or renewal of its provisional authority to operate an LMDS system in Metro Manila.
“Based on the foregoing consideration, respondents’ contention that a legislative franchise is a requirement to operate CATV is therefore bereft of merit,” it added.
The CA also said ARTA has jurisdiction over the NTC, citing the Ease of Doing Business Act where ARTA’s jurisdiction applies to all government offices and agencies that provide services covering business and nonbusiness related transactions that includes the NTC.
The CA stressed the ARTA order on 12 February 2020 that automatically approved Newsnet’s application is “already final and executory” after the NTC filed its compliance to the directive instead of filing an appeal before the Office of the President.
“With the finality of the 12 February 2020 Order of the ARTA, this Court is perplexed as how said agency could reverse or abandon the same via its 17 June 2022 Resolution using only the DOJ Resolution when it had previously and vigorously opposed the said findings of the DOJ,” the CA said.
“The oft-repeated rule is that a decision that has acquired finality becomes immutable and unalterable, and may no longer be modified in any respect. While there are recognized exceptions, the present case does not warrant a departure from the general rule,” the court said.
