The National Telecommunications Commission (NTC) sought the reversal of the Court of Appeals' decision to comply with the Anti-Red Tape Authority’s (ARTA) ruling on News and Entertainment Network Corporation’s (Newsnet) application to operate interactive pay television and multimedia services in the country.
In a motion for reconsideration, the NTC, represented by the Office of the Solicitor General (OSG) in this case, explained that there was no more ARTA Order to implement since the ARTA has already reversed itself in an order dated June 17, 2022.
The June 17 order states that “following the directives laid down in Secretary of Justice Resolution in OSJ Case No. 01-2020 dated July 9, 2021, which has become final and executory,” the declaration of completeness and order of automatic approval dated Feb. 12, 2020, for Newsnet is “hereby set aside.”
"Since ARTA’s 12 February 2020 Order is now non-existent, (Newsnet) cause of action is rendered moot,” the OSG stressed.
ARTA’s reversal was based on the Department of Justice (DOJ) resolution which resolved that ARTA does not have the authority to issue the Declaration of Completeness and cannot compel NTC to issue a Certificate of Public Convenience (CPC) which included the use of frequencies.
The DOJ’s resolution has already become final and executory as of February 8, 2022.
The OSG said the DOJ’s order has since become “immutable, and may no longer be disturbed.”
It also emphasized that Newsnet’s legislative franchise expired last August 9, 2021, noting that its failure to renew the franchise renders all its secondary authorities, permits and licenses arising from it revoked. The expiration of Newsnet’s legislative franchise legally prevents the NTC from approving Newsnet’s application for a CPC and the use of frequencies.
Newsnet’s CATV system uses the Local Multi-Point Distribution System (LMDS), a wireless service that makes use of the wireless frequency spectrum to relay its signal to its subscribers.
A legislative franchise is a requirement before NTC could grant authority for Newsnet to be able to use radio frequencies under Act No. 3846, (Radio Control Act), Section 1 of which states that “No person, firm, company, association or corporation shall construct, install, establish, or operate a radio station within the Philippine Islands without having first obtained a franchise therefor from the Philippine Legislature.”
