Makati court junks Newsnet bid to stop NTC from reallocating it”s frequency

A Makati court has junked the plea of News and Entertainment Network Corp. (Newsnet) to stop the implementation of a National Telecommunications Commission (NTC) memorandum circular, which reallocated Newsnet’s frequency for the International Mobile Telecommunications (IMT).

Newsnet is a cable television (CATV) network affiliated with businessman Mel Velarde’s NOW Corp. and NOW Telecom Company Inc., which once competed but failed to become the country’s third telecommunications player.

In a 16-page order dated last March 4, the Makati City Regional Trial Court (RTC) Branch 13 denied the application for a writ of preliminary injunction attached to the complaint filed by Newsnet against the NTC on July 5, 2023.

The RTC, in an earlier order dated July 31, 2023, also denied Newsnet’s application for issuance of a temporary restraining order against the implementation of NTC Memorandum Circular No. 003-05-2023 dated May 23, 2023.

“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 declared in its decision penned by Presiding Judge Maricris Pahate-Felix.

Since the NTC already filed its answer to the complaint on Sept. 14, 2023, the RTC ordered its clerk of court to set the case for pre-trial conference and issue the corresponding notices to the parties.

The case stemmed from NTC’s decision 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 regulatory body denied Newsnet’s request to renew its provisional authority (PA) to operate and maintain a CATV system within the 25.35 to 26.35 gigahertz frequency range, citing an expired legislative franchise.

Newsnet claimed it has the right to continue operating its CATV system using its previously assigned frequency range even if its secondary 25-year legislative franchise under Republic Act (RA) 8197 expired in 2022.

It also suggested that the PA granted by NTC could be viewed as a separate administrative franchise, issued in accordance with Executive Order 205, enabling Newsnet to continue operating even without a renewed congressional franchise.

The RTC disagreed with Newsnet, pointing out that the PA and other permits issued by the NTC to the company were based on its legislative franchise.

It emphasized that a separate administrative franchise couldn’t 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 was approaching expiration, Newsnet opted not to pursue an administrative franchise under EO 205 but rather aimed to extend its latest PA until the renewal of its legislative franchise through a bill filed in the House of Representatives.

The RTC likewise ruled that Newsnet failed to establish the first requisite, which is a “clear and unmistakable right” that would entitle it 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,” it added.—RF, GMA Integrated News