Supreme Court affirms NTC orders nixing 4 telcos’ 3G service bid

MANILA, Philippines — The Supreme Court (SC) has affirmed the orders of the National Telecommunications Commission (NTC) that junked the bid of Next Mobile Inc., now operating as NOW Telecom, and three other firms for a third-generation mobile communications technology or 3G radio frequency.

In a 44-page decision written by Senior Associate Justice Marvic Leonen, the SC’s Second Division denied the petitions challenging the NTC’s orders dated December 2005 and August 2008 that disqualified Next Mobile and the three other firms.

At the time, the NTC had already awarded four of the five 3G frequency slots to Smart Communications Inc., Globe Telecom Inc., Digitel Mobile Philippines Inc. and Connectivity Unlimited Resources Enterprise.

The three other disqualified telcos then were Bayan Telecommunications (BayanTel), Multi-Media Telephony Inc. and AZ Communications Inc.

The SC also granted the NTC’s petition questioning the 2010 ruling of the Court of Appeals (CA) that virtually ordered the regulatory body to allocate the fifth and final 3G slot to BayanTel.

The SC has ruled that granting the remaining 3G bandwidth assignment must be within the NTC’s discretion subject to the required application procedures.

Citing Republic Act 7925 or the Public Telecommunications Policy Act, the SC said that radio frequency spectrum is a “scarce public resource” that should only be reserved for telco providers that will use it efficiently and effectively to meet public demand and may avail themselves of new and cost-effective technologies.

“In view of (the NTC’s) expertise in technical matters and institutional experience, its factual findings are entitled to great weight before this court and will not be reversed save upon a very clear showing of serious violation of law or of fraud, personal malice or wanton oppression,” the ruling stated.

Through Memorandum Circular No. 07-08-2005, the NTC outlined the rules for reallocating 3G frequencies, leading to applications from existing and new telecom entities.

In disqualifying Next Mobile, the regulatory body cited the firm’s unpaid spectrum user fees (SUFs) and supervision and regulations fees (SRFs) amounting to P135.6 million as of December 2005.

In 2009, the CA denied Next Mobile’s petition and affirmed the NTC’s assessments on the telco’s unpaid SUFs and SRFs.