CA upholds dismissal of telecom’s petition vs NTC

MANILA, Philippines — The Court of Appeals (CA) has affirmed the decision of a Manila court that denied the petition of a telecom company, which sought to stop the National Telecommunications Commission from implementing provisions of the NTC memorandum circular in the selection process of the third telco.

In a 40-page decision issued recently, the appellate court’s First Division said the Manila Regional Trial Court (RTC) Branch 42 did not abuse its power when it denied the petition filed by NOW Telecom Co. against the NTC.

The CA noted that the NTC has the exclusive jurisdiction to establish and prescribe rules, standards and specifications in all cases related to the certificate of public convenience and enforce the same.

“The petitioner failed to substantiate its allegation. Mere allegation that constitutionally protected rights were violated will not automatically result in the issuance of injunctive relief,” the CA decision read.

“An act of a court or tribunal can only be considered as committed with grave abuse of discretion when such is done in a whimsical exercise of judgment as is equivalent to lack of jurisdiction,” the appeals court added.

The CA pointed out that NOW Telecom failed to establish any clear and vested right over the radio frequeny covered by the circular being questioned.

NOW Telecom withdrew in November 2018 from participating in the bidding process to become the third telco player in the country. The firm opted to elevate its case to the CA after the Manila RTC denied its petition against the NTC.

The company sued the NTC, saying the third telco selection process had allegedly turned into a money-making scheme since it required bidders to put up a P700-million participation security, P14-billion to P24-billion performance security and P10-million non-refundable appeal fee.

The court said the mere grant of a legislative franchise and cable modem termination system license did not bestow upon NOW Telecom a vested right over a specific radio frequency.

The court also noted that NOW Telecom did not qualify as a third telco bidder after the company admitted that it had yet to form a consortium to meet the requirement for a P10-billion aggregate paid-up capital.