Government lawyers have asked the Court of Appeals (CA) to reverse its ruling that directed the National Telecommunications Commission (NTC) to comply with the Anti-Red Tape Authority’s (ARTA) order for the automatic approval of the application of News and Entertainment Network Corp. (Newsnet) to operate and maintain interactive pay television and multimedia services in the country.

In a motion for reconsideration, the Office of the Solicitor General (OSG) told the CA that ARTA’s order had ceased to exist since ARTA had reversed itself in the case of Newsnet in an order issued on June 17, 2022.

ARTA’s Declaration of Completeness and Order of Automatic Renewal in favor of Newsnet was issued on Feb. 12, 2020.

The OSG pointed out that ARTA, in reversing its earlier order, relied on 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 said Declaration of Completeness and Order of Automatic Approval dated February 12, 2020 are hereby set aside.”

“Since ARTA’s 12 February 2020 Order is now non-existent, (Newsnet) cause of action is rendered moot,” the OSG stressed.

The OSG said the DOJ resolution declared 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.

It said the DOJ resolution had become final and executory as declared by the Office of the President (OP) in an order issuing an entry of judgment.

It said the OP order stated: “Accordingly, the Resolution of this Office dated 08 February 2022 is hereby declared FINAL and EXECUTORY. Where appropriate, let the records of this case be remanded to the Department of Justice for its proper disposition.”

Thus, the OSG said, the DOJ resolution has since become “immutable, and may no longer be disturbed.”

“Now even assuming that the DOJ Resolution may not affect the rights of petitioner for not being a party to the proceeding for adjudication filed before the DOJ, as found by the Honorable Court, still, it is humbly submitted, however that the Honorable Court cannot close its eyes to the fact that said DOJ resolution, after it had attained finality, binds the ARTA,’ the OSG stressed in its 86-page motion.

The OSG emphasized that Newsnet’s legislative franchise under Republic Act No. 8197 had expired on Aug. 9, 2021.

It said Newsnet’s 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 certificate of public convenience (CPC) and the use of frequencies, it said.

Newsnet’s CATV system uses Local Multi-Point Distribution System (LMDS), a wireless service which makes use of the wireless frequency spectrum to relay its signal to its subscribers.

The OSG said a legislative franchise is a requirement before NTC could grant an authority for Newsnet to be able to use radio frequencies under Act No. 3846, (Radio Control Act), Section 1 of which states: “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.”

Since Newsnet’s 1997 Provisional Authority (PA) and the 2014 application for provisional authority (PA) were ipso facto (by that very fact) revoked upon the expiration of its legislative franchise, Newsnet cannot anymore use the frequencies assigned to it, or be allowed the assignment of frequencies, it said.

In its ruling, the CA said that its order directed to NGTC is “judicious to promote the government’s drive to reduce red tape and expedite business and nonbusiness transactions in the government.”

The CA dismissed NTC’s claim that due the expiration of Newsnet’s legislative franchise on August 9, 2021, it can no longer be allowed to operate LMDS, thus, no CPC should be issued to the telco company to operate.

On the non-renewal of Newsnet’s franchise, the CA said the firm is not a public telecommunication entity but a cable/community antennae television (CATV) entity, thus, a franchise is not needed for it to be able to operate.