The special eleventh division of the Court of Appeals (CA) has resolved last August 16, 2022, to reverse and set aside the termination of provisional authority and the cease and desist order issued by the National Telecommunications Commission (NTC) against News and Entertainment Network Corporation, Inc. (NEWSNET), an affiliate of PSE listed NOW Corporation and NOW Telecom.
Respondent NTC Commissioner Gamaliel Cordoba manifested to the court that NTC canceled NEWSNET's PA and issued the CDO to its Metro Manila and Nationwide operations due to the expiration of NEWSNET's legislative franchise last October 1, 2021. To defend itself, NEWSNET was forced to bring the issue up to the CA, which found merit in NEWSNET's position and the laws cited governing Cable/PayTV, such as EO 205, EO 436, the NTC Rules, and the recent Supreme Court decision of New Vision Satellite Network, Inc. v. Provincial Government of Cagayan. The CA decision benefits the entire cable TV and internet service providers’ (ISPs) industry nationwide as it affirms and bolsters current laws that eliminate the need for a congressional franchise to operate as a cable/pay TV operator and ISP.
The CA also found that respondent Cordoba "committed violations of the technical and operating requirements provided by (NTC) MC 4-08-88 and other laws, the said order terminating the provisional authority to operate violates substantive and procedural due process required to be observed by administrative agencies in the issuance of orders and decisions."
Penned by Justice Myra V. Garcia-Fernandez and concurred by Justice Tita Marilyn B. Payoyo-Villordon and Justice Emily R. Alino-Geluz, the decision states: "WHEREFORE, the petition is GRANTED. The Orders dated February 9, 2021 and August 12, 2021 terminating the provisional authority of petitioner News and Entertainment Network Corporation to operate until October 1, 2021 and directing the latter to cease and desist from operating its system under said provisional authority are REVERSED AND SET ASIDE. The provisional authority of petitioner to operate and maintain 25.35 to 26.35 GHz spectrum Local MultiPoint Distribution System (LMDS) to deliver interactive pay television and multi-media services in Metro Manila is reinstated and shall continue to be effective unless sooner suspended, cancelled or revoked in accordance with applicable laws, rules and regulations."
It must be noted that just a few weeks ago the special eighth division of the Court of Appeals resolved the Anti-Red Tape Authority’s (ARTA) powers over NTC on Newsnet, ordering the regulator to assign the same 26 GHz frequency in favor of NEWSNET nationwide. The same CA decision states that regardless of the fact that said frequencies are now considered 5G (fifth generation) by the International Telecommunications Union, Newsnet maintains rights over it.
Given these two CA decisions, together with the 26 GHz frequency assignments, NEWSNET with the NOW Group shall be able to expand nationwide and "continue providing cutting-edge ‘fiber-in-the-air’ wireless broadband/ internet and interactive cable TV and multimedia services" as cited in the CA decision.