CATV operators bag huge win

Last year, the Court of Appeals upheld the jurisdiction of the Anti-Red Tape Authority (ARTA) over all government agencies under the executive branch, including those performing quasi-judicial functions.

This was precisely what was needed by ARTA for it to effectively implement the requirement under the Republic Act 11032, or the Ease of Doing Business Act, which requires all applications or requests submitted to these agencies to be acted upon by the assigned officer or employee within three working days in the case of simple transactions, seven for complex transactions, and not more than 20 for applications involving activities which pose danger to public health, safety, morals, public policy, as well as highly technical applications. The application is deemed approved if the periods are not complied well.

On Dec. 23, 2019, Newsnet filed a complaint against the National Telecommunications Commission (NTC) before ARTA claiming that there was unjustifiable and unreasonable delay on the part of the commission in acting on its application for the issuance of certificate of public convenience, or CPC, to install, operate and maintain local multi-point distribution systems to deliver interactive pay TV and multimedia services in the 25.35-26.35 gigahertz.

Newsnet’s application was filed on July 9, 2014, more than five years before the action was commenced with ARTA.

On Feb. 12, 2020, ARTA ruled in favor of Newsnet and declared its application automatically approved under the law.

The NTC referred to the Department of Justice the issue of whether the provisions of RA 11032 are applicable to NTC’s authority to administer radio frequency spectrum. On July 9, 2021, the DOJ held that ARTA has no jurisdiction over the NTC. This was appealed by ARTA all the way to the Office of the President which in a resolution dated Feb. 8, 2022 upheld the DOJ ruling.

Newsnet then asked the Court of Appeals to compel NTC to comply with the ARTA order. The CA in July 20 of last year decided in favor of ARTA and ordered the NTC to immediately comply with the ARTA order.

The appellate court’s decision was of course a big boost to the country’s bid to improve ease of doing business in the country. In the 2020 World Bank Ease of Doing Business survey, the Philippines ranked 95th out of 190 countries.

However, the NTC continued to resist ARTA’s jurisdiction over it and filed a motion for reconsideration to overturn the July 20, 2022 CA ruling.

One of the grounds raised by the NTC is that it can neither approve Newsnet’s application for a CPC nor issue any administrative authority in favor of Newsnet with a valid legislative franchise. This, it said, makes ARTA’s order for the NTC to issue a CPC to Newsnet ultra vires. Another ground cited by the NTC was that the periods provided for under RA 11032 do not apply to transactions that are vested with public interest, which includes applications for CPCs before the NTC.

The CA’s former Special 8th Division, in a decision promulgated last March 28, denied NTC’s motion for reconsideration.

It said that ARTA’s order, which deemed Newsnet’s application as automatically approved, is already final and executory. And since such order has become immutable and unalterable, ARTA cannot reverse or abandon the same using only the DOJ resolution as basis.

But more importantly, the CA held that a congressional or legislative franchise is not a condition required of cable television (CATV) operators like Newsnet before they can secure a provisional authority or CPC from the NTC.

The CA held that the expiration of Newsnet’s legislative franchise on Oct. 1, 2021 cannot be a ground for terminating its PA and ordered said authority to be reinstated, adding that the absence of financial or technical qualifications, which under NTC rules are valid grounds for termination of a provisional authority to operate, were never cited by the commission.

The CA’s ruling is a huge victory for thousands of CATV operators in the country. If the Office of President and the DOJ prevailed, imagine the devastating effect this would have dealt on these CATV operators who will have to cease operations unless they get a legislative franchise.

Smooth transition needed

Now that the Supreme Court has decided with finality that the disputed 729-hectare Fort Bonifacio Military Reservation where the Bonifacio Global City is located and some other barangays in Makati City are under the territorial jurisdiction of Taguig City, all parties involved should put the matter to rest and proceed with ensuring a smooth transition.

The legal battle between Makati and Taguig over the territory in question lasted for three decades. The case was first heard in the Regional Trial Court and then before the Court of Appeals until it reached the SC, which decided that Taguig City is the rightful local government which has jurisdiction over the areas in question.

And now that the legal battle is over, the residents who are in the middle of the two conflicting LGUs are hoping that their situation will soon be fixed to ensure continuous public service.

Taguig City now includes Fort Bonifacio including barangays Pembo, Comembo, Cembo, South Cembo, West Rembo, East Rembo and Pitogo as well as the Philippine Army headquarters, Navy installation, Marines’ headquarters, Consular area, JUSMAG area, Heritage Park, Libingan ng mga Bayani, AFP Officers Village, and six other villages adjacent to it.

We do not expect Makati City to give up that easily. After all, the decision meant a reduced land area, fewer voters, lesser taxes and revenues that can be collected. Makatizens who are now Taguigeños could suffer from fewer benefits and perks.

But the SC has spoken and in fact emphasized that no more motions, pleadings, letters or communication will be entertained from the parties to the case.

Inspite of this, Makati City has asked the SC to elevate the case to the court en banc, saying there are constitutional issues that need to be addressed by the entire court, not to mention that the decision of the SC Special Third Division has far-reaching consequences on the operation and stability of businesses in the affected areas, the right to vote, and access to vital social services.

Let’s see how the SC will rule on Makati’s newest plea.

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