Friday, September 12, 2025

ARTA reverses order on telcos

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The Anti-Red Tape Authority (ARTA) has issued two separate resolutions reversing itself on earlier decisions granting automatic approval on franchise applications of two companies that are affiliates of NOW Corp.

Ernesto Perez, ARTA officer-in-charge, said the June 17 resolutions setting aside the Authority’s Declaration of Completeness and Order of Automatic Approval granted to News and Entertainment Network Corp. (Newsnet) and Now Telecom Company Inc. (NOW Telecom) were issued after a resolution of the Department of Justice (DOJ) has become final and executory.

The DOJ said NTC’s function of assigning and use of frequency is not covered by the 3-7-20 day timeline and “Deemed Automatic Approval” Clause under the Ease of Doing Business Act being implemented by ARTA.

In 2019, Newsnet filed a complaint before the ARTA seeking automatic approval of its provisional authority and the use of frequencies nationwide which ARTA granted.

The following year, NTC filed a Petition for Adjudication before the DOJ questioning ARTA’s jurisdiction over its quasi-judicial powers.

In 2020, NOW Telecom filed a similar complaint before the ARTA, seeking automatic approval and assignment of various frequencies which ARTA also granted.

The DOJ decision reversed and set aside the Order of Automatic Approval earlier issued by the ARTA in favor of Newsnet, upholding the EODB Act did not apply to proceedings before the NTC with respect to the assignment and use of frequencies.

ARTA appealed the DOJ decision to the Office of the President (OP) which in a Nov. 15, 2021 resolution dismissed ARTA’s appeal.

The OP on February 8 also denied ARTA’s motion for reconsideration and on April 25, declared the resolutio final and executory .

In its latest Resolutions, ARTA concluded the DOJ decision “dated July 9, 2021, as well as the opinion and rationale contained therein binds ARTA in disposing cases pertaining to NTC now that the said DOJ Resolution has already become final and executory.” ARTA cited the Uniform Rules on Dispute Resolution under Presidential Decree No. 242 which states that “The said resolution is final and binding upon parties, and shall have the same force and effect of a final decision of a court of justice.”

Some officials of ARTA, including director general Jeremiah Belgica, were preventively suspended by the Ombudsman for six months over the NOW Telecom case filed by DITO Telecommunity Corp., whose frequency was affected by ARTA’s earlier decision.

Newsnet and NOW Telecom are affiliates of NOW Corp. Irma Isip

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