NOW Telecom Company, Inc. (NOW Telecom) continues to challenge the validity of the National Telecommunication Commission (NTC) rules in the selection of the new major players in the telecommunications industry.
In a statement, Now Telecom clarified reports that a Supreme Court (SC) ruling has already put an end to its legal fight to be named as the country’s third major telecoms player.
“Contrary to the erroneous information being disseminated, NOW Telecom’s claims for frequencies or for the nullity of Memorandum Circular No. 09-09-2018 have not been denied by the Supreme Court.” Now Telecom said.
“Until the Supreme Court makes its final decision on the merits of the case, the third telco bidding shall remain valid and legally effective but may still be subject to the court’s scrutiny and ruling.” it also said.
The SC, in a 15-page ruling promulgated on January 31, 2024 but only made public on March 7, shut the door on Now Telecom’s bid to become the country’s third major telecommunications player as it affirmed the May 2021 ruling of the Court of Appeals (CA) junking the latter’s plea against the National Telecommunications Commission (NTC).
The SC First Division upheld the CA ruling dismissing NOW Telecom’s petition seeking to nullify a circular issued by the NTC imposing certain qualifications and restrictions with respect to the entry of new major players in the telecoms industry.
The High Court held that the appellate court did not commit any reversible error when it upheld the 2018 Manila Regional Trial Court’s denial of NOW Telecom’s application for the issuance of a writ of preliminary injunction against the NTC’s implementation of Memorandum Circular No. 09-09-2018 entitled, “Rules and Regulations on the Selection Process for a New Major Player in the Philippine Telecommunications Market.”
“First, NOW Telecom failed to establish that it has a clear and unmistakable right to be protected in this case. Before a writ of preliminary injunction maybe issued, the applicant must establish the existence of the right to be protected. This right must be actual, clear, and existing, not mere contingent, abstract or future. NOW Telecom failed to show the existence of such right,” the SC ruling said.
“As correctly held by the CA, the grant of a legislative franchise to operate telecommunication services in NOW Telecom’s favor does not necessarily carry with it a right over a particular radio frequency nor does NOW Telecom’s franchise state that it is entitled to special radio frequency,” the decision also said.
In 2018, NOW Telecom asked the Manila RTC to issue a temporary restraining order/writ of preliminary injunction against the NTC as it challenged the constitutionality and validity of MC No. 09-09-2018, which contains the rules and regulations on the selection process for a new major player in the country’s telecommunications sector.
Ultimately, it was the Mindanao Islamic Telephone Company Consortium, now DITO Telecommunity Corp., that emerged as the winning bidder in the search for a new major telco player.
The Manila RTC denied the firm’s petition, prompting it to elevate the issue to the CA, which affirmed the lower court’s decision, and, later to the SC.
NOW Telecom said the proceedings before the Manila RTC, CA, or the SC did not involve its claim for frequencies in the 1970 to 1980 MHz, paired with 2160 to 2170 MHz, and 3.6 GHz to 3.8 GHz ranges, which it said were part of the automatic approval issued by the Anti-Red Tape Authority on March 1, 2021 after the NTC complied with ARTA’s ruling to renew NOW Telecom’s license to operate.
“These frequencies are the subject of a different proceeding which remains pending before the Office of the President and a different court,” the firm said.
Notwithstanding the recent SC’s Decision, NOW Telecom said it “continues to operate as a telecommunications company with frequencies already awarded by the NTC,” which it uses in building and operating NOW’s branded “Trusted Network.”
NOW Telecom’s franchise to operate has been extended for another 25 years or until 2043.