OSG asks appeals court to junk Newsnet petition

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THE Office of the Solicitor General has asked the Court of Appeals to reverse and set aside its July 20 writ of mandamus directing the National Telecommunications Commission to comply with the order issued by the Anti-Red Tape Authority (ARTA) 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 OSG, which is representing the NTC in the case, argued that the appellate court should junk the petition of Newsnet for being moot and for lack of merit.

In its motion, the OSG told the appellate court there was no more ARTA order to implement since it has already reversed its February 12, 2020 ruling through an order issued last June 17, 2022.

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“In the said order, ARTA stated that following the directives laid down in Secretary of Justice resolution 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,” the OSG’s 86-page motion said.

“Since ARTA’s February 12, 2022 order is now non-existent, Newsnet’s cause of action is rendered moot,” the OSG added.

ARTA’s reversal was anchored on the DOJ resolution which said it does not have the authority to issue the declaration of completeness and cannot compel NTC to issue a Certificate of Public Convenience (CPC), which include the use of frequencies.

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

“Its failure to renew the franchise renders all its secondary authorities, permits and licenses arising from it revoked,” the OSG said, adding the expiration of Newsnet’s legislative franchise legally prevents the NTC from approving Newsnet’s application for a CPC and the use of frequencies.

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 NTC explained that a legislative franchise is a requirement before it could issue an authority for Newsnet to use radio frequencies under Section 1 of Republic Act No. 3846 or the Radio Control Act).

In 1997, the NTC granted Newsnet provisional authority to operate and this was extended repeatedly within the duration of its congressional franchise.

In 2014, it filed an application with the NTC seeking the issuance of a CPC to install, operate and maintain an LMDS to deliver interactive pay television and multimedia services in South Luzon, North Luzon, Visayas and Mindanao.

But in 2019, Newsnet filed a complaint against the NTC, claiming it violated the regulations of Republic Act No. 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, particularly the provision of RA 11032 which mandates a 7-day period for processing and approval of licenses, clearances, permits, certifications, or authorizations for the installation and operations of telecommunication facilities and services.

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