A MAKATI court has denied a plea from businessman Mel Velarde's News and Entertainment Network Corp. (Newsnet) to stop the reallocation of its frequencies by the National Telecommunications Commission (NTC).
In a 16-page order dated March 4, the Makati City Regional Trial Court (RTC) Branch 13 denied the application for a writ of preliminary injunction attached to a complaint filed by Newsnet against the regulator on July 5, 2023.
Newsnet is a cable television (CATV) network affiliated with Velarde's NOW Corp. and NOW Telecom Company Inc., which previously tried but failed to become the country's third telecommunications player.
The RTC last year also denied Newsnet's application for the issuance of a temporary restraining order against the implementation of NTC Memorandum Circular 003-05-2023 dated May 23, 2023.
"After due consideration of the evidence presented by both parties, this court holds that plaintiff (Newsnet) was unable to establish a definite and enforceable right that would entitle it to a writ of preliminary injunction," the RTC said in the decision penned by Presiding Judge Maricris Pahate-Felix.
Since the NTC already filed its answer to the complaint last Sept. 14, 2023, the RTC ordered its clerk of court to set the case for a pre-trial conference and issue the corresponding notices to the parties.
The case stems from an NTC decision to reallocate Newsnet's frequencies after it denied the firm's request to renew its provisional authority (PA) to operate and maintain a CATV system using the 25.35-26.35 gigahertz range.
Newsnet claimed it had the right to continue operating its CATV system even if its secondary 25-year legislative franchise under Republic Act (RA) 8197 had expired in 2022.
It also suggested that the provisional authority granted by NTC could be viewed as a separate administrative franchise that enabled Newsnet to continue operating even without a renewed congressional franchise.
The RTC disagreed, pointing out that the authority and other permits issued by the NTC to the company were based on its legislative franchise.
It emphasized that a separate administrative franchise could not have been issued during the lifespan of the 25-year franchise granted under RA 8197, as the NTC cannot bypass or supersede a law.
The trial court noted that as the legislative franchise was approaching expiration, Newsnet opted not to pursue an administrative franchise under Executive Order 205 but rather aimed to extend its provisional authority until the renewal of its legislative franchise through a bill filed in the House of Representatives.
The RTC likewise ruled that Newsnet failed to establish the first requisite of a "clear and unmistakable right" that would entitle it to a writ of preliminary injunction.
"Considering the expiration of the 25-year legislative franchise granted under RA 8197 from which plaintiff's authority to operate as a CATV entity emanates, and in light of the foregoing exposition, this court is of the opinion that plaintiff was unable to establish a clear, unmistakable right that would entitle it to injunctive relief," the court ruled.
"At this stage, plaintiff is not the holder of an existing franchise, whether legislative or administrative, that would allow it to exercise the privilege of providing CATV services to the public within the Philippines," it added.
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