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Palace junks Newsnet plea for pay-TV service

THE Office of the President (OP) has junked the appeal of businessman Mel Velarde's News and Entertainment Network Corp. (Newsnet) to reverse a decision by the Anti-Red Tape Authority (ARTA) that nullified a previous ruling granting an automatic approval of the company's application to set up a local multipoint distribution system or LMDS.

Malacañang affirmed that applications involving radio frequency assignments 'is not within the coverage of Republic Act (RA) 11032 or The Ease of Doing Business and Efficient Government Service Delivery Act of 2018, but is a sole function of the government regulatory body, which is the National Telecommunications Commission (NTC) in this case.'

Newsnet filed an appeal with the OP in a bid to reverse the resolutions of ARTA that nullified the Feb. 12, 2020 Declaration of Completeness and Order of Automatic Approval of Newsnet's application to install, operate, and maintain an LMDS to deliver interactive pay television and multimedia services nationwide in the 25.35GHz-26.35GHz frequency range.

In a decision dated March 31 and signed by Executive Secretary Lucas Bersamin on behalf of President Ferdinand Marcos Jr., the OP also found Newsnet's appeal to have been rendered moot and academic by the expiration of its legislative franchise, which 'effectively disqualified it from commercially operating radio transmitters and receivers, including an LMDS to deliver an interactive pay television and multimedia services, and being allocated with any radio frequency.'

'While it may be argued that the operation of a CATV does not require the grantee to have a prior legislative franchise, the same is not applicable to Newsnet since the object of its Application is the operation of an LMDS, a wireless service which makes use of a frequency spectrum,' the OP said in its 16-page decision.

The OP also dismissed Newsnet's assertion that ARTA could not legally vacate its Feb. 12, 2020 order, emphasizing instead that the final and executory resolution of Department of Justice at the time, which already ruled that ARTA exceeded its authority when it acted on Newsnet's complaint by ordering the NTC to assign radio frequencies in favor of Newsnet.

Because ARTA is not authorized to issue the order, the OP has maintained that the order 'never attained finality because it was null and void from the beginning.'

The OP also cited Newsnet's deliberate forum-shopping as another primary consideration for setting aside the appeal. 'Here, Newsnet does not deny, and even pleads, the fact that it filed a petition for mandamus before the CA (Court of Appeals) to have NTC and Cordoba comply with ARTA's 12 February 2020 Order. In the instant appeal, Newsnet seeks to reinstate and enforce the same 12 February 2020 Order of ARTA.'

'If the acts of the party or his or her counsel clearly constitute willful and deliberate forum shopping, the same shall be grounds for summary dismissal with prejudice and shall constitute direct contempt, as well as cause for administrative sanctions. Newsnet's willful and deliberate forum shopping is thus another ground to dismiss the instant appeal,' the Palace said.