Bonifacio
Communications Corp. v. National Telecommunications Commission
G.R. No. 201944
April 19, 2023
FACTS:
BCDA,
FBDA and SCI, incorporated petitioner BCC. A Memorandum of Agreement was
entered into by FBDC and BCC reiterating the aforestated provision. PLDT
already owns the shares of SCI and FBDC, equivalent to 75% of the total shares.
BGC was declared therein as one of the free zones where any duly enfranchised
public telecommunications entity shall be allowed to provide high speed
networks and connectivity. Innove’s services were sought to provide landline
and data services and internet connectivity to the Net 1, 2, and 3 Buildings within
BGC. Globe sough clarification from NTC on their legal capacities to install
and operate telecommunications infrastructure and provide telecommunication
services with BGC. The requested NTC’s opinion on the legality and propriety of
BCC’s and PLDT’s claimed exclusivities within the said area.
ISSUE:
Whether
or not the NTC has jurisdiction over petitioner BCC.
HELD:
Yes.
The NTC has jurisdiction over BCC insofar as the acts of BCC falling under the
scope of functions of the NTC, such as enforcement and administration of
authorizations granted to PTEs, promulgation of rules and regulations
encouraging effective use of communications and maintaining effective
competition among private entities in the telecommunications industry, among
others. To determine whether the NTC can indeed exercise jurisdiction over BCC,
We look for guidance in Executive Order No. (EO) 546 which abolished the
Telecommunications Control Bureau and the Board of Communications and
integrated the same into the NTC under the then Ministry of Transportation and
Communications. Sec. 15 of EO 546 enumerates the following functions of the
NTC:
a. Issue Certificate of Public Convenience for the operation
of communications utilities and services, radio communications systems, wire or
wireless telephone or telegraph systems, radio and television broadcasting
system and other similar public utilities;
b. Establish, prescribe and regulate areas of operation of
particular operators of public service communications;and determine and
prescribe charges or rates pertinent to the operation of such public utility
facilities and services except in cases where charges or rates are established
by international bodies or associations of which the Philippines is a
participating member or by bodies recognized by the Philippine Government as
the proper arbiter of such charges or rates;
c. Grant permits for the use of radio frequencies for
wireless telephone and telegraph systems and radio communication systems
including amateur radio stations and radio and television broadcasting systems;
d. Sub-allocate series of frequencies of bands allocated by
the International Telecommunications Union to the specific services;
e. Establish and prescribe rules, regulations, standards,
specifications in all cases related to the issued Certificate of Public
Convenience and administer and enforce the same;
f. Coordinate and cooperate with government agencies and
other entities concerned with any aspect involving communications with a view
to continuously improve the communications service in the country;
g. Promulgate such rules and regulations, as public safety
and interest may require, to encourage a larger and more effective use of
communications, radio and television broadcasting facilities, and to maintain
effective competition among private entities in these activities whenever the
Commission finds it reasonably feasible;
h. Supervise and inspect the operation of radio stations and
telecommunications facilities;
i. Undertake the examination and licensing of radio
operators;
j. Undertake, whenever necessary, the registration of radio
transmitters and transceivers; and
k. Perform such other functions as may be prescribed by law.
RA 7925 or the "Public Telecommunications Policy Act of
the Philippines" provides, under Sec. 5, the responsibilities of the NTC
as principal administrator of RA 7925. In addition to its existing functions,
the NTC shall be responsible for the following:
(a) Adopt an administrative process which would facilitate
the entry of qualified service providers and adopt a pricing policy which would
generate sufficient returns to encourage them to provide basic
telecommunications services in unserved and underserved areas;
(b) Ensure quality, safety, reliability, security,
compatibility and inter-operability of telecommunications facilities and
services in conformity with standards and specifications set by international
radio and telecommunications organizations to which the Philippines is a
signatory;
(c) Mandate a fair and reasonable interconnection of
facilities of authorized public network operators and other providers of
telecommunications services through appropriate modalities of interconnection
and at a reasonable and fair level of charges, which make provision for the
cross subsidy to unprofitable local exchange service areas so as to promote
telephone density and provide the most extensive access to basic
telecommunications services available at affordable rates to the public;
(d) Foster fair and efficient market conduct through, but
not limited to, the protection of telecommunications entities from unfair trade
practices of other carriers;
(e) Promote consumers welfare by facilitating access to
telecommunications services whose infrastructure and network must be geared
towards the needs of individual and business users;
(f) Protect consumers against misuse of a telecommunications
entity's monopoly or quasi-monopolistic powers by, but not limited to, the
investigation of complaints and exacting compliance with service standards from
such entity; and
(g) In the exercise of its regulatory powers, continue to
impose such fees and charges as may be necessary to cover reasonable costs and
expenses for the regulation and supervision of the operations of
telecommunications entities.
It is clear from the foregoing that
NTC is empowered to not only issue Certificates of Public Convenience (CPCN) n
and other related authorizations but also "establish and prescribe rules,
regulations, standards, specifications in all cases related to the issued
Certificate of Public Convenience and administer and enforce the same."
Thus, the NTC may employ the appropriate remedies to ensure that there is no
obstruction in the enforcement of CPCNs, permits, and licenses in favor of duly
enfranchised PTEs. In the present case, pursuant to its mandate, the NTC issued
a cease and desist order directing petitioners to refrain from performing any
act that would prevent Innove from implementing and providing
telecommunications services pursuant to the authorizations granted by the NTC.
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