SC shuts door on NOW telco

Supreme Court
Supreme Court

The Supreme Court has denied the petition of NOW Telecom Company Inc. to become the country’s third major telecommunications player.

In a recent 15-page decision penned by Associate Justice Rodil Zalameda, the SC First Division affirmed the Court of Appeals ruling issued on 24 May 2021.

The CA ruling dismissed NOW Telecom’s plea to nullify a circular issued by the National Telecommunications Commission, or NTC, that imposed certain qualifications for companies seeking to become a major telecom player.

“Considering all the foregoing, the CA did not commit any reversible error in the assailed decision and resolution. The CA properly upheld the RTC’s denial of NOW Telecom’s application for a writ of preliminary injunction,” the SC said.

Concurred in by Chief Justice Alexander Gesmundo and Associate Justices Ramon Paul Hernando, Ricardo Rosario and Jose Midas Marquez, the decision agreed with the CA and the Manila Regional Trial Court that the NTC circular could not be challenged through a WPI.

The court cited Section 3 of Republic Act 8975, which prohibits lower courts from issuing a temporary restraining order against government infrastructure projects.

The SC noted that telecommunications is considered a critical infrastructure under Republic Act 11659, or the Public Service Act.

“The CA correctly ruled that the implementation of the subject Circular involved an essential telecommunications infrastructure project; thus, NOW Telecom cannot enjoin the implementation of the bidding process for the selection of the NMP by a lower court’s WPI,” the decision read.

The SC added that NOW Telecom’s petition for a WPI was moot and academic since DITO Telecommunity Corp., formerly known as Mindanao Islamic Telephone Company Inc. (Mislatel), had already been selected as the NMP through the NTC bidding process and granted a Certificate of Public Convenience and Necessity.

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