A Makati court has dismissed News and Entertainment Network Corp.'s, or Newsnet, petition to halt the implementation of a National Telecommunications Commission, or NTC, memorandum circular that reallocated its frequency to International Mobile Telecommunications, or IMT, service.

Newsnet, a cable television, or CATV, network associated with businessman Mel Velarde's NOW Corp. and NOW Telecom Company Inc., sought to prevent the NTC from reassigning its frequency, arguing that it violated their rights and would result in irreparable damage to their business.

The company filed a complaint against the NTC and filed a writ of preliminary injunction on 5 July 2023.

However, the Makati City Regional Trial Court, or RTC, Branch 13, in a 16-page order dated 4 March, denied the application for the injunction. The decision was penned by Presiding Judge Maricris Pahate-Felix.

Previously, on 31 July 2023, the RTC had also denied Newsnet's application for a temporary restraining order against the implementation of NTC Memorandum Circular No. 003-05-2023, dated 23 May 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 decision read.

Following the filing of NTC's response to the complaint on 14 September 2023, the RTC directed its clerk of court to schedule a pre-trial conference and issue relevant notices to the parties involved.

The case originated from NTC's decision to reallocate Newsnet's frequency for the terrestrial component of IMT, a term used by the International Telecommunication Union to refer to broadband mobile systems.

Franchise questioned

The NTC previously denied Newsnet's request to renew its provisional authority, or PA, to operate and maintain a CATV system within the 25.35 to 26.35 gigahertz frequency range due to an expired legislative franchise.

Back then, Newsnet claimed it had the right to continue operating its CATV system using its previously assigned frequency range even if its secondary 25-year legislative franchise under Republic Act No. 8197 expired in 2022.

In addition, the PA from NTC may also be seen as a discrete administrative franchise, issued under Executive Order 205, which allowed Newsnet to continue its operations, even without a congressional franchise renewal.

The RTC, however, disagreed with Newsnet, pointing out that the PA and other permits issued by the NTC to the company were based on its legislative franchise.

“Considering the expiration of the 25-year legislative franchise granted under RA 8197 from which the plaintiff’s authority to operate as a CATV entity emanates, and in light of the foregoing exposition, this Court is of the opinion that the plaintiff was unable to establish a clear, unmistakable right that would entitle it to injunctive relief,” the RTC said.

“At this stage, the 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.