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Palace rejects Newsnet appeal to launch nationwide operations

Metro Manila (CNN Philippines, April 3) — The Office of the President (OP) has denied News and Entertainment Network Corporation’s (Newsnet) appeal to deploy pay television and multimedia services across the Philippines.

In a decision dated March 31 and signed by Executive Secretary Lucas Bersamin, Malacañang dismissed the company’s appeal to reverse the resolution by the Anti-Red Tape Authority (ARTA) that nullified a previous ruling granting an automatic approval of the company’s application to install, operate, and maintain a local multi-point distribution system (LMDS).

Dismissing Newsnet’s appeal came after “a careful study and thorough evaluation of records,” the OP said.

It added that the appeal was “rendered moot and academic” given Newsnet’s expired legislative franchise, barring the affiliate of listed NOW Corporation from operating radio frequencies.

“In this case, the expiration of Newsnet’s legislative franchise 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,” it stated in a 16-page decision.

On Newsnet’s claim that ARTA could not void its earlier ruling, the OP said it “disagrees,” stressing that the latter exceeded its power when it ordered the National Telecommunications Commission (NTC) to provide radio frequencies to Newsnet. When the telco regulator challenged ARTA’s order, the Department of Justice ruled in favor of the NTC.

Since ARTA has no jurisdiction to issue the order, “said order never attained finality because it was null and void from the beginning,” the OP said.

The OP noted that applications involving radio frequency assignments is not within the coverage of The Ease of Doing Business and Efficient Government Service Delivery Act of 2018.

It also slammed Newsnet for its deliberate “forum-shopping” when it brought the case before the Court of Appeals to force the NTC to comply with ARTA’s initial order.

“If the acts of the party or his or her counsel clearly constitute willful and deliberate forum shopping, the same shall be ground 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,” it added.

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