SC upholds DQ of NOW Telecom, 3 others from 3G frequency bid!

The decision affirms an earlier order from the National Telecommunications Commission disqualifying the four companies including NOW Telecom.

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“NTC handles full discretion to assess and evaluate applicants”

According to a Rappler report, the Supreme Court has affirmed the disqualification of four companies in their application for a third-generation mobile communications technology (3G) radio frequency. This decision maintains the order of the NTC regarding the issue.

In a 44-page decision, the SC denied the petitions filed by Next Mobile Incorporated, now called NOW Telecom, Bayan Telecommunications (BayanTel), Multi-Media Telephony Incorporated (MTI), and AZ Communications Incorporated challenging the NTC orders in December 2005 and August 2008.

Then, the NTC already awarded 3G frequencies to Smart Communications, Inc., Globe Telecom, Inc., Digitel Mobile Philippines, Inc., and Connectivity Unlimited Resources Enterprise.

The High Court noted that the NTC “has full discretion to assess and evaluate applicants to these frequency spectrums.”

Republic Act No. 7925 states radio frequency spectrum as a “scarce public resource,” and that the government should allocate frequencies to providers “who will use it efficiently and effectively to meet public demand.”

In view of its expertise in technical matters, and institutional experience, its factual findings are entitled to great weight before this Court and will not be reversed ‘saved upon a very clear showing of serious violation of law or of fraud, personal malice or wanton oppression, the SC said.

To recall, the NTC disqualified NOW Telecom and several other companies over unpaid supervision and regulation fees (SRFs), and spectrum use fees (SUFs) worth PHP 135.6 million.

According to the SC, Next Mobile “did not pay these fees even under protest.” Furthermore, the government found no merit in the company’s argument that the NTC should not have considered additional paid-in capital in the assessment of its SRFs.

It is erroneous for Next Mobile to argue that this could not be considered as part of the capital stock since no payment was received when the liabilities were converted into equity, the court pointed out.

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Via: Rappler