Palace dismisses Newsnet appeal to operate, deliver services

The facade of the Malacañang palace. FILE PHOTO CONTRIBUTED BY VAL HANDUMON

MANILA, Philippines — The Office of the President dismissed the appeal of the News and Entertainment Network (Newsnet) to overturn the decision of the Anti-Red Tape Authority, which nullified it from installing, operating, and maintaining a local multipoint distribution system (LMDS) to deliver interactive pay television and multimedia services in South Luzon, North Luzon, Visayas, and Mindanao.

In a decision dated March 31, signed by Executive Secretary Lucas Bersamin, the Office of the President determined that the appeal has been rendered “moot,” citing the expiration of Newsnet’s franchise.

“After a careful study and thorough evaluation of the records, this Office dismisses the appeal,” the decision read.

Newsnet is owned by businessman Mel Velarde.

“Firstly, this Office finds that the appeal has now been rendered moot and academic by the expiration of Newsnet’s legislative franchise under RA No. 8197, whose validity is a pre-requisite for the approval of the subject Application,” it added.

According to the Office, Section 1 of RA No. 384629 prohibits any broadcasting company from operating and/or utilizing radio frequencies without a legislative franchise, as follows:

It further explained that 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 also disqualified it from operating any wireless service, including LMDS, which primarily depends on radio or air frequencies.

Apart from these, the Office of the President also negated Newsnet’s claim that the signatories of the assailed orders lacked authority.

“Contrary to the claim of Newsnet, the issuance of the 22 August 2022 and 17 June 2022 ARTA Resolutions, which reversed the automatic approval of the subject Application, was not an exercise of discretion beyond the powers of an OIC,” the decision read.

It also further pointed out that between the present appeal and the petition before the Court of Appeals, “there is: an identity of parties representing the same interests; identity of rights asserted and reliefs prayed for and the relief are founded on the same facts; and identity of preceding particulars.”

“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 a cause for administrative sanctions,” the office said in its decision.

“Newsnet’s willful and deliberate forum shopping is thus another ground to dismiss the instant appeal,” it added.

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