NTC denies PA extension bid of broadcast company

By JAMES A. LOYOLA
July 23, 2010, 2:54pm

The National Telecommunications Commission (NTC) has denied the request of VOM Broadcasting Corporation for the extension or renewal of its provisional authority to install, operate and maintain a wireless cable television system with the use of multi-channel multi-point distribution system.

In a unanimous order signed by NTC commissioner Gamaliel A. Cordoba and deputy commissioners Jaime A. Fortes Jr. and Douglas Michael N. Mallillin, VOM’s motion for extension or renewal of its PA was denied for lack of merit.

“After painstaking examination of the facts and evidence presented, this Commission finds no cogent reason to extend the Provisional Authority of VOM since it failed to comply with the terms and conditions of its P.A.,” the NTC said.

Last October 9, the NTC’s Broadcast Service Division recommended that VOM’s motion be dismissed for its failure to implement the terms and conditions for the P.A.

VOM’s frequencies are being pursued by shareholder Jaime Zarraga who was cited by newspaper reports as being backed by a giant telecommunications firm.

“VOM failed to commence its roll-out plan as essentially required in its PA. This fact is bolstered by VOM’s non-submission of its Annual Reports and its failure to pay the Supervision and Regulation Fees (SRF) during the duration of its P.A.,” the NTC noted.

It added that VOM’s failure to construct and install its station within six months from the issuance of its PA “can be construed as VOM’s lack of intent or its incapacity to operate and maintain wireless cable television and radio broadcast with the use of MMDS in the service areas proposed.”

The NTC pointed out that its records show that VOM had only applied for a permit to purchase its transmitter after the expiration of its PA.

“Indubitably, the intention to purchase the needed equipment for its operations is just a mere afterthought on the part of VOM-a belated show of interest in its application,” said the NTC.

VOM was granted an 18-month PA to operate the MMDS system in Metro Manila, Bulacan and Calabarzon but failed to start operations by the time the PA lapsed on October 15, 2004.

On August 6, 2005, the NTC issued a memorandum circular re-allocating several frequency bands, including the frequencies previously assigned to VOM, for a new service called broadband wireless access.