NTC, RTC, in separate orders, deny firm’s bid to hold on to reallocated frequencies

By JAMES A. LOYOLA
July 27, 2010, 5:48pm

The National Telecommunications Commission (NTC) and the Regional Trial Court of Quezon City have issued separate orders rebuffing the bid of Exodus Broadcasting Company Inc. to hold on to unused frequencies assigned to it in 2003.

The NTC en banc unanimously denied the motion of Exodus for the renewal of its provisional authority to install, operate and maintain a multi-point multi-channel distribution system (MMDS) in Metro Manila.

For its part, RTC Quezon City Judge Santiago Arenas issued an order denying a petition filed by Exodus seeking to nullify NTC memorandum circular 06-08-2005 reallocating the frequencies assigned to Exodus to Smart Broadband’s wireless broadband access.

The twin orders came in the heels of rejections of an almost identical motion for renewal and a petition for a writ of preliminary injunction filed by VOM Broadcasting Corporation before the NTC and RTC Pasig City, respectively.

According to the NTC, Exodus had failed to start the construction and installation of its station within six months from the date of the issuance of its P.A. on August 7, 2003 or until February 6, 2004 and did not finish the construction within three months or by May 5, 2004.

Up to the filing of its Motion for Renewal of P.A. on April 20, 2005, Exodus admitted that it has not started construction and operations and was still negotiating with its suppliers. Exodus had filed for an extension of its P.A. on April 26, 2005, or two months after its expiration on February 6, 2003.

The NTC said Exodus’ failure violated the conditions imposed on the company for the granting of the P.A. and thus the firm is “undeserving of the privilege granted” since its non-operation “resulted in the deprivation of the public to access the proposed service.”

The Commission also noted that the failure to start operations within the required period negates earlier findings that Exodus was legally, financially and technically qualified to undertake the proposed service.

Meanwhile, in his order, Arenas said that, “after a meticulous examination of the arguments and evidences of the parties, the court hereby rules that the issuance of a temporary restraining order in favor of (Exodus) is untenable.”