Supreme Court says NTC cannot impose rates on telcos without due process | ABS-CBN
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Supreme Court says NTC cannot impose rates on telcos without due process
Supreme Court says NTC cannot impose rates on telcos without due process
MANILA -- The Supreme Court has ruled that the power of the National Telecommunications Commission to impose telecommunications rates is subject to due process.
In a decision of the 2nd Division promulgated on Feb. 13, 2023, the high court set aside the NTC orders imposing a new billing scheme for telco companies.
In 2009, the NTC imposed a 6-second-per-pulse billing scheme for voice calls which required companies to charge mobile phone users only for actual usage.
Prior to the NTC imposition, companies charged users by the minute with a fraction of a minute automatically being charged as one minute.
NTC blocks website, app of investment platform MiTrade
The telcos challenged the NTC order before the Court of Appeals which set aside the order.
The Supreme Court said the NTC violated the right to due process when the telcos were not given the chance to assail the orders.
“By directing immediate implementation of the new rates as early as December 6, 2009, the commission robbed the telecommunications companies a chance to seek a reconsideration of its decision,” the SC said in the decision penned by Senior Associate Justice Marvic Leonen.
MANILA -- The Supreme Court has ruled that the power of the National Telecommunications Commission to impose telecommunications rates is subject to due process.
In a decision of the 2nd Division promulgated on Feb. 13, 2023, the high court set aside the NTC orders imposing a new billing scheme for telco companies.
In 2009, the NTC imposed a 6-second-per-pulse billing scheme for voice calls which required companies to charge mobile phone users only for actual usage.
Prior to the NTC imposition, companies charged users by the minute with a fraction of a minute automatically being charged as one minute.
NTC blocks website, app of investment platform MiTrade
The telcos challenged the NTC order before the Court of Appeals which set aside the order.
The Supreme Court said the NTC violated the right to due process when the telcos were not given the chance to assail the orders.
“By directing immediate implementation of the new rates as early as December 6, 2009, the commission robbed the telecommunications companies a chance to seek a reconsideration of its decision,” the SC said in the decision penned by Senior Associate Justice Marvic Leonen.
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The high court also stressed that under Republic Act. No. 7925 or the Public Telecommunications Policy Act, the NTC has the power to regulate rates but rates must be just and fair to both customers and telco companies.
The court said the rates must be reasonable and sufficient to cover the cost of business operations based on data collected through hearings and consultation with participating telco companies.
The NTC claimed that the financial interest of the telcos must yield to the common good by adjusting their system.
The court however found out that the NTC did not consider the evidence presented by the telcos.
“Although telecommunications companies are public utilities, they remain as private entities operating a business catered to the public,” the court said.
DICT eyes policy on shared radio spectrum to lower telco rates
The high court also stressed that under Republic Act. No. 7925 or the Public Telecommunications Policy Act, the NTC has the power to regulate rates but rates must be just and fair to both customers and telco companies.
The court said the rates must be reasonable and sufficient to cover the cost of business operations based on data collected through hearings and consultation with participating telco companies.
The NTC claimed that the financial interest of the telcos must yield to the common good by adjusting their system.
The court however found out that the NTC did not consider the evidence presented by the telcos.
“Although telecommunications companies are public utilities, they remain as private entities operating a business catered to the public,” the court said.
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