Wednesday, June 1, 2011

Globe Telecom, Inc v. NTC et. al.

Chester Cabalza recommends his visitors to please read the original & full text of the case cited. Xie xie!

G.R. No. 143964 July 26, 2004

GLOBE TELECOM, INC., petitioner,
vs.
THE NATIONAL TELECOMMUNICATIONS COMMISSION, COMMISSIONER JOSEPH A. SANTIAGO, DEPUTY COMMISSIONERS AURELIO M. UMALI and NESTOR DACANAY, and SMART COMMUNICATIONS, INC. respondents.


Telecommunications services are affected by a high degree of public interest. Telephone companies have historically been regulated as common carriers, and indeed, the 1936 Public Service Act has classified wire or wireless communications systems as a "public service," along with other common carriers. The present petition dramatizes to a degree the clash of philosophies between traditional notions of regulation and the au corant trend to deregulation. Appropriately, it involves the most ubiquitous feature of the mobile phone, Short Messaging Service ("SMS") or "text messaging," which has been transformed from a mere technological fad into a vital means of communication.

Facts:

Globe and private respondent Smart Communications, Inc. are both grantees of valid and subsisting legislative franchises, authorizing them, among others, to operate a Cellular Mobile Telephone System ("CMTS"), utilizing the Global System for Mobile Communication ("GSM") technology. Among the inherent services supported by the GSM network is the Short Message Services (SMS),also known colloquially as "texting," which has attained immense popularity in the Philippines as a mode of electronic communication.

On 4 June 1999, Smart filed a Complaint with NTC to interconnect Smart's and Globe's GSM networks, particularly their respective SMS or texting services. The Complaint arose from the inability of the two leading CMTS providers to effect interconnection. Smart alleged that Globe, with evident bad faith and malice, refused to grant Smart's request for the interconnection of SMS. But NTC also declared that both Smart and Globe have been providing SMS without authority from it, in violation of Section 420 (f) of MC No. 8-9-95 which requires PTEs intending to provide value-added services (VAS) to secure prior approval from NTC through an administrative process.

Globe filed with the Court of Appeals a Petition for Certiorari and Prohibition to nullify and set aside the Order and to prohibit NTC from taking any further action in the case. It reiterated its previous arguments that the complaint should have been dismissed for failure to comply with conditions precedent and the non-forum shopping rule. It also claimed that NTC acted without jurisdiction in declaring that it had no authority to render SMS, pointing out that the matter was not raised as an issue before it at all. Finally, Globe alleged that the Order is a patent nullity as it imposed an administrative penalty for an offense for which neither it nor Smart was sufficiently charged nor heard on in violation of their right to due process.

After the Court of Appeals denied the Motion for Partial Reconsideration, Globe elevated the controversy to the Supreme Court.

Issues:

1. Whether NTC may legally require Globe to secure NTC approval before it continues providing SMS;

2. Whether SMS is a VAS under the PTA, or special feature under NTC MC No. 14-11-97;

3. Whether NTC acted with due process in levying the fine against Globe; and

4. Whether Globe should have first filed a motion for reconsideration before the NTC, but this relatively minor question can be resolved in brief.

Held:

Necessity of Filing Motion for Reconsideration

Globe deliberately did not file a motion for reconsideration with the NTC before elevating the matter to the Court of Appeals via a petition for certiorari. Generally, a motion for reconsideration is a prerequisite for the filing of a petition for certiorari.

In opting not to file the motion for reconsideration, Globe asserted before the Court of Appeals that the case fell within the exceptions to the general rule. The appellate court in the questioned Decision cited the purported procedural defect, yet chose anyway to rule on the merits as well.

Globe's election to elevate the case directly to the Court of Appeals, skipping the standard motion for reconsideration, is not a mortal mistake. According to Globe, the Order is a patent nullity, it being violative of due process; the motion for reconsideration was a useless or idle ceremony; and, the issue raised purely one of law. Indeed, the circumstances adverted to are among the recognized exceptions to the general rule.

The Merits

Globe hinges its claim of exemption from obtaining prior approval from the NTC on NTC Memorandum Circular No. 14-11-97 ("MC No. 14-11-97"). Globe notes that in a 7 October 1998 ruling on the application of Islacom for the operation of SMS, NTC declared that the applicable circular for SMS is MC No. 14-11-97. Under this ruling, it is alleged, NTC effectively denominated SMS as a "special feature" which under MC No. 14-11-97 is a deregulated service that needs no prior authorization from NTC. Globe further contends that NTC's requiring it to secure prior authorization violates the due process and equal protection clauses, since earlier it had exempted the similarly situated Islacom from securing NTC approval prior to its operation of SMS.

The statutory basis for the NTC's determination must be thoroughly examined. Our first level of inquiry should be into the PTA. It is the authority behind MC No. 8-9-95. It is also the law that governs all public telecommunications entities ("PTEs") in the Philippines.

Public Telecommunications Act

The PTA has not strictly adopted laissez-faire as its underlying philosophy to promote the telecommunications industry. In fact, the law imposes strictures that restrain within reason how PTEs conduct their business. For example, it requires that any access charge/revenue sharing arrangements between all interconnecting carriers that are entered into have to be submitted for approval to NTC. At the same time, the general thrust of the PTA is towards modernizing the legal framework for the telecommunications services sector. The transmutation has become necessary due to the rapid changes as well within the telecommunications industry.

One of the novel introductions of the PTA is the concept of a "value-added service" ("VAS"). Section 11 of the PTA governs the operations of a "value-added service provider," which the law defines as "an entity which relying on the transmission, switching and local distribution facilities of the local exchange and inter-exchange operators, and overseas carriers, offers enhanced services beyond those ordinarily provided for by such carriers." Section 11 recognizes that VAS providers need not secure a franchise, provided that they do not put up their own network. However, a different rule is laid down for telecommunications entities such as Globe and PLDT.

The Pertinent NTC Memorandum Circulars


The NTC relied on Section 420(f) of the Implementing Rules of the PTA ("Implementing Rules") as basis for its claim that prior approval must be secured from it before Globe can operate SMS. Section 420 of the Implementing Rules, contained in MC No. 8-9-95.

In short, the legal basis invoked by NTC in claiming that SMS is VAS has not been duly established. The fault falls squarely on NTC. With the dual classification of SMS as a special feature and a VAS and the varying rules pertinent to each classification, NTC has unnecessarily complicated the regulatory framework to the detriment of the industry and the consumers. But does that translate to a finding that the NTC Order subjecting Globe to prior approval is void? There is a fine line between professional mediocrity and illegality. NTC's byzantine approach to SMS regulation is certainly inefficient. Unfortunately for NTC, its actions have also transgressed due process in many ways, as shown in the ensuing elucidation.

Case Digest by CBCabalza 2010

Spouses Centeno v. De Guia-Slavador et. al.

Chester Cabalza recommends his visitors to please read the original & full text of the case cited. Xie xie!

SPS RODOLFO CENTENO AND NENA (NELIA) CENTENO, Plaintiffs-Appellants,
vs.
DE GUIA-SALVADOR, Chairperson, VILON, S.E., and LAZARO-JAVIER, A.C., JJ,
MUNICIPALITY OF ALICIA ISABELA, GLOBE TELECOM, INC., REPRESENTED BY
CHRISTOPHER Q. HANDOG AND MAGNA RESTU PHILIPPINES, INC. REPRESENTED
Promulgated: BY FRANCISCO G. DURAN, Defendants-Appellees,


November 22, 2010

Facts:

Spouses Centeno, from Calaocan, Alicia, Isabela filed a petition for “Mandatory Injunction for the Issuance of preliminary Injunction and Damages” against the Municipality of Alicia in Isabela.

The plaintiffs objected the approval of Globe’s application to construct a Tower Antenna in their place, claiming that they were deprived of their right to due process.

On June 9, 2005, the appellate court rendered a decision stating that the plaintiffs could have also presented their grievances to the Sangguniang Panlalawigan when in reviewed Resolution No. 2003-119, with the view of having it disapproved because it is hazardous to the health of the plaintiff and other residents similarly situated, They opted to come to Court immediately invoking judicial intervention inspite of the existence administrative remedies available to them.

Thus, the complaint was dismissed.

Issues:

1. Whether or not the CA has a jurisdiction over the case at bar;

2. Whether the complaint is pre-mature for failure to exhaust administrative remedies and the complaint has no cause of action;

3. Whether the health, lives and properties of plaintiffs-appellants are put to imminent danger by the construction of the Globe tower antenna; and

4. Whether the municipality of Alicia, Isabela acting through its SB committed grave abuse of discretion

Held:

The doctrine of exhaustion of administrative remedies calls for resort first to the appropriate administrative authorities in the resolution of a controversy falling under their jurisdiction before the same may be elevated to the courts of justice for review, and nonobservance thereof is a ground for the dismissal of the complaint. Thus, if a remedy within the administrative machinery can still be resorted by giving the administrative officer concerned every opportunity to decide on a matter that comes within his jurisdiction then such remedy should be exhausted first before court’s judicial power can be sought. Thus, availment of administrative remedy entails lesser expenses and provides for a speedier disposition of controversies.

The requirement of prior exhaustion of administrative of administrative remedies is not absolute, there being instances when it may be dispensed with and judicial action may be validly resorted to immediately, among which are: 1 when the question raised is purely legal; 2 when the administrative body is in estoppel; 3 when the act complained of is patently illegal; 4 when there is urgent need for judicial intervention; 5 when the claim involved is small; 6 when irreparable damage will be suffered; 7 where there is no other plain, speedy and adequate remedy; 8 when strong public interest is involved; 9 in quo warranto proceedings; 10 when there is a violation of due process; 11 when respondent is a department secretary whose acts, as an alter ego of the president, bears the implied and assumed approval of the latter; 12 when to require exhaustion of administrative remedies would be reasonable; 13 when the rule of qualified political agency applies; 14 when the issue of non-exhaustion of administrative remedies has been rendered moot; and from among these exceptions, appellants claim principally the denial of due process arising from alleged want of notice to them of the proceedings before the Sangguniang Bayan resulting to violation of their constitutional right for safe, healthy and convenient social environment.

On the issue of plaintiffs not given due process, it bears stressing that due process does not necessarily mean or require a hearing, but simply an opportunity or right to be heard. Also in the case at bar, the plaintiffs-appellants sought absence of waiver or estoppel which the case is susceptible of dismissal for lack of cause of action.

The appellate court ruled that plaintiffs could have availed of the remedies envisioned under the Local Government Code, rep. 7160. First, is the veto power of the Mayor and second, the review by the Sangguniang Panlalawigan of Resolution No. 2003-119.

Because the plaintiffs opted to come to court immediately invoking judicial intervention inspite of the existence of administrative remedies available to them, wherefore, in view of all the foregoing, the instant appeal is Denied for lack of merit. The decision of the RTC in Cauayan City is hereby affirmed and upheld.

Case Digest by CbCabalza 2010

Aala, Maranan et al v. Globe Telecoms, Inc.

Chester Cabalza recommends his visitors to please read the original & full text of the case cited. Xie xie!

CA-G.R. CV No. 78049

EVANGELINE AALA, MANUEL MARANAN, RAMON UY LIM, JOSE UY JR., IGNACIO PATAL
REMEDIOS TAMANI, EXCELSIOR DANGILAN, DR. DEMINGO REMIGIO, ROGER BAGALAY, BERT VILLALOBOS, ZALDY PASCUAL AND MARLYN CASTILLO, Plaintiffs-Appellants,
vs.
GLOBE TELECOMS, INC., Defendant-Appellee,

Facts:


Petitioners-appellants Evangeline Aala, et al. are the principal, teachers, and students of the Solano National High School, who filed a petition before the RTC of Bayombong, Nueva Vizcaya, for the issuance of a writ of preliminary injunction and/or temporary restraining order plus damages, against Globe Telecoms, Inc. which was constructing a VTS on a 400 sq. m. lot at that time.

Petitioners protested against the construction of Globe’s cell site antenna around the vicinity due to security, safety concerns, and health hazards that may cause them such as the exposure to radiation.

The Executive Judge issued a 72-hour TRO and was extended into 20-day period. However, Globe filed an opposition with Motion to Dismiss.

Various medical experts, environmentalists, and law enforcers became witnesses who tried to prove preponderance of their evidence for or against the construction of the cell site that later petitions filed an Ex-Parte Manifestation and Motion. But Globe opted to adopt the testimony of the amicus curiae Director Agnette Peralta of the bureau of Health Devices and technology under the department of Health.

Issues:

1.Whether or not an Environmental Impact Statement (EIS) is required to be submitted by the defendant Globe before operating its cell site;

2.Whether or not the proposed cell site will prejudice the health, safety and security concerns of the petitioners and other stakeholders;

3.Whether or not a writ on injunction should be issued to restrain the defendant from putting up and operating its cell site; and

4.Whether or not Globe should secure an Environmental Compliance Certificate (ECC) before putting up its cell site.

Held:

On Health Hazard

The appellants contend the ruling of the trial court that the perceived health risk of the cell site is unfounded. They deem that in light of the findings of the World Health organization (WHO) that “there are gaps in knowledge that have been identified for further research to make better assess health risks.” But the RTC which the CA also affirmed ruled in favor of the appellee Globe by relying heavily on the present stand of the Bureau of Health Devices and Technology that the radiation emitted by cell site antennas is not hazardous to human health if the minimum safe distance is observed.

On Environmental Concerns


The claim of the Province of Nueva Vizcaya is to be considered as environmentally critical, it being a part of the watershed that supports the hydro-electric dam in Ramon, Isabela, is untenable as there is no showing that said area was declared by law as a watershed reserve nor was it declared by the President as an environmentally critical area. Hence, not being an environmentally critical area, the issuance of an ECC is not required. Neither is the installation of the cell site in Barangay Quirino, Solano, Nueva Vizcaya an environmentally critical project as it is not one of those covered or listed under Proclamation No. 2146.

Memorandum Circular No. 4, Series of 2002 issued by the EMB-DENR listed the “Based Transceiver Station” as one of the telecommunications projects which are not covered by the EIS System, and as such, an ECC is not required prior to project implementation for the abovementioned project.

On Preliminary Injunction

Injunction is a judicial writ, process of proceeding whereby a party is ordered to do or refrain from doing a certain act. It may be the main action or merely a provisional remedy for and as an incident in the main action.

The main action for injunctions is distinct from the provisional or ancillary remedy of preliminary injunction which cannot exist except only as part or an incident of an independent action or proceeding. As a matter of course, in an action for injunction, the auxiliary remedy of preliminary injunction, whether prohibitory or mandatory, may issue.

The CA sustained the trial court’s dismissal of the main action for Injunction. Appellants were not entitled to a writ of preliminary injunction, much more to a judgment embodying a final injunction.

The Appeal is Denied for lack of merit. The Decision of the RTC is hereby Affirmed. No Costs.

Case Digest by CBCabalza 2010

Wednesday, May 11, 2011

In Search of Galleons and Ships

Poem and Photographs by Chester B. Cabalza
Copyright © 2011 by Chester B. Cabalza. All Rights Reserved.

It once shone
like a gigantic star in the sea
but the sea, unmasked
mysterious tales.
The earthen vessels deciphered
profound antiquities...

almost four hundred years
a memory withdrawn in
oblivion before the truth revealed,
a mythical history by a heroic story,
depraved our minds
of Antonio de Morga's
one-act play?

In Fortune islands: a place of
outright cowardice. When rival
Dutch (Mauritius) fired cannon balls
to an admired galleon
a shipwreck haunted by
a mendacious ghost

the galleon buried,
rebuked under the sea of
disgraced tidal waves

But the antiquities spoke
for itself, it happened
The once majestic galleon,
sunk in its purest soul,
resurrected to grandiose
mysteries and discoveries

And it became the soul of the past...

Manila Ocean Park - It's All About Life And Living

About three years ago, upon Manila Ocean Park's soft opening, I decided to bring my family to see the country's first ocean park. I said to myself, "finally, we have our own oceanarium now to see any moment of the year!" According to its website (http://www.manilaoceanpark.com), from a spectacular marine themed park, Manila Ocean Park has finally evolved into Metro's holiday Ddstination where everything is all about Life and Living. An array of exciting attractions, enticing view of the bay, enriching marine life exhibits, entertaining dining and lifestyle shapes to mold into an integrated resort destination. Manila Ocean Park is proud to have a marine-themed park in the country that houses Life of the best of both under and over the sea!

Photographs by Chester B. Cabalza
Copyright © 2011 by Chester B. Cabalza. All Rights Reserved.



























Tuesday, May 10, 2011

Hundred Islands (Waiting to Exhale)

Poem and Photographs by Chester B. Cabalza
Copyright © 2011 by Chester B. Cabalza. All Rights Reserved.

In the deep end of the gulf
When natural born divers
Swim gracefully, among the
School of fish, the beracudas,
And many creatures in a
Vast body of a deep blue sea
Only goggles as their apparatus
To explore the finest haven
Or empire that few can only see


They hold their breath
Crawling like an ell, to catch
A glimpse of an underworld sanctuary,
Peculiar colors of fish flash
To their sight, jellies as lanterns,
Corrals as grotto of tiny school,
Seahorses robe the majestic kingdom.
Beneath the endless basin,
A fortune of ornaments and splendor
Amaze divers
and like fish, they are bestowed with
Gills to breath underwater,
The mermen and guardians
of creatures of the abyss

So when divers exhale
No way the whale splash their breath,
Is like an astonishing relieve
To glance once more
The dome of the earth,
Heedless, the clear skies
Ready to clasp them in
Their resurrection,
And all the while they inhale
Oxygen

Then the underwater
Guzzle them again
To see more of the power
Down, down, down...

Monday, May 9, 2011

Corregidor Island (The Mile Long Ruins)

Poem and Photographs by Chester B. Cabalza
Copyright © 2011 by Chester B. Cabalza. All Rights Reserved.

The frontiers bounded by the strongest
and finest men,
warplanes, warships, while the
location (known as tadpole-shaped island)

Today
the mile long barracks,
ruins of great tunnels, prisons, camps,
excavated by the boldest defense yet
tainted with terror of a ravaged war.
Stood up with archaic honors
and a fading military strength...