Title
Eastern Telecommunications Philippines, Inc. vs. International Communication Corp.
Case
G.R. No. 135992
Decision Date
Jul 23, 2004
The Supreme Court upheld NTC’s grant of a provisional authority to ICC, promoting competition in telecoms, but mandated compliance with escrow and bond requirements for accountability.

Case Digest (G.R. No. 135992)
Expanded Legal Reasoning Model

Facts:

  • Policy and regulatory framework
    • Prior to 1990 the Philippine telecommunications industry was dominated by a few operators, prompting the DOTC to formulate the National Telecommunications Development Plan (NTDP) 1991–2010 and issue Department Circular No. 91-260 (Sept. 30, 1991) to rationalize local exchange carrier service (LECS) by defining service areas and authorizing only one carrier per area.
    • Executive Order No. 109 (July 12, 1993) required existing International Gateway Facility (IGF) operators to provide LECS in unserved and underserved areas; the NTC implemented this via Memorandum Circular No. 11-9-93 (Sept. 17, 1993), mandating CPCN applications and rollout obligations (300 lines per switch termination; 300,000 lines in three years).
  • Legislative enactment
    • Republic Act No. 7925 (Mar. 23, 1995), the Public Telecommunications Policy Act, reinforced obligations for international carriers to provide LECS in designated areas within three years, and its IRR was issued by NTC Memorandum Circular No. 8-9-95 (Sept. 25, 1995).
  • Grant of provisional authorities and overlap dispute
    • International Communication Corporation (ICC, now Bayantel) received a Provisional Authority (PA) on March 3, 1995 for LECS in Quezon City, Malabon, Valenzuela, Metro Manila, and Bicol.
    • Eastern Telecommunications Philippines, Inc. (ETPI) affiliate TTPI received a PA on Sept. 25, 1996 for LECS in Batanes, Cagayan Valley, Isabela, Kalinga-Apayao, Nueva Vizcaya, Ifugao, Quirino, Manila, Caloocan, and Navotas.
    • On Nov. 10, 1997, ICC obtained another PA to operate in Manila and Navotas—areas already assigned to TTPI—prompting TTPI’s challenge for grave abuse of discretion.
  • Judicial proceedings
    • TTPI filed CA-G.R. SP No. 46047 seeking injunctive relief; the Court of Appeals dismissed the petition (Apr. 30, 1998), finding no abuse of discretion and no equal protection violation.
    • TTPI elevated the case to the Supreme Court via petition for review on certiorari, raising two issues: the propriety of the overlapping PA grant, and entitlement to a preliminary injunction.

Issues:

  • Did the Court of Appeals commit serious error in upholding the NTC’s grant of PA to ICC for Manila and Navotas, areas already covered by TTPI’s prior PA?
  • Is TTPI entitled to a writ of preliminary injunction to restrain ICC from installing LECS in the contested areas?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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