G.R. No. 88404 - Philippine Long Distance Telephone Co. vs. National Telecommunications Commission

Petitioner Philippine Long Distance Telephone Co. (PLDT) filed a special civil action for Certiorari and Prohibition under Rule 65 of the Rules of Court to annul two orders of the National Telecommunications Commission (NTC):

Order dated December 12, 1988, granting Express Telecommunications Co., Inc. (ETCI) provisional authority to install, operate, and maintain a Cellular Mobile Telephone System in Metro Manila (Phase A).
Order dated May 8, 1989, denying PLDT’s motion for reconsideration.

PLDT also moved to set aside the December 1988 order and secured a Temporary Restraining Order (TRO) from the Supreme Court on February 27, 1990, pending resolution of the petition, upon posting a P5 million bond.

On June 22, 1958, Republic Act No. 2090 granted Felix Alberto & Co., Inc. (later ETCI) a 50-year franchise to establish radio stations for domestic and transoceanic telecommunications. The company changed its name to ETCI in 1964.
On May 13, 1987, ETCI applied to NTC for a Certificate of Public Convenience and Necessity (CPCN) to operate a Cellular Mobile Telephone System and an Alpha-Numeric Paging System in Metro Manila and Southern Luzon, and asked for provisional authority for Phase A in Metro Manila.
PLDT opposed, contending ETCI’s franchise did not cover system-wide telephone service; ETCI lacked facilities; PLDT had prior application and rights; and the grant would cause harmful duplication.

NTC overruled PLDT’s opposition, broadly construed “radiotelephony” under RA 2090 to include cellular service.
Directed ETCI to submit proof of legal, financial, and technical capabilities; continued hearings.

Granted Phase A Metro Manila operations under AMPS with an 18-month expiry.
Imposed conditions including that ETCI and PLDT enter into an interconnection agreement within 90 days.

May 8, 1989 Order: NTC denied reconsideration and scheduled further hearings on ETCI’s main CPCN application.

June 15, 1989: Initial dismissal of PLDT’s petition for non-compliance with interim requirements; later reinstated upon compliance.
February 27, 1990: Issuance of TRO enjoining NTC and ETCI from implementing the provisional authority; PLDT posted P5 million bond; ETCI accepted forfeiture.
March 6, 1990: SC denied ETCI’s motion to lift the TRO as to operations, but allowed its inaugural ceremony.

Whether NTC acted without jurisdiction or with grave abuse of discretion in granting provisional authority to ETCI.
Whether provisional authority is in effect a final CPCN, thus reviewable only by appeal, not by certiorari.

Whether RA 2090’s grant for “radio stations” and “radiotelephony” covers a modern Cellular Mobile Telephone System.
Whether ETCI’s RA 2090 franchise lapsed or was forfeited for non-use under Section 4 of RA 2090 or Presidential Decree 36.

Whether the transfer of more than 40% of ETCI’s capital stock without Congressional approval invalidated its franchise.
Whether NTC had authority to approve such stock transfers under Section 20(h) of the Public Service Act.

Whether NTC exceeded its power in compelling PLDT to interconnect its network with ETCI.
Whether PLDT was denied due process by having to negotiate interconnection under threat of sanction.