Title
Radio Communications of the Philippines, Inc. vs. National Telecommunications Commission
Case
G.R. No. L-68729
Decision Date
May 29, 1987
RCPI challenged NTC's order to cease radio telephone operations without a certificate of public convenience, claiming exemption under its legislative franchise. The Supreme Court ruled that franchises are subject to regulation, requiring RCPI to comply with NTC's mandate under Executive Order No. 546.

Case Digest (G.R. No. 203882)
Expanded Legal Reasoning Model

Facts:

  • Parties
    • Petitioner: Radio Communications of the Philippines, Inc. (RCPI), grantee of legislative franchise under Republic Act No. 2036 (enacted June 23, 1957).
    • Respondents: National Telecommunications Commission (NTC) and private respondent Kayumanggi Radio Network, Inc. (KRN).
  • RCPI’s operations and competing application
    • RCPI operations:
      • Radio telegraph service established in Sorsogon (1968), San Jose, Mindoro (1971), Catarman, Samar (1976).
      • Radio telephone service commenced in San Jose (1971), later extended to Sorsogon and Catarman (1983).
    • 1980 NTC Case No. 80-08: KRN authorized to operate radio communications in Catarman and San Jose.
    • December 14, 1983: KRN lodged complaint with NTC — RCPI allegedly operating without Certificate of Public Convenience and Necessity (CPCN).
    • RCPI’s defense: services covered by its legislative franchise; longstanding operations predate KRN’s application.
  • NTC administrative proceedings
    • August 22, 1984 decision: NTC ordered RCPI to cease operations of radio telephone services in Catarman, San Jose and Sorsogon for lack of CPCN under Executive Order No. 546.
    • September 1984: RCPI’s motion for reconsideration denied.
    • October 1, 1984: RCPI filed petition for certiorari and prohibition before the Supreme Court.
  • Governing legal provisions
    • Commonwealth Act No. 146 (Public Service Law) Sections 14–15: exemptions (including radio companies) and requirement for CPCN.
    • Presidential Decree No. 1 (1972) abolished Public Service Commission (PSC); functions transferred to specialized boards.
    • Executive Order No. 546 (1979) abolished Board of Communications; transferred communications regulatory powers to NTC, including issuance of CPCN (Sec. 15).

Issues:

  • Whether RCPI, despite holding a legislative franchise under RA 2036, was required under E.O. 546 and the Public Service Law (as amended) to secure a CPCN from the NTC before operating its radio telephone services in Catarman, San Jose and Sorsogon.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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