Case Summary (G.R. No. L-68729)
Factual Background
RCPI operated radio telegraph services in Sorsogon (1968), San Jose (1971), and Catarman (1976). It introduced radio telephone services in San Jose (1971), and later in Sorsogon and Catarman (1983). In June 1980 the NTC granted Kayumanggi authority to operate similar systems in Catarman and San Jose. Kayumanggi then filed a complaint alleging RCPI lacked a certificate of public convenience and necessity (CPCN). RCPI countered that its 1957 franchise, recognized by the Public Service Commission and NTC, covered those services and predated Kayumanggi’s application.
Procedural History
Following a hearing, the NTC, by decision of August 22, 1984, ordered RCPI to cease its radio telephone operations in the three municipalities, invoking Executive Order No. 546’s CPCN requirement. RCPI’s motion for reconsideration was denied on September 12, 1984. RCPI filed the present petition on October 1, 1984, challenging whether a legislative franchise exempts it from securing a CPCN under EO 546.
Issue
Whether RCPI’s legislative franchise under RA 2036 absolves it from obtaining a CPCN from the NTC before operating radio telephone services in the specified localities.
Applicable Law
• 1987 Constitution, Art. XII, § 11 (franchises non-exclusive; subject to amendment or repeal in public interest)
• Republic Act No. 2036 (franchise grant; Secretary of Public Works and Communications approval and license preconditions)
• Commonwealth Act No. 146, §§ 14–15 (Public Service Act exemption and CPCN requirement)
• Presidential Decree No. 1 (abolition of Public Service Commission; transfer of regulatory functions)
• Executive Order No. 546, § 15(a) (NTC authority to issue CPCNs for communications utilities)
Analysis
PD No. 1 abolished the Public Service Commission and transferred its regulatory powers to newly created boards; EO 546 consolidated those functions in the NTC. EO 546’s express mandate requires all communication utilities, including radio companies, to secure a CPCN prior to operation. RA 2036 itself conditioned RCPI’s franchise upon approval of frequencies and a licensing instrument from the Secretary of Public Works and Communications—functionally equivalent to a CPCN. Jurisprudence a
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Facts
- Radio Communications of the Philippines, Inc. (RCPI) has operated a radio communications system under Republic Act No. 2036 since its enactment on June 23, 1957.
- RCPI established radio telegraph services in Sorsogon (1968), San Jose, Mindoro (1971), and Catarman, Samar (1976).
- Radio telephone services were installed by RCPI in San Jose, Mindoro in 1971, and later in Sorsogon and Catarman in 1983.
- On June 24, 1980, in NTC Case No. 80-08, Kayumanggi Radio Network, Inc. (private respondent) was authorized by the National Telecommunications Commission (NTC) to operate radio communications systems in Catarman and San Jose.
- On December 14, 1983, Kayumanggi filed a complaint with the NTC alleging that RCPI operated radio telephone services in Catarman and San Jose without a Certificate of Public Convenience and Necessity (CPCN).
- RCPI counter-alleged that its services were covered by its legislative franchise and had operated long before Kayumanggi’s application.
Procedural History
- After hearing, the NTC, in its August 22, 1984 decision, ordered RCPI to cease radio telephone operations in Catarman, San Jose, and Sorsogon for lacking a CPCN under Executive Order No. 546.
- RCPI’s motion for reconsideration (filed September 4, 1984) was denied on September 12, 1984.
- RCPI filed a petition for certiorari with the Supreme Court on October 1, 1984, challenging the NTC order.
Issue
- Whether RCPI, as grantee of a legislative franchise under R.A. 2036, was still required to secure a Certificate of Public Convenience and Necessity from the NTC before operating its radio telephone services in the disputed areas.
Petitioner’s Arguments
- The abolition of the Public Service Commission (PSC) under Presidential Decree No. 1 and the creation of the NTC