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    NTC haled to court on Liberty case
     
    By Lenie Lectura
    Reporter
     

    COMMISSIONER Ruel Canobas of the National Telecommunications Commission (NTC) and three other department heads were subpoenaed yesterday by a Makati court in connection with a motion to terminate rehabilitation proceedings and to allow the liquidation of Liberty Telecoms.

    Canobas, together with NTC frequency management division (FMD) chief Priscilla Demition, former FMD acting chief Joselito Leynes and Abigail Santillan-Felix, NTC legal director, were ordered by Branch 149 of the Regional Trial Court in Makati to appear this Friday at 2 p.m.

    They were ordered to testify on the telecommunications services and corresponding frequencies awarded to the debt-ridden firm by the NTC.

    The NTC officials are expected to also testify on the status of the provision of Liberty’s telco services and the frequency bandwidths which the phone firm currently utilizes, but not limited to the WiMax network service.  Liberty proposed to offer WiMax services under the court-approved rehabilitation plan.

    The subpoenas were delivered to the NTC yesterday afternoon, although the officials refused to comment.

    For his part, Sixto Jose Antonio, legal counsel of Rizal Commercial Banking Corp., said: “The ball is now in the hands of these NTC officials. It’s either they won’t show up or they could send representatives or they could all show up. We really do not know what will happen. It is very important for them, though, to really tell the truth.”

    RCBC, a creditor-bank of Liberty, asked the same court on May 15 to terminate the rehabilitation proceedings of Liberty Telecom Holdings Inc. (LTHI), Liberty Broadcasting Network Inc. and Skyphone Logistics Inc. for failure to implement a court-approved rehab plan.

    LTHI is owned by businessman Raymund Moreno and is the holding company of LBNI and SLI. LBNI holds a congressional franchise to provide telecommunication and broadcast services, while SLI performs marketing, distribution and logistics support services.

    Court records showed that LTHI promised it will operate a nationwide voice-and-data network called WiMax, which, it claimed, would be the main service or product for the 10-year rehab plan.

    The WiMax network, which will provide wireless broadband service, is expected to contribute more than 90 percent to LTHI’s total projected revenues. It said the capability of LTHI to take advantage of the WiMax technology will put the company at par with the other phone firms in the country.

    According to the business plan submitted by LTHI to the court, the wireless broadband service will provide very high revenues and earnings due to its tremendous potential.

    However, RCBC found that the frequency spectrum in which the wireless broadband service will operate on has been recently reallocated by the NTC to Smart Broadband Inc. (SBI).

    “Based on records of the NTC, it appears that the proposed WiMax network under the 700MegaHertz (MHz) frequency which was claimed by the petitioners to be their existing frequency allocation… cannot be said to be feasible, even possible now. Specifically, it appears based on NTC records that SBI has applied for and reportedly been allocated and granted the 700 MHz frequency,” RCBC stated in its motion.

    “Accordingly, possession, disposition and control of the 700 MHz frequency is indispensable as without it, petitioners can not set up, maintain and operate the proposed WiMax network considered by the Court as in approving the rehab plan. It is inevitably clear that petitioners cannot comply with their obligations,” said RCBC.

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