REGULATORS on Tuesday postponed a scheduled hearing on the case filed by Smart Communications Inc. against rival Globe Telecom and Altimax Broadcasting Co.
“Both Globe/Innove and Altimax filed a motion for postponement, saying they were not ready to respond to our complaint even though they had been given more than adequate time to do so,” said Ramon R. Isberto, spokesman of the Philippine Long Distance Telephone Co. (PLDT) Group. “That is hardly surprising considering that Altimax has failed to build anything in the last 10 years.”
Smart is now pressing the National Telecommunications Commission (NTC) to stop Globe’s “illegal use” of Altimax’s frequencies in the light of the failure of Altimax to attend a scheduled hearing on this issue.
“For our part, we are asking the NTC to immediately issue a cease-and-desist order and thus stop Altimax and Globe from using frequencies that they have no legal authority to use,” Isberto said.
The NTC has reset the hearing for October 19.
In its complaint filed on August 24, Smart asked the NTC to revoke the provisional authority (PA) issued to Altimax to operate a Multichannel Multipoint Distribution System (MMDS) service.
It also petitioned the Commission to recall the 30 Megahertz (MHz) of radio frequencies granted to Altimax in the 2597-2627MHz band and to make these available to qualified interested parties through competitive public bidding.
Smart further asked the NTC to impose the appropriate administrative sanctions upon Altimax and Globe.
Globe had acquired the use of the broadcast frequencies of Altimax through a lease agreement in 2009.
In exchange for fees amounting to P160 million in 2009 and 2010, the Ayala-owned telecom firm has been using these frequencies to provide wireless broadband Internet service using the WiMax technology.
In its petition, Smart said this lease agreement was illegal and invalid because Altimax had long lost its legislative franchise because of its persistent failure to set up, operate and maintain an MMDS service as specified by its congressional franchise and under its PA.
Under Republic Act 8607, failure by Altimax to roll out the MMDS network within three years of the grant of the franchise and one year from the issuance of its PA would result in its franchise being deemed ipso facto revoked.
“To date, more than 10 years after it was granted a PA by the NTC, Altimax has failed to roll out its MMDS service,” Isberto said.
“Considering the franchise is effectively revoked, Altimax does not have authority to lease its frequencies to Globe, much less allow Globe to use it in purposes other than its intended use to provide broadcast services,” Isberto said.
He added that Section 12 of RA 8607 states that Altimax shall not lease or assign the franchise or the rights and privileges acquired under to any person or corporation without prior approval of Congress.
In short, Altimax leased out frequencies it does not own, for a purpose different from that for which it was originally granted, in a manner that defied both the law and rules of the NTC and Congress.
