THE National Telecommunications Commission (NTC) cannot impose rates on telecommunications companies without due process, the Supreme Court (SC) ruled.
In a decision, the SC Second Division upheld the ruling of the Court of Appeals (CA) and set aside NTC orders imposing a new billing scheme for telcos.
“The regulatory power of administrative bodies such as the NTC does not give it unbridled permission to impose rates without giving telecommunication companies an opportunity to air out their grievances or seek reconsideration,” it said.
“The fundamental right to due process still prevails in administrative proceedings,” it added.
According to the court, the NTC imposed a six-second-per-pulse billing scheme for voice calls, requiring telcos to charge mobile phone users only for actual usage in 2009. Prior to this, users were charged by the minute.
The NTC later issued show cause orders against several telcos for defying the directive, prompting them to file petitions before the CA.
The CA granted the petitions, leading to the present petition before the SC.
In its ruling, the SC found that while the NTC has the authority to impose certain rates and regulations, it cannot reject the proposed rates of telcos on a whim.
It said the NTC must justify why its regulations are more appropriate.
Aside from this, the SC said that while telcos are public utilities, they are still private entities operating a business catered to the public.
“The writ of preliminary injunction issued by the CA… enjoining the NTC and its representatives from enforcing the assailed orders in the two cases is hereby made permanent,” the SC said.
“The NTC and all persons acting on its behalf are also permanently enjoined from implementing the assailed order,” it added.
The decision was promulgated in February 2023 but was uploaded in August. (GMA Integrated News)
