SMART Communications, Inc. obtained a
temporary restraining order (TRO) from the Court of Appeals, formally barring
the National Telecommunications Commission from enforcing a refund order
against the company in an industry-wide case of alleged overcharging for text
messages amounting to over P7 billion.
Smart, a unit of the Philippine Long Distance
Telephone Co., was the last respondent in the overcharging case to receive its
TRO. The Court of Appeals had earlier blocked the NTC from enforcing its refund
order against the three biggest telecommunication companies.
In a five-page resolution granting the TRO, the appellate court's Sixth Division said: "For the purpose of preserving the status quo during the pendency of the instant petition to prevent any irreparable damage that petitioner stands to suffer and to prevent any decision that may be rendered herein from becoming moot, academic and ineffectual, we resolve to grant the temporary restraining order sought for by petitioner Smart.”
The NTC had ordered Smart, Digital Telecommunications Philippines, Inc. (Digitel), and Globe Telecom, Inc. to refund the excess charges in Nov. 20, 2012.
The appellate court said the TRO will take effect after Smart files a cash bond or surety bond amounting to P500,000. The TRO is effective 60 days from notice.
Digitel acquired relief also from the Sixth Division on Aug. 20. Globe secured its subsequent TRO on Sept. 2, from the appellate court's Sixteenth Division. The TRO in favor of Smart was promulgated on October 17.
Smart's petition was originally raffled to the court's Special Eighth Division, but was re-raffled to the Sixth Division, after the Court in late September ordered a consolidation.
The Smart TRO also covers the NTC's order to reduce interconnection charges by P0.20. The court ruled that charges for text messages from one provider to another will stay at P0.35, as against the 2012 directive of the NTC to reduce it to P0.15.
In releasing the directive, the NTC had contended that in 2010, there were more than 20 million messages sent to other networks daily, which meant that the three telcos would be obliged to refund to their customers an average of P4 million daily.
In its petition, Smart pointed to the "unconstitutionality and nullity" of the 2012 NTC order. It also said that the injury to it would be immeasurable due to the "abject disregard" by the NTC of Smart's right to due process. The order will also cause considerable losses, resulting in "grave, imminent, and irreparable damage to Smart.”
"Considering that this court has already issued TROs in favor of Digitel and Globe against the very same NTC decision being impugned by Smart, we find that Smart, which is similarly situated as the two other telecommunication companies, is also entitled to such injunctive writ," the court said.
The Court said it agreed with Smart that there are no means for the company to ascertain the existence of subscribers and the identities of the actual users of the mobile identification numbers as may be found in its system. The court also said most of Smart's subscribers are prepaid SIM card users. -- Reden D. Madrid
In a five-page resolution granting the TRO, the appellate court's Sixth Division said: "For the purpose of preserving the status quo during the pendency of the instant petition to prevent any irreparable damage that petitioner stands to suffer and to prevent any decision that may be rendered herein from becoming moot, academic and ineffectual, we resolve to grant the temporary restraining order sought for by petitioner Smart.”
The NTC had ordered Smart, Digital Telecommunications Philippines, Inc. (Digitel), and Globe Telecom, Inc. to refund the excess charges in Nov. 20, 2012.
The appellate court said the TRO will take effect after Smart files a cash bond or surety bond amounting to P500,000. The TRO is effective 60 days from notice.
Digitel acquired relief also from the Sixth Division on Aug. 20. Globe secured its subsequent TRO on Sept. 2, from the appellate court's Sixteenth Division. The TRO in favor of Smart was promulgated on October 17.
Smart's petition was originally raffled to the court's Special Eighth Division, but was re-raffled to the Sixth Division, after the Court in late September ordered a consolidation.
The Smart TRO also covers the NTC's order to reduce interconnection charges by P0.20. The court ruled that charges for text messages from one provider to another will stay at P0.35, as against the 2012 directive of the NTC to reduce it to P0.15.
In releasing the directive, the NTC had contended that in 2010, there were more than 20 million messages sent to other networks daily, which meant that the three telcos would be obliged to refund to their customers an average of P4 million daily.
In its petition, Smart pointed to the "unconstitutionality and nullity" of the 2012 NTC order. It also said that the injury to it would be immeasurable due to the "abject disregard" by the NTC of Smart's right to due process. The order will also cause considerable losses, resulting in "grave, imminent, and irreparable damage to Smart.”
"Considering that this court has already issued TROs in favor of Digitel and Globe against the very same NTC decision being impugned by Smart, we find that Smart, which is similarly situated as the two other telecommunication companies, is also entitled to such injunctive writ," the court said.
The Court said it agreed with Smart that there are no means for the company to ascertain the existence of subscribers and the identities of the actual users of the mobile identification numbers as may be found in its system. The court also said most of Smart's subscribers are prepaid SIM card users. -- Reden D. Madrid
