CA grants petition for intervention in P7-billion telco refund case

MANILA, Philippines–The Court of Appeals granted the bid of telco subscribers to intervene in the petition that seeks to stop the refund of some P7 billion in overpriced text message rates.

In a five-page resolution, the appeals court’s Special Sixth Division through Associate Justice Priscilla Baltazar-Padilla said movant-intervenors led by Bayan Muna Representatives Neri Javier Colmenares and Carlos Isagani Zarate have managed to show that they have “substantial rights or interests in the case.”

The lawmakers, as subscribers themselves, seek to intervene in the petition of telecommunication companies to block the National Telecommunications Commission (NTC) from compelling the telcos to refund the over-collection of internetwork charges.

Also allowed to intervene are former Kabataan Partylist Representative Raymond Palatino, CP-Union Org. Inc. (CPU) national coordinator Ricardo Bahague and Anakbayan chairperson Vencer Mari Crisostomo.

The appeals court said the public has a very high degree of interest in telecommunication services which has been regulated as a common carrier.

“As shown from the record, movant-intervenors have sufficiently presented substantial rights or interests in the case. They are subscribers and users of the messaging services of Digitel and Smart who will be duly affected by any judgment that this Court will render in this case.”

The appeals court said whether the NTC’s order for refund is valid or not would affect the public who are subscribing to the services being offered by the telcos.

“Further, their rights or interests over this controversy cannot be adequately pursued and protected in another proceeding. Thus, we deem it judicious to allow movant-intervenors to intervene and adjudicate their cause in this case,” the appeals court said.

The CA granted the petition for intervention despite arguments by Digitel Philippines Inc. and Smart Communications that the intervenors do not have legal interest in the case.

“In this case, we find it important to settle the controversy as fully and expeditiously as possible considering that the issues herein involve public interest. Hence, we will permit any evidence which will aid this Court to attain this goal, after a finding that movants-intervenors have locus standi (legal standing) in this case,” the appeals court said.

The intervenors told the appeals court that “as members of the public, intervenors are but instruments of a public concern. The constitutional right of the people to their property has been violated. Intervenors have the duty to see that a public wrong is corrected and a public grievance is sufficiently remedied.”

“The continued illegal collection by petitioner of excess interconnection charges is a public wrong and it is only in having the money unlawfully collected returned to the public subscribers that there can be a semblance of remedy to the wrongful act of the petitioner,” they added.

They also urged the appeals court to affirm the right of the NTC to interfere in the acts of telcos to protect public interest and welfare despite the deregulation policy.

They also asked the appeals court to affirm the NTC’s decision issued on November 20, 2012, for the telcos to return to subscribers the amounts collected representing the over-collection in interconnection charges, beginning December 1, 2011.

They also sought the creation of a special technical group to determine the means of implementation.

The three telecom firms have managed to secure a restraining order stopping the NTC from implementing the refund.

The appeals court issued the restraining order because there is no clear mechanism on how to implement the refund to subscribers.

In 2012, the NTC issued separate orders directing mobile phone companies to immediately refund and cut text messaging charges to P0.80 from P1.

Covered by the order were  Globe Telecom, Smart Communications Inc. and Digitel Philippines Inc., which operates Sun Cellular.

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