FACTS
Pursuant to EO No. 196, PHILCOMSAT, which was granted “a franchise to establish, construct, maintain and operate in the Philippines, at such places as the grantee may select, station or stations and associated equipment and facilities for international satellite communications,” was placed under the jurisdiction, control and regulation of the NTC.
Subsequently, the latter ordered the former to reduce its rates by 15 percent without giving PHILCOMSAT the twin requisites of notice and hearing regarding the rates.
PHILCOMSAT challenged the order imposing a reduction, alleging invalid delegation of legislative power, violation of due process, and the rate being confiscatory.
RULING
The Supreme Court ruled in favor of the NTC.
Pursuant to EO Nos. 546 and 196, NTC is empowered to determine and prescribe rates pertinent to the operation of public service communications which necessarily include the power to promulgate rules and regulations in connection therewith. In the exercise of its rate-fixing power, the NTC is limited by the requirements of public safety, public interest, reasonable feasibility and reasonable rates, which conjointly more than satisfy the requirements of a valid delegation of legislative power.
Granted, the subject regulation that the NTC issued is void as it operates as an effective confiscation of private property and constitutes an arbitrary or unreasonable infringement of property rights.
