Globe Telecom v NTC, G.R. No.

143964, July 26, 2004

Facts: Private respondent Smart Communications, Inc (Smart) filed with the NTC a Complaint to effect
the interconnection of their SMS or texting services with petitioner Globe Telecom, Inc. (Globe). Globe
pointed out procedural defects in Smarts complaints and moved to dismiss the case. I also pointed out
that another network, Islacom, was allowed to provide such service without prior NTC approval. The
National Telecommunications Commission (NTC) ruled that both Smart and Globe were “equally
blameworthy” and issued an Order penalizing both on the ground of providing SMS under Value Added
Services (VAS) without prior approval from the NTC. The Court of Appeals sustained the NTC Order.

Issue: Whether or not NTC acted with due process in levying the fine against Globe.

Ruling: NO. The matter of whether NTC could have imposed the fine on Globe in the assailed Order is
necessarily related to due process considerations. Since this question would also call to fore the relevant
provisions of the Public Service Act, it deserves its own extensive discussion.

Under the NTC Rules of Procedure, NTC is to serve a Show Cause Order on the respondent to the
complaint, containing therein a statement of the particulars and matters concerning which the
Commission is inquiring and the reasons for such actions. The Show Cause Order served on Globe in
this case gave notice of Smarts charge that Globe, acting in bad faith and contrary to law, refused to
allow the interconnection of their respective SMS systems. Again, the lack of authority to operate SMS
was not adverted to in NTCs Show Cause Order.