Internet & Telecom

Telco group questions NTC fines on due-process grounds

PCTO says operators were fined before they could respond, and that the NTC has not disclosed how it tested their networks.

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The National Telecommunications Commission is the Philippine government agency that regulates telecommunications and broadcast services, including telco licensing and service-quality standards.

The Philippine Chamber of Telecommunication Operators (PCTO) said the National Telecommunications Commission (NTC) fined Globe, Smart, and DITO before giving them a chance to respond, and has not explained how it tested their networks.

PCTO, which represents the three operators, said in a September 30 statement that the fines “were imposed upon receipt of the Show Cause Orders” before operators had adequate notice and a chance to be heard.

“This raises serious due process concerns,” the group said.

As CTRL+PH reported, the NTC said on September 25 that it had prepared show-cause orders against the three operators, with a daily penalty of PHP 100,000 each, and flagged areas in Metro Manila for each.

The NTC said its September revalidation found no measurable improvement from its first- and second-quarter tests, and that it will retest the areas every two weeks.

PCTO said the NTC has not sufficiently disclosed the methodologies, metrics, parameters, and testing conditions behind that finding. “Without this information, operators cannot properly verify or contest the results,” it said.

The group pointed to NTC Memorandum Circular No. 001-01-2026, which it said provides for annual performance audits but has no established testing methodologies or parameters yet.

“Operators should not be penalized under standards that have not been clearly defined and consistently applied,” PCTO said.

The NTC has said the circular sets performance standards for covered entities, including mobile network operators.

PCTO acknowledged that the law lets the NTC investigate and take compliance measures without a prior hearing. It argued this is not blanket authority to impose punitive penalties without notice, and said Supreme Court rulings distinguish the NTC’s power to fine from its enforcement powers. The statement does not name the rulings.

Globe and Smart parent PLDT told the Philippine Stock Exchange on September 28 that they had not yet received the show-cause orders. DITO, which had not commented when CTRL+PH first reported the story, said it had received its order and was in discussions with the NTC.

Globe has cited the Department of Information and Communications Technology’s August Telco Report Card in disputing the findings, while Smart has said it will work with the NTC to validate them.

PCTO also warned that penalties and regulatory uncertainty could divert resources from network expansion, and urged the government to address varying local permitting requirements, lengthy approvals, and regulatory fees.

Sources: Manila Standard Newsbytes.PH

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