NewsStocksPhilippine Telco Group Questions NTC Fines Over Due Process, Testing Standards

Philippine Telco Group Questions NTC Fines Over Due Process, Testing Standards

Author: Bworldonline·

Key Takeaways

  • •The NTC issued show-cause orders imposing a P100,000 daily fine beginning Sept. 25 on Globe Telecom, Smart Communications, and DITO Telecommunity over alleged poor mobile internet services in Metro Manila.
  • •PCTO said the fines were imposed before operators received adequate notice and a meaningful opportunity to be heard, respond to, or contest the regulator's findings.
  • •PCTO stated the NTC has not disclosed the methodologies, metrics, parameters, and testing conditions used to determine the operators' alleged noncompliance.
  • •Memorandum Circular No. 001-01-2026 provides for annual performance audits, but detailed methodologies and testing parameters have yet to be established.
  • •PCTO warned that regulatory uncertainty and substantial penalties could divert resources otherwise intended for network expansion, improvement, and service-quality investments.
Philippine Telco Group Questions NTC Fines Over Due Process, Testing Standards

The Philippine Chamber of Telecommunications Operators (PCTO) has raised due process and testing-standard concerns over fines imposed by the National Telecommunications Commission (NTC) on the country's major telecommunications companies for alleged mobile internet service deficiencies in Metro Manila.

In a statement issued on Wednesday, the industry group said operators were penalized before being given what it described as adequate notice and an opportunity to respond to and contest the regulator's findings.

"Fines were imposed upon receipt of the Show Cause Orders, before operators were given adequate notice and a meaningful opportunity to be heard, respond to, and contest the NTC's findings. This raises serious due process concerns," PCTO said.

The NTC issued show-cause orders imposing a P100,000 daily fine beginning Sept. 25 on Globe Telecom, Inc., Smart Communications, Inc., and DITO Telecommunity Corp. over alleged poor mobile internet services in Metro Manila.

PCTO also said the regulator had not disclosed the methodologies, metrics, parameters, and testing conditions used to determine the operators' alleged noncompliance. The dispute therefore concerns both the fines and the process and standards used to assess mobile service quality.

"Operators should not be penalized under standards that have not been clearly defined and consistently applied," the group said.

According to PCTO, Memorandum Circular No. 001-01-2026 provides for annual performance audits, but detailed methodologies and testing parameters have yet to be established.

The group added that regulatory uncertainty and substantial penalties could divert resources otherwise intended for network expansion, improvement, and service-quality investments.

"While the law authorizes the NTC to investigate and undertake specified regulatory/compliance measures without previous hearing, it does not constitute a general exemption from administrative due process or a blanket authority to impose punitive penalties without notice and opportunity to be heard," PCTO said.

The NTC's response to the concerns raised by PCTO was not immediately available. Its response, along with any clarification of the testing methodologies and parameters, remains pending in the dispute.

Source: Bworldonline — Ashley Erika O. Jose