The Philippine Chamber of Telecommunication Operators (PCTO) has expressed serious concerns over recent sanctions handed down by the National Telecommunications Commission (NTC) against major telecommunications firms, citing issues with fairness, clarity of standards, and potential impact on service improvements.
On September 24, the NTC issued Show Cause Orders imposing daily fines of 100,000 pesos each on DITO Telecommunity Corp., Globe Telecom Inc., and Smart Communications Inc. The regulator said tests in September showed no measurable improvement in mobile broadband services in several parts of the National Capital Region. PCTO explained these penalties were issued before operators were given adequate notice or a meaningful chance to respond and contest the findings, describing the situation as raising serious concerns over due process.
Beyond procedure, the group questioned the technical foundation of the performance checks themselves. It stated the NTC has not sufficiently disclosed the testing methods, metrics, parameters, conditions, and other criteria used to determine non-compliance, making it impossible for operators to properly verify results or challenge conclusions. PCTO also pointed out that under Memorandum Circular No. 001-01-2026, which provides for annual performance audits, detailed testing standards and parameters have yet to be fully established. It emphasized that operators should not face penalties under rules that are not clearly defined and consistently applied.
These issues carry important policy implications for the country’s digital infrastructure. PCTO warned that uncertainty in regulation and significant financial penalties could pull resources and management focus away from network expansion and upgrades—the very investments needed to deliver better service to the public. The group also drew attention to long-standing obstacles to building more infrastructure, including inconsistent and complicated permitting from local governments, slow approval processes, and various fees at both national and local levels, and urged these concerns to be addressed alongside enforcement efforts.
PCTO recognized that existing law allows the NTC to conduct investigations and take certain regulatory steps without an initial hearing, but noted that Supreme Court rulings distinguish between the regulator’s enforcement powers and its authority to impose fines, requiring proper legal and constitutional safeguards when penalties are involved.
The industry group said it fully supports accountability and the goal of better telecommunications services, but insisted that enforcement must follow transparent standards, sound technical practices, and fair process. It called for removing barriers to infrastructure rollout to encourage continued investment, and expressed readiness to work with the NTC and other government agencies toward a connectivity environment that serves all Filipinos.
