NOW Telecom Co. Inc. is contesting a P4.043-billion assessment on supervision and regulation fees from the National Telecommunications Commission, filing a formal request to review and reconcile charges dating back to 2005.
In a disclosure, NOW Corp. said it received a copy of the NTC’s demand letter to its associate NOW Telecom on September 9, 2026. The amount covers both principal fees and penalties, adjusted for payments already recorded in the regulator’s books, with payment originally due on September 30, 2026.
On October 9, 2026, NOW Telecom submitted a formal petition to the NTC and the Department of Information and Communications Technology asking them to review, recalculate and reconcile annual supervision and regulation fee assessments from 2005 onward. The company explained the core issue lies in differing capital figures used in the calculation — specifically that the NTC applied capital values that do not match those in NOW Telecom’s audited financial statements, notably in how additional paid-in capital was handled following changes in the company’s capital structure.
The telecom firm also requested that the NTC suspend collection or enforcement actions on the disputed portion while the review is underway, though it has not yet received word on whether this request has been approved. The NTC’s demand letter cites a Supreme Court resolution issued April 21, 2026, in proceedings between the regulator and NOW Telecom.
NOW Corp. emphasized that the assessment is directed at NOW Telecom, a separate legal entity, and is not a direct liability of the publicly listed firm itself. Even so, the company noted the dispute carries potential financial significance, as an unfavorable outcome could impact the financial standing and future cash flows of its associate, and by extension the value of its investment.
Beyond the company’s own position, the petition carries broader policy weight. It raises key questions about consistency, transparency and fairness in how regulatory fees are calculated across the telecommunications sector, setting a potential precedent for how regulators apply financial data and capital structure changes when assessing all industry players. A clear, reconciled process would help establish predictable regulatory costs, a critical factor for continued infrastructure investment and fair competition in the communications industry.
