The Philippine Chamber of Telecommunication Operators (PCTO) has raised concerns over sanctions imposed by the National Telecommunications Commission (NTC) on major telecommunications companies, questioning whether operators were given adequate opportunity to respond and whether the standards used to assess mobile broadband performance were sufficiently clear.
The group said the NTC imposed daily fines of ₱100,000 on PLDT-Smart, Globe Telecom and DITO Telecommunity after the regulator found continued problems with mobile broadband performance in September. The penalties were issued alongside show-cause orders requiring the companies to address the findings.
PCTO said the operators were concerned that the penalties were imposed before they had been given what the group described as a meaningful opportunity to review, respond to and contest the NTC’s findings.
The industry group also questioned the technical basis of the regulator’s assessments, saying the NTC had not sufficiently disclosed the methodologies, metrics, parameters and testing conditions used to determine whether the companies were noncompliant.
The issue centers on the NTC’s September validation of mobile internet performance. The regulator had identified areas where it said service quality remained inadequate compared with earlier assessments conducted during the first and second quarters of 2026.
The areas initially flagged for revalidation included Makati and Quezon City for Globe, San Juan, Pasay and Las Piñas for DITO, and Parañaque, Manila and Pasig for Smart. The NTC later clarified that its show-cause orders were not limited solely to the areas initially identified for poor mobile broadband performance.
PCTO further argued that the standards for testing should be clearly established and consistently applied before penalties are imposed. The group pointed to Memorandum Circular No. 001-01-2026, which provides for annual performance audits, while saying that detailed testing methodologies and parameters had yet to be fully established.
The telecommunications operators also warned that regulatory uncertainty and substantial penalties could affect resources that companies otherwise could use for network expansion and improvements. They urged the government to address other obstacles to telecommunications investment, including varying local government permitting requirements, lengthy approval procedures and regulatory fees imposed at both national and local levels.
The dispute also brings administrative due process into focus. Philippine jurisprudence has previously recognized that regulatory agencies must observe procedural safeguards when imposing fines, including appropriate notice and an opportunity to be heard. In a Supreme Court ruling involving the telecommunications sector, the Court distinguished the regulatory powers of the NTC from its authority to impose fines and emphasized the importance of notice and hearing when sanctions are involved.
PCTO said it supports accountability and better telecommunications services but maintained that enforcement should be based on transparent standards, sound technical methodologies and proper procedures.
The NTC’s actions come as authorities continue to push telecommunications companies to improve mobile connectivity and service quality. The companies, meanwhile, are seeking greater clarity on how performance is measured and how penalties are applied.
The disagreement highlights the challenge of balancing stricter oversight of telecommunications services with clear regulatory procedures and predictable technical standards as the country continues to expand its digital infrastructure.
