PCTO raises due process concerns over NTC fines on telcos

The Philippine Chamber of Telecommunication Operators (PCTO) has raised concerns over the National Telecommunications Commission’s (NTC) decision to impose daily penalties on telecommunications companies, questioning the process and technical basis used in the regulator’s latest network performance validation.

The NTC earlier issued show cause orders against Globe Telecom, Smart Communications, and DITO Telecommunity, carrying a ₱100,000 daily penalty over service deficiencies identified by the regulator. The NTC said its enforcement is not limited to Metro Manila and that mobile broadband validation is being conducted nationwide through its regional offices.

In a statement, PCTO said penalties were imposed upon receipt of the show cause orders before operators were given what the group described as adequate notice and a meaningful opportunity to respond to and contest the 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 industry group also questioned the technical basis of the NTC’s findings, saying the regulator has not sufficiently disclosed the methodologies, metrics, parameters, testing conditions, and other technical details used to determine non-compliance.

PCTO said the lack of such information makes it difficult for operators to independently verify or challenge the results.

The group also cited NTC Memorandum Circular No. 001-01-2026, saying the circular provides for annual performance audits while detailed methodologies and testing parameters have yet to be established.

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

The NTC, for its part, has said the circular prescribes performance standards for covered telecommunications entities, including mobile network operators, and requires them to comply with quality-of-service standards. The regulator said its enforcement actions are intended to promote reliable, faster, and more responsive telecommunications services.

PCTO warned that regulatory uncertainty and substantial penalties could divert resources and attention away from network expansion and improvement.

It also urged the government to address what it described as long-standing structural barriers to connectivity, including varying local government permitting requirements, lengthy approval processes, and regulatory fees and charges imposed at the national and local levels.

On the legal issue, PCTO acknowledged that the NTC is authorized to investigate and undertake certain regulatory and compliance measures without a prior hearing, but argued that this authority does not provide a blanket exemption from administrative due process when imposing punitive penalties.

The Supreme Court has previously ruled in a case involving the NTC and telecommunications operators that regulatory proceedings must observe due process and fairness.

PCTO said it supports efforts to hold operators accountable and improve telecommunications services, but maintained that enforcement should be based on transparent standards, sound technical methodologies, and due process.

“We remain ready to work with the NTC and other government agencies toward a connectivity environment that serves all Filipinos,” the group said.