The Philippine Chamber of Telecommunication Operators (PCTO) on Wednesday, Sept. 30, raised due process concerns over fines imposed by the National Telecommunications Commission (NTC) on telecommunications companies following its latest network performance validation, questioning both the timing of the penalties and the technical standards used by the regulator.
The industry group said fines were imposed upon receipt of show cause orders before operators were given sufficient opportunity to respond to or challenge the NTC’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 statement follows contrasting reactions from Smart Communications and Globe Telecom to the NTC findings. The regulator earlier said it had prepared show cause orders against Smart, Globe, and DITO Telecommunity over service deficiencies detected during mobile internet tests in September and was imposing a daily penalty of P100,000 until the deficiencies were corrected.
Smart said it would work with the NTC to validate and address the identified issues while also checking the findings against its own network data and third-party assessments.
Globe took a more critical position, saying the NTC findings appeared inconsistent with the Department of Information and Communications Technology’s (DICT) latest network measurements.
Globe also said in a Sept. 28 disclosure that it had yet to formally receive the show cause order cited by the regulator.
The NTC said its September tests found no improvement in the mobile internet performance of the three operators in areas previously flagged in Metro Manila compared with validation tests conducted during the first and second quarters of the year.
PCTO, which represents telecommunications operators including Globe, Smart and DITO, questioned what it described as insufficient disclosure of the methodologies, metrics, parameters, testing conditions and other technical bases used by the NTC to determine non-compliance.
“Without this information, operators cannot properly verify or contest the results,” the group said.
PCTO also pointed to NTC Memorandum Circular No. 001-01-2026, which it said provides for annual performance audits even as 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,” it said.
The group warned that regulatory uncertainty and substantial penalties could divert resources from network expansion and improvement.
It also called on the government to address what it described as structural barriers to connectivity, including varying local government permitting requirements, lengthy approval processes, and regulatory fees and charges.
PCTO acknowledged that the NTC has authority to investigate and undertake certain regulatory or compliance measures without a prior hearing but argued that this authority does not provide a blanket exemption from administrative due process.
“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 group further argued that Supreme Court rulings distinguish the NTC’s power to impose fines from its enforcement authority, saying monetary penalties require procedural safeguards under law and the Constitution.
“PCTO supports accountability and better service for the Filipino people. But enforcement must rest on clear and transparent standards, sound technical methodologies, and due process, alongside government action to remove the barriers to telecommunications infrastructure investment and deployment,” the group said.
PCTO said it remains ready to work with the NTC and other government agencies on improving connectivity.
