THE National Telecommunications Commission (NTC) said due process was observed in its enforcement of mobile broadband speed standards, and that telecommunications operators can still contest the daily penalties, including their basis, start date and duration, by responding to the show cause orders (SCOs) it issued.
The regulator made the statement in response to the Philippine Chamber of Telecommunications Operators (PCTO), which said fines were imposed on operators upon receipt of the SCOs, before they could answer the NTC’s findings.
NTC Deputy Commissioner Andres Castelar said the SCO is meant to give operators that chance.
‘The issuance of a Show Cause Order [SCO] is part of the process,’ Castelar said, explaining that issuing the order is part of the process. ‘It gives the concerned operators the opportunity to explain their side, present supporting evidence, and respond to the Commission’s findings, including its position on the daily penalties, its basis, reckoning point and duration.’
The NTC also rejected the chamber’s argument that operators were being penalized under standards that had not been clearly defined. It said the standards under Memorandum Circular (MC) No. 001-01-2026 were promulgated after the required public hearing, where telcos were able to participate and submit comments.
It added that operators had been ‘duly notified repeatedly’ of service deficiencies identified nationwide and were given ‘ample opportunities’ to fix them.
The regulator, likewise, said the law expressly grants it the authority to impose penalties to enforce compliance with service standards.
It also pushed back on the PCTO’s warning that heavy penalties could divert resources from network investment.
‘The existence of other investment or network expansion priorities does not dispense with the obligation to comply with these standards,’ the NTC said.
The commission said it will weigh the operators’ submissions and defenses in line with applicable laws, rules and procedures.
The exchange stems from the SCOs the NTC issued to Dito Telecommunity Corp., Globe Telecom Inc. and Smart Communications Inc., which carry daily penalties of P100,000 per operator for failing to improve mobile broadband service quality.