The National Telecommunications Commission (NTC) can now pursue the collection of nearly P3.8 billion in unpaid regulatory fees and penalties from NOW Telecom after the Supreme Court affirmed with finality the regulator's decision to disqualify the company from a 3G frequency assignment.

The NTC said Sunday that the Supreme Court denied NOW Telecom's motion for reconsideration with finality in a resolution dated 21 April, ending the company's long-running legal battle over unpaid Supervision and Regulation Fees (SRF) and Spectrum User Fees (SUF).

The resolution also ordered the immediate issuance of an entry of final judgment covering all consolidated cases involving NOW Telecom, formerly Next Mobile Inc.

The dispute stemmed from the NTC's decision to charge SRF and SUF after NOW Telecom converted part of its debt into company shares.

The company argued that the additional paid-in capital created through the debt-to-equity conversion should not have been included in the computation of its supervision and regulation fees.

However, the Supreme Court upheld the NTC's position.

"The Supreme Court held that when NOW Telecom converted its creditors' liabilities to stock subscription, there was a corresponding increase in its capital stock in consideration for the extinguishment of the liability, which is now considered as paid stock," the NTC said.

The High Court also affirmed NOW Telecom's disqualification from securing a 3G frequency assignment after it failed to pay its outstanding regulatory fees.

In its decision, the Supreme Court declared: "As of December 2005, Next Mobile had an unpaid Supervision and Regulation Fee of Php126,094,195.67 and a Spectrum User Fee of Php9,674,190.00. As the National Telecommunications Commission pointed out, Next Mobile did not pay these fees even under protest. Next Mobile was, thus, correctly disqualified for non-payment of fees."

Following the final ruling, the NTC said it would proceed with collecting NOW Telecom's outstanding SRF liabilities, which had reached P3.77 billion, including penalties, as of the end of September 2025.