NTC tells telcos: Expansion no excuse for poor service

Telecommunications operators cannot use network expansion and investment priorities as a reason for falling short of mandatory service standards, the National Telecommunications Commission (NTC) said, pushing back against industry warnings that hefty penalties could take resources away from improving connectivity.

The regulator defended its mobile broadband speed validation and enforcement proceedings after the Philippine Chamber of Telecommunication Operators (PCTO) raised due process concerns over sanctions arising from recent network performance checks.

“The existence of other investment or network expansion priorities does not dispense with the obligation to comply with these standards,” the NTC said in a statement on Friday.

PCTO earlier this week warned that regulatory uncertainty and substantial penalties may divert resources and attention from network expansion and improvement, which it said are needed to raise service quality.

The industry group also pointed to hurdles hampering connectivity investments, including varying local government permitting requirements, lengthy approval processes and high regulatory fees and charges.

But the NTC maintained that its authority to impose penalties is expressly granted by law to enforce compliance with prescribed service standards.

“The issuance of the Show Cause 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,” NTC Deputy Commissioner Andres Castelar Jr. said.

The regulator said standards under Memorandum Circular No. 001-01-2026 were promulgated following the required public hearing, where operators were given the opportunity to participate and submit comments.

It said operators were also repeatedly notified of identified service deficiencies nationwide and given opportunities to address them.

PCTO, however, said fines were imposed upon receipt of the show cause orders before operators were given adequate notice and a meaningful opportunity to contest the NTC's findings.

The group also questioned what it described as insufficient disclosure of the methodologies, metrics, parameters, testing conditions, and other technical bases used to determine non-compliance.

“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,” PCTO said.

The NTC, on the other hand, said it would consider the operators’ submissions and defenses in accordance with applicable laws, rules and procedures.

“The NTC remains committed to due process, evidence-based enforcement and transparency in ensuring reliable, adequate, and responsive telecommunications services for the public,” the regulator said.