NOW Telecom loses telco license over failed rollout, billions of pesos in unpaid fees

Businessman Mel Velarde’s NOW Telecom, one of the firms aspiring to be a major telecommunications player, has lost its license to operate a nationwide mobile service after years of failing to meet government requirements.

In a unanimous decision, the NTC ruled that NOW Telecom failed to meet key regulatory and operational requirements, a statement showed.

The NTC cited the following unmet commitments:

• Installed only 6 of the 2,306 planned base stations, all in Metro Manila and not yet operational

• Missed the 18-month deadline to infuse P1.9 billion in additional capital set in 2020

• Accumulated P3.57 billion in unpaid fees, including P1.33 billion in charges and P2.24 billion in penalties

• Has yet to settle undisputed regulatory fees for 2022 to 2024

Mel Velarde 

NOW Corp. chair 

Affiliate NOW Corp. says it has yet to receive copy of NTC ruling

“As of this time, the company has been informed by its associate, NOW Telecom Company, Inc., that the latter has not yet received a copy of the said NTC order. NTC’s press release came out ahead of NOW Telecom’s receipt of the NTC order.,” NOW Corp., which is listed on the Philippine Stock Exchange, said in a public filing.

NOW Corp. shares, down about 50 percent over the past 12 months, lost nearly 6 percent to P0.48 per share on Friday.

“Both the company and its associate have no knowledge of the actual issuance as well as the contents of the said NTC order. Hence, NOW Corporation cannot make a full, fair and accurate disclosure on the foregoing matter (including the legal action/remedy that its associate will take, as well as the effects of NTC order to the company’s business and operations) at this time,” it added.

NTC says NOW Telecom is “inoperative”

The regulator noted that NOW Telecom had agreed to terms stating any rule violation could lead to the automatic loss of its assigned frequencies.

The NTC declared the company’s authority “inoperative” and denied its request for an extension, saying it had repeatedly failed to meet deadlines, rollout targets, and financial obligations.

Backing its decision, the NTC cited Republic Act No. 7925 and Commonwealth Act No. 146, as amended by Republic Act No. 11659, which allow the agency to suspend or revoke licenses when telecom providers fall short of regulatory standards.