PH telecom group challenges NTC fines over due process concerns

Insider Spotlight

• The PCTO questioned NTC sanctions imposed after a recent network performance validation.
• Telecom operators said they were fined before being given adequate opportunity to contest the regulator’s findings.
• The industry group warned regulatory uncertainty and penalties could divert resources from network expansion.

The Philippine Chamber of Telecommunication Operators (PCTO) — the umbrella organization of the country's top telco firms — has challenged sanctions imposed by the National Telecommunications Commission on telecommunications companies, saying the regulator penalized operators without adequate due process and without fully disclosing how their network performance was measured.

“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,” the PCTO said in a statement released on Wednesday, Sept. 30, 2026.

Earlier this week, the telco regulator issued show-cause orders to Globe Telecom, Smart Communications, and DITO Telecommunity over poor internet quality, penalizing them P100,000 each per day starting Sept. 25 until service issues are fixed in identified areas.

Why it matters

The dispute could affect how the government enforces network quality requirements as telecom companies continue investing in infrastructure to expand coverage and improve services.

The PCTO said the NTC had not sufficiently disclosed the methodologies, metrics, parameters, testing conditions and other technical bases used to determine non-compliance.

“Without this information, operators cannot properly verify or contest the results,” the group said.

What’s at stake

The PCTO also questioned imposing penalties when detailed testing standards under Memorandum Circular No. 001-01-2026 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 and attention from network expansion and improvement. It also urged the government to address varying local government permitting requirements, lengthy approval processes and high regulatory fees that it described as long-standing barriers to better connectivity.

The legal argument

The PCTO acknowledged that the law allows the NTC to undertake specified regulatory measures without a previous hearing but argued that this authority has limits.

It said this “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.”

“The Supreme Court has long held that the power to impose a fine is distinct from the NTC's enforcement power and requires the procedural safeguards prescribed by law and the Constitution,” the PCTO said.

The group said it supports accountability and better service but maintained that enforcement must be based on transparent standards, sound technical methodologies and due process.

— Edited by Daxim L. Lucas