The regulator issued the statement to address concerns raised by the Philippine Chamber of Telecommunication Operators (PCTO), which questioned the procedural fairness and technical basis of the daily penalties imposed on major carriers.
The NTC clarified that the proceedings follow performance standards formally promulgated under Memorandum Circular No. 001-01-2026 following public consultations. According to the commission, telecommunications operators were given opportunities to participate in the rule-making process and submit formal comments before the standards took effect.
Addressing PCTO’s assertion that fines were levied alongside Show Cause Orders (SCOs) prior to giving operators an adequate opportunity to contest the agency’s findings, the NTC stressed that service providers were repeatedly notified of quarterly validation deficiencies and directed to rectify coverage gaps.
NTC Deputy Commissioner Andres Castelar Jr. emphasized that issuing an SCO is a core component of administrative due process.
“The issuance of the Show Cause Order (SCO) is part of the process,” Castelar said. “It gives the concerned operators the opportunity to explain its 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 regulator maintained its statutory authority to enforce service benchmarks and levy administrative fines, rejecting arguments that corporate expansion plans excuse non-compliance.
“The existence of other investment or network expansion priorities does not dispense with the obligation to comply with these standards,” the NTC stated.
The commission assured the public that it will review formal replies submitted by the operators in accordance with legal and procedural rules, emphasizing its commitment to “due process, evidence-based enforcement and transparency” to ensure reliable telecommunications services.
The dispute stems from September 24 show cause orders issued against DITO Telecommunity Corp., Globe Telecom Inc. and Smart Communications Inc.. The NTC attached a P100,000 daily administrative fine to each operator after September speed audits showed no measurable signal improvements across flagged areas in Metro Manila.