- NOW Telecom Company has lost its licence to operate in the Philippines.
- The National Telecommunications Commission (NTC) denied NOW’s request for an extension of its operating authority.
What happened: Licence revocation for NOW telecom
Philippines operator NOW Telecom Company has lost its licence to operate following a decision by the National Telecommunications Commission (NTC). The NTC denied NOW’s request for an extension of its nationwide mobile telecommunications system operating authority. This decision was unanimous, based on the operator’s alleged failure to comply with specific regulatory and operational requirements. NOW had severely underutilised its assigned spectrum and accrued over PHP3.57 billion (about US$62.33 million) of unpaid regulatory fees. The NTC highlighted that after more than five years, the frequency band 3520-3540 MHz was used in only six out of 2,306 base stations (0.26%) or three out of 245 locations (1.22%).
NOW also missed an 18-month deadline to infuse additional capital accrued in 2020. The NTC dismissed NOW’s claims that it owed no outstanding supervision and regulation fees (SRF) and spectrum user fees (SUF). Several rulings have upheld the NTC’s position, including a March ruling by the Supreme Court that denied NOW’s petition for a preliminary injunction against the NTC. NOW Telecom, which has been in operation since 1992, had claimed to be the fourth major telecommunications provider in the Philippines, a claim disputed by the NTC. The mobile industry in the Philippines is dominated by Globe Telecom and PLDT, with Dito Telecommunity emerging as a significant player in 2021. NOW’s legal issues and regulatory non-compliance have significantly impacted its operations and market position.
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Why it is important
The revocation of NOW Telecom’s licence by the National Telecommunications Commission (NTC) highlights the regulatory challenges faced by telecommunications operators in the Philippines. The decision underscores the importance of compliance with regulatory requirements and the potential consequences of non-compliance. NOW’s failure to utilise its assigned spectrum and accumulate significant unpaid regulatory fees led to the NTC’s decision to deny an extension of its operating authority. This move also reflects the NTC’s commitment to maintaining high standards of service and ensuring that operators meet their obligations.
The Philippines telecom market, dominated by Globe Telecom and PLDT, has seen increased competition with the emergence of Dito Telecommunity. NOW’s struggles highlight the difficulties new entrants face in breaking into a market with established players and stringent regulatory requirements. The NTC’s actions serve as a reminder to all operators of the importance of adhering to regulations and maintaining operational efficiency.
