Telcos dispute P100K fine daily over poor internet

In response, the telcos said they are disputing the regulatory order, emphasizing that they have been upgrading their network assets to improve coverage.

STAR / File

MANILA, Philippines — The National Telecommunications Commission (NTC) has issued show-cause orders to DITO Telecommunity, Globe Telecom and Smart Communications over internet quality, penalizing them P100,000 each per day starting Sept. 25 until service issues are fixed in identified areas.

In response, the telcos said they are disputing the regulatory order, emphasizing that they have been upgrading their network assets to improve coverage.

Both Globe and Smart parent company PLDT Inc. yesterday said they have yet to receive the show-cause order.

Globe general counsel Froilan Castelo said telcos invest in more than just speeds, but on network consistency to keep internet services up all the time.

“Customers need a network they can depend on every day, and that goes beyond speed. It means being able to stay connected consistently – including during periods of high demand, disruptions and emergencies,” Castelo said.

Likewise, Castelo raised the latest report of the Department of Information and Communications Technology (DICT), wherein Globe posted a year-high speed of 45.9 Mbps and latency of under 20 milliseconds.

Smart, on the other hand, was left wondering why the NTC had disclosed the order to the public first before allowing it to reach the telcos involved.

“Smart is not in a position at this time to confirm or comment on the reported penalty, including its terms, applicability or potential impact on the business and operations of Smart,” it said.

Dito Telecommunity Corp.’s parent Dito CME Holdings Corp. is the only telco that has received the order as of yesterday. However, Dito said it is discussing the contents with the NTC, declining to say what its steps forward are.

The NTC is penalizing the telcos for reportedly failing to improve their internet speeds as per its September audit. In particular, the NTC said Globe needs to step up in Makati and Quezon City; and Smart in Manila, Parañaque and Pasig.

Dito will also have to be revalidated in Las Piñas, Pasay and San Juan before its fine is lifted.

However, the NTC did not disclose the specific speeds of each operator proving that their service quality failed to meet standards.

In a clarificatory statement yesterday, NTC said its mobile broadband speed validation is “regularly being conducted nationwide through its regional offices.”

“This enforcement action is not limited to the National Capital Region,” the regulatory body said. “The NTC regularly notifies mobile network operators on a quarterly basis of a list of barangays validated nationwide with no signal/weak signal, and with an order to implement improvements to strengthen the quality of service in the identified areas.”

Meanwhile, DICT Secretary Henry Aguda said he is backing the NTC’s move.

“I support the NTC’s exercise of their regulatory powers,” he told The STAR. — Rainier Allan Ronda