Globe, DITO address NTC’s P100,000 daily broadband penalty

GLOBE Telecom, Inc. pointed to a Department of Information and Communications Technology (DICT) report in response to findings attributed to the National Telecommunications Commission (NTC) on mobile broadband service in Metro Manila, while DITO Telecommunity Corp. said it is discussing the regulator’s show-cause letter. The NTC, as quoted in news reports referenced by the companies in their clarifications to the Philippine Stock Exchange on Monday, said its September mobile speed-test revalidation showed that previously identified poor mobile broadband signals remained “substantially unchanged” from validation activities conducted in the first and second quarters despite giving operators time to undertake corrective measures. The regulator flagged Makati and Quezon City for Globe; San Juan, Pasay, and Las Piñas for DITO; and Parañaque, Manila, and Pasig for Smart Communications, Inc. The NTC was also quoted as saying it had prepared show-cause orders against the three operators imposing a daily penalty of P100,000 starting Sept. 25 until the identified service deficiencies are fully rectified. Globe Chief Sustainability and Corporate Communications Officer Yoly C. Crisanto, in comments carried by the GMA News report referenced in the company’s clarification to the stock exchange, said the company was concerned by the NTC’s assessment and pointed to a DICT report. “We are concerned by the NTC statement, saying we have not improved services because the latest DICT report proves otherwise,” Ms. Crisanto said. Globe had separately pointed to a DICT report that it said showed improvement in its network performance. The company did not provide details of the report in its clarification to the stock exchange. “We make use of the latest technologies, including satellites, to serve even the GIDA [Geographically Isolated and Disadvantaged Areas],” Ms. Crisanto said. Globe said it had not received the show-cause order from the NTC as of the filing. “Rest assured, we will disclose relevant details in due course,” the company said. DITO CME Holdings Corp., in its clarification to the stock exchange, confirmed the information reported about the NTC action and said its subsidiary DITO Telecommunity was engaging the regulator over the contents of the show-cause letter. “DITO Tel is currently engaging the NTC in discussions with respect to the contents of the Show Cause Letter and will update the public of developments, if any,” the company said. Meanwhile, PLDT Inc. said its wireless unit Smart had not received the show-cause order as of Monday. “Accordingly, 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,” PLDT said. PLDT said Smart would review the order upon receipt and respond through the appropriate regulatory channels. The NTC said it would continue conducting biweekly retests in the flagged locations to verify network improvements and monitor broadband service performance. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group. — Ashley Erika O. Jose