In a significant development, the Philippines’ National Telecommunications Commission (NTC) has definitively rejected an appeal from NOW Telecom to extend its mobile operating license. The decision arrives after a notable five-year span characterized by the operator’s inability to meet its infrastructure rollout targets.
The NTC’s decision stems from NOW Telecom’s failure to adhere to critical regulatory requirements such as deploying a substantial number of base stations across the nation and utilizing the allocated mobile spectrum adequately. The commission’s statement highlighted that “[Now Telecom’s] provisional authority to install, operate, and maintain a nationwide mobile telecommunications system, offer services and to charge rates, with the clarification that said authority is not specific to 3G, is hereby deemed inoperative in view of its expiration/non-extension of its provisional authority.”
Initially established as Satellite Paging Systems Philippines in 1992, NOW Telecom obtained its operating license in 2020. The company’s ambitious goal was to challenge the existing mobile giants, Globe and PLDT, by deploying a massive 2,306 base stations. However, their efforts fell drastically short with only six base stations operational five years later, failing to offer the promised commercial services.
The insufficient rollout brought significant scrutiny. According to the NTC, “After more than five years, the frequency band 3520-3540 MHz is used only in six out of 2,306 base stations (0.26 percent) or three out of 245 locations (1.22 percent).” Beyond operational failures, NOW is embroiled in financial disputes with the NTC over unpaid spectrum fees amounting to over PHP 3.57 billion ($62 million), a figure the company disputes.
Despite these setbacks, NOW Telecom holds the right to contest the decision within 15 days. It remains to be seen whether the operator will pursue an appeal or set a fresh strategy.
