Globe Telecom, Smart Communications, and DITO Telecommunity are disputing National Telecommunications Commission show-cause orders that impose ₱100,000 daily fines on each carrier starting September 25, 2026, for failing to meet internet quality standards in specific Metro Manila locations, according to statements issued by the three operators on September 28.
TL;DR: Three major Philippine telcos are contesting NTC’s ₱100,000 daily penalties for substandard internet service, with Globe and Smart stating they have not yet received the orders and DITO in discussions with the regulator.
Globe and Smart Communications parent company PLDT Inc. both told Philstar.com they had not received the show-cause orders as of September 28, while DITO Telecommunity confirmed receipt through parent company Dito CME Holdings Corp. but declined to specify next steps. The regulatory action follows an NTC audit showing network deficiencies in six Metro Manila cities, though the commission has not disclosed the specific speed measurements that triggered the enforcement.
Telcos Cite Network Investment and Question Enforcement Process
Globe general counsel Froilan Castelo defended the carrier’s network performance, emphasizing that service quality extends beyond raw speed measurements. “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 in a statement.
Castelo referenced the Department of Information and Communications Technology’s latest report card, which showed Globe posted 45.9 Mbps average download speeds and latency under 20 milliseconds in August 2026, marking the carrier’s strongest network performance this year. Smart Communications questioned the NTC’s disclosure process, noting the regulator announced the penalties publicly before the orders reached the affected operators. “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,” the company stated.
DITO Telecommunity confirmed it is the only operator to have received the order as of September 28 and stated it is “discussing the contents with the NTC,” declining to provide further details. All three carriers emphasized ongoing network infrastructure upgrades across their coverage areas.
Geographic Coverage Requirements and Enforcement Scope
The NTC orders target specific geographic deficiencies identified through the commission’s September 2026 audit. Globe Telecom must improve service in Makati and Quezon City, while Smart Communications faces requirements for Manila, Parañaque, and Pasig. DITO Telecommunity must undergo revalidation in Las Piñas, Pasay, and San Juan before the daily fine is lifted.
The commission issued a clarificatory statement on September 28 specifying that mobile broadband speed validation occurs “regularly nationwide through its regional offices” and that enforcement is not limited to Metro Manila. “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,” the regulatory body stated.
The NTC’s September audit did not publish carrier-specific speed measurements or define the threshold that constitutes substandard service. The lack of disclosed performance baselines has complicated the telcos’ ability to publicly assess the penalties. Philippine telephone systems and business continuity infrastructure depend on carrier network reliability, making regulatory standards a material factor in enterprise IT procurement decisions.
Regulatory Backing and Industry Context
DICT Secretary Henry Aguda stated his support for the NTC’s enforcement action. “I support the NTC’s exercise of their regulatory powers,” Aguda told The Philippine Star on September 28. The backing signals alignment between the two agencies on quality-of-service enforcement, following months of coordinated network monitoring through the DICT Telco Report Card program that publishes monthly carrier performance data.
The September fines represent the NTC’s most aggressive quality-of-service penalty structure to date, with daily accumulation creating potential liability exceeding ₱900,000 per operator if service issues remain unresolved for 30 days in the designated areas. Previous NTC enforcement actions typically imposed one-time penalties rather than recurring daily fines tied to remediation timelines.
The three operators collectively serve more than 110 million mobile subscribers across the Philippines, with Globe and Smart each maintaining market share above 40 percent and DITO holding approximately 15 percent as of Q2 2026. Network quality disputes have escalated as the DICT’s monthly report card program, launched in 2024, increased transparency around carrier performance metrics and created public benchmarks for service standards.
Government Implications
The dispute over NTC show-cause orders introduces procedural uncertainty for government agencies and enterprises negotiating telecom service-level agreements. The lack of published speed thresholds and geographic testing methodologies makes it difficult for IT managers to independently validate whether their locations fall within areas the NTC has designated as substandard. Organizations with operations in Makati, Quezon City, Manila, Parañaque, Pasig, Las Piñas, Pasay, or San Juan should request carrier-specific service quality documentation and consider redundancy across multiple operators for mission-critical connectivity.
The daily penalty structure creates financial pressure on carriers to prioritize remediation in the six flagged cities, potentially redirecting network investment from other regions. Government procurement offices evaluating telecom bids should request evidence of NTC compliance status and confirmation that proposed service locations are not subject to active show-cause orders. The telcos’ assertion that they had not received orders before public disclosure raises questions about the NTC’s notification protocols and whether carriers will have sufficient time to contest findings before penalties accumulate.
Agencies relying on mobile broadband for field operations, disaster response, or remote government services should verify with their primary carrier whether service areas overlap with NTC-flagged locations. The regulatory enforcement cycle—quarterly barangay-level audits, operator notification, and remediation timelines—suggests that current penalty zones may expand if the three carriers do not resolve quality issues within the next reporting period. IT teams managing business telephone systems and VoIP infrastructure over mobile backhaul should monitor NTC announcements for updates on the geographic scope of ongoing enforcement actions.
