NOW Telecom faces recall of frequency

MANILA, Philippines — NOW Telecom Co. Inc. is facing a recall of its radio frequencies for non-operation and inefficiency, as well as the non-payment of spectrum user fees (SUF)

In a complaint filed by several Pangasinan residents at the National Telecommunications Commission (NTC),  the complainants alleged that NOW Telecom failed to fulfill its promise to the public and despite many years, “there were no developments done outside Metro Manila much more any improvements made in Metro Manila.”

The 22-page complaint also seeks the recall of radio frequencies assigned to NOW Telecom for the non-payment of SUF.

NOW Telecom is a holder of a congressional franchise to operate the business of public telecommunications under Republic Act (RA) 10972 for 25 years. The NTC issued a provisional authority (PA) in favor of NOW Telecom to install, operate and maintain a nationwide mobile telecommunications system.

But according to the complaint, contrary to its submitted projections to the NTC, NOW Telecom has installed only 10 stations in six sites out of the total 2,036 stations in 245 sites.

The complainants also said based on its latest audited financial statement, NOW Telecom’s only source of income was actually derived from NOW Corp., a publicly listed company that does not possess a congressional franchise to operate telecommunications service.

The telco was also accused of evading the payment of proper SUF, depriving the government of funds needed to implement RA 10929, the Free Internet Access in Public Places Act.

The complaint stated that NOW Telecom avoided paying the correct SUF by classifying equipment that it has not yet purchased, received and installed into “storage” and then only pays “minimal fees”.