NOW Telecom to appeal termination of franchise

MANILA, Philippines — NOW Telecom will appeal the termination of its franchise to operate a mobile telecommunications system.

In a disclosure on Thursday, the Mel Velarde-led listed parent firm NOW Corp. said that its provisional authority to install, operate and maintain a telco system has been “deemed inoperative.”

This was following the decision by the National Telecommunications Commission (NTC) to deny its franchise renewal.

“NOW Telecom vehemently disagrees with the said NTC Order and will file a motion for reconsideration based on errors of law and fact and disregard of due process,” the firm said.

The company has 15 days within the receipt of the order to file its motion for reconsideration.

READ: NOW Telecom appeals license termination

In a 45-page order dated Mar. 19, the NTC did not extend the license of NOW Telecom because it failed to deliver the infrastructure rollout plan set back in 2017.

‘Grossly deficient’

The regulator said the company’s network expansion was “grossly deficient” as it was only able to install six base stations out of the 2,306 facilities committed.

NTC also flagged the telco for its unpaid regulatory fees amounting to a total of P3.57 billion. This comprises P1.33 billion in principal and P2.24 billion in penalties.

Before this, back in 2022, NOW said it would allocate P7.8 billion in capital expenditures to build 100 base stations over the course of 10 years.

The company, in addition, was pushing ahead with its initiatives to rev up the adoption of 5G technology, which enables quicker internet connectivity.

It has been working with New Jersey-based Bell Labs Consulting, the research arm of Nokia, on a study to develop 5G mobile and broadband networks in the Philippines.

The company also inked a memorandum of understanding with Rakuten, Japan’s fourth mobile operator, to craft a framework for the deployment of a 5G pilot program.