Now Telecom, the mobile operator arm of Now Corporation, has become the latest casualty of the heavy demands placed on telecom operators in the Philippines.
The National Telecommunications Commission (NTC) recently decided against renewing the company’s licence, citing underutilisation of assigned spectrum, failure to meet operational targets, and non-payment of regulatory fees amounting to over US$60 million.
In the wake of this decision, Now Telecom is, in its own words, “inoperative”. The company can no longer sell SIM cards, mobile plans, or devices – let alone invest in or expand its network infrastructure. Ironically, it’s this very lack of infrastructure development that the regulator has criticised.
Now Telecom “vehemently disagrees” with the ruling and has filed for reconsideration, accusing the NTC of making “errors of law and fact” and of disregarding due process – a strong rebuke that signals a protracted legal battle ahead.
The episode underscores the difficult operating environment for telecoms players – particularly smaller or emerging operators. Even in developed markets, network players are struggling. To survive, many are merging rather than competing. In Europe, we’ve seen major consolidations such as Vodafone and Three in the UK, and Orange’s merger with Masmovil in Spain. These moves highlight the immense pressure placed on operators to meet regulatory expectations while turning a profit.
Back in the Philippines, Now Corporation chairman Mel Velarde spoke to Developing Telecoms at MWC Barcelona in 2024, where he sharply criticised the longstanding dominance of Globe Telecom and PLDT’s Smart, calling them “corporate tyrannies”.
Velarde pointed out that the two incumbents control around 80% of the country’s spectrum and expressed hope that the government would ensure a more level playing field. “We want to be able to compete with Globe, Smart and Dito on fair terms,” he said. “If our frequencies are protected and regulators act on our permits, we can import more equipment, build out the network and compete. But without fairness, there’s no chance.”
He went as far as to say that, given the right conditions, Now Telecom could surpass the incumbents in terms of speed and reliability within five years.
But those ambitions now face a major obstacle. The suspension of Now Telecom’s licence is not just a setback for the company – it also impacts Filipino consumers. With one less player in the market, competition suffers, potentially pushing prices up and slowing innovation.
This comes at a time when the Philippines, like much of Southeast Asia, is undergoing a connectivity renaissance. Millions are getting online for the first time, accessing digital services that can transform lives. In that context, keeping the market open and competitive is more important than ever.
A swift resolution that sees Now Telecom return to the playing field would be in the public interest – but whether that happens remains to be seen.
