FICTAP calls proposed penalties 'harsh', 'prohibitive'

The Federation of International Cable TV and Telecommunications Association of the Philippines (FICTAP) on Wednesday denounced the planned stricter penalties on cable and internet operators, which it described as “harsh” and “prohibitive.”

In a statement, the FICTAP said the proposed Memorandum Circular of the National Telecommunications Commission (NTC) — which would impose penalties from P5,000 to P2 million daily — did not consider the plight of providers composed of micro, small, and medium enterprises (MSMEs).

According to FICTAP national chair Estrelita “Neng” Juliano-Tamano, this would “eliminate” cable and internet MSMEs, leaving the space to be dominated by industry players “who could afford to pay.”

“(T)he situation will ultimately result in the return of the unwelcome duopoly in the local telecommunications industry with a death knell for the cable cum internet MSMEs, loss of jobs for thousands of Filipinos and millions of taxes for the government,” the FICTAP said.

Tamano also said that the MC may not have undergone the required Regulatory Impact Assessment (RIA) under the Ease of Doing Business and Efficient Government Service Delivery Act of 2018.

“In a meeting called by the NTC last May 15, the FICTAP representatives raised this issue and claimed that it was not satisfactorily answered,” the statement read.

This comes amid separate proposals to fine telecommunications firms up to P1 million per day or P365 million per year until they achieve full compliance with the compulsory internet speed targets.

GMA News Online has reached out to the National Telecommunications Commission (NTC) for comment on the issue but has yet to receive a response.—RF, GMA Integrated News