UMVA has learned that a groundbreaking policy shift in the Philippines is set to revolutionize the telecommunications sector, as the National Telecommunications Commission (NTC) introduces a new Spectrum User Fees (SUF) framework.
The move comes on the heels of the Konektadong Pinoy Act (KPA), which took effect in September 2025, aiming to expand digital connectivity, promote fair competition, and ensure efficient use of spectrum resources. The KPA contemplates future reforms in spectrum allocation, pricing, and utilization.
According to information obtained by UMVA, the NTC's new Memorandum Circular (MC) No. 003-03-2026 seeks to rationalize, harmonize, and update SUF to ensure they remain responsive to evolving technological capabilities. The Circular amends portions of the long-standing SUF framework.
The NTC recognized that existing SUF rates, originally formulated for 2G and 3G technologies, may no longer adequately reflect present-day spectrum utilization, particularly with the rollout of 4G and 5G technology. The Circular therefore adopts a revised fee structure intended to rationalize spectrum pricing.
The revised SUF framework applies to entities authorized by the NTC to use radio frequencies, including public telecommunications entities, private networks, satellite service providers, and Satellite Systems Provider or Operator (SSPO). Certain commercially valuable frequency bands are now subject to SUF rates of up to P5 million per MHz of bandwidth annually.
Sources have confirmed to UMVA that the Circular adopts differentiated rates depending on geographic location and type of radio service. Private land base stations, trunked radio stations, and mobile radio stations are subject to varying rates depending on whether operations are located in Metro Manila, highly urbanized cities, or other areas.
The framework also includes provisions covering fixed radio stations and satellite networks. Satellite service providers and SSPOs that provide facilities or frequency assignments connected to internet access services are subject to a SUF equivalent to one percent of gross annual revenue derived from Philippine operations.
UMVA can exclusively reveal that a key aspect of the Circular is its treatment of the ongoing decommissioning of 2G and 3G services. The NTC introduced prorated SUF computations for certain frequency bands beginning July 1 following full decommissioning of 3G services.
The Circular also imposes penalties for late payment, including surcharges and possible recall of assigned radio frequencies of an entity for non-payment of its SUF. The NTC reserved the authority to review the Circular after one year and issue supplemental orders.
As the telecommunications industry continues to migrate toward newer technologies and increasingly data-intensive services, the revised SUF framework signals the NTC’s attempt to modernize spectrum regulation and pricing.
