NTC Issues Rules on Annual Performance Audits under RA No. 11659
The National Telecommunications Commission (NTC) has issued Memorandum Circular No. 001-01-2026, requiring the covered public service entities to undergo an annual performance audit conducted by an independent evaluation team. The rules and regulations of the NTC are to monitor cost, the quality of services provided to the public, and the ability of the public service provider to immediately and adequately respond to emergency cases.
The Memorandum Circular also lays down the framework for the Performance Audit of the covered public service entities. In this Performance Audit, the NTC is to prescribe metrics and Key Performance Indicators (KPIs) in order to sustain reliability, security, and safety of the public. The same shall also be published every three (3) years, or as NTC deems necessary. Together with this, the performance criteria upon which the audit is based include: Cost, Quality of Service, Ability to immediately and adequately respond to emergency, Risk Assessment, Cybersecurity, and other performance criteria.
The results of the annual performance audit is for the public service entity to report to the NTC on or before April 30 of the year following the conduct of the audit, and the NTC shall publish the same to promote transparency, accountability, and public awareness. The failure to pass the performance audit for three (3) consecutive years shall be grounds for suspension or revocation of the certificate/s or authorization of the public service entity concerned.
It is also prescribed in the Memorandum Circular which KPIs are used. The NTC is also bound by the requirements to be observed and complied with in the conduct of the performance audit, and shall issue supplemental guidelines on the methodologies and procedures for the conduct of KPI measurement/testing. These shall be part of the Memorandum circular and applicable to all public service entities under NTC’s jurisdiction.
As for the independent evaluation teams or third-party auditors, the accreditation criteria shall be issued by the NTC through supplemental guidelines.
The memorandum circular also allows public service entities to seek the exclusion of KPI Measurement in the event of a declared disaster, armed conflict, or in geographically challenging areas. This request is subject to the review and determination of the Commission to determine its justification.
Read the full issuance here.