MEDIA RELEASE

Immediate Release

May 20, 2025

Critical Advisory Issued for BPOs and U.S.-Affiliated Companies Operating in the Philippines

NOW Corporation (PSE-listed), holder of a significant 24.3% stake in NOW Telecom Company, Inc., draws attention to a critical Public Advisory recently disclosed to the Philippine Stock Exchange, originally issued by the Trusted Network Alliance—an initiative spearheaded by NOW Telecom in collaboration with U.S. government-supported cybersecurity and digital infrastructure programs.

This advisory underscores significant business continuity and legal risks emerging from recent regulatory actions by the Philippine National Telecommunications Commission (NTC), specifically its sudden and unexplained cancellation of NOW Telecom’s license despite its status as the sole U.S.-certified “clean network” provider in the country.

The Trusted Network Alliance strongly advises all Business Process Outsourcing (BPO) organizations and U.S.-affiliated businesses operating within the Philippines to immediately conduct a comprehensive review of their telecommunications and IT infrastructure contracts. The advisory highlights:

• Potential exposure to U.S. federal and state regulatory compliance violations due to utilization of non-compliant or banned network equipment.
• NOW Telecom’s status as a grantee under the U.S. Trade and Development Agency (USTDA) for 5G and nationwide broadband infrastructure.
• NOW Telecom’s strategic role as a supplier to U.S. military logistics contractors, thus impacting operational integrity and compliance with international standards.

Given the significant financial stakes, with the Philippine BPO sector generating over $38 billion annually, immediate action is crucial to mitigate risks of enforcement actions from U.S. regulatory bodies.

Recommended Actions:

1. Thorough review of current telecom and IT service agreements.
2. Identification and assessment of all network equipment and infrastructure for compliance with U.S. regulations.
3. Immediate consultation with legal advisors to understand and mitigate any potential regulatory and legal exposures.

NOW Corporation remains committed to transparency, good governance, and the protection of stakeholder interests. Further disclosures will be made available as developments warrant.

References:

1. Philippine Stock Exchange Disclosure https://edge.pse.com.ph/openDiscViewer.do?edge_no=c709c194c148fa64ec6e1601ccee8f59
2. NOW Telecom Company, Inc. “Motion for Reconsideration of the NTC Order dated 19 March 2025,” filed 15 April 2025. (Attached)
3. NOW Telecom Company, Inc. “Motion to Admit the Attached Amplified Motion for Reconsideration (of the NTC Order dated 19 March 2025),” filed 9 May 2025. (Attached)

Contact for Further Information:

Trusted Network Alliance Communications Office

Email: joel@trustednetworkalliance.com; Website: trustednetworkalliance.com