Poe unsure if China-backed Dito will risk nat’l security

By Jelo Ritzhie Mantaring

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A Senate panel on March 17 approved on second reading the bid to extend the franchise of Dito Telecommunity Corp. by 25 years, even though its chairperson cannot fully guarantee if there will be no risks in national security.

Sen. Grace Poe, as the head of the Senate Committee on Public Services, sponsored House Bill (HB) No. 7332, which is the Dito’s franchise renewal bill as the company’s current franchise will expire on April 24, 2023.

“I can honestly say that I am not 100 percent sure that they can guarantee that there will be no leakages. Like in any other business, if there’s one that’s really determined to get information, there will always be some flaw in the structure that will compromise that information,” Poe said as quoted by INQUIRER.net.

Dito, formerly known as Mindanao Islamic Telephone Company or Mislatel, is owned by Udenna Corp. by Dennis Uy and state-run China Telecom, which has a 40-percent stake in the company.

Poe stressed in the plenary session that Dito’s motivation to deliver on its commitments is on the huge investments and safeguards the Senate would put in place, assuring that the government has the power to shut down the business if it endangers national security.

“So it is in the interest of the Filipino board members and owners of Dito to make sure that they are compliant with our laws and the guidelines of the franchise. If not, that can be grounds to cancel their franchise,” she said according to INQUIRER.net.

On the other hand, Sen. Ronald “Bato” dela Rosa, claimed that Dito, as the third telecommunication network, would improve the internet services in the country.

According to dela Rosa in Manila Bulletin’s article, the “imagined threats” on national defense and security are outweighed by the need to improve wireless network coverage in the region saying, “people are noticing improvements on their cellular phone signal.”

Dito formally launched its telecom services in areas of Metro Cebu and Metro Davao last March 10.

So far, Dito has installed 2,360 cell towers across the country but those in Luzon are not yet operational. The government’s telecom pick has promised an average broadband speed of 27 megabits per second (Mbps), which would cover 37 percent of the Philippine population for its first year of operations.

Senators wary of Dito’s promise

During the deliberations on the bill last March 17, Sens. Risa Hontiveros and Richard Gordon raised the concerns about possible security breaches and espionage.

As mentioned in the article of CNN Philippines, this apprehension has been provoked last year. This was because the Department of National Defense allowed the installation of Dito cell towers in military camps across the country, while there is still the territorial dispute in the West Philippine Sea.

Earlier, the Department of Information and Communications Technology promised it would continuously assess the said cell towers.

“Maitatanong po na: Ok na bang kapalit ang unli-data sa West Philippine Sea? So, yes, more competition is welcome. But let us keep our eyes open and our guard up,” Hontiveros interpellated as reported by the Manila Bulletin.

Manila Bulletin also highlighted Hontiveros’ warning of the probable consequences of the Public Services Act which may allow 100 percent foreign ownership in multiple sectors. The PSA is currently for interpellation in the Senate.

“Ang hinihingi po natin dito ngayon sa Dito ay maging tapat sa publikong Pilipino. Because, if Dito truly is Filipino run as it claims to be, instead of just a Filipino mask over an instrumentality of the ruling regime in China, can it promise the public that in the event the PSA is amended, a majority of Dito’s shares will remain with Filipinos?” Hontiveros said as quoted by the Manila Bulletin.

As for Gordon, he said according to CNN Philippines: "They (the Chinese government) take our islands, they ram our boats, and they shoo away our air force, our navy and coast guard. I don't think that's an act of a very good neighbor so that I would let them into my home, where they can have...the ability to surveil and conduct espionage, as well as propaganda."

“Honestly, sincerely, are we so sure that this franchise will be controlled by Filipinos and not by the Chinese?” Gordon stressed as reported by the Manila Bulletin.

But Poe said Dito has promised to “prosecute” Chinese board directors once they use and send company data to the Chinese government because of China’s national intelligence law. China’s Espionage Law of 2014 directs Chinese companies to cooperate in gathering of intelligence and data.

As mentioned in the article of CNN Philippines, according to HB 7332, Dito is required to do the following:

• Offer at least 30% of its outstanding stocks to Filipino citizens,

• Submit an annual report to Congress on its compliance to the terms of its franchise. Dito will receive a P1-million fine for each day it does not submit its report.

Proposed amendments are as follows:

• As recommended by Senate Minority Leader Franklin Drilon — Dito is required to submit a report to the President and Congress any time it discloses data or provides assistance to foreign governments, instrumentalities, or agents. The violation would be a ground for franchise revocation.

• As proposed by Hontiveros — National Telecommunications Commission shall have the authority to reallocate redundant frequencies held by Dito. The company should submit to Congress regular security audits of its networks and facilities.