Doubts shroud China entry into PH telecoms

[av_textblock size=” font_color=” color=” av-desktop-hide=” av-medium-hide=” av-small-hide=” av-mini-hide=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=”]

[/av_textblock]

[av_one_full first min_height=” vertical_alignment=” space=” custom_margin=” margin=’0px’ padding=’0px’ border=” border_color=” radius=’0px’ background_color=” src=” background_position=’top left’ background_repeat=’no-repeat’ animation=”]

[av_heading heading=’Doubts shroud China entry into PH telecoms ‘ tag=’h3′ style=’blockquote modern-quote’ size=” subheading_active=’subheading_below’ subheading_size=’15’ padding=’10’ color=” custom_font=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” admin_preview_bg=”]
BY PRINCE GOLEZ
[/av_heading]

[av_textblock size=” font_color=” color=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” admin_preview_bg=”]
MANILA – Several officials welcomed the possible entry of a Chinese company as a third major player in Philippine telecommunications but at the same time expressed concern over security and legal implications.

Competition is a way to make the Philippine internet more consistent in terms of speed, according to Senate Minority Leader Franklin Drilon.

The internet speed in the Philippines is among the slowest in Asia, Drilon said yesterday. “Indeed, a lot has to be done…for the country to improve on this aspect. We need more competition.”

But Drilon said the government should “exercise caution” in opening the industry to a Chinese company.

Globe Telecom and Smart Communications are the only major internet service providers in the Philippines today.

“The government should look into the security aspect of this undertaking,” said Drilon.

“Chinese companies are state-owned while those operating in the Philippines are purely private,” he said.

“The Chinese government is already an investor in our national grid. The government should look into this matter,” the senator added.

Opening the Philippine telecoms industry was a “political decision” on the past of President Rodrigo Duterte, according to his spokesman.

“(It was) intended I guess also to strengthen our bilateral ties with China,” Harry Roque said in a Malacañang press briefing.

The company China chose, China Telecom, “without doubt is one of the biggest in the world,” said Roque.

Senate President Aquilino Pimentel III also welcomed a new telecom provider, saying competition is “the only way to force the two major local telco companies to improve their services.”

Former president Benigno Aquino III said the move would place national security at risk.

Mahirap naman yatang iyong communications infrastructure mo e sa potential na baka magkaroon tayo ng actual na conflict,” Aquino said.

The Philippines has a dispute with China on overlapping claims in the South China Sea.

Duterte promised to talk to China within his term about the arbitral ruling in favor of the Philippines, which China refused to recognize.

Roque had said the government will look into all security considerations of having a Chinese company as a telecom provider, saying “there are really concerns overall on cybersecurity.”

Sen. Panfilo Lacson said yesterday improving telecommunications in the Philippines should not be a choice between “duopoly and national security.”

“China Telecom: the heck of a choice between duopoly and national security. One is doom; the other, doomier. Isn’t there a third alternative?” Lacson wrote on Twitter.

Senate Public Services Committee chairwoman Grace Poe also welcomed the development but said there are legal hindrances to having a foreign provider.

“Healthy competition could lead to better services for the consumers,” Poe said, but “our current laws would not allow this.”

Article XII, Section 11 of the 1987 Constitution limits foreign ownership in public utilities “to their proportionate share in its capital” and mandates that “executive and managing officers of such [a] corporation or association must be citizens of the Philippines.”
This ban has been taken to include telecommunication services. (With reports from CNN Philippines/PN)
[/av_textblock]

[/av_one_full]

LEAVE A REPLY

Please enter your comment!
Please enter your name here