A Step in the right direction or a trojan horse? DITO TELECOM AND WHY THE PHILIPPINES NEED MORE TELECOM COMPANIES By Justin Sy (G11)
I
n a time of online education and workfrom-home setups, WiFi and mobile data play a bigger role now more than ever. It’s safe to say that these tools for connection have become necessities, as evidenced by the 500% increase in the use of mobile data in the Philippines during the pandemic. Thus, there is an insatiable need for a fast and reliable connection. This case is especially true for the Philippines, which unfortunately has an average mobile download speed of 8.5 Megabits per second (Mbps) as of the start of 2020. Comparatively, Singapore boasts average speeds of 40 Mbps. This is where Dito Telecommunity comes in. The company, a joint venture between Chinese state-owned China Telecom and Dennis Uy, an entrepreneur with close ties to President Duterte, has recently been allowed to build cell-site towers in Philippine military bases.
improve in terms of quality, efficiency, and pricing in order to retain their market share. Dito themselves said that they are aiming for at least 30% market share, which belongs to (or used to belong to) the two incumbents. This tri-firm rivalry benefits everyday consumers, who will not only have greater choice but also enjoy faster WiFi speeds in general. This tri-firm rivalry benefits everyday consumers, who will not only have greater choice but also enjoy faster WiFi speeds in general. Competition that leads to efficiency — as the three companies try to offer higher quality goods at lower prices — is greatly needed. Growth of the telecom industry, as evidenced by increased firm spending, is sure to come. Plus, the three companies will likely try to make more innovations, in order to create and offer products that the rest do not have to gain competitive advantage. Competition also helps the economy and can create more jobs as the companies try to increase their output in the market to seize market share.
The new entrant, which joined PLDT and Globe as a major player in the telecommunications industry in 2018, promised to deliver speeds of at least 55 Mbps to 80% of the population after 5 years. Dito also committed to covering 37% of the The fruits of this competition were already population with speeds of 27 Mbps by July 8, shown at the end of 2020, which saw record 2020. high improvements of 297.47% and 202.41% across networks for fixed and mobile Dito’s addition to the former duopoly market broadband respectively. has increased competition, and thus brought about improvements in the Philippine However, the main problem lies in data telecom industry. Prompted by Dito’s security. Dito has said that it will not perform entrance, PLDT and Globe plan to increase espionage activities and that it has invested spending to 6-year highs in 2021, mainly on heavily in cyber security. Despite this, many improving their network infrastructure. Dito remain skeptical, including former Chief itself has already constructed about 1,900 cell Justice Antonio Carpio and Senator Risa towers as of the end of 2020. Hontiveros. The concern comes from the fact that the company is state-owned by China, The presence of a new major competitor in and its cell towers can be used in espionage the market will lead to more competitive and data spying. This includes the cell pricing and increased quality as market players towers in military bases, where confidential attempt to win market share. This means that information vital to national security is stored. the incumbents, Globe and PLDT, must
However, the military has taken steps to minimize the aforementioned risks. Military spokesman Major General Edgard Arevalo has said that there is low risk of security breaches based on the military’s assessment. According to Adel Tamano, a Dito official, Chinese personnel will not be allowed inside the camps and a former Filipino General and telecommunications expert will be in charge of cyber security. If privacy issues and concerns can be mitigated, the entrance of new players in the telecom industry would be welcome additions to the market. Though no evidence of Dito collecting classified information and conducting electronic espionage has surfaced, the fact that the firm is a joint venture with China Telecom should be reason enough for the Philippine government and Filipino people to be wary of the firm’s motives. The concern is valid, considering the heightened sociopolitical tension due to ownership disputes over the South China/ West Philippine Sea and Scarborough Shoal. Although the increased competition that Dito brings to the telecom industry is a step in the right direction, it is of utmost importance that Congress permits even more telecom companies, especially ones that are independent and not state-backed, to operate in the Philippines. This will bring the same benefits and more that Dito Telecom has brought to the market, without the heightened possibility of espionage and data spying. With the need for faster WiFi, the benefits from this competition can greatly assist the Filipino people. It will not only lead to more efficiency in work and studies, but also provide a more productive and connected habitat during this pandemic.
EDITORIAL 37
