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A Step in the right direction or a trojan horse?

DITO TELECOM AND WHY THE PHILIPPINES NEED MORE TELECOM COMPANIES

By Justin Sy (G11)

In 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.

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 population with speeds of 27 Mbps by July 8, 2020.

Dito’s addition to the former duopoly market has increased competition, and thus brought about improvements in the Philippine telecom industry. Prompted by Dito’s entrance, PLDT and Globe plan to increase spending to 6-year highs in 2021, mainly on improving their network infrastructure. Dito itself has already constructed about 1,900 cell towers as of the end of 2020.

The presence of a new major competitor in the market will lead to more competitive pricing and increased quality as market players attempt to win market share. This means that the incumbents, Globe and PLDT, must 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. 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 fruits of this competition were already shown at the end of 2020, which saw record high improvements of 297.47% and 202.41% across networks for fixed and mobile broadband respectively.

However, the main problem lies in data security. Dito has said that it will not perform espionage activities and that it has invested heavily in cyber security. Despite this, many remain skeptical, including former Chief Justice Antonio Carpio and Senator Risa Hontiveros. The concern comes from the fact that the company is state-owned by China, and its cell towers can be used in espionage and data spying. This includes the cell towers in military bases, where confidential information vital to national security is stored. 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.

This tri-firm rivalry benefits everyday consumers, who will not only have greater choice but also enjoy faster WiFi speeds in general.

What exactly is the Philippines’ stance on China?

By Skyeler Kho (G11)

Even before his incumbency, President Rodrigo Duterte has advocated for the Philippines to hold a warmer stance towards China. He has publicly promoted stronger ties with the rising superpower, whilst pulling back on ties with the United States. Despite this, Duterte’s tone on the issue has wavered from one opinion to another, failing to communicate a firm stance on the matter. This begs the question: what exactly is the Philippines’ stance on China and on the US? We need to make clear who we stand with, so that we know who stands with us. Duterte has held a stronger stance in the past, but his recent flip-flopping throws into question our nation’s true allegiances.

It’s no secret that Duterte favors China with regard to economic ties. As soon as he was elected to the presidency, he planned a visit to the economic giant. During this visit, he wasted no time to get on China’s good side, signing loans and investments worth at least $24 billion. Since that trip, Duterte has also gone on to visit China at least four more times, most recently in 2019. He has sought for Chinese companies to take part in his “Build, Build, Build” program, and he has engaged in military exercises with the nuclear-armed power. To top it all off, Duterte has expressed willingness to set aside the Philippines’ victory in an international arbitration on the West Philippine Sea, all for the opportunity of a joint exploration of the area.

In contrast, Duterte’s stance on the USA has been very turbulent. During his 2016 visit to China, he told Chinese and Filipino business people that “America has lost” and that he would work towards separating the Philippines from America “both in military, not maybe social [sic], but economics also.” Duterte has also spoken about US leadership in less than diplomatic terms, calling former president Barack Obama a “son of a b*tch” and telling him to “go to hell.” In addition, Duterte moved to cancel the Visiting Forces Agreement (VFA), an agreement that allows US forces to operate in the country, after the American visa of one of his associates, Senator Bato Dela Rosa, was cancelled.

The viewpoint of the president on both the US and China has nevertheless been unclear as of late, most notably during

the current COVID-19 pandemic. On June 1, 2020, Duterte decided to suspend the VFA termination for six months, allowing the US to stay until the start of 2021. Furthermore, the Philippine Air Force’s modernization plan includes the acquisition of new C-130J aircraft through the US. Despite these developments, Duterte has opted to remain clear of directly engaging with the US, barring the Philippine military from participating in the South China/ West Philippine Sea exercises organized by the Americans.

Furthermore, Duterte’s allies in the Senate have accepted Department of Foreign Affairs Secretary Teodoro Locsin’s recommendation to terminate contracts with China if they continued their land reclamation activities and the building of military installations in the West Philippine Sea. Duterte’s other policies have made these stances even muddier: he dragged his feet, for example, on a travel ban on China at the start of the pandemic. Duterte has even gone so far as to say during his most recent State of the Nation Address that Beijing was already in possession of the South China Sea, and that the US operating within the vicinity of these waters will only raise the possibility of war. Finally, Duterte has sought discounts from both China and Russia when it comes to a COVID-19 vaccine, stating that, “I will ask my friend President Putin and President Xi Jinping to give us a credit.”

These shifting stances on both China and the US do not help the Philippines, as they do make our true allegiances unclear. We currently rely on the US to protect us as our armed forces are still modernizing, and we may be incapable of protecting our sovereignty even after such a program is complete. Our Super Tucanos aren’t designed to take on fighters, and the BRP Jose Rizal frigate can’t take on an aircraft carrier alone. It does not help to terminate the VFA, reverse that termination for six months, and then bar the military from engaging with the US: all whilst asking China for a discount on vaccines. We can either side with China or side with the US, and any attempt to please both parties, especially when it comes to the South China Sea, only shows insincerity to both sides. Duterte is looking for the protection of the US and the favor of China, but we simply can’t have it both ways. This has already been demonstrated when Xi Jinping urged us to let go of our claim in the South China Sea in exchange for investment opportunities, making us

It does not help to terminate the VFA, reverse that termination for six months, and then bar the military from engaging with the US: all whilst asking China for a discount on vaccines.

unprotectable. We have to pick a side and we have to stand firm on that side.