Security risks can void AFP’s China telco deal

MANILA, Philippines — The Armed Forces of the Philippines can “unilaterally terminate” its agreement with a Chinese-backed telco consortium should its operations compromise national security, defense officials assured senators on Wednesday.

At the Senate deliberation on the defense department’s proposed P191.3-billion budget for 2020, Sen. Francis Pangilinan raised anew the security risks of allowing Dito Telecommunity Corp. to put up towers and other facilities inside military camps.

“I understand that a third telco is important and critical to better the services of our telco industry, but we would like to enter this with our eyes wide open,” Pangilinan said, warning that the Chinese startup’s mother company might use its facilities for espionage.

Sen. Panfilo Lacson, who spoke on behalf of the Department of National Defense as chair of the defense committee, said the deal had been reviewed by information technology experts commissioned by the military.

Lacson said the AFP had the capability to monitor Dito’s operations, including any attempt to interfere with the military’s telecommunications equipment and system.

“Once they see some infractions [in the agreement], the AFP can unilaterally terminate the agreement,” Lacson said.

Dito, formerly known as Mislatel, has secured a government franchise to operate as the country’s third telco operator to break the duopoly of PLDT Inc. and Globe Telecom.

The startup is a consortium between Beijing-owned China Telecom and Udenna Corp. of Davao-based businessman Dennis Uy, a close friend of President Duterte.