Senate approves Dito’s franchise on 2nd reading
MANILA, Philippines — The Senate has approved on second reading the franchise bid of Dito Telecommunity following a lengthy discussion on some senators’ national security concerns.
During Wednesday’s plenary session, the chamber passed on second reading House Bill No. 7332.
The said bill, which was first approved in the House of Representatives before it was transmitted to the Senate for consideration, seeks the renewal of Dito’s franchise for another 25 years.
Dito, which was picked as the country’s third telco in 2018, holds a franchise via Mindanao Islamic Telephone Co. granted in 1998 and is set to expire in 2023.
Dito is owned by Davao-based businessman Dennis A. Uy’s Udenna Corp. and state-run China Telecom.
With China Telecom holding a 40-percent stake in the company, some senators raised concerns over the country’s national security during the plenary debates.
“Ensuring access to affordable and reliable data services is essential to the continued development and eco growth of our country,” Senator Risa Hontiveros said.
“More competition is welcome but let’s keep our eyes open and our guard up. How can Dito assure us that it’s not the Chinese government that’s calling the shots?” she added.
Senator Richard Gordon raised the same concern.
“Honestly, sincerely, are we so sure that this franchise will be controlled by Filipinos and not by the Chinese?” he asked. “You are giving them a base for the possibility for espionage or surveillance.”
Senator Grace Poe, who is sponsoring Dito’s franchise bill as chairperson of the Senate public services panel, assured that the country’s laws “are very strict.”
“You cannot own more than 40 percent if you ‘re a foreign investor. If there’s a whiff of interference by a foreign investor, that’s grounds for the cancellation of this franchise,” Poe said.
She added that the country’s security sector has testified that “we are secure.”
“We are secure, apparently—and I say this because we are taking their word for it—from whatever possible Chinese incriminations in our information system,” she said.
She also pointed out that with how “powerful” and technologically-advanced China is, it need not put up a company in the Philippines “if they really want to spy on us.”
Furthermore, Poe said other firms are also owned partly by foreign investors, adding that having a mindset against companies linked with China may lead discrimination.
“But if you’re saying that these countries are not, have no specific interest in our country. But if that’s going to be our mindset then all other industries that have a partnership with China would be discriminated upon in our country even if we did our due diligence to ensure that we can reprimand them or we can cancel an agreement with them should they breach our ownership requirements,” Poe said.
Dito made its commercial debut on Mar. 8.
Before the launch, the National Telecommunications Commission (NTC) earlier said Dito met its initial population coverage and minimum average internet speed commitments to the Philippine government.
