China-backed telecom firm says won't spy on Philippines

By Neil Jerome Morales and Karen Lema
MANILA, Sept 17 (Reuters) - A new Philippine telecoms firm
with Chinese state investment on Thursday described as "truly
misplaced" concerns that communications equipment it will
install at military camps will be used for spying.
The Philippine government last week allowed DITO
Telecommunity Corp, a joint venture between state-run China
Telecom 0728.HK and a tycoon close to President Rodrigo
Duterte, to erect towers on military land for its $5.15 billion
entry into the market, which includes 5G technology.
The consortium was the only qualified bidder in a 2018
license auction that followed months of Duterte saying he had
offered China a spot in the Philippines' telecom sector. China
Telecom owns 40% of DITO.
But some lawmakers complain DITO could be a "Trojan Horse"
for spying, including on a military allied with the United
States.
"We are not at war with China so this concern about
espionage and spying I feel is truly misplaced," Adel Tamano, a
top DITO official, told a news conference.
DITO's equipment and devices are not a security risk, Tamano
said, adding that it is investing heavily in cybersecurity.
No Chinese personnel will be allowed inside camps, he said,
and a retired Philippine general and telecoms expert had been
hired to ensure cybersecurity.
However, former Supreme Court judge Antonio Carpio, a
staunch critic of Duterte's pro-China stance, in a newspaper
column on Thursday said Beijing "would surely eavesdrop".
Opposition lawmaker Risa Hontiveros wants a senate probe on
DITO's military deal.
Like competitors Globe GLO.PS and PLDT TEL.PS , DITO also
uses equipment from Chinese firms Huawei HWT.UL and ZTE
0763.HK .
DITO is 60% controlled by Duterte associate Dennis Uy, whose
conglomerate Udenna is partnering in big projects with several
other Chinese state firms in energy and construction.
Among those is a U.S.-blacklisted company involved in
China's building of a missile-equipped artificial South China
Sea island that the Philippines sees as a national security
threat. Udenna has acknowledged its Chinese partner's
involvement.