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Manila Bulletin devider Philippines devider National devider Gabriela slams PSA amendments, cites potential cyber threats under new telco ownership laws

Gabriela slams PSA amendments, cites potential cyber threats under new telco ownership laws

Published Mar 23, 2022 04:23 pm

Gabriela Women’s Party-list Rep. Arlene Brosas slammed President Rodrigo Duterte’s signing of the amendments to Republic Act (RA) 11659 or the Public Service Act (PSA), even speculating that the raised foreign ownership limits on the telecommunications industry could lead to cybersecurity threats.

Rep. Arlene Brosas of the Gabriela Women's Party-list (File Photo)

"Batay sa karanasan natin sa pribadong pagpapatakbo ng serbisyo lalo iyong may foreign equity, dumudulo sa mas mahal na singil ng serbisyo ang pagkakaroon ng dayuhang namumuhunan sa mga kumpanyang hatid dapat ay pampublikong serbisyo. Hindi totoo na magkakaroon ng kompetisyon dahil monopolistic ang tendensya ng dayuhang kapital (Based on our experience with the private ownership of public services by foreign interests, service charges will only increase. Its not true that there will be increased competition because foreign ownership tends to be monopolistic." the Assistant Minority Leader explained in a press statement on Wednesday, March 23.

The amendments made to the PSA, dictate that the following services are considered “public services,” thus made open to 100 percent foreign ownership: telecommunications; railways; expressways; airports; and shipping industries.

It was enacted in an attempt to boost the country’s economy via foreign investors.

Brosas further alluded that the new foreign ownerships could signal a breach in national security, especially within the telecommunications industry.

"We should be vigilant of the possible adjustments in the ownership structure of major telecommunications firms in the country, especially in the run-up to the 2022 elections wherein results will be transmitted electronically through these same companies," Brosas said.

"Allowing 100 percent foreign equity in the telecoms sector will allow China Telecom to gain full ownership of Dito Telecommunity, and thereby allow more elbow room for Beijing's intelligence operations in the country," she added.

While public services are now open to 100 percent foreign ownership, these industries will be considered “public utilities” thus subject to a 40 percent cap on foreign ownership: Distribution of electricity; Transmission of electricity; Petroleum and petroleum products pipeline transmission systems; Water pipeline distribution systems and wastewater pipeline systems, including sewerage pipeline systems; Seaports; Public utility vehicles.

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