The Chinese Telco in the Philippines before DITO

    When people in the Philippines talk about DITO, what comes to mind? Is it a threat to national security or just a low-cost communications provider offering cheaper data plans than other Philippine telecom companies? No matter what we say about DITO, anything connected to networking these days isn’t completely safe to begin with. Moreover, it is blatantly obvious that DITO is backed by a Chinese investor.

    To begin this story, let’s go back to when China experienced its economic boom from the 1990s to the 2000s. During this period, it launched its 'Go Out Policy,' which encouraged Chinese companies to invest abroad, particularly in the energy and telecommunications sectors.

    At that time, then-President Gloria Macapagal Arroyo of the Philippines was enticed by a Chinese company called ZTE Corporation (Zhongxing Telecommunications Equipment Corporation), which was co-owned by the Chinese government. ZTE, like DITO, has had its share of controversies. However, unlike DITO, which is backed by so-called Chinese investors, ZTE took government involvement to a whole new level.

    The ZTE contract was ultimately canceled due to an alarming government scandal. The entire project and contract with ZTE collapsed due to several factors, including the involvement of President Arroyo, her husband, and several government officials, particularly from COMELEC (Commission on Elections). Whistleblowers Joey and Jun exposed the corruption to the public, highlighting how deeply entrenched corruption was in the Philippines. Although the project’s intention was to provide accessible telecommunications at a time when it was scarce in the country, people at the time might not have been fully aware of China’s true intentions had the deal gone forward.

    One can only speculate what would have happened if this project had gone through. Hypothetically, in the present day, the Chinese government could have gained a foothold in the Philippines' communications infrastructure. Some may argue that every government engages in surveillance—whether on its own citizens, corporations, or even hostile nations. That’s a debate for another day. For now, the Philippines was fortunate that its own incompetence and corrupt bureaucracy inadvertently prevented the People's Republic from establishing control over its communications—at least until events in 2016, but that’s another can of worms entirely.