MANILA - The Department of Information and Communications Technology (DICT) on Thursday assured the public that provisions are present in the amended Public Service Act to prevent the abuse of foreign ownership in the telco sector, despite security concerns.

• Duterte signs amended Public Service Act allowing full foreign ownership of telcos

Acting DICT Secretary Emmanuel Caintic said Republic Act 11659 recognizes the security risks connected to eased foreign ownership restrictions.

"Asahan natin na patuloy na pagsisigurado na magiging ligtas ang ating bansa sa cybersecurity issue," he added.

(Let us expect that we would continue to assure that Filipinos will be safe from cybersecurity issues.)

Caintic said the new law included the following provisions to respond to security risks.

• The President's power to halt any investment if there are connections with a state-owned enterprise in the interest of national security.

  Under the law, the President can suspend or prohibit any transaction or mergers in a public service that "effectively results in the grant of control, whether direct or indirect, to a foreigner or foreign-owned corporation.

• ISO certification or cybersecurity audits to all companies who want to enter the country

• A reciprocity clause that bars foreign nationals from owning over 50 percent equity in critical infrastructure unless their country also allows Filipinos majority ownership in these industries

  Critical infrastructure refer to public services that are considered vital to national security, such as telcos.

• Agencies' independent evaluation to monitor the quality of services that the firms would bring in the country

"Inaasahan natin na makakaasok itong malalaking players mula sa ibang bansa at makakapagdagag ng serbisyo. Tayo na nga lang siguro ang nahuhuli sa ating ASEAN neighbors, dapat matagal nang natanggal ang restrictions na ito," he said.

(We are expecting that the big players will come in from other countries, which thus could add to our services. I think we are the last in our ASEAN neighbors. These restrictions should have already been removed.)

• Finance chief says Duterte admin laid groundwork for economic expansion

Industry players and the National Economic Development Authority (NEDA) earlier lauded President Rodrigo Duterte for signing the amended law, as this was also seen to spur the pandemic-hit economy.

European Chamber of Commerce in the Philippines this week said Elon Musk's Starlink is looking into bringing their technology in the country following the law's passage.

TELCOS WEIGH IN

Globe Telecom's SVP for Corporate Communications Group Yoly Crisanto said the measure "has no impact" to Globe.

"Shareholders - local and international have no plans to changing their existing investments at the moment," Crisanto said.

For DITO Telecommunity, its chief administrative officer Adel Tamano said "nothing will change" for the newest telco player.

"DITO Holdings continue to hold 60-percent equity, China Telecom, the remaining 40-percent, Tamano said.

Meanwhile, PLDT Inc and Smart Communications President and CEO Al Panlilio believes that the measure could improve the market competition in various sectors as well as allow foreign enterprises to expand.

"In the case of PLDT, while we support investment-friendly regulations, we have no plans to increase the share of foreign equity at present," Panlilio said.

-- with a report from Jessica Fenol, ABS-CBN News

Video from PTV