Press – Page 2 – Infrawatch PH

Thinktank disputes DND chief: Dito-AFP tower deal compromises PH security posture

Oct 20, 2019

An infrastructure-oriented thinktank labeled Department of National Defense (DND) Secretary Delfin Lorenzana’s preference to approve a co-location deal between the Armed Forces of the Philippines (AFP) and Dito Telecommunity (Dito) as ‘gravely unfortunate’ due to continuing national and cyber security concerns.

“Only persons born yesterday would fail to see the grave security implications of allowing a telco with links with a territorial adversary to install equipment and facilities within our military camps. This is the most important policy distinction between Dito and the co-location deals with Globe and Smart. The foreign partners of Globe and Smart are not our territorial adversaries.”

This was the statement of Terry Ridon, Infrawatch PH convenor and former House ICT committee member.

Xi: No national security without cybersecurity

Ridon, who studied cybersecurity at the Harvard Kennedy School, said that no less than Chinese President Xi Jinping said that ‘without cybersecurity, there is no national security,’ which basically means that cyber and telco activities of Chinese state companies are expected to serve the security interests of China.

Dito’s foreign partner is China Telecom, a Chinese state-owned company.

“In fact, China Telecom’s website itself defines its clear political objectives, in which it undertakes itself to be ‘a main force for building a cyber power,’ and pursues the current Chinese political ideology of Xi Jinping Thought.”

China Telecom not mere technical partner

Ridon said this shows that China Telecom will not be a mere technical partner providing Dito with technology and infrastructure.

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“This shows that Dito will ultimately be within the political framework of China Telecom to allow China to become a leading cyber power in the region. Given that Dito’s Filipino partners have absolutely no previous technical experience at all in telecoms, this is a possibility if left unchecked by our security sector.”

China Telecom’s US record

A month ago, United States senators have asked the US Federal Communications Commission (FCC) and its national security agencies to review whether China Telecom and China Unicom should be allowed to operate in the US due to concerns of Chinese spying.

“The review proposal is based on concerns that these telcos supposedly ‘hijack’ telecommunications traffic by redirecting it through China. In fact, several articles and papers, including one made by analysts from the US Naval War College and Tel Aviv University, have made observations that China Telecom rerouted fifteen-percent of the world’s internet prefixes, which impacted government, military and popular websites,” Ridon said.

Ridon said these are hard cybersecurity questions which Dito, and now, Mr. Lorenzana should resolve, if they wants to assuage public concerns on the integrity of its telecoms service.

“These are matters which we hope Secretary Lorenzana will consider in determining whether to approve the AFP-Dito deal. Inasmuch as we would like to break the telco duopoly, we cannot do it at the expense of national and cybersecurity.”

Panelo, Tugade contradict Duterte on transport crisis

Oct 14, 2019

An infrastructure-oriented thinktank said that Presidential Spokesman Salvador Panelo and Transportation Secretary Arthur Tugade contradict previous statements of President Rodrigo Duterte by dismissing Metro Manila’s ‘transportation crisis.’

Duterte, Tugade described Metro traffic as crisis in 2016

“As early as a week before his presidency, President Rodrigo Duterte had sought emergency powers to fix traffic congestion in Metro Manila. And no less than incoming Transportation Secretary Arthur Tugade said a ‘transport crisis’ will have to be declared by Congress in order for Mr. Duterte to address the emergency situation. Nothing significant has changed from 2016 to date, so why are Cabinet officials suddenly scrambling to put the transport crisis under the rug?”

This was the statement of Terry Ridon, Infrawatch PH convenor and former House transportation committee member.

Tugade contradicts self on Metro crisis

Ridon, who served as Mr. Duterte’s urban poor chief, said government should make up its mind on what itself had described as a crisis in 2016 in order to avoid falling into a clear policy contradiction.

In fact, Mr. Tugade had said in June 2016, “If this is not a crisis what is? Yung quality of life natin nabababoy na. Mas madami na tayong ginagastos na oras sa kalsada.”

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Yet last week, Mr. Tugade has been singing a clearly contradictory tune.
“Kagaya ng niliwanag ko, merong transport problem, merong transport issues — that is given, pero ina-address siya. Komo ba may transport problem, may transport issue, you know, meron nang transport krisis?” Tugade said.

Ridon said this can only be described as a ‘shameless face-saving’ to avoid getting the ire of the public, if not the President.

“Secretary Panelo should not even obfuscate between a transport or traffic crisis. Both are the same as far as the public is concerned, as traffic congestion is certainly the results of poor transport systems in Metro Manila,” Ridon said.

Duterte: Let EDSA rot there

Ridon said no less than President Duterte remarked that he will just ‘let EDSA rot there,’ which essentially describes a crisis in the nation’s capital.

“Regardless of what anyone thinks about the President’s utter disregard for Metro Manila’s transport situation, Mr. Duterte has made a correct, albeit grim observation. With cabinet officials contradicting the President’s observation, we are more than certain that what needs to be done, clearly will not get done.”

Thinktank: What happened to PUV modernization pilot areas?

Sep 30, 2019

An infrastructure-oriented thinktank said that a major factor in the defiance of jeepney drivers and operators in undertaking the PUV modernization program is the absence of palpable, positive results in pilot areas identified by transport agencies, such as Taguig, Pateros and Pasay.

“Since the announcement of pilot areas in 2017, we have not monitored a single official report or briefing by the country’s transport agencies on whether the pilot areas had been viable, profitable routes for jeepney operators and drivers. Had the operators-drivers been able to regularly pay the high financial costs of implementing the modernization program? ”

This was the statement of Terry Ridon, Infrawatch PH convenor and former House transport committee member.

Ridon, who raised concerns on the PUV modernization program as the Duterte government’s urban poor chief, said a positive result of the modernization program in pilot areas is critical to convince operators-drivers that acquiring modern jeepneys will not drive them to bankruptcy.

Mutually acceptable financial proposal

“Ultimately, government will have to provide a mutually acceptable financial proposal to operators-drivers if it really wants the modernization program to succeed.”

Ridon said a major component in an acceptable financial proposal is a larger government stake in acquiring new vehicles.

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“Government’s five-percent equity commitment or subsidy to acquire new vehicles is clearly insufficient, particularly because this is an involuntary loan, which no one except government wanted. Worse, the subsidy is still capped at eighty-thousand pesos, while the prices of the modern jeepneys wildly vary to more than PhP 2-Million.”

Raise government subsidy

Ridon said government should consider raising its equity commitment to a range of ten to twenty percent.

“With next year’s PhP 4-Trillion government budget, a larger equity commitment to ensure the nationwide success of the modernization program is just a drop in the bucket.”

Cut loan interest rates

Ridon also said that the interest rates for the loans should now be adjusted, given that the Bangko Sentral ng Pilipinas had undertaken several interest rate cuts in as recent as last week.

“Clearly, government’s financial proposal from 2017 should now be updated to reflect current market conditions.”

DoE, ERC urged: Implement competitive selection for least-cost power nationwide

Sep 24, 2019

An infrastructure-oriented thinktank called on the Department of Energy and the Energy Regulatory Commission to start implementing the competitive selection process (CSP) in all power distribution utilities (DUs) around the country to ensure affordable, least-cost power rates for all Filipinos.

“The energy department led by Energy Secretary Alfonso Cusi should continue its momentum in implementing the CSP in all electric cooperatives and distribution utilities after the success of the pilot CSP covering Meralco’s concession area. A transparent selection process ensures consumer savings in generation costs, which usually constitutes the most expensive component in our monthly electricity bills. Electricity consumers outside the Meralco concession area should also be able to benefit from this process.”

This was the statement of Terry Ridon, Infrawatch PH convenor and former House energy committee member.

Consumer savings

Ridon said the rest of the country should be able to save a significant amount from competitive power rates arising from the CSP.

“The P0.28 per kilowatt-hour (kWh) savings under the Meralco CSP translates to ten-year savings of around P6720 for the average 200 kWh household. These savings can now be used for other expenses such as a child’s college tuition.”

DoE, consumer monitoring ensure transparency

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Ridon said the pilot Meralco CSP served as a litmus test to determine whether the competitive bidding can be manipulated.

“An important component in ensuring the transparency of the Meralco CSP is the close and strict monitoring of the energy department in every step of the process. Another component is the inclusion of independent consumer representatives as part of the third-party bid-and-awards committee (TPBAC) itself. Without these, the transparency of the entire process could have been suspect.”

Ridon said the same strict monitoring and public participation should be undertaken in the soonest time in other areas.

No delay in ERC approvals

“After the Meralco CSP, the resulting power rates will now be subject to the confirmation of the ERC. The public should closely monitor proceedings in the commission to ensure that least-cost of power had in fact been determined, or whether further rate reduction can still be undertaken. But more important, the public should ensure that after exhaustive proceedings in the ERC, there should be no further delay in approving additional power supply.”

Ridon said delay in ERC approvals had been a serious concern during the summer months, as the Luzon grid experienced almost-daily red or yellow alerts signaling very significant dips in power supply.

“As medium-term power supply continues to be concern, we most certainly hope that the ERC will deliver on its mandate in the soonest time.”

Thinktank: Cancel planned POGO hubs amid crypto fraud, human trafficking concerns

Sep 22, 2019

An infrastructure-oriented thinktank called on the Philippine Amusement and Gaming Corp. (PAGCOR) to cancel plans of setting up POGO hubs amid recent reports of cryptocurrency fraud and human trafficking tied to the country’s burgeoning offshore gaming industry.

“This week’s string of raids on fraudulent Chinese crypto firms and human trafficking rackets should give PAGCOR pause in implementing its proposal to establish POGO hubs in different parts of the country. In the face of porous bureaucratic enforcement and the level of investment pouring into POGOs, it will not be surprising to find these hubs similar to the petty and high-level rackets seen in the Bureau of Corrections.”

This was the statement of Terry Ridon, Infrawatch PH convenor and former member of the House ICT committee.

Pogo districts, not hubs

Ridon said it is better to restrict POGOs in their already established districts at present, such as the Bay area in Pasay and Paranaque, but still in full view of the public and government agencies.

“By restricting POGOs in self-contained hubs, it will be tantamount to placing Chinese workers in ‘gambling ghettos,’ in which their activities will be left unchecked except to government agencies running the hubs. We only need to look at the BuCor hearings to know that this is not a good idea.”

Ridon said self-contained hubs gives the public the impression of granting POGOS autonomous status, or worse, granting POGOs their own ‘gambling kingdom.’

“By removing POGOs from the full view of the public, it deprives us the opportunity to subject the entire POGO industry to scrutiny, and compel foreign workers to assimilate themselves to the country.”

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Ridon said no less than the Chinese Embassy had raised concerns on the unviability of POGO hubs, particularly on issues related to fundamental rights.

Crypto fraud

“Had POGOs and its support services been placed in hubs, it would have been difficult for law enforcement to raid crypto firms engaged in cyber fraud. This was precisely what the Chinese foreign ministry had been warning about in calling for the banning of online gambling involving Chinese nationals.”

Ridon, who studied cybersecurity at the Harvard Kennedy School, said that crypto fraud in online gambling compromises the country’s financial system.

“Cryptocurrency transactions are currently not subjected to money laundering controls in the Philippines, as crypto is not considered legal tender by the Bangko Sentral ng Pilipinas (BSP Circular No. 944, series of 2017).”

Ridon said casino money laundering controls are limited only to cash transactions involving an amount in excess of Five Million Pesos (P5,000,000.00) or its equivalent in any other currency.
Ridon said this results in cryptocurrency transactions equivalent to more than five million pesos per transaction entering-and-leaving the Philippine financial system.

DND chief urged: Reject AFP-Dito deal

Sep 18, 2019

An infrastructure-oriented thinktank urged Department of National Defense (DND) Secretary Delfin Lorenzana to reject the Memorandum of Agreement between the Armed Forces of the Philippines and the country’s third telecommunications company, Dito Telecommunity, due to national and cyber security concerns.

“The unfortunate handicap of Dito Telecommunity is the undisputed fact that Chinese state-owned China Telecom owns a major stake (forty-percent) in the country’s third major telco player. No less than the DICT has subjected Dito to cybersecurity monitoring due to national security concerns. Having its towers built in military camps absolutely compromises the country’s cybersecurity posture.”

This was the statement of Terry Ridon, Infrawatch PH convenor and former member of the House ICT committee.

Dito security status not in parity with leading telcos

Ridon, who studied cybersecurity at the Harvard Kennedy School, disputed the statement of outgoing AFP chief Benjamin Madrigal that Dito’s legal and security status is no different from the other telcos.

“Even if the other two telcos partnered with foreign telcos with significant state investments such as Singapore’s SingTel and Japan’s NTT, these states are not our regional rivals. In fact, the Philippines has no territorial issues with these countries, unlike the still pending dispute across the West Philippine Sea with China.”

Ridon also rejected the AFP chief’s reasoning that since other telcos are using Chinese-made equipment in their towers, there should be no similar security concerns with Dito.

“Even if other telcos are using Chinese-made equipment in their towers, what cannot be disputed is the fact that the other telcos are being run by Filipino companies and engineers, with technical experience previous to partnering with foreign telcos. Dito is coming into the picture as Filipino company relying on the technical expertise of its foreign partner. Certainly, the other telcos would better know how to manage cybersecurity concerns posed by Chinese-made equipment.”

China Telecom’s non-commercial objectives

Ridon, a lawyer, further said that even there are significant state investments in both Singtel and NTT, these telcos are not considered state-owned enterprises unlike China Telecom.

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“This distinction is significant because state-owned enterprises may have other corporate objectives other than commercial ends. In fact, these other objectives are stated in China Telecom’s website, in which it undertakes itself to be ‘a main force for building a cyber power,’ and pursues the current Chinese political ideology of Xi Jinping Thought.”

Ridon said this shows that China Telecom will not be a mere technical partner providing Dito with technology and infrastructure.

China Telecom’s US record

As recent as yesterday, United States senators have asked the US Federal Communications Commission (FCC) and its national security agencies to review whether China Telecom and China Unicom should be allowed to operate in the US due to concerns of Chinese spying.

Ridon said these are hard cybersecurity questions which Dito should resolve, if it wants to assuage public concerns on the integrity of its telecoms service.

Thinktank: Meralco CSP rates await ERC approval

Sep 17, 2019

Following the competitive selection process (CSP) conducted by the Manila Electric Company (Meralco) last week, an infrastructure-oriented thinktank called on the Energy Regulatory Commission (ERC) to confirm whether the least cost had been achieved to benefit Meralco consumers.

Ensure more consumer savings

“Generation costs have always been the most expensive component of our monthly electricity bills, and we would like to see further decreases in our generation rates in the years to come. The P0.28 per kilowatt-hour (kWh) savings under the CSP process translates to ten-year savings of around P6720 for the average 200 kWh household. These savings can now be used for other expenses such as a child’s college tuition.”

This was the statement of Terry Ridon, Infrawatch PH convenor and former House energy committee member.

Ridon said the CSP process will now be subjected to the confirmation of the ERC.

“We trust that the ERC will study the CSP results and confirm whether the least costs have been obtained during the bid process. If the prices can further be reduced, this will most definitely be welcomed.”

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Litmus test

Ridon said the Meralco CSP is a litmus test for the power industry after the Supreme Court upheld the validity of the process which was challenged for supposedly having no legal basis in the electric power industry reform law (EPIRA).

“With the entry of more than 2,000 megawatts into the concession area’s power supply, we are expecting less price hikes in the generation sector as a result of unplanned and forced outages which the public experienced some months ago.”

Ridon said the limited power supply in the Luzon grid had been identified as one major reason for price adjustments in the electricity spot market.

“One of the medium-term concerns which the power sector should confront includes the decommissioning of currently operating high-emissions coal-fired power plants. These high-emissions plants contribute to the country’s carbon contribution to global warming. As such, sustainable alternatives should be planned and built for the long-term.”

Common tower policy should address national security and cybersecurity concerns

Aug 11, 2019

An infrastructure-oriented thinktank called on the Department of Information and Communications Technology to consider cybersecurity as a main pillar in its proposed common tower policy.

“Consistent with cybersecurity, the DICT should prohibit tower companies (towercos) and end-users with ties or funding from foreign governments. Second, the towers should not be used as a platform for surveillance and intelligence activities.”

This was the statement of Terry Ridon, Infrawatch PH convenor and former member of the House ICT committee.

Prohibition on towercos and end-users with foreign government ties

Ridon said that in view of the still unresolved issues in the West Philippine Sea (WPS), it should be government policy to disallow foreign state-owned or state-funded corporations to enter the country’s tower industry.

“If these types of companies are allowed access to the country’s tower industry, there is no limit on the types of activities it can undertake, and no limit on the end-users it can allow in its towers. This presents as a national security and cybersecurity threat to the nation, as these companies and its end-users can install intelligence and surveillance equipment on its towers to monitor activities and gather information and data from our citizens and institutions.”

Ridon, who studied cybersecurity at the Harvard Kennedy School, said that the advice of the country’s security sector should be considered in crafting its comprehensive common tower policy.

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“There is a real danger in having a blind spot on issues involving security, given that tensions in WPS continue. It should be noted that the tower business is not merely confined to servicing existing telecom companies, but all other types of activities which require actual, physical towers. This, unfortunately, may include surveillance activities by foreign nations.”

General prohibition on installation of surveillance and intelligence equipment

Ridon also said that there should also be a general prohibition on the installation of surveillance and intelligence equipment in the proposed common tower policy.

“The common towers policy should be restricted to purely civilian activities, with the focus on reducing congestion in our existing telecom networks. Allowing other activities such as surveillance and intelligence gathering should be prohibited, as it may run contrary to the constitutional right to privacy and the guarantee against wiretaps.”

Ridon said text messaging and voice calls that are not subject to end-to-end encryption are vulnerable to surveillance activities in equipment installed in towers.

“These vulnerable texts and voice calls include the usual services offered by telecoms companies which do not require third-party applications like Viber, Telegram, among others.”

Infrawatch PH convenor completes cybersecurity course at Harvard Kennedy School

Aug 6, 2019

We are pleased to announce that Infrawatch PH’s convenor, lawyer Terry L. Ridon, had successfully completed an executive course on cybersecurity at the Harvard Kennedy School in Cambridge, Massachusetts from 28 July to 2 August 2019.

Mr. Ridon is only the second Filipino to have been accepted into the program from its inception.

This course is the first of three courses which Mr. Ridon intends to take towards an executive public policy certificate at the Harvard Kennedy School.

International cohort

His class was composed of an international cohort of high-level policymakers from the US Congress, military and state departments, European Commission, and executives from multinational corporations.

Mr. Ridon was the only representative from Southeast Asia, and only one of two students from Asia.

Record on cyber issues

He was accepted into the program on the basis of his advocacy involving current issues in the PH telecoms industry, particularly concerns on the Mislatel franchise, and his previous legislative record involving free internet access in public places and objections to the PH cybercrime prevention law.

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PH notoriety on fake news, Bangladesh heist

Mr. Ridon said that the Philippines figured into discussions on fake news as among the leading threats in cyberspace.

“Extensive discussions among our peers were made on the issue of fake news as a tool used by both sides of the PH political divide to further their respective agenda. On the other hand, it has also been discussed that despite fake news, social media has a very potent capacity to level the political playing field for interest groups and personalities without the ability to convey their message through mainstream media.”

Mr. Ridon also said that among the most infamous cyberattacks in the world has been the hacking of the Bangladesh Bank which passed through the PH financial system through one of its banks.

New perspectives on cyber infra: national security

As a result of the course, Mr. Ridon said Infrawatch PH intends to raise more issues involving the country’s cyber infrastructure, which includes discussions on security implications on the involvement of foreign governments in the country’s telecoms and transmission sector.

Mr. Ridon also said that the issue of data privacy and breach is a matter that should be taken very seriously.

“Great care should be taken by government and the private sector in the protection of the public’s personal data. It should never be sold to third parties, and a heavy price should be paid in the event of breach, period full stop.”

Thinktank joins calls to veto solar super franchise

Jul 14, 2019

An infrastructure-oriented thinktank called on President Rodrigo Duterte to veto the franchise bill of Solar Para Sa Bayan (SPSB) amid concerns that anti-competitive practices may be undertaken in already unserved and underserved areas in the country.

“Mr. President, the power sector has unconditionally registered its overwhelming objection to the SPSB franchise bill. At a time when the policy direction of all industries is to foster greater competition to reflect better services and better prices, enacting into law the SPSB super franchise is a clear step towards the opposite direction.”

This was the statement of Terry Ridon, Infrawatch PH convenor and former member of the House committee on energy.

Doubts on affordable rates

Ridon also expressed doubts on whether SPSB will be able to deliver on its promise of competitive, if not lower power rates within its franchise areas.

“One of SPSB’s main oppositors, Philreca, which is an association of electric cooperatives, alleged in a report that SPSB’s current running power rate in Palauan, Occidental Mindoro stands at P10.97 per kWh, based on an average of twenty households visited by the group.”

Ridon said that the main promise of SPSB is that it can fully compete with the prices of existing electricity providers in its proposed franchise areas.

“With reports such as these, we have serious doubts on whether SPSB can truly compete with existing electricity providers. We are also wondering whether its main interest is simply to ease out competitors already in place in these areas.”

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Ridon also expressed alarm on the allegation in the Philreca report that SPSB is dependent on the distribution system of the existing electricity provider in the area.

“If this were true, it a reasonable impression that SPSB may not be able to deliver true end-to-end electricity services to its proposed franchise areas.

In other words, SPSB should be able to deliver reliable, affordable, competitively-priced electricity services without relying on already-existing distribution utilities. If not, there is absolutely no reason for its franchise to be granted.”

Misleading press statements

Ridon also called out SPSB’s sister company, Solar Philippines for issuing misleading public statements attributing lower Meralco rates to its solar operations.

“We have reviewed publicly available data on the drop on power rates within the Meralco franchise, and there is nothing in the data that attributes the decrease in power rates to Solar Philippines or solar farms.

The main reasons for lower power rates in the Meralco franchise area are lower rates in transmission and other charges.”

More importantly, Ridon said that Solar Philippines cannot take credit for lower power rates in the Meralco franchise area because its solar farms have not yet even entered the Luzon grid during the supply month concerned.

“Given all of these facts, the President should most definitely take pause in signing the SPSB franchise bill, and consider outrightly vetoing the bill. While we believe that the time for solar and renewables is here and now, the environment for this sector to grow should not be solely placed in the hands of a few.”