Globe expanding network to non-Chinese equipment providers amid renewed US-China tensions

Ayala-led Globe Telecom Inc. is now expanding its network to accommodate more non-Chinese equipment providers, following concerns between China and the United States.

In a Senate hearing, Globe general counsel Vicente Froilan Castelo said the company is now developing a strategy for an alternate network that will be catered by equipment providers outside China.

"Because of these developments coming in from the US and Europe, we’re coming up with a strategy for another network which is based on non-Chinese telco equipment providers," he told senators on Wednesday.

"This is especially true, because our American and other Western corporate clients are doing the same, your honor. So we are right now in the process. But we have already in place, but we are expanding it—an alternate network which we call that to provide for this," he added.

At present, some 80% of Globe's equipment is sourced from China, particularly from Huawei Technologies, which supplies equipment for the fifth-generation (5G) services.

Amid trade tensions with China, the United States as early as last year urged its allies not to do business with Huawei, claiming the company's equipment could be used for spying. The company has denied the allegation.

According to Castelo, Globe has already assured the US government that Huawei is merely an equipment provider, and the company remains on top of its network security.

"We are totally responsible for it.  In fact, we have Israelis, Americans network security advisers for that matter who keep on auditing our network for any lapses or leakages in terms of security," he said.

"We are coming up with negotiations with Huawei if there’s a point that they will be totally banned in the US, there will be some compensation and replacement of equipment for that matter," added Castelo.

He also noted that moving forward, Huawei already assured the continued supply of equipment despite the ban by the American government to do contracts with Huawei and other Chinese telcos.

For its part, PLDT Inc. and its mobile subsidiary Smart Communications Inc. last year already said it is considering a diversified approach to procuring equipment.

Tensions between the world's biggest economies have been recently escalating, with the US moving to expel WeChat and TikTok from US app stores, but the ban has been temporarily put on hold.—AOL, GMA News