The Philippine government last week allowed DITO Telecommunity Corp, a joint venture between state-run China Telecom and a tycoon close to President Rodrigo Duterte, to erect towers on military land for its $5.15 billion entry into the market, which includes 5G technology.

The consortium was the only qualified bidder in a 2018 license auction that followed months of Duterte saying he had offered China a spot in the Philippines' telecom sector. China Telecom owns 40% of DITO.

But some lawmakers complain DITO could be a "Trojan Horse" for spying, including on a military allied with the United States.

"We are not at war with China so this concern about espionage and spying I feel is truly misplaced," Adel Tamano, a top DITO official, told a news conference.

DITO's equipment and devices are not a security risk, Tamano said, adding that it is investing heavily in cybersecurity.

No Chinese personnel will be allowed inside camps, he said, and a retired Philippine general and telecoms expert had been hired to ensure cybersecurity.

However, former Supreme Court judge Antonio Carpio, a staunch critic of Duterte's pro-China stance, in a newspaper column on Thursday said Beijing "would surely eavesdrop". Opposition lawmaker Risa Hontiveros wants a senate probe on DITO's military deal.

Like competitors Globe and PLDT, DITO also uses equipment from Chinese firms Huawei and ZTE.

DITO is 60% controlled by Duterte associate Dennis Uy, whose conglomerate Udenna is partnering in big projects with several other Chinese state firms in energy and construction.

Among those is a U.S.-blacklisted company involved in China's building of a missile-equipped artificial South China Sea island that the Philippines sees as a national security threat. Udenna has acknowledged its Chinese partner's involvement.

By Neil Jerome Morales and Karen Lema