Last year, the group created a virtual 10-year-old Filipina girl that was deployed in Internet chat rooms to lure paedophiles.Over 10 weeks, 20,000 people from 71 countries approached the fake girl asking for sexual performances, according to Terre des Hommes, which passed the details of the paedophiles onto police.

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Mothers accompany their children to a day care center, next to the now abandoned house (back) that used to streamed live sex acts of children to paedophiles watching online overseas, in the village of Ibabao in Cordova town, Cebu provnce in central Philippines on January 21, 2014.

(AFP) In a remote Philippine village, toddlers played oblivious at a nursery as the house next door became part of a horrifying child pornography ring, with ‘live’ footage of children performing sex acts being streamed online to paedophiles around the world.

In announcing the dismantling of the paedophile network, Britain's National Crime Agency said in mid-January that 11 people had been arrested in the Philippines and 18 elsewhere around the world.

Another 733 suspects were being investigated, the agency added.

But while the village is currently in the spotlight, authorities and child rights advocates say the fast-growing global industry is infecting many parts of the mostly poor Philippines, with thousands of children having been abused.

At first look the coastal community of Ibabao, 550 kilometres (340 miles) south of Manila, is a typical close-knit rural Philippine village, where many of the long-time residents are relatives or enjoy close and longstanding ties."We are not rich, but we are also not poor and desperate.It was an evil thing to do." Nevertheless, she said that staying silent and steering clear of those involved in the trade was the best thing to do, to avoid any trouble.Canete said one of her children attended the nursery located next to the house where the three children were being abused."We were angry that this could happen just near the day care," she said.The depraved scenes in the bungalow were being repeated in many homes throughout Ibabao, a secluded community on Cebu island where Internet child pornography had for some of its 5,000 residents become more lucrative than fishing or factory work.