NTC boosts crackdown vs stolen phones
Refurbished phones and other mobile devices are next on the government’s list of markets it wants to regulate, with the National Telecommunications Commission (NTC) drafting rules that would dictate who can import and sell them in the Philippines.
According to the NTC, the proposed rules are, in part, meant to curb the illegal market for stolen phones.
“The regulation is being considered to stop the unauthorized sale of illegally acquired or stolen mobile phones and the unscrupulous trade of tampered and defective mobile phones in the market,” the commission said in a statement.
Under a still-unnumbered memorandum circular, the regulator proposed allowing the importation and sale only of NTC type-approved and untampered refurbished mobile phones, tablets and similar devices.
These units would have to be “properly documented and legitimately sourced,” as well as labeled and graded before they could be sold to consumers.
Permit needed
The NTC also wants authorized dealers to provide a one-year repair or replacement warranty for approved refurbished devices.
Under the draft rules, businesses seeking to enter the market would also have to obtain a “Refurbished Mobile Phone Dealer Permit.”
The permit will cost P2,500 annually for each branch, on top of a P500 filing fee and P1,500 inspection fee, also charged annually per branch.
The NTC defines a refurbished mobile device as “a previously used electrical or electronic device that has undergone inspection, testing, repair, replacement of defective components, cleaning, or other refurbishment processes intended to restore or improve its functionality for continued use or reuse.”
The proposed framework would cover not only the sale of refurbished devices but also their importation, dealership, accreditation and labeling.
Devices cleared for sale would also have to be boxed and identified under the brand of the person or entity authorized by the NTC, according to the commission.
According to the NTC, it held a public hearing on the proposal on Sept. 23, which was attended by public telecommunications entities, prospective applicants and other stakeholders.
Penalties
Initial comments raised during the consultation included concerns over the protection of intellectual property and other rights reserved for original manufacturers, the NTC said.
The commission gave the public until Oct. 1 to submit comments, recommendations and proposed revisions.
Once implemented, unlicensed entities found importing, selling or trading used or refurbished phones, tablets and similar devices could face administrative sanctions from the NTC.
Possible penalties include a fine of P5,000 per offense or per unit. Repeated violations may lead to the suspension or complete revocation of the dealer’s permit.
The NTC said the proposed rules form part of its mandate to oversee telecommunications equipment.
“The initiative forms part of the NTC’s mandate to regulate telecommunication equipment in a transparent, responsible and accountable manner to protect the interest of the Filipino consumer,” it said.
