Definitions
- Commission: Refers to the National Telecommunications Commission (NTC).
- Mobile Phone: A handheld radio communications device using cellular mobile telephone system (CMTS) or similar technologies.
- Mobile Phone Supplier/Distributor (MPSD): Entity accredited by the Commission to import and sell mobile phones and parts to dealers.
- Mobile Phone Dealer (MPD): Authorized entity to buy from MPSD and sell to end users, may operate multiple branches with corresponding permits.
- Mobile Phone Retailer/Reseller (MPRR): Registered entity buying from MPD and engaging in limited sales to end users for a limited period.
General Provisions
- Accreditation, permits, or registration certificates from the Commission are mandatory to engage as MPD, MPSD, or MPRR.
- Illegal acquisition or possession of mobile phones without NTC type-approval stickers is prohibited.
- MPD and MPRR must submit monthly reports listing IMEI codes and SIM numbers of stock.
- Regional Offices must forward sales and stock reports to the Telecommunication Planning and Development Department.
- Existing entities must apply for appropriate permits within 30 days of the Circular's effectivity or face closure and fines.
Operating Guidelines for MPDs and MPRRs
- Strict compliance with the Circular and existing radio laws is required.
- Prohibition against dealing in mobile phones from unauthorized or illegal sources, including advertising.
- Requirement to conspicuously post business identification signs specifying registered business name, services, address, and permit number.
- Monthly submission of sales and inventory reports to the Commission is mandatory.
Permits, Registration, and Filing
- Valid MPD/MPRR registration is required prior to engaging in mobile phone transactions.
- Applications filed with the relevant Regional Office must comply with NTC documentation requirements.
- MPD must provide incorporation/registration documents, dealership agreements, warranty-related stock lists, and proof of capital of at least PHP 100,000.
- MPRR must provide similar registration documents, proof of capital of at least PHP 50,000, and stall lease agreements.
- Fee structure: Filing fee (PHP 500), MPD permit fee (PHP 2,500/year), MPD branch fee (PHP 1,500/year per branch), MPRR registration fee (PHP 1,500/year), Supplier/Distributor accreditation fee (PHP 2,500/year), Inspection fee (PHP 1,500/year).
- Non-payment of fees may lead to denial, suspension, or revocation of permits.
Validity of Permits
- Permits are valid for one year and renewable upon continued compliance with requirements.
Conduct of Inspection
- NTC technical staff conducts pre-issuance inspections to verify compliance.
- Non-conformances must be corrected within 30 days with re-inspection scheduled accordingly.
Administrative Sanctions
- Violations subject to suspension, cancellation, revocation of permits, closure of establishments, and fines.
- Specific fines include PHP 5,000 per unit for illegal purchase/sale/lease, lack of NTC approval labels, illegal importation.
- Operating without a valid NTC permit subjects the operator to a PHP 5,000 fine and possible closure.
Procedure for Suspension, Cancellation or Revocation
- Upon complaint or violation report, the Commission may initiate administrative cases.
- Respondents must show cause within 15 days why their permit should not be suspended, cancelled, or revoked.
- Cease and Desist orders may be issued pending the hearing to protect public interest.
Repealing Clause
- Previous inconsistent circulars, memoranda, or orders are amended or superseded accordingly.
Effectivity
- The Circular takes effect 15 days after publication in a newspaper of general circulation and upon submission of certified true copies to the UP Law Center.