Key Definitions
- Commission: Refers to the National Telecommunications Commission.
- Mobile phone: A handheld device using cellular mobile telephone system technology for transmitting voice, data, and multimedia via radio waves.
- Mobile Phone Dealer (MPD): Entity or individual engaged primarily in buying, selling, leasing, or retailing mobile phones and their parts or accessories.
- Mobile Phone Dealer's Permit (MPDP): Official permit issued by the NTC authorizing lawful engagement in MPD activities.
General Provisions
- Obtaining a valid MPDP from the NTC is mandatory before engaging in mobile phone trade.
- Dealers must not stock illegally acquired mobile phones or units lacking proper NTC type-approval labels.
- Monthly submission of inventory lists including IMEI codes and SIM numbers to NTC is required.
- Regional NTC offices must forward reports to the central Telecommunication Planning and Development Department.
- Existing accredited dealers must notify the NTC within 30 days to include mobile phone transactions in their accreditation.
- Non-compliant businesses operating without permits face closure and fines until compliance.
Operating Guidelines for Authorized Mobile Phone Dealers
- Dealers must comply with all circular provisions and related laws.
- Prohibition against acquiring or dealing in phones from unauthorized or illegal sources.
- Dealers must avoid advertising unauthorized or illegal mobile phone products.
- Requirement to conspicuously post business identification and dealer sources at business premises.
- Inventory must exclude unauthorized or illegal permit numbers.
- Monthly sales and stock reports must be submitted to the NTC.
Permits and Application Process
- No mobile phone business shall operate without an NTC-issued MPDP.
- Application must be filed with Central or Regional NTC offices with documents including:
- SEC or DTI registration and local business permits,
- Valid dealership agreements with NTC-accredited suppliers,
- Inventory lists guaranteeing parts and warranty coverage,
- Proof of paid-up capitalization of at least PHP 100,000.
- Fees include Filing Fee (PHP 180), Permit Fee (PHP 1,200/year), and Inspection Fee (PHP 720/year).
- Non-payment results in denial, suspension, or revocation of permits.
Validity and Renewal of Permits
- MPDPs are valid for one year.
- Renewal requires proof of continued compliance with regulatory requirements.
Inspection Procedures
- Inspections verify compliance before issuing MPDP.
- Any non-conformance must be reported to the applicant.
- Applicants have 30 days to address deficiencies and request re-inspection.
Administrative Sanctions and Penalties
- Violations subject to fines and permit sanctions, including:
- PHP 5,000 per unit for illegal trade or missing NTC labels,
- PHP 50,000 per unit for illegal importation,
- PHP 5,000 for operating without a permit plus possible establishment closure.
- False statements in applications can also lead to sanctions.
Suspension, Cancellation, or Revocation of Permits
- NTC may initiate administrative cases upon complaints or violations.
- Respondents have 15 days to show cause why permits should not be sanctioned.
- Cease and Desist orders and suspensions may be issued during hearings to protect public interest.
Repealing Clause
- Conflicting prior regulations are amended or superseded by this Circular.
Effectivity
- Circular takes effect fifteen days after publication and submission of copies to the UP Law Center.