SEC affirms Globe’s right to sell cellphones

The Securities and Exchange Commission (SEC) has affirmed Globe Telecom’s right to sell and distribute cellular phone units, accessories and other related equipment to its clients and subscribers.

The SEC opinion was in response to a query by the law firm of Ponce Enrile Reyes and Manalastas seeking the agency’s opinion on the legal feasibility of Globe’s intention to carry out the sale and distribution of telecommunication products through its business centers without the need to comply with any other law or regulation that are otherwise applicable to ordinary traders, sellers or retailers.

"The intended activities are necessary, incidental and form an integral component of providing telecommunication services," said Rosalina Tesorio, assistant director of the SEC’s Law and Regulation Division.

However, Tesorio said Globe may not sell cellular telephone units separately or independently of the line it offers "for the same would constitute as engagement in retail business."

The SEC official said the operation of telecommunications or as service provider and the sale of telecommunication products are interrelated activities, with the latter treated as reasonable and necessary considering that by providing the necessary equipment to transmit the same, "the conveyance of communication is thus assured and the availment by the subscribers or clients of the communication services offered by the firm is thus enhanced."

Tesorio added that Globe’s power to distribute and sell to its clients and subscribers telephone units and accessories is within the corporate authority specified under its charter, its Congressional franchise, and provisions of the Corporation Code.