City councilor wants 'grayphones' banned

A city councilor is pushing for the prohibition of the purchase and sale of the so-called "grayphones", or mobile phones not distributed by authorized entities.

Councilor Edgardo Labella is concerned that many of the so-called "grayphones" are circulating in the markets in the city, in violation of a Memorandum Circular of the National Telecommunications Commission, which prohibits mobile phone dealers and retailers to acquire, purchase, sell, lease and/or retail mobile phones from unauthorized or illegal sources.

In his proposed ordinance, Labella said the effect of grayphones will not only be on the sustainability of legitimate business operations but also on consumers who use products that are not subject to product tests or quality control tests.

"While the reported flooding of so-called 'grayphones' in the market will undoubtedly be detrimental to the sustainability of the business operations of legitimate and authorized distributors of mobile phones in this city, still, the most serious blow would be borne by the end-users of the said commodities which have not been subjected to product standard-related tests by the concerned government agencies," Labella said.

The proposed policy calls for the city government to "promote a consumer-friendly as well as business-friendly environment for the legitimate operations of mobile phone dealers/retailers in Cebu City" pursuant to the provisions of the Consumer Act of the Philippines and the Public Telecommunications Policy Act of the Philippines.

The proposed ordinance mandates the city's Business Permit Section to implement the ordinance in coordination with the National Telecommunications Commission.

If approved, those who will be caught violating the ordinance will be fined P1,500 for the first violation; P3,500 for the second violation; and P5,000 for the third violation plus a possible revocation of business permit or license. - Joeberth M. Ocao