NTC wants to legitimize refurbished phone trade

The National Telecommunications Commission (NTC) is moving to regulate the sale of refurbished mobile phones and other devices, potentially opening a clearer legal market for accredited dealers while cracking down on sellers of stolen, tampered, or defective units.

Under a proposed memorandum circular, authorized dealers could import and sell refurbished mobile phones, tablets, and other customer premises equipment, provided the devices are NTC type-approved, untampered, and legitimately sourced.

The proposal would require refurbished devices to be properly labeled and graded, packaged under the brand of an NTC-authorized entity and covered by a one-year repair or replacement warranty.

“Only properly documented and legitimately-sourced mobile phones and devices that are type-approved shall be allowed to be imported by the NTC,” the regulator said in a statement on Wednesday.

For companies seeking to participate in the refurbished-device market, the rules would establish accreditation and product requirements before units can be imported and sold to consumers.

The NTC said unlicensed entities found importing, selling or trading used or refurbished phones, tablets and similar devices would face administrative sanctions.

The regulator is considering the rules to curb the unauthorized sale of illegally acquired or stolen devices, as well as the trade of tampered and defective phones.

The NTC held a public hearing on the proposal on 23 September, attended by public telecommunications entities, prospective applicants, and other stakeholders.

Initial comments submitted to the regulator raised concerns about protecting manufacturers’ intellectual property and other reserved rights.

Stakeholders and the public may submit comments, recommendations, and proposed revisions until 1 October.

The NTC said the initiative forms part of its mandate to regulate telecommunications equipment and protect consumers.