I would go with policy 1, because there are many reasons why students would have their cell phones with them. There could have been something bad in your family and one of your parents might call to notify you what has happened, there's some kind of murderer in the school and the phones are out and cell phones are the only device to contact someone when you really need help, or you are on school grounds in a severe condition and there is no one else there to help you, you could either call for help or use your cell phone. I kind of support the use of cell phones even though I don't own one, I might ask for someone to use their's when I need to make a call. Even though these events are rare, you might not know what will happen. In my opinion, I would tell the principle to use policy 1.

If I asked all the students who have cell phones with them if they want policy 1, there would be a chance that most of them would say yes. If I asked teachers with cell phones, probably most of them would want policy 2. I have already wrote a letter to the principle before this for an assignment if students should be allowed to have cell phones, either for educational use, emergency, or at certain time periods. Students want their cell phones with them just to be equal to their teacher, even though we are already equal by having an education and what events the school hosts for us to join.